With the emergence of the gig economy and contingent workforces, disruptive new technologies and a nationwide skills gap, companies today are being forced to radically rethink the way they attract and retain talent. Alongside with — and exacerbating — all of these factors, the labor market has never been tighter, with the unemployment rate hovering around four percent. In such an environment, hiring processes must evolve in order for companies to find the talent they need. How? Read on for four ways.
cash signing bonuses
In perhaps the most extreme and direct example of how the tight labor market is changing hiring practices, some companies are now offering cash signing bonuses to new hires. And it's not just C-suite executives — blue collar workers, too, are reaping these benefits. For instance, some railroad workers are receiving signing bonuses of up to $25,000.
The key takeaway? No matter the industry or role, when companies can't find the talent they need, they're forced to experiment with new approaches to hiring. And cash tends to be a pretty effective motivational tool.
Arranging in-person interviews can be a hassle, especially when multiple parties are involved. And if schedules don't line up, the entire timeline for hiring can get knocked back by a week or more. In a tight labor market, that's a week you can't afford to lose.
That's part of the reason why video interviews have become so commonplace. Whether conducted through Google Duo, Google Hangouts, Skype, FaceTime or another service, video interviews simultaneously alleviate the scheduling burden and allow companies to tap into a much larger, more geographically dispersed talent population.
Plus, some of these technologies actually eliminate the need to coordinate schedules altogether. Candidates simply record their answers to preset interview questions on their own time and —violà! — the hiring process speeds along.
Like video interviews, pre-employment screenings allow employers to vet prospective employees, ensuring that they have the right skills for the job before more time and resources go into the hiring process. And that makes sense: Why interview a coder, who, as it turns out, can't actually code?
In other instances, these pre-employment screenings take the form personality tests. In general, these are diagnostic tools designed to help employers figure out whether a given candidate will be a good fit for the team. Some of the most common tests in this department are DiSC, Harrison Assessments (HA) and the Myers-Briggs Type Indicator (MBTI).
To relieve talent pressures associated with the tight labor market, many companies are turning to strategic partnership with staffing companies like Randstad. We leverage the latest sourcing and screening technologies, together with our unrivaled nationwide talent network, to find qualified candidates fast. When companies feel confident they have the talent they need to drive their businesses forward, they can remain focused on what they do best.
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