Summary
For the first time since 2008, volume is missing from high-volume hiring, leaving most organizations using traditional recruitment strategies unprepared. That’s because their processes were designed to cope with high volumes of applications, and without those large numbers, such processes no longer work well.
As a result, employers are now having to quickly adapt to the current situation — with no true guideline for doing it the right way.
Companies are consequently increasing wages, offering sign-on bonuses, and covering tuition fees in a bid to get candidates through the door and to keep hold of current employees. And yet, all over the world, the talent pools for hourly roles continue to dry up. On top of that, the end of the Great Resignation isn’t yet in sight.
Having processed over 7 million job applications since the start of the pandemic, we dare say that the hourly hiring crisis is a process, not a people, problem.
Sure, organizations worldwide are struggling to attract and retain employees. But that’s not because there aren’t enough potential candidates. It’s because high-volume hiring processes are not built to adapt to fluctuating numbers, and because they rely on outdated practices and tech stacks that were put together haphazardly, without the big picture in mind.
All of which leads to two questions: What can organizations do to fix this? And where should they start?
People still want to work — just not for you
According to preliminary data from the U.S. Bureau of Labor Statistics, in September there were 147 million nonfarm employees, the highest number since the beginning of the pandemic. Additionally, unemployment continues to decrease, with 7.7 million unemployed people, of which 4.5 million want to work and are looking for a job.
Despite the job gains made by the hospitality, retail, and warehousing industries, many employers in these sectors are still complaining about the shortage of workers. A problem which, if we are completely fair, was not only predicted but also expected. The pandemic just accelerated this trend.
The heightened risk of contracting the virus, along with low wages, inflexible work schedules, and the increasing number of remote vacancies are all contributing to the talent crisis affecting the high-volume hiring.
But the lack of candidates for hourly jobs, which are mostly entry-level in nature, is the result, not the cause, of the broken talent acquisition practices that have been in place for years. Again, the pandemic has simply brought these issues to light.