The latest trends on inflation are shaping the world, including candidate priorities and expectations. Since recruitment remains a top concern for many companies, understanding how inflation is changing and its impact on job seekers is a must. Here’s what employers need to know.
Latest Inflation Trends and Figures
In mid-2022, the United States saw consumer prices rise by 9.1 percent, representing a 40-year high. That peak was part of a more significant trend, with shockingly high inflation figures being the norm through much of the year. As 2022 came to a close, the consumer price index showed a clear slowing when it came to inflation. However, as of November, the rate was still at 7.1 percent.
As a means of slowing inflation, the Federal Reserve increased borrowing rates several times during 2022. The most recent increase was smaller, placing the benchmark borrowing rate in the 4.25 to 4.5 percent range. As a result, lenders are making credit harder to access, and those that do are going to pay far more than they were before rate increases began.
The situation is challenging for consumers and companies alike. Price increases impact business operations, particularly when it comes to securing materials, covering shipping costs, and similar expenses. Rising wages are also impacting company budgets, but the amounts aren’t high enough on average to prevent professionals from seeing rising prices alter their spending power.
As a result, attitudes about careers and hiring are changing. Couple that with concerns about a possible recession, and how candidates view their situation is becoming increasingly different when compared to a year ago. Since that’s the case, companies need to prepare if they want to ensure they can attract the talent they need to thrive during uncertain times.
How Inflation Is Impacting Candidates
Rapidly rising prices in 2022 shaped candidate expectations. One notable trend is among younger workers, particularly those who are just preparing to enter the workforce. Among them, stability is increasingly a priority, as they’re favoring a reliable paycheck over many other potential desires.
The drive for stability is augmented by concerns about a potential recession. Workers of all ages are concerned that a recession will lead to widespread layoffs. As a result, candidates are focusing on companies with long-term track records of weathering challenging economic conditions.
However, it’s also critical to note that salaries remain part of the conversation, though for different reasons than were present during the Great Resignation. A desire for fair compensation remains, but what’s viewed as an appropriate figure is shifting.
Candidates are using presented salary ranges or compensation listed in job offers to determine whether accepting a role allows them to handle their needs. It’s less about securing competitive pay, as the emphasis is increasingly on survival.
Similarly, benefits are assessed based on their financial value. For example, medical and retirement aren’t largely viewed as essential, as they offer a degree of protection during uncertain times and ensure a stronger financial future. Additionally, remote work isn’t always about comfort or preference. Instead, it’s viewed as a cost-saving measure, particularly in areas with classically costly commutes.
By being aware of what’s motivating candidates and how their priorities are changing, employers can position their opportunities in ways that speak to job seekers. As a result, they’ll have an easier time with recruitment and retention, all while ensuring their workforce feels secure.
If you’d like to learn more or are seeking out top talent for your vacant jobs, TempStaff can help. Contact us today.