The number of unemployed is rising, consumer confidence is falling, and most people are affected by high energy prices. ING chief economist Marieke Blom states eind oktober in News Hour “I think we've passed the tipping point and are in a mild recession, and we actually don't really know whether it will further develop into a severe recession.”
A mild recession
At the beginning of 2020 CBS released a report conveying that the long-term impact of the 2008 banking crisis now really seemed to be disappearing: there was a depth record of the number of unemployed. The labor market tightness rose to an average of 92 vacancies per 100 unemployed. That is quite different in 2022. In the third quarter in 2022 there were 121 vacancies open for every 100 unemployed.
The coronavirus crisis also affected the recruitment sector. When fewer vacancies are open, there is also less money and need at companies for the recruitment process. This could be seen in multiple sectors. At many companies a hiring freeze implemented, and at some companies even 80 percent of their recruitment was cut. In the coming years the demand for employees will increase in various sectors. From research from McKinsey it appears that half of the jobs that are hardest hit by the crisis, are being replaced by automation. The crisis has accelerated that process.
What are the challenges for HR?
There are various solutions to eliminate the imbalance between supply and demand. For example, upskilling and reskilling employees and recruiting employees from other sectors. What else can HR take into account?
Recruiting top talent
With or without a recession: recruiting top talent has always been a challenge for HR. If you're competing with various parties for talent, it's a challenge to level the hiring playing field. This is somewhat intensified because the pandemic has brought about a change where candidates also look at flexibility, company values and workplace culture. To attract top talent, it's important to keep the right skills up to date and to gain knowledge.
Sustainable Employability
Employee retention is important at all times. HR professionals must make an effort to find new ways to deter employees from changing companies.
The right branding
Organizations benefit from the right employer branding. It is important to position the company or the brand in the market as well as possible. By investing in marketing and brand awareness, you will benefit from it in the long term. Focus on your website and social media and show the company online. This way contact with (potential) customers, but also your reputation, keeps improving. Also consider whether you can share knowledge through training, webinars, lectures, podcasts or blogs or LinkedIn.
The aftermath of the pandemic
– and with a recession on the way
– forces HR to rethink the requirements for successful recruitment, and the kind of employees it really needs to succeed in the coming years.
