Did COVID-19 Create a Hiring Crunch?
Yes. From what I am reading and seeing, COVID has impacted our entire lives, so it makes sense that hiring and recruiting will be affected, too. Here is an article talking about the “great resignation.”
When the pandemic first hit, many were thankful that a) they had jobs and b) some could work from home. As time dragged on and the government offered viable financial support, some industries feared that their employees may not return post-lockdown. If employees did not return, then employers needed to recruit, and they would be in tough shape.
We are witnessing this effect first-hand. We recently had an active job post, after the first week, we had five applicants; in the past we would have had 100 or more. So, we are seeing it first-hand that for some reason, there seems to be less interest. Also, I have heard that many in the restaurant industry are having issues bringing people back. So, whether it is government support or people rethinking what jobs they want to pursue – it seems that many people are not coming back or they are changing jobs altogether.
How can benefits help with this?
It comes to communicating the total compensation and what role benefits play in the package right away in the job posts. I follow Chef’s Table on Netflix, and there is a world-famous restaurant that also has a Michelin Star. They posted an available chef position, and their health and 401K offering was the second picture in the post! And people say benefits don’t matter, but you would think that total compensation is the least of concerns for someone to work at a world-famous restaurant – but you would be wrong. Benefits and the total compensation matter – whether you are thinking about staying, leaving, or joining a new company, selling the benefits to the position is important from the start. This also includes specific unique areas the employer may feel strongly on. Is there a benefit that will help with gender changes? Or is there coverage to aid in fertility for couples trying to conceive a child?
It can also include the more common coverages. Most employees do not know or understand what these are, so helping educate their value in the initial recruiting may tilt the scale in your favour. Share the match if there is an RRSP plan (free money), talk about the Flexplan and how it works (customization) if LTD – this might be a factor for many (1 in 4 chance of this being necessary for an employee). Come up with a way to communicate the package from day 1. Here is a great article on how HSCA can be used in recruiting.
Another company specifically shows how they sure benefit in recruiting.
myHSA COO & Co-Founder