12 Candidate-Driven Market Trends in 2022
2021 is finally coming to a close. After seeing many predictions for what 2020 will bring, it can be difficult to imagine where the market will be in 2022. What do you believe 2022 will look like? In order to help give some insight into this question, here are 12 candidate-driven trends that you should keep an eye out for in 2022.
1) Candidate-Driven Market Trends: Interactions increase as candidates gain more power. In 2022, candidates will be able to have a voice in the workplace. With more and more applicants coming in, companies will begin to increase the number of interviews. They will do this by inviting the interviewing team for outings where they can mingle with potential hires (e.g., team building activities). Candidates will notice that companies are becoming more transparent and giving them a greater sense of control over their careers.
2) The Millennial Generation: Millennials now make up 30% of the workforce and that number is likely to increase in the coming years. This is due to the Baby Boomer generation retiring, causing a decrease in overall hiring and therefore an increase in job openings.
3) Social Media as Standard: 70% of candidates are researching their future employers on Facebook and Twitter before applying. In addition, according to a recent survey, 22% of employees would consider quitting if they found out their boss was on Facebook. As this becomes more common, more companies will spend resources on social media in order to keep a positive image for their potential employees, thus gaining a competitive edge between themselves and other companies when it comes to recruiting top talent.
4) Candidate Experience: According to a recent survey, 47% of candidates will not apply for a job if their experience with their previous employer was unfavorable. Candidates are also demanding more transparency from potential employers. Companies will need to make sure that this is addressed before posting a job opening. Additionally, top talent tends to want more out of work than just the money and benefits. They want the opportunity to grow beyond their initial role, learn from mentors and have the potential for career mobility.
5) Rise in Freelance Workers: The freelance workforce has increased by over 54% since 2014 and there is no reason why that growth won’t continue as time goes on. As of 2016, it is estimated that over 15% of Americans were either working as freelancers or defined as micro-entrepreneurs. For example, in 2016, there were almost 500,000 people who worked as Uber drivers. These factors will only continue to increase in the coming years and top talent will continue to be key for companies looking to remain competitive in the marketplace.
6) Emerging Markets: The development of emerging markets has played a large role in reshaping the global economy and it is now expected that this growth will continue at accelerated rates by 2022. There are billions of people moving out of poverty every day and this will only increase over time as more countries continue their economic growth.
7) Class Density: According to a recent study, the US has the highest class density that it has ever had since the 1930s. Class density is defined as the ratio of people to residences. The US currently has a class density of 3.7 and it is expected that this will increase to nearly 6 by 2022.
8) Rising Interest Rates: Interest rates are expected to rise in the coming years and if this takes place, there will be an increase in capital spending and required R&D investments by companies, thus resulting in more hiring (due to capacity constraints).
9) Increased Immigration: Currently, the US is able to solve issues around the friction caused by high unemployment by having a low unemployment rate and increasing the labor force. This will not continue in the long term as those factors are not likely to remain constant and populations are becoming more educated and interested in pursuing higher education. Most companies will be competing for an increasingly small talent pool, thus resulting in increased competition for top talent.
10) Increased Regulation: As regulations become more stringent, there will be larger consequences for companies that violate them, and employers will have to find new ways of doing business and be more competitive against other companies that have figured out how to operate within these regulations. This will result in increased competition for top talent.
11) Career Mobility: Companies will be increasingly interested in providing career mobility for their employees. It is likely that more companies will begin to offer training and mentoring programs to meet the needs of their employees.
12) Technology: In 2022, the internet of things will have dramatically improved. The number of connected devices is expected to reach over 30 billion by 2022, which means that more and more devices are being connected each day. This increase in the number of devices that are connected to the internet is resulting in an increase in smart technology as well as automation capabilities such as self-driving cars.
In conclusion, in the coming years, companies will have a harder time competing for top talent, but with the ability to be more competitive for top talent and this being done by offering an increasing number of perks as well as emphasizing key performance indicators (KPIs) alongside monetary compensation. It will become increasingly important for companies to focus on attracting and retaining top talent in order to stay competitive throughout the marketplace.
Barber, Ted. (n.d.). Recession Proofing in Times of Economic Uncertainty. Retrieved May 7, 2017, from https://www.tedbarber.com/uncategorized/recession-proofing-in-times-of-economic-uncertainty/
Beltran, John C., & Murphy, Joanne M. (2016). “What’s the difference between Millennials and Gen Y workers?” Retrieved May 7, 2017