Global Hiring Increases at Record High despite Inflation

Many expected that inflation and companies struggling to maintain competitiveness in the market will affect hiring and that labor shortages will decrease. But the reality looks completely the opposite. Companies across the globe are still confronted with labor shortages and it is becoming harder for them to find, attract, and onboard the right person for the open position. Are there any hiring strategies that might help businesses? Keep on reading to learn more! 

The fact is that global hiring increased by 145% so far in 2022 and it seems that this number will keep on growing. To solve the problem of labor shortage and to keep up with demand, businesses will have to switch their hiring strategies and explore new talent markets. Meaning they should start looking at new regions and countries. It is no surprise that many companies turned to HR outsourcing as a hiring strategy that helps them hire international talent and cut expenses simultaneously.

Labor Demand & Hiring Budgets

Demand for labor is still high, despite companies fighting inflation. Surprisingly, in the USA we can see lower labor demand in the technology sector, but overall, the labor market remained tight for many employers. Attracting and retaining talent is still a big challenge for employers and 94% of them are experiencing difficulties. However, employers are expecting these pressures to be lower next year.

But what about companies that don’t have budgets? Is there a solution for them to attract talent? Considering that 64% of US employers budgeted for higher employee pay, the remaining companies will have even more difficulties in attracting talents. The best strategy is to explore other talent markets. One of the cost-effective solutions can be HR outsourcing and finding employees abroad. This way, your business can stay competitive with big players in the industry.

And if you are wondering how things look from an employee perspective - 28% of US employees are planning to change jobs in the next six months. Showing us that salary is not the only driving factor when employees are deciding whether to stay or leave. One thing is sure, employers will have to completely re-think their hiring and retention strategies.

Reset Your Talent Strategy 

To stay competitive, HR leaders must re-think their hiring strategies and adapt to the current market. It is no longer enough to find talent to remain competitive but to keep pace with rapidly changing business models. Businesses should embrace new sets of rules and trends like remote work, expanding into different markets in search of talent, and making smarter talent decisions if they want to stay in the game. Some of the strategies that work when combined: 

• Dynamic business model 

80% of employees, out of which 93% of leaders feel poorly prepared for the future and changes that it brings. Companies should focus on this when creating their hiring strategies and anticipate all the challenges along the way. However, the way businesses are making long-term strategies changed, and no one is making plans for the upcoming five years because we don't know what the future holds for us in the ever-changing business world.

• Unbounded talent 

Employees value work-life balance more than ever, therefore work from home models are a big benefit that employers can offer. It is not only a benefit for the employer, but this creates opportunities for businesses to outsource their work and find talent anywhere.

• Skill sensing and adjusting

Many employees claim they often complete tasks that are outside of their job description. This can lead to burnout and with so many opportunities and the ongoing war on talent, employees won’t stay in an unhealthy work environment. Employers should focus on skill clusters and design roles within the organization that will help employees grow within the company.

If you are wondering how to hire talent abroad and stay compliant with the law, learn more about PEO and EOR services. This will give you access to the unlimited talent pool and will minimize the risk for your business. Reach out to us to learn more about hiring international talent with ease. 

About EuroDev

EuroDev was established in 1996 in the Netherlands with a single, defined purpose to help mid-sized North American companies expand their business in Europe. So far, we have partnered up with over 500 companies and helped them define and meet their European business goals. Services provided include Sales Outsourcing, HR Outsourcing, and Digital Marketing. 

Disclaimer: While we strive to provide accurate and timely information, please note that HR policies and regulations can change frequently. It is recommended that you seek guidance from our HR consultants to ensure that the data presented here is current and accurate.

Source: Unleash, Gartner, Society for Human Resource Management, Deel, Eurostat