If you look back at 2020, it seemed like anything was as planned. 2020 was a year where everybody was pushed to transition into a new way of working, meeting and business development. Many researches have described five key factors from 2020 that will shape the hiring and talent landscape in 2021.
- Crisis Management
The response and reaction that followed the economic crisis after the COVID-19 pandemic has been slightly different from startups to established businesses. While startups appear to be less impacted by the crisis and continue their hiring trends, the more established companies have suffered a major impact which has caused the need to resize teams.
In 2021 we will likely see growing their teams in startups, while larger multinationals are more likely to resize and focus on internal hires and team optimization.
- Manufacturing sector
From 2019 to 2020 the number of workers in the manufacturing sector grew significantly. This growth was specially due to an increased in investments in new materials and raw technology. The industry grew and the talent pool grew as well.
In 2021 is expected that this growth flattens out as a result of hiring freezes, uncertainty, layoffs and insecurity.
- Fewer jobs vs an increase in number of available professionals
For 2021, this presents a challenge to both organizations and the professionals looking for new opportunities. With so many people generally looking for work, whether they have experience or not, the organizations will receive a lot of applications. According to some researchers, 95% of those applications will be unsuitable, but companies will still have to screen them all to find the perfect candidate for the position.
At the same time, professionals will face more competition and hiring process with longer obstacles, increasing the uncertainty of the job market. This could potentially contribute to the professionals seeking outside the industry, with could lead to a path in career change for many professionals in 2021.
- Talent Uncertainty
While there may be more candidates actively looking and applying for jobs, some roles remain highly challenging to fill, with few skilled candidates available.
Some researchers expect in 2021 a more complex hiring processes and flexibility demanded from the employers. They expect to see a scarcity and demand for Software professionals, Mechanical Design and Controls, together with Sales and Application Engineers with knowledge of and experience in additive manufacturing.
- Dissatisfaction with compensation vs salary negotiation
In 2019, 30% of professionals answered that they were either not paid fairly or not paid fairly at all. In 2020, that amount has increased to 40%.
A consequence of salary levels that do not match the expectations of the talent could be unhappy employees that leave the companies, and in worst case leave the industry as a whole, in favour of higher paying industries.
Companies must consider these factors and trends when hiring new talent, and be wary of taking advantage of the employer favorable market, as it may have long-term consequences for the talent scarcity of the industry.
On the other hand, Employers are still paying top dollar when they find the candidate with the skills they look for. Be ready for salary questions and know the best strategies for negotiating salary and perks. It’s important for workers to develop their negotiation abilities and the capacity to get a salary based on their competences.
Regardless of how rapidly the job market will change in the coming years, these career options will continue to be high in demand in the future. The nature of work has changed across industries and we are moving rapidly toward a new “era” in terms of job market. So you better be prepared and take the advantage of the market by upgrading your own skills or you will be left behind by the new trends.
A multi-gig economy is poised to become a reality post-pandemic. As geographic ties to a physical workplace disappear, more and more skilled professionals will be tempted to take on multiple working engagements – one that pays the bills, for example, and another that stokes their passion.
Written by: Rafael Blanco – Commercial Assistant Manager