Hiring is a central focus in many companies' human capital management (HCM) strategies. In 2016, hiring trends point to a stronger job market, an increased demand for talent, and a need for more strategic approaches to talent management. Here are a few of the most important trends as companies look to their hiring processes to help them achieve greater productivity, innovation, and long-term growth.
Leadership is Being Promoted From Within
Companies are coming to realize the value of promoting leaders from within. Cultivating internal talent for managers, vice presidents, and C-level executives can have several significant advantages. Leaders who come up with a company may better understand its culture and have a deeper commitment to its success. Senior hires can be expensive and leaders brought in from the outside may not have the same level of commitment to the company. Promoting from within may help reduce costs while improving corporate stability and results.
Companies Are Becoming Strategic About the Hiring Process
As the economy improves, there are more jobs available. For recruiters and hiring managers, this translates to increased competition for candidates and a need to focus on employee retention. Compensation, flexible scheduling and benefits are all ways companies are attempting to create an edge in the job market. Successful businesses are also investing in technology to help promote openings more effectively and to quickly screen candidates so top applicants can move more easily through the hiring process.
Employee Retention is Becoming a Major Focus
As the saying goes, "Your employees are your company's most important asset." Workers have more opportunities in the market today than during the recession, and as a result companies in 2016 are looking holistically at employee retention. From hiring the right people to fostering a great work environment, taking the strategic steps necessary to retain employees will be one of the year's top hiring trends. Retaining employees can save money over replacing them, help raise levels of employee morale, and allow companies to cultivate their next generation of talent. Some ways companies are improving retention include new technology, more strategic compensation, and enhancements to the employee experience.
Compliance Remains Top of Mind
Hiring trends are also driving behind the scenes actions and decisions about process and HR infrastructure. Companies are facing ever higher demands around reporting and compliance with applicable laws at the local, state, and federal levels. As a result, companies are looking for ways to streamline their data management. HR technology remains an important part of the recruiter's toolkit, from collecting necessary data during the hiring process to helping manage employee separations. Mobility and cloud-based tools will likely play a bigger role in the technology mix in the year ahead.
Hiring great people remains a top strategic priority for businesses in 2016. From improving retention to using HR software to streamline data flow, this year's hiring trends are all about making staffing a competitive advantage for growing companies. Recruiters who understand and implement these trends may give themselves an important advantage in attracting and retaining top talent.