Have you heard the news? Thanks to changes to the economy wrought by the COVID-19 pandemic, we are rapidly shifting gears from the “decade of the customer” to the “decade of the employee.”
Consumers are struggling with inflation while employers are struggling to retain talent. What will the next decade bring? Read on for more on this major shift.
What was the “decade of the customer”?
During the “decade of the customer” the customer was, by definition, the king. This philosophy was exemplified by managers and executives like Tony Hsieh of Zappos.com who famously made the top brass in his company take time working customer service lines and made it his mission to “deliver happiness” and delight through exemplary customer care. Danny Meyer of the Union Square Hospitality Group has similarly become a sought after speaker for designing a higher level of hospitality and guest satisfaction through his restaurants.
Welcome to the Decade of the Employee
Over the past few years those of us in recruiting have recognized a subtle shift. Top talent is even more sought after and employees seek a greater range of options and perks beyond salary (though they want top salaries as well).
As we move into the “decade of the employee” we feel that the most employers would be wise to:
- Be proactive in developing a talent acquisition and retention strategy.
- Understand the impact of geographical mobility on hiring and offers.
- Be more open to considering fully remote position.
Build a Talent Acquisition Strategy
It’s more important in 2022 to build a “talent acquisition strategy.” What is a “talent acquisition strategy” anyway, you might be wondering? It is simply an intentional set of guidelines that guide your decisions in hiring. Your talent acquisition strategy will be individual and unique to your business and goals, and will normally incorporate:
- business goals
- a framework for attracting and evaluating candidates
- the set of tools you use in hiring
Know How Geographic Mobility Affects Salaries & Hiring
Employees in the post-pandemic economy want more flexibility than ever, especially in terms of the opportunity to reside in a low COL area or be a “digital nomad.” In this environment, it pays to understand your risks and opportunities as an employer:
- Comparing costs between cities: by some estimates, the overall COL in New York is 50% more expensive than Miami. We frequently advise companies on the differences between hiring candidates in different geographical markets such as New York, Los Angeles and Miami.
- Fully remote positions: If you are electing to make a position fully remote, you may be able to consider candidates in lower cost of living areas, which may in turn positively impact your bottom line.
- Return to office incentives: If, on the other hand, you want to keep your employees in certain geographical boundaries, be prepared to offer incentives, beyond a competitive salary, to keep your employees engaged.
Be Strategic with Your Employee Perks
Obviously, salary matters most in attracting and retaining top talent. But but there are also intangibles that go a long way towards making employees stay and perform. We surveyed our database to find out more about what really drives employee satisfaction. The answers may surprise you.