Navigating the new labor landscape, empowering employees, and streamlining operations
As the labor market continues to undergo profound transformations, employees are holding greater influence and employers are being prompted to adapt.
It wasn’t long ago that employers held all the leverage in the labor market. They could set strict terms of employment, offer lower wages, and afford to be highly selective. In recent years, the market has shifted to give employees far more negotiating power than before. The shift in leverage can be attributed in part to the pandemic and subsequent rise of remote work, greater work-life balance expectations, and increased demand for skilled workers. These ongoing transformations in the labor market have forced employers to rethink their strategies and adapt to the changing dynamics of attracting and retaining top talent.
The cost of change: Retaining top talent
Retaining outstanding employees in today’s labor landscape can be a costly endeavor, but the cost of losing them can be even more substantial. The expenses associated with turnover include recruitment, onboarding, training, and decreased productivity during the transition period.
In fact, recent data from Bluecrew shows that it can cost employers more than $6,700 to replace a single worker making $15 per hour. There are other massive costs facing organizations as many spend: on average, $20,000 is spent on taxes, insurance, benefits, recruiting, and ongoing management annually, to be precise. What is harder to quantify is the emotional toll the loss of colleagues has on their peers, team cohesion, and the institutional knowledge of an organization.
The benefits of digital solutions
As the labor landscape changes, it’s crucial for employers to invest in strategies that reduce turnover and create an environment where employees feel valued and engaged. One such strategy is the adoption of digital solutions that can streamline operations for employees and managers alike. Digital solutions offer a way for employers to reduce the burden associated with employee turnover while simultaneously improving the workplace experience. Key benefits include:
- Efficient recruitment: Digital platforms allow employers to cast a wider net when searching for talent. Job posting websites, Workforce-as-a-Service platforms, applicant tracking systems, and AI-powered tools can help identify the most suitable candidates quickly, saving precious time and resources.
- Enhanced onboarding: Digital onboarding solutions simplify the process of integrating new employees into the organization and make the transition smoother and more engaging.
- Performance tracking: Performance management tools enable employers to provide regular feedback and set clear goals for employees. This promotes accountability and growth, increasing overall job satisfaction while providing employees with a clear trajectory within the organization.
- Employee engagement: Digital solutions can foster a sense of belonging and community among employees. Platforms for virtual team building, communication, and recognition can boost morale and job satisfaction.
The true cost of recruitment can be found in the thousands of dollars many businesses lose by ineffectively or inefficiently hiring, and in hires who may turn out to be a bad fit. In fact, turnover for a 50-person workforce could cost companies more than $168,000 per year.
What can be done to mitigate hiring and retention issues? It comes down to thinking like an employee and leveraging digital solutions:
- Provide growth opportunities: Employees value opportunities for career growth and development. Implement digital learning and development programs to help employees acquire new skills and advance within the company.
- Focus on wellbeing: Prioritize employee wellbeing by offering things like schedule flexibility, mental health support, and stress management resources. Digital platforms can even provide access to counseling services and mindfulness apps that may be crucial to workers in a tough spot.
- Regular feedback: Utilize digital performance management tools to provide regular feedback and enable employees to set clear goals. This fosters a culture of continuous improvement and helps employees feel valued.
- Recognition and rewards: Establish recognition and rewards programs to acknowledge and incentivize outstanding performance. Public recognition and small perks can go a long way in retaining top talent.
As the labor market continues to undergo profound transformations, employees are holding greater influence and employers are being prompted to adapt. Embracing digital solutions can help streamline operations, reduce turnover costs, and improve employee satisfaction. By following these tangible tips, employers can position themselves to thrive in this new labor landscape, attracting and retaining top talent for years to come.
Matt Laurinas, chief customer officer, Bluecrew by Employbridge