The Changing Landscape of the Job Market
Today’s job market, without a doubt, is changing at a breakneck speed. As the workforce becomes one of the strongest key differentiators for many companies and organisation these days, it has become imperative sizes to become aware and embrace the developments taking place in the labour market, not only because it can affect their current recruitment needs, but their long-term talent needs and workforce strategy as well.
From shifting demographics of the workforces to the advent of newer recruitment platforms and tools, there are a variety of factors at play that continues to change the landscape of the job market. Read on as we discuss the trends in taking place in the job market and how each can affect your business growth in the long run.
- Shifting Demographics of Workforce
A significant portion of the labour market continues to decline as trends such as aging and declining birth rates continue to rise. In a report released by World Economic Forum, it was stated that 60% of people now live in nations with stagnant or shrinking workforces. Such includes China, where the working age population has already reached its peak in 2010, and in Germany, where the labour force is projected to shrink by 6 million in the next 15 years.
Due to labour shortages, several countries have already started to implement a variety of strategies about talent sourcing. For instance, Japan has been pushing to involve more women and older workers into the job market. This agenda results in their workforce to the only decline by just 1% over the past decade even though their working age population has dropped by 8% percent during the same time period.
In the sectoral perspective, many aerospace companies have already implemented interesting practices to address the lack of enough talent in their field. Such includes flexible working schedule, phased retirements, “encore careers”, and putting knowledge transfer programs in place to ensure a skilled and talented next-generation workforce.
- Use of Big Data in Recruitment Field
As talent acquisition becomes more challenging, more and more companies are starting to leverage the power of big data in their recruiting efforts. Through the use of “people analytics”, organisations can run behavioural and intelligence tests, utilise digital performance scorecards, and access better HR information systems – allowing them to understand their workforce more effectively and efficiently.
With the power HR analytics and wealth of data it can generate, more companies are now able to make their talent sourcing more strategic. For instance, they can now identify which aspect of their organisation has a looming talent need in the next five years, allowing them to initiate talent search, as well as start a career development program for the specific set of skill needed by that department in the future.
With the power of big data, companies will be able to transform their HR operations from tactical into strategic; from reactive to being a proactive component of their organisation.
- The Continued Rise of Gig Economy
While the traditional job market continues to dominate these days, the way job hunters find a job has already transformed. With the rise of online crowdsourcing platforms, it’s now easier for job seekers – from undergrads to postgraduates and freelance industry experts – to find the job they like and select the company they want to work for these days – enabling them to kick start and pursue their career goals without the struggles associated with traditional job hunting.
Gone were the days when traditional jobs – solely working for one employer for 20 years – is the norm. With a lot of technological developments made in the freelance economy, it’s now easier for a person to get and do their job at their own pace. On the other hand, many companies are starting to engage more freelance workers not only to source quality workforce but also save significant time and money in the recruitment process.
With wages and opportunities increasingly being driven by skills, and not by tenure, being a freelance worker means having the power to bargain for higher salary, and setting work routine at your own terms. Having this freedom to work for anyone, anywhere, and anytime – though may disrupt the current labour market – will allow the workers to develop their skills, experience and knowledge, all which will benefit the overall business landscape in the long run.