Benefits and flexibility remain important to attract talent, report finds

The world of work is changing, and more organisations report recruiting difficulties as demographic challenges, the impact of COVID-19, and other external factors continue to drive labour market shortages.

Employment-focused websites Indeed and Glassdoor have collaborated on a report that looks at top trends affecting the labour market and how these trends could impact the future of work.

Indeed & Glassdoor's Hiring and Workplace Trends Report 2023 identified the top long-term trends set to affect the labour market in the coming years as demographic shifts and aging populations, remote work, changing employee needs, company culture, and diversity, equity, and inclusion (DEI).

"Fewer people of working age mean the supply of workers will dwindle," the report said. "Combine this aging population with other trends, such as reduced immigration, and the stage is set for chronic recruiting challenges."

In the UK, deaths are projected to exceed births by 2025, according to a 2021 Census from the Office for National Statistics cited in the report.

While "demographics and evolving preferences" continue to test employers, looking at the new expectations of potential candidates can help organisations understand what they can offer. Remote work continues to be desirable since COVID-19, which has opened up more fully remote positions across sectors, with more job seekers looking for positions that allow them to work from home.  

Employers trying to fill in-person jobs may find themselves at a disadvantage as workers gravitate to work that lets them stay home, the report said. Organisations that adopt flexible work can cater more to employees with disabilities and parents with childcare responsibilities. They also open their doors to expanded talent pools, the report said.

"Because remote jobs can theoretically be done from anywhere, they are a particular draw for foreign job seekers," the report said.

In the US and the UK, 27% of marketing job postings advertise remote work, according to the report. That's an increase from 7.1% for the US and 4.5% for the UK in September 2019.

Among employed US workers ages 25–54, higher pay was the most often selected reason they searched for a new job, the report said.

For employers not in the position to raise wages, company benefits continue to attract job seekers. The report said that holistic benefits have become a more critical part of compensation packages.

Job postings on the US Indeed platform advertising health insurance have increased from around 25% at the start of 2019 to over 40% in May 2022.

"Perhaps the most critical benefit that seems to be growing across all industries is mental health care," the report said. "Soon after the start of COVID in the US, an upward shift occurred in the share of employee benefit reviews on Glassdoor that say that their employer offers mental health benefits."

Company culture and DEI continue to make an impact on recruitment. The findings from Indeed and Glassdoor align with findings from the Chartered Institute of Personnel and Development and the UK's Recruitment & Employment Confederation.

"Ninety per cent of people believe that how we feel at work matters, yet only 49% of people report their company is measuring happiness and wellbeing," according to Indeed's UK Work Wellbeing 2022 Insights Report, which is cited in the Glassdoor and Indeed report.

Employer ratings by employees can indicate how likely the worker is to seek a new job. In the UK, for instance, a 1-star increase in an employee's Glassdoor rating is associated with a 19% decline in the likelihood the employee begins a new job application on the site within the next week, the report said.

Seventy-two per cent of workers ages 18–34 said they would consider turning down a job offer or leaving a company if they did not think their manager supported DEI initiatives. Forty-five per cent of workers 65 and older feel that way, the report said.

— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.