5 Ways The Labor Market Has Changed After The Pandemic

Here we are, two years after the Coronavirus pandemic. Although much time has passed, life still hasn't returned back to normal. The labor market is still much different than it was three years ago. Find out more about how the market is different and what it means for your job search.

Sign-On Bonuses are Everywhere

The first thing you should know is that there has been a drastic increase in the amount of companies that offer sign-on bonuses. In fact, about 22% of recent hires said they received a sign-on bonus. For first-time hires, the number is even higher. The bonuses are a way to get more qualified applicants to apply for in-demand positions.

Before the pandemic, sign-on bonuses weren't as needed. There was a more competitive job market, which means that companies didn't need incentives to find job applicants. Back in 2000, only 4% of private sector employees received a sign-on bonus. If you look at the number of job listings mentioning sign-on bonuses, you'll see that the statistics confirm the trend.

If you're looking for a new job, you may want to look for one that has a bonus. It's a great way to boost your bank account and to know that your employer will value you. However, just keep in mind that most sign-on bonuses have specific terms. You might need to be with the company for a set time before you receive the payment.

Outbound Recruiting is More Prevalent

In earlier years, outbound recruiting wasn't the norm. Companies didn't need to work hard to find employees, so they didn't pay to recruit new workers. However, with a shortage of employees in multiple industries, the current market has made it necessary for companies to focus on outbound recruiting. They're being proactive and using professionals to attract job candidates.

In a recent survey, approximately 37% of new hires said they were recruited for the position. Companies aren't just posting jobs and waiting for people to apply. Instead, they're posting jobs and having a recruiter reach out to candidates. During labor shortages, recruiters are in high demand. In 1991, recruiting was at 4%. But in 2000, recruiting was up to 18%. More than one out of every three job recipients were contacted by a recruiter.

If you want a recruiter to reach out to you, boost your online presence. Make sure your LinkedIn account is active and updated, and upload your resume. You could have someone reach out to you about a dream job.

More Flexibility

Due to the labor shortage and the change in the workplace atmosphere, employers are being more flexible with their scheduling. This flexibility is the most apparent in the ability to work from home. In a recent survey, 41% of people who switched jobs received more flexibility from their new employer. 14% of job swappers were able to work entirely remotely.

Prior to the pandemic, about 2% of job listings on ZipRecruiter were remote. But now, that number is much higher. People received a taste of life while working from home, and they liked it. Currently, about 62% of job seekers would prefer remote work to regular work.

Even when employers are in a workplace, they're experiencing more flexibility. They're able to work from home one or two days a week, or to alter their hours. With this increased flexibility comes a better quality of life. If you're looking for a new job, you should find one that gives you more flexibility.

Pay Increases

Employees can benefit greatly from the labor shortage. To attract people back to the workforce, companies are offering higher pay. Among recent hires, 64% of individuals received a pay raise. And that raise was quite significant. With 48% of those individuals receiving a raise of 11% or more, there were many employees who received much better pay by switching jobs.

What's interesting is the fact that the raises weren't out of necessity. Only 44% of individuals switched jobs because they wanted better pay. So, while they switched jobs because of stress, poor management, and other factors, they still received a pay increase.

If a company doesn't offer you a pay increase, they may offer you better benefits. It all comes down to being appealing. Today, businesses want to grab your attention. If they pay a higher wage or better benefits, they can attract more job applicants. Don't be afraid to see what's out there and to find a new job that pays better.

New Hires Are Leaving

People aren't staying very long with their current employers, and this is particularly true of new hires. In fact, one out of every two new hires plans to find new work within two years. Furthermore, 21% of new hires will look for a new job within a year.

This doesn't mean that new hires aren't happy. Surprisingly, 91% of recent hires are happy they took their current position, and 81% are happy with the job. The statistics show that there's a problem with retention and that higher pay is incentivizing people to switch jobs. Even if an employee is happy with you, they might be attracted to a sign-on bonus or a higher salary.

What Should You Do?

Now that you know all that, what should you do? The current labor market is still very much in favor of job seekers. Even if you're somewhat happy with your employer, you should consider looking for a new job. You might get a higher salary, better benefits, or a more fulfilling job.

As you look for work, just make sure you look for something you would enjoy. Everyone deserves to be happy in the workplace. If your current position doesn't make you happy, think about why you don't like it. Look for a new job that will leave you happy and fulfilled. With so many options to choose from, you can take your pick. So, grab your resume, update it, and start applying for jobs. You might get an amazing offer.