In 2020, labor markets were globally disturbed because of COVID-19. There were many short-term severe consequences, such as millions losing their jobs and many adjusting to working from home.
At the same time, many were considered essential and were asked to work following COVID protocols in hospitals, grocery stores, etc. However, this was just the beginning, as there was much about to be changed in the way the post-pandemic workforce operates. Read on to learn more about this.
Changes Happened in Workforce Planning Post-Pandemic
The most essential change that happened was opting for flexibility in the organizations. Companies moved to remote working instead of physical working. According to the Decennial Census report, around 4.2 million people worked from home in the US in 2000. However, the number rose to 11 million people in 2020 after the pandemic. But this is not the only thing that has changed. Some essential predictive workforce trends post-COVID-19 are mentioned below.
1. No Geographical Barriers
Companies are no longer considering the location of the candidate during hiring. Per the new remote work norms, companies are hiring people from anywhere. This led to access to competitive talent, the option to choose lower-cost candidates, and the recruitment of diverse talent.
2. More Flexibility, Cost-Savings, and Productivity
With remote working in the picture, companies could drive compartmentalized workflows and greater digitalization. This, in turn, created more opportunities and ways to use the globally distributed workforce better. According to the 1Q20 Gartner Survey, 48% of totally remote workers exhibit strong discretionary effort, compared to 35% of never-remote workers.
3. Hiring Criteria Shifted to Skill Based
Post-pandemic role-based hiring needs were converted into skill-based requirements, and it changed how organizations thought about critical skills. Besides, employees started understanding their skills and exploring opportunities outside their roles. Most employees began looking for work outside their described KRAs, which shows that job roles do not correctly capture the skills needed for the current workflows. Companies started adapting people analytics strategy to understand how to hire the right resource based on the proper skill set.
4. Hiring of Freelancers and Contingent Workforces
Since companies started following the remote working model, it was optional to hire people full-time. They started looking for part-timers, freelancers, or contingent workforces with the skills they needed for that particular job. Such people are accustomed to working with multiple teams, projects, and workflows. Companies even started considering these workforces as essential in adding critical competencies to their business.
Upskilling and Reskilling – Trend to Watch Out in 2025
Reskilling and upskilling won’t be just strategies companies will follow in 2025. They will be the cornerstone for any business to survive and thrive. There is a labor shortage happening across sectors and industries. This adds pressure on the companies to build new employee skills. This step ensures the company’s success and helps the employees grow and succeed in their careers. According to McKinsey, 87% of people believe they have skill gaps, and only 28% can bridge them.
Many known companies, like JPMorgan and Amazon, focus on retraining methods, highlighting the need to equip people with skills that are future-ready in today’s competitive world. Aura’s October 2024 Job Market Research indicates that some industries, like construction, are also seeing significant growth and skills shortages, as evidenced by the 5.8% monthly increase in job ads. Such data is essential for companies conducting demand analysis to predict future workforce needs and prevent staffing issues. For instance, companies must use supply analysis to understand current skill sets and geographics to predict future staffing and align it properly with business goals.
Besides, HR must also use workforce analytics to determine skill gaps and plan their future hiring accordingly. Using HR predictive analytics and analyzing data on employee turnover, companies can make data-driven insights on optimizing recruitment and talent acquisition strategies. Moreover, upskilling the employees will also assist in better succession planning, ensuring important roles are never without a skilled employee.
Conclusion
You need reliable HR analytics for good workforce planning. The more accurate and accessible your workforce data is, the better your company can use it to make strategic business decisions. Therefore, you must equip your people using the best analytics tools to help you analyze the current workforce and derive efficient strategies to hire new ones.