Currently, employers are facing unique challenges due to uncommon economic and labor market conditions. Unemployment has been low, and worker shortages are pervasive, making it hard to access top talent. Couple that with high inflation, and the situation is even more challenging.
Ultimately, inflation is altering how professionals perceive their jobs and how they plan on managing their careers and finances moving forward. As a result, companies need to prepare for how inflation will inevitably impact hiring and employment. If you want to ensure you’re ready, here’s what you need to know.
How Inflation Will Impact Hiring and Employment in Connecticut?
Shifting Wage Expectations
One of the spurring points of the Great Resignation was shifting wage expectations. While that movement is largely over, inflation is keeping salaries part of the broader conversation. Even though many companies have increased pay rates to make them more competitive in a tight labor market, the functional impact fell short of employee expectations.
Rising inflation means that many professionals have less buying power now than in the conditions that existed before inflation became an issue, even though their wages were lower. As a result, they may seek out other opportunities if their current employer can’t meet their needs.
For companies that can increase wages to remain competitive, this isn’t inherently problematic. For those that can’t, finding new ways to provide value to employees is essential. Otherwise, they’ll struggle when it comes to recruitment and retention.
Hesitation to Leave Stable Companies
In some cases, inflation may incidentally discourage employees from exploring other opportunities, which could make recruitment even more challenging. Inflation creates financial uncertainty. As a result, some professionals may hesitate to take a risk on a new employer if their current one is reasonably stable.
Generally, this may limit access to passive candidates the most, as they’re not necessarily dissatisfied with their current role. However, it could also cause some active job seekers to switch gears if they at least find their existing employment arrangements tolerable. While some of that may be mildly offset by rising unemployment should economic conditions remain challenging, it may not be enough to overcome the overall deficit, particularly when it comes to in-demand, hard-to-find skillsets.
A Rise in Alternative Forms of Hiring
Inflation doesn’t just impact household budgets; it alters the spending capabilities of employers, too. As a result, many companies who have reduced budgets may turn to hiring options aside from adding permanent team members as a cost-cutting measure.
For example, by hiring temporary workers to support projects or rising seasonal demand, employers can avoid expenses like offering benefits, workers’ compensation, and unemployment. Instead, those expenses are the responsibility of the recruitment agency.
Plus, temporary employees allow companies to scale up and down fast, ensuring they can adjust to unexpected shifts in demand. Finally, if a temp worker impresses, there’s always the option to transition them into a permanent role, allowing you to secure top talent quickly and efficiently.
Find Top Talent Faster by Partnering with A.R. Mazzotta, Connecticut’s Leading Staffing Agency
While inflation is making the hiring landscape trickier to navigate, companies do have options to ensure they have access to the top talent they need to thrive. At A.R. Mazzotta, our team maintains a carefully curated talent pool brimming with skilled professionals. Additionally, we offer flexible hiring options designed to meet a range of employer needs.
Whether you’re looking for temporary workers to support your peak season, permanent staff members with hard-to-find skills, or anything in between, our team can offer an effective, affordable solution. Simply complete this short form to request an employee today. And, if you’d like to learn more about our services, contact A.R. Mazzotta to speak with a member of our recruitment team today.