Sandra Grinker, director at AEA Investors, says COVID has had an impact on people’s professional work choices. For example, if you look at geographic locations with distribution center type jobs, they are usually located near other distribution facilities. âMany industries face intense competition for talent. Even doing things like providing transportation for employees, free breakfast or $ 1 more per hour is significant and fuels turnover in many types of jobs, âsays Grinker. âIt is well known that people are reassessing their lives since COVID and many have decided to make changes. People have changed careers, looked for different jobs, or decided to retire.
The way companies look for talent has also changed. In 2020, most companies relied on their network to find talent (42%), of which only 10% used online methods. While most still depend on their networks, the use of online methods has almost doubled. In 2021, 19% of those polled said they used online methods to advertise vacancies, while fewer people used headhunters.
âThe digitization and automation of human resource operations is driving innovation. Advances in the latest technologies, such as AI and predictive analytics, make it easier to integrate human resource management solutions with analytics. The industry places a strong emphasis on attracting the right pool of candidates, retaining human capital and managing performance. Startups are developing solutions to reach out to the remote workforce, promote corporate culture, streamline and improve onboarding, benefits, collaboration, training and more, âMiller said.
It is well known that people are reassessing their lives since COVID and many have decided to make changes. People have changed careers, looked for different jobs, or decided to retire.
Director, AEA Investors
Technology in the human resources sector is indeed growing. According to the Fortune Business Insights report, âHuman Resource Technology Market, 2021-2028,â the global market size was $ 22 billion in 2020 and $ 24 billion in 2021. This is expected to grow to $ 36 billion. in 2028.
In 2021, AEA used LinkedIn for some talent searches, which Grinker would not have considered before. âUntil recently, we only used headhunters. What we get from our headhunters is high quality, but lower volume, so by integrating LinkedIn as a recruiting tool, we have increased and diversified our talent pool, âsays Grinker. Using LinkedIn increased the flow of company applicants and gave them access to people they might not know, which was great for diversity, equity and inclusion initiatives . Additionally, Grinker found that the use of technology during the hiring process is more useful for certain positions. For example, tech-focused positions like data scientists are more likely to apply for jobs through tech platforms. âWhile I might not use a tool like LinkedIn to search for candidates for all of our positions, we were pleasantly surprised by some of the leads obtained through technology-based recruiting platforms. It certainly takes longer to sort through hundreds of candidate profiles online, however, the talent pool is so small right now that we all have to be a little creative, and for some positions online tools can work well â , says Grinker.
Due to the talent shortage, it appears companies are looking to hire faster than in the past. In 2020, only 6% of companies would hire managerial positions immediately after a deal is struck; this number rose to 16% in 2021. However, the timing of the start of the hiring process does not appear to be changing. In 2021, 30% of those surveyed started looking for new hires before the deal closed. It was the same in 2020. Forty-five percent can start research before the deal closes, but make final hiring decisions after the deal closes. Only 25% do not spend time hiring before closing.