War for Talent: The Great Rehiring Amidst High Turnover

• New survey from Greenhouse shows hiring is a top priority for 84% of CEOs
• In H2, 68% of organizations expect increased levels of attrition as employees prioritize work-life balance

A new survey of over 1,000 C-suite executives and HR managers, commissioned by hiring software company Greenhouse, finds that 78% of organizations plan to increase hiring in H2 2021, yet almost 68% expect attrition to increase at the same time. More than half (53%) of employers cite the desire for a better work-life balance as the primary cause of turnover.

This new wave of hiring goes beyond just making up for lost headcount and resignations. Over 60% of leaders surveyed said they plan to increase headcount by 50% or more in H2 2021. While 33% of new job postings aim to return staffing to pre-COVID levels, 60% will be for new roles as companies look to fuel their future growth. In order to take on what’s next, companies need to have a winning talent strategy to succeed.

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A large majority (84%) of respondents believe that hiring is a top priority for their CEO, but with demand for talent so high, the power is now in candidates’ hands. The next generation of employees are vocal about the kind of workplaces they are looking for. Of the most popular benefits candidates mention, 63% want a flexible working schedule, while 57% want the option of hybrid or remote working, compared to only 12% looking for in-office perks.

“Most CEOs say hiring is one of their top priorities, but intention alone without a structured process, is useless. With over 60% of senior business executives saying they are actively involved in hiring across an entire organization, CEOs need to capture the momentum in order to make a change in their hiring process,”  said Daniel Chait, CEO and Co-founder, Greenhouse. “Businesses that have a copy and paste strategy are bringing an old playbook to a new game. It’s a recipe for disaster, and cuts out many great candidates. Not only are you falling behind your competitors in attracting talent, you’re likely permeating unconscious biases in the types of people you hire and limiting your ability to create an inclusive workplace for the employees you have. Before long, they’ll be polishing their own resumes and looking elsewhere.”

The past year has caused many individuals to rethink their career choices, and employers have been put on notice. As companies lay out their plans for the post-pandemic workplace, employees aren’t prepared to stick around if businesses fall at the first hurdle. Results of this survey show that disagreement with company return-to-office plans could be a leading cause of attrition, with 33% of respondents predicting that this will have an impact on employee churn.

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In an effort to increase headcount and stave off high attrition levels, leaders are taking proactive steps to attract and retain talent. Almost three-quarters (71%) of organizations aim to increase or expand existing benefits, 59% are looking to introduce a new bonus scheme, while 56% are considering giving employees additional time-off.

The COVID-19 pandemic had an undeniable impact on recruiting, leading many businesses to pause or scale back their hiring goals. As the economy has rebounded, so too has the number of jobs created, and as companies continue to embrace distributed work, they now compete for talent on a national and global scale.

“In employee retention, as in hiring, it’s a candidate’s world,” said Chait. “Leaders need to understand that people have more choices where to work than ever before. Paying your people appropriately is just the start. Your hiring strategy needs to create a culture of purpose, where people feel they belong and can express their identity. Ultimately, your hiring problems become your retention problems, and vice versa.”

Key findings of the survey:

• 84% of respondents believe that hiring is a top priority for their CEO and describe over 60% of senior business executives as “very involved” in hiring
• Over 60% of leaders surveyed said they plan to increase headcount by 50% or more in H2 2021
• Top measures companies are taking to retain talent include:
  • Increase or expand benefits (71%)
  • New bonus scheme (59%)
  • Extra time-off (56%)

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