New Research: 92% of C-level Leaders Admit their Company Will Not Meet Its 2022 Goals if Record Quit Rates and Hiring Challenges Continue

Companies struggle as ‘The Great Resignation’ has negatively impacted nearly all organizations

HOLMDEL, N.J. [Feb. 16] – More than 90% of business leaders say their organization will not meet its goals without the right talent and more than 80% have been negatively impacted by The Great Resignation, according to new research in the iCIMS 2022 Workforce Report. In an accompanying survey of American adults, only 11% said their employer was not short-staffed last year from pandemic-induced talent shortages. Facing a diminishing supply of applicants, coupled with a job market in which the candidates hold virtually all the cards, business leaders and HR professionals have been forced to rethink how they attract, engage, hire and advance talent.

The second annual Workforce Report from iCIMS, the talent cloud company, provides a comprehensive look at the latest labor market activity, key business trends and priorities for employers navigating the new world of work. Key findings include:

The State of the Talent Market

• Talent supply and demand gap grows. At the close of 2021, there was a 97-point gap between job openings and job applications, the widest seen in the previous two years. iCIMS data shows that job openings are up 86%, hires are up 45% and job applications are down 11% from pre-pandemic levels (Q4 2021 v. Q1 2020).
• Salaries will continue to increase. C-level business leaders (CxOs) report their organizations plan to increase salaries about 7% on average this year to incentivize retention, with nearly a third planning to increase more than 10%. However, salary increases are not the only employer retention lever. The consumer survey revealed that in addition to competitive pay, people will stay at their current employer for benefits, a flexible schedule and professional growth opportunities.
• Flexible workforce is here to stay. As competition for labor intensifies, so does the expectation of flexibility across work location and schedules. One in five applications in Q4 2021 were from an out-of-state applicant. Some of the most common improvements include: offering flexible daily work schedules (43%), and offering remote work options to distant (38%) and local employees (36%).

Talent isn’t the Only Shortage: DEI, Retention and Internal Mobility Initiatives Are Lacking

• Failing to keep DEI at the top of the list. Over the past few years, many business leaders pledged to increase the diversity of their workforce, but in the current job market DEI often falls down the agenda list. HR professionals (70%) expressed concern that their organization’s HR technology is not helping them meet their DEI goals and (85%) of CxOs say they struggle to prioritize DEI goals due to competing HR and recruiting needs.
• Retention is a challenge, but still not top priority. Nearly two out of three CxOs are putting greater emphasis on hiring talent over retaining existing employees and most companies are not leveraging the potential of its existing workforce to offset labor challenges. In the past year, only 29% of HR professionals have prioritized internal mobility, a missed opportunity for most employers. Companies that prioritize career pathing are seeing the positive impact. For example, Spectrum, a Charter Communications company, launched a new internal career site last year featuring more than 100 real employee videos, leveraging iCIMS Video Studio. The site is dedicated to encouraging internal moves and advancing employees’ careers and has helped drive a 66% increase in internal applications and candidates spending more time on the site exploring projects and open roles.

“Shifting priorities and talent expectations require us to think differently and take a more strategic, holistic approach to talent transformation,” said Susan Vitale, chief marketing officer at iCIMS. “It is no longer solely about external talent acquisition; we need to be sure we’re addressing and empowering our existing workforce with career opportunities. Top performing employees are being courted by other organizations every day, and it is up to us to power career inspiration and growth within our businesses. Employee-centric talent tools can help turn hiring strategies inward to create a more engaging, efficient experience and improve retention amid labor challenges.”

The 2022 Workforce Report brings together insights from a third-party survey of C-suite and HR leaders in the U.S. and U.K., combined with trends drawn from iCIMS’ proprietary database of employer and job seeker activity from more than 4,000 customers and millions of transactions across job postings, employment applications and hires. It also includes a general population survey of 1,000 American adults to understand sentiment in the workplace and as a general consumer. View the full report, with advice and best practices from talent and diversity leaders on how to deliver on talent transformation strategies to succeed.