In a first-time partnership, the Indeed Hiring Lab and Glassdoor’s Economic Research team have created a data-driven report that offers guidance on how employers can navigate the ever-changing labor market — and explores, among other things, an unexpected dip in corporate focus on Diversity, Equity and Inclusion (DEI) initiatives.
The report offers insights into and strategies for managing the following five labor market trends:
The tight labor supply will continue to impact hiring
As COVID-19 recedes, deep-seated and long-term supply dynamics will continue to be a major force that creates a persistent gap between employer demand for new hires and the supply of candidates. That means the hiring difficulties seen today will continue beyond the short-run impacts of the pandemic. To be sure, the economies of many countries could slow or even fall into recession as central banks work to lower inflation. But even if employers’ hiring appetites fade, the supply of workers seems likely to remain tight in the long run.
Remote work is here to stay
The pandemic-enforced shift to widespread remote working will be a permanent feature of the labor market. Though many jobs can’t be done remotely and some employers are focused on return-to-office, workers are keen as ever on a more flexible approach. For example, searches for remote work on Indeed have continued to hit new highs even as the pandemic’s impact fades, underlining the lasting shift in job seeker preferences. For employers, remote work has widened the available talent pool, and opportunity for job seekers is now more geographically dispersed.
Pay is top of mind for job seekers — but other aspects matter too
Compensation is the key consideration for job seekers right now, understandably so in a cost-of-living crisis. But other aspects of jobs matter too. Flexible work arrangements rank highly. For jobs where remote work isn’t feasible, that generally means flexibility around hours and shift patterns. Flexibility is particularly important for people who face barriers to work such as caring responsibilities, while it’s also a key consideration for older workers who are considering re-entering the labor force. Benefits are also a key tool, with many employers having shifted the focus of their offerings in line with the times (fewer gyms and free food; more wellbeing support and financial advice).
Company culture is vital
The labor market’s remarkable rebound from the pandemic has led to significant hiring challenges, which are likely to persist in the long term in many sectors. For employers looking to attract and retain employees, company culture is crucial. Even though the economy is heading into choppy waters and the balance of power may swing back towards employers somewhat, no organization can afford to ignore the importance of culture in distinguishing themselves from the competition and making employees want to stay.
Diversity and inclusion focus has dipped
In the face of economic headwinds and hiring challenges, DEI efforts at organizations seem to be diminishing in importance as leaders struggle to balance competing priorities: In the U.S. and U.K., for example, the share of benefit reviews on Glassdoor citing DEI programs dropped in the first three quarters of 2022.
For employers, this slowdown in DEI efforts could have a negative impact on hiring and retention. Nearly two-thirds (62%) of workers in the Indeed and Glassdoor survey of US workers said they would consider turning down a job offer or leaving a company if they did not think that their manager (or potential manager) supported DEI initiatives.