Employers are struggling to keep up with evolving worker expectations and priorities post-pandemic, according to a recent report by Indeed, the large job aggregation site. The Great Disconnect refers to the widening gap between what workers want and what employers are actually providing them, when it comes to flexibility, pay transparency and the candidate experience.
The disparity suggests that companies need to better understand and address these discrepancies to attract and retain talent more effectively.
The Chasm In Expectations
Remote Work And Flexibility
After compensation and benefits, flexibility remains the biggest motivator for job seekers to pursue new opportunities, research from Indeed’s Hiring Lab found. A flexible work schedule is especially important for employed women, who are 25% more likely than their male counterparts to seek a new remote position.
The return-to-office movement has highlighted the disconnect between executives and their employees. Seventy-four percent of job hunters desire hybrid or fully remote work options. Meanwhile, employers have been pushing to get their employees back to the office.
Return-to-office proponents believe remote work has major drawbacks, such as the risk of distractions and isolation. This cohort feels that in-office interactions greatly benefit innovation and company culture. Business leaders, such as Goldman Sachs CEO David Solomon, JPMorgan chief executive Jamie Dimon and Salesforce CEO Marc Benioff, have vociferously argued that in-person employees do better work than their remote counterparts.
Solomon called remote work an “aberration,” stating, “I do think for a business like ours, which is an innovative, collaborative apprenticeship culture, this is not ideal for us. And it’s not a new normal. It’s an aberration that we’re going to correct as soon as possible.”
Dimon commented that Zoom meetings slow the decision-making process because there is “little immediate follow-up.”
Benioff openly complained in a companywide Slack memo that newly hired remote workers were not being productive. He lamented that the subscription-as-a-service leader left the new employees isolated at home without the benefit of an office culture.
Pay Transparency
Indeed research revealed that job hunters reported salary ranges and compensation disclosures as the top “neglected job-related content” in job advertisements. The absence of a salary range in a job description is the biggest reason individuals will forego submitting an application.
Around three in four job seekers prioritize salary information when considering applying, and indicate that they are more likely to submit an application if the compensation is listed. However, half of job listings still neglect including salary disclosures.
Additionally, companies are gaming pay transparency laws in states where it is mandated.
According to research from Indeed’s Hiring Lab, “Salary ranges advertised on job postings are widening in tech hubs and areas with pay transparency requirements.”
Companies are making a mockery of the law by posting absurdly wide ranges, such as $0 to $500,000. The significant spread makes the metric useless for job seekers.
The primary goal of pay transparency laws is to help close wage gaps for marginalized people. It greatly benefits workers, as they now know the prevailing compensation rates. Prior to pay transparency legislation, before any interviews were conducted, a prospective employer would demand to know how much an applicant currently earns and then base the salary offer on that person’s previous pay package. This created a massive disadvantage for people since companies were able to lowball them.
Candidate Experience
Nearly 50% of workers feel the job search process is impossibly difficult and they have to jump through excessive hoops for little payoff. Applicants reported having to complete hours of unpaid work and pass several rounds of interviews to move forward.
If you’ve been searching for a new mid-to senior-level opportunity recently, the interview process is taking longer than it did during the Great Resignation.
Research by human capital advisory firm Josh Bersin Company and workforce solutions business AMS found that the duration for global hiring is at an “all-time high,” which the report calls “unsustainable if companies are to remain competitive and keep pace with the fast-changing needs of their industry.”
Despite jumping through hoops for prospective employers, candidates are often met with no feedback and getting ghosted. Indeed’s 2023 Ghosting in Hiring report found that 40% of job seekers in the United States were ghosted after second or third-round interviews, and 41% after receiving a verbal offer from the company.
If the economy and overall mood are positive, businesses will hire quickly, so as not to lose out to their competitors. Conversely, managers are reluctant to make quick decisions when there are elements of fear and uncertainty. Economic and geopolitical concerns, high inflation and a steady stream of layoff announcements make it easy for interviewers to kick the can down the road instead of taking decisive actions.
When companies are laying off workers and cutting costs, your job search is much more difficult. Desirous of keeping costs down, businesses are reluctant to hire unless they can find a purple squirrel, a job candidate who is the absolute perfect fit and possesses all of the nearly impossible qualifications.
Why Leadership Needs To Course Correct
Without bridging the gap between workers and employers, this disconnect could mean serious ramifications for organizations. Although companies have the upperhand right now in the job market, it won’t stay that way forever and workers will remember how they were treated.
The leaders that meet workforce expectations will win the war for talent and their companies will thrive. Those that drag their feet will suffer from massive rates of attrition and face challenges recruiting new talent, as evidenced previously in the Great Resignation.
“Smart companies have people in place recognizing the pivots in behaviors and addressing everything in real time,” said Lori Aiken, vice president of human resources at Indeed, in a statement. “You have to look ahead of the curve.”
Source: Forbes
