6 Trends for the Workforce in 2017

This blog post is brought to us by MRA Global Sourcing.

As technology develops, new market demands arise, and the workforce changes, businesses need to adapt to succeed. There isn’t much of a choice, companies that choose not to adapt often fail. The easiest way to adapt to these changes and be successful is to understand what it is that’s driving change, what trends are developing talent challenges, and what trends are providing solutions.

In 2016, there was an emphasis on maximizing talent analytics and enhancing potential talent’s experience, these will also be priorities for 2017 but additional emerging trends offering new methods of managing and planning for the future. Based on the trends of 2016, here’s what we anticipate for 2017:

Workplaces will continue to blend

Organizations who have contracted workers for short-term periods or specific projects provide a diverse environment that includes full-time employees who interact with freelancers and contractors that vary. “More businesses prefer on-demand talent to reduce costs and fix specific issues, which adds temporary talent to a team of existing employees creating a mix in the workplace,” Naseem Malik, Managing Partner of MRA Global shares. “Managers will need to operate their business with freelancers who are contributing remotely, which can be challenging.”

Employee and Candidate experiences are becoming priority for companies

Aiming to drive positive engagement, companies are focusing on marketing experiences for both current customers and prospects to develop loyalty and increase their revenues. Recently, employers have come to the realization that this same practice needs to be applied for their employees and their candidates. A study by Workplace Trends revealed that almost 60 percent of job candidates have had negative experiences as an applicant to multiple companies, and 72 percent shared their experiences in online reviews of the employer. “These unfavorable candidate experiences reflect on the organization and that employer as a whole,” says Malik. “Sites like Glassdoor reveal your lack of capability in recruiting which directly influences offer acceptance rates for your company.”

Employee retention and engagement is a rising concern for organizations that realize talented individuals have options and losing them can have severe negative effects on the productivity for the company overall. Identifying aspects of your organization that create workplace complexity and removing those factors to simplify processes will benefit everyone. Prioritizing the work experience for employees and encouraging a collaborative culture will increase productivity, offer more opportunities for sharing throughout the organization and be gratifying all around.

Talent analytics will be used more often

Talent acquisition professionals will feel the pressure to utilize both traditional methods for recruiting with the knowledge provided by data from the recruiting process. Using this information to scale existing hiring practices and develop those into more effective approaches for attracting new talent will allow your organization to make the best decisions. It’s becoming more prevalent for companies to view competitor talent pool for candidates that possess the skills for their organization. Establishing insight on both existing and future employees as far as competency, experience, and traits through data will continue to be a priority for employers. “It’s essential to first understand specifically what your organization needs and why when seeking technology solutions,” advises Malik.

Starting salary averages have increased

There was an average of 40 applicants for each job posting in 2008. According to the Bureau of Labor Statistics Job Opening and Labor Survey, there was 1.4 applicants for each position by 2016. The combination of an increase in demand for specific talent and historically low inflation drove the increase in wages which resulted in the rise of starting salaries for 2017.

The demand for skilled professionals is high and supply is short, which leaves employers with no choice but to remain open for new hire’s compensation and stay informed about their industry’s salary trends within their general location geographically. Without this awareness, organizations can lose valuable talent to competitors.

Management roles will be filled by millennials

With over 3.6 million executive leaders on track to retire in 2016, millennials will move up to fulfill these open positions in management. These young professionals are expected to offer a new approach to leadership with a concentration on transparency and collaboration that will cause a shift in corporate America. While those before them preferred a traditional top-down framework in their organizations, millennials are evening the playing field in a democratic approach that doesn’t include as many titled roles. Being in an active role for your business and leading projects or campaigns without necessarily the traditional title of a leader is millennial’s idea of leadership in an organization.

Boomerang employees are on an upturn

These members of the workforce are named appropriately as individuals who exit an organization and then later down the line, reapply to return to the previous employer. A study by the Workforce Institute at Kronos: The Corporate Culture and Boomerang Employee Study states that upwards of 85 percent of HR executives have had former employees reapply while 40 percent report hiring almost half of the former employees that have applied again.

Top talent knows how to go about changing jobs effectively over a short period, and this pattern is credited with driving this trend. Companies have the ability to stay in touch with past employees through connections on social media, which allows them to re-employ these candidates who left on good terms. It’s easier to bring back previous employees who are already aware of the company’s culture and processes and don’t need an extensive introduction. The reliability of a skilled boomerang worker is an advantage companies can appreciate with the challenges in discovering quality candidates that will be able to meet their organization’s needs.

As 2017 develops, these six trends are predicted to have a greater impact on the workforce. While multiple organizations face shrinking talent pools and altering employee expectations, a more effective response to these changes is necessary to survive. Staying updated on trends and responding quickly to improve your company’s workplace will be a major factor in the organization’s overall success.