Kapadia LLP CPAs

The job market is challenging on both sides of the fence. Businesses struggle to retain employees, while job seekers grapple with unclear job roles, low salaries and drawn-out hiring processes. Navigating this turbulent terrain requires resilience, flexibility and a fresh perspective for businesses. In this article, we’ll cover how businesses can turn things around—for themselves and for potential employees. 

The business side: Struggles with retention and recruitment

Inflation has hit the wallets of consumers and businesses alike. With increased costs, many businesses are pressured to make tough budgetary decisions, resulting in lower salaries, limited benefits or even layoffs. According to ManpowerGroup research, 75% of employers are reporting difficulty in filling roles. It doesn’t help that employees expect more than just financial compensation—and rightfully so—like growth opportunities, workplace flexibility and a positive company culture. 

The unpredictable nature of the job market also affects recruitment. A daily scroll on LinkedIn shows numerous #OpenToWork profiles, talking about the dire experience of trying to find—and land—a role that suits them. From frequent ghosting to way-too-long interview processes, businesses may be contributing to the chaos. The reality is that companies struggle to define job roles and pile on too many responsibilities or set unrealistic expectations. This just discourages job seekers from even applying to begin with. 

The job seeker’s perspective

The market is equally difficult for job seekers. Salaries aren’t keeping up with the rising cost of living. And candidates are facing a hiring process that feels like running a marathon—long, unpredictable and sometimes full of unclear (or lack of) communication. According to research from the Global Talent Climate report, the average time-to-hire rate is 43 days. This can leave job seekers feeling discouraged or ghosted altogether, especially if they’ve been laid off.

Businesses are struggling to retain top talent, but they also need to understand by not streamlining their hiring processes, they’re creating even more hurdles for candidates and hurting themselves in the process.

7 actionable steps for businesses to build resilience

Despite the current job market challenges, businesses have the power to create a more resilient workforce while improving their hiring and retention practices. Here are seven strategies to consider:

1. Clarify job roles and expectations. Clearly define job roles and set expectations from the start. This helps both current employees and job seekers understand what’s required, which can help mitigate misalignment and reduce burnout.

2. Offer competitive and transparent salaries. Candidates value honesty, so consider offering transparent salary ranges in job postings. This ensures you’re building trust and attracting the right candidates without wasting each other’s time.

3. Shorten the hiring process. Streamline and communicate the expectations for the hiring process to avoid losing candidates to a lengthy process. By keeping the hiring steps short and sweet, you can ensure your top candidates remain engaged and interested.

4. Focus on company culture and flexibility. Hybrid work has become the norm, and employees are seeking more flexible opportunities. Building a positive workplace culture that emphasizes work-life balance attracts top talent and reduces turnover.

5. Invest in employee growth and development. The No. 1 way organizations are working to improve retention is by providing learning opportunities. Offering training opportunities and career advancement paths can strengthen employee loyalty and engagement.

6. Communicate clearly and consistently. Clear communication with employees and prospective employees is important. Be sure to respond promptly during the interview process to keep candidates informed. This helps build a positive reputation and trust.

7. Reevaluate benefits and perks. If you’re unable to increase salaries, consider expanding benefits packages. Offering wellness programs, flexible hours or more vacation days can compensate for financial limitations—and improve employee satisfaction.

Hope for a resilient future

The job market may be unpredictable, but businesses can adapt by taking actionable steps to create a positive workplace culture and an efficient hiring process. Use the strategies above to retain control and thrive—and be a part of the solution to provide hope for a stronger, more resilient workforce in the future.