Will a Recession End the Great Resignation?

Dun-da…dun-da…dun-da…dun-da dun-da dun-da. Is that the sound of an approaching great white shark...or, perhaps, an impending recession? There is a great deal of uncertainty in today’s world—while the threat of recession is certainly worrisome, the challenge of finding and retaining top talent continues.

As of May 2022, there were still 11.3 million job openings in the United States—approximately twice as many openings as there are applicants. So, at least for the foreseeable future, this is still a “buyers’ market” for job seekers and the Great Resignation continues.

While there have been some reports of layoffs at high-profile companies, and even stories of job offers being rescinded, there were still a record-low 1.2 million layoffs this past April. And so, the Great Resignation continues with people leaving their jobs for new ones with better pay, benefits, and working conditions.

ZipRecruiter surveyed people who had started a new job in the last six months and found that 41% said that their new jobs gave them more schedule flexibility, 14% reported that they had added the ability to work remotely, and the majority also reported a significant increase in wages. Additionally, more than one half of those who’ve recently left one job for another plan to move again within two years.

It's clear that, whatever happens, you need to have the tools in place to keep your best employees from joining the Great Resignation. And, when you do need to fill openings, you are able to identify and hire top talent as quickly and efficiently as possible.

No Matter What Happens, Retaining Your Best Employees Is Vital

It can cost thousands of dollars to recruit, onboard, and train new employees. Not to mention the loss of productivity until open jobs are filled. In addition, employees that remain often find themselves having to take on extra work which can lead to dissatisfaction on their end.

We know that flexibility and improved work/life balance are among the key reasons prompting people to search for “greener pastures” as part of the Great Resignation. While large salary increases may not be possible for many organizations, there are other strategies that can be employed to improve employee engagement and help with long-term retention. These include offering employees greater flexibility when it comes to scheduling, access to online resources so they can adjust their schedules as needed, and offering opportunities to cross-train and develop new skills. 

Streamline Your Hiring and Provide Tools for Success

In this highly volatile market, you can’t afford to delay when competing for top talent. Consider investing in tools (such as Verint Intelligent Interviewing) that provide intelligent, automated candidate screening to help identify candidates most likely to be successful in their jobs, as well as improving hiring metrics and shortening the overall hiring process. 

Are You Ready for Whatever Comes Next?

Will the Great Resignation continue? Is a recession on the horizon? The jury on those questions is still out. But, even as many of us are sweltering in the summer heat, we do know that managers are starting to assess their needs for additional help in the upcoming open benefit enrollment and holiday seasons.

Should we ultimately find ourselves in a recession, the prevalence of contract workers is likely to increase as companies cut back on hiring full-time employees with benefits. You need to be ready to hire, on-board, and schedule these new temporary hires. Providing them with a robust knowledge base and the ability to provide real-time coaching as these workers get up-to-speed can make a huge difference in their ability to succeed.