by Dave Nerz
The seismic shift triggered by the “Great Resignation” has evolved into what we now witness as the “Great Stay.” As we navigate this new terrain, it’s crucial to understand the underlying dynamics shaping the current employment landscape. Guy Berger’s insights shed light on some of these factors, pointing to demographic shifts, changing industry dynamics, and the impact of mortgage interest rates. This paragraph from Guy Berger’s Substack Newsletter resonated with me:
“Our population is getting older. That means, over time, less job switching. Additionally, existing workers have stronger track records, which makes layoffs less appealing. It explains why turnover is lower than 10-20 years ago, but doesn’t do much to explain what’s happened over the past year. Another option here that I haven’t investigated is inter-industry shifts – basically, job growth is shifting from high turnover industries to low turnover industries; probably the biggest counterargument is that a lot of the industries dominating recent job growth are industries with higher-than-average turnover! But I’m open to someone digging in further on this.”
You can subscribe to Guy Berger’s Substack here:
In addition to these factors, employers’ newfound reluctance to engage in mass layoffs has added another layer of complexity. The painful lessons learned during the Great Resignation have made companies more cautious about letting go of valuable talent. Moreover, employees who were discontented have already made their moves, leaving behind a workforce that is less inclined to change jobs hastily.
For independent recruiters, these changes present both challenges and opportunities. In such a climate, it’s essential to adopt proactive strategies to stay ahead. Here are a few ideas to consider:
- Talent Pipelines: Instead of waiting for job openings to emerge, engage with client companies to identify areas where talent improvements are needed. Propose building a talent pipeline, positioning it as a retained project rather than speculative work. This proactive approach not only demonstrates your commitment but also ensures a steady stream of opportunities.
- Talent Assessments: Collaborate with clients to assess their current workforce’s skills and identify areas for improvement or talent acquisition. Utilize assessment tools or develop a tailored process to support your client’s needs effectively. By offering strategic insights, you position yourself as a trusted partner in their talent acquisition journey.
- Future Needs Planning: The rapid advancements in AI and cybersecurity underscore the importance of future-proofing businesses. Engage with clients to develop plans addressing these emerging technologies’ implications on their workforce. By initiating these discussions, you demonstrate your foresight and value as a strategic partner.
In a landscape characterized by uncertainty, independent recruiters must embrace flexibility and agility. Waiting for opportunities to arise is no longer viable. Instead, pivot towards proactive approaches that anticipate and address clients’ evolving needs. By staying ahead of the curve, independent recruiters can navigate this new world with confidence and resilience.
