The job market has been bleak since 2008. Although the economy was in recovery, hiring increased slowly and wages were stagnant. However, the new year offers an optimistic hiring outlook. At 5.6%, the unemployment rate is back to pre-recession levels. More than 1/3 of employers are predicting to hire full-time, permanent staff this year (Career Builder, 1/1/2015), and employees are more confident that if they leave their current role, they will find a new one. Companies need to prepare for a positive job market this year where hiring tips back in favor of the job seeker.
1. Employers will add talent to their organizations.
Some 36% of businesses plan to increase full-time, permanent staff, a 12-point increase from last year. Jobs in sales, customer service, information technology, production, and administration will dominate the new opportunities (Career Builder, 1/1/2015). Many of these jobs will originate from small businesses; 30% of companies with fewer than 250 employees plan to add full-time staff. Temporary hiring will also pick up, with 46% of employers planning to hire temporary or contract workers; 56% of these companies plan to transition temporary workers into permanent roles (Business News Daily, 1/4/2015).
2. Workers will continue to fight the wage war.
With wage growth mostly sluggish since the recession, raising the minimum wage became a national debate in 2014. Some 21 states had increases that began on January 1, and by early this year, 29 states will have a minimum wage higher than the Federal wage (NCSL, 12/28/2014). As competition for highly skilled candidates increases, 82% of businesses plan to increase compensation in the coming year and 64% plan to offer higher starting salaries to new employees (Career Builder, 1/1/2015).
3. Companies will compete for highly skilled candidates.
Employers are adjusting education requirements to attract workers with advanced degrees; 28% of companies will be hiring more employees with master degrees, and 37% will be hiring more employees with four-year degrees (Career Builder, 1/1/2015). As job roles are becoming increasingly complex and data-driven, businesses will be competing for these highly educated and skilled candidates.
4. Unsatisfied employees will leave their roles.
In September, 2.8 million people quit their jobs, the highest level since 2008, signifying more confidence in the job market. Nearly ½ of all employees are optimistic about their ability to find a new job, and more than 1/3 report that they will look for a new position if they do not receive a pay raise in the next 12 months (Glassdoor, 1/9/2015).
5. Millennials will become the majority of the workforce.
In 2015, those born between 1981 and 1996 will become the majority of the workforce for the first time; 27% of this generation already inhabit management roles, and 47% want to transition into leadership opportunities (Elance-ODesk, 10/29/2014). Hiring and retaining Millennials poses a unique challenge, as 58% predict to leave their jobs in three years or less.
6. Mobile recruiting will expand.
As everything becomes more mobile, job searching is no different. Employment site Beyond.com found that 83% of those looking for work use their phone or tablet (Beyond.com, 6/17/2014), while Glassdoor found that nine in 10 job seekers are using mobile devices in their job search (Glassdoor, 5/13/2014). Utilizing mobile is one way that businesses can compete for top talent as 25% of seekers are deterred from applying if job listings are not mobile-optimized.
7. More people will leave the traditional career path.
Both out of choice and out of necessity, more workers will become freelancers and contract workers. The Internet's accessibility has allowed nontraditional career paths to become more legitimate and sustainable. Employers can now find and hire contract workers more easily, while freelancers can find those in need of their services and sell their labor. This year, 53 million U.S. workers were freelancing, and that number is only expected to grow (Elance-ODesk, 10/2/2014).
Readers, what are your hiring plans for 2015? Comment and let us know!