Calm in the Storm: 3 Ways To Mitigate Job Seekers’ Concerns Amidst Economic Upheaval

The job market seems to be stabilizing, but businesses are staring at a possible recession. This is creating concerns among job seekers. While they want to find a job before the recession, they also worry about job security. Here, Chris Sinclair, chief people and culture officer, Bayard Advertising, discusses a few ways employers and candidates can address these concerns.

We seem to be going through interesting times again. While the Great Resignation continues, job growth remains strong, and the unemployment rate is holding steady. However, we are also staring at a possible recession. And this has created a concern among job candidates. According to a Joblist studyOpens a new window , about 66% of job seekers are worried about a potential recession. But despite an urgency among candidates to find a job before economic conditions worsen, they are also concerned about their job security. So, how can potential employers (and candidates) prepare themselves to address these concerns? Here are a few ways.

Prepare yourself to answer candidates’ questions

Candidates want to feel confident that if they are going to be joining a new company, they will not be the first ones let go should the economy shift. During job interviews, typical questions that may arise will most likely revolve around a company’s employee retention record and whether the company has done layoffs over the past few months or years. 

Additionally, candidates may ask how the employer has handled layoffs, especially if they had to do them in the past. The way a company approaches layoffs, both from a decision-making perspective and a process perspective, says a lot about the values of that organization. Candidates understand the current economic realities and will not cross a company off their list if they have done layoffs. But if an employer has done them in the past and the process was not handled the right way, or the decision seemed to come easy, that may be a red flag to job seekers.

Job candidates will also want to understand why the specific role they are applying for is now open. If it is a growth role that opened due to the growth of the overall business or specific team/division, that is great insight for candidates to know. If it is a backfill because someone left, tell them that reason. Often when employees leave, it is positive — they move to a larger company, take on a bigger role, or just want a change after being with a company for many years. These are all good scenarios in a potential employee’s eyes, so do not be afraid of being honest. Transparency from the very beginning will only help build the foundation for future relationships.

Candidates will also want to understand how a company communicates job security concerns to existing employees. Are company financials and business health information being presented at employee-wide meetings? Has the organization been promoting as usual and providing raises over the past weeks/months? Have managers discussed contingency planning with their teams should a large customer or two decide to leave and not resign their contract? No one appreciates being blindsided. That is why open communication and transparency from an employer on the state of the business is a major plus for candidates and current employees alike.  

Adjust compensation and benefits strategies to account for inflation and candidate needs

The significant rise in inflation this past year has caused a drastic uptick in both employees and job seekers requesting higher wages to help combat increased day-to-day expenses. Candidates understand wages will not necessarily rise in parallel with inflation, but they do look for companies that acknowledge the challenge and assist in other ways. This could be introducing transit perks when commuting into the office, a fuel stipend to help with high gas prices, or reduced benefit costs. Anything that increases employee take-home pay is welcome and demonstrates the employer cares about their financial wellbeing and satisfaction. If a company is not planning to change its compensation strategies to account for inflation, I suggest having a statement on hand they can articulate to a candidate if they ask this type of question or one that alludes to it during an interview.

From a benefits perspective, employees are continually looking for more holistic packages that will take care of them from a health and retirement perspective (e.g., medical coverage, 401k, etc.), as well as a work/life balance and overall wellness perspective. Flexible working and the ability to work remotely, either full-time or in a hybrid style, is #1 on the list regarding work/life balance. In fact, location flexibility is the primary decision-making factor for almost 50%Opens a new window of job seekers today, according to Gusto’s research. As for wellness, candidates are looking for companies that demonstrate they value their employees’ mental and physical health. Mental health conversations have become more accepted in the workplace since the pandemic. Whether it comes in the form of free online therapy sessions, access to stress-relief apps, or paid mental health days, candidates expect companies to have benefits that address this increasingly important need in the modern workplace.   

The recent student loan relief planOpens a new window announced by the Biden-Harris administration shows how nimble employers must be when it comes to prioritizing and designing new benefits programs. Many employers have recently introduced — or are planning to introduce for 2023 — benefits to help employees pay back student loans to provide financial relief during this time of high inflation. Many of those programs feature a 401k-style employer match for payroll deductions associated with their loans. However, with the new government plan, many employees will have their loans wiped out or repayment obligations suspended. That being the case, employers may need to pivot and see if those benefits dollars would be better invested elsewhere.  

See More: 4 Reasons Why Leading Businesses Use Automated HR Systems

Candidates: Communicate your unique value proposition

Even though today’s market remains a “candidate’s market,” competition for top jobs remains extremely fierce, with more employees than ever willing to leave their current roles to take on a new ones. The best way for job seekers to differentiate themselves from other candidates is to think about how their unique mix of skills, abilities, and experiences will add value to this new organization in a way others cannot. They must take time to brainstorm how they can identify their own UVP (unique value proposition) and how they will communicate this in an upcoming interview, making sure it resonates with the job description and the company as a whole.  

In times of economic uncertainty, employers value candidates able to diversify beyond their core responsibilities to support the business in other areas. Showing versatility, an ability to learn new skills, and a variety of experiences will help boost perceived value to an employer during the interview process. 

Lastly, “nailing the basics” is still a critical component throughout the hiring process. This includes having a clean, typo-free resume, being punctual and professionally presented for interviews, and coming prepared with questions for the interviewer that will help gauge if the company is the right fit for them. It also includes sending thoughtful follow-up emails thanking interviewers for their time and expressing enthusiasm for the opportunity. These are often overlooked but can be the difference between one person getting the job over another.

While we may be staring at a possible economic downturn, the Great Reshuffle is not yet over. Simultaneously, with candidates’ concerns about job security, we may have to go the extra mile to attract them. In such times, transparency, empathy, and change in compensation strategies can help us gain some valuable talent.

How do you think potential employers can address job seekers’ concerns amidst the current economic situation? Let us know on FacebookOpens a new window , TwitterOpens a new window , and LinkedInOpens a new window .

Image Source: Shutterstock

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