What HR Need to Navigate for Talent Shift: Insights from the Latest JOLTS Report
Continuing to leverage wages, benefits, and retirement programs to recruit and retain talent is “mission-critical.”
The Bureau of Labor Statistics’ (BLS) latest Job Openings and Labor Turnover Summary (JOLTS), released on May 1, offers a wealth of information for HR professionals navigating the current job market. The report showed that the number of job openings in March “changed little” when compared to February, with 8.5 million job openings reported for March, compared to 8.8 million in February.
The JOLTS report also revealed that there were 5.5 million hires in March and 5.2 million total separations, slightly lower than the 5.8 million hires and 5.5 million separations in February. The quit rate for March dipped to 3.3 million from 3.5 million in the previous month.
Economist Nick Bunker commented on the report, stating, “[The] JOLTS report is fairly benign and boring. Openings tick down, but are still elevated. Hires declined, but so did quits, suggesting the main driver here is less job-to-job switching.”
This observation is crucial for HR professionals. In a job market where fewer employees are voluntarily quitting their jobs, attracting talent will require HR to focus more on compensation and benefits. Scott Hamilton, global chairman of HR and compensation consulting at Gallagher, emphasized this point in a conversation.
Hamilton explained, “What’s really going on is that jobs are being created, and that job growth is happening in healthcare, construction, finance, and insurance. The hiring that’s happening is in industries where we’re seeing slightly higher than market wages being paid.”
He added that wage inflation is not going to calm down, “until the economy overall starts to decrease hiring in some of these higher than average wage industries.”
From an HR executive’s perspective, Hamilton stressed the importance of leveraging compensation, benefits, and retirement program offerings on a total rewards level. He said, “That’s how you’re going to keep your workers, that’s how you’re going to make sure you’re attracting people—with a very balanced approach. It’s not all just base pay. It’s the complete offering of compensation, benefits, and retirement support that is going to help HR executives execute on their HR strategies, continue to find people, and keep growing their business.”
In conclusion, the latest JOLTS report provides valuable insights for HR professionals. It highlights the importance of a balanced approach to compensation and benefits in attracting and retaining talent, particularly in a job market where fewer employees are voluntarily quitting their jobs. As the job market continues to evolve, HR professionals must stay informed and adapt their strategies accordingly to ensure their organizations’ continued growth and success.
Stay tuned, to PropleManager.co.in for further updates on the evolving workplace paradigm.
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