labor market

The labor market is transforming at an incredible speed and companies have to adapt to new changes. The trend of transitioning to the online format of work is dominating the market. And it looks like it’s here to stay. 
But for now, it poses more questions than it gives answers. How will remote work affect the workflow of HR specialists? Which professions will be most in-demand? How are companies changing their policies in 2021? Read on to find out.

Temporary Contracts and Outsourcing

For the longest time, employers used to look for loyal and driven employees to form long-term partnerships with. Now, companies are increasing the number of vacancies for temporary projects instead. This format is gaining popularity rapidly. Even sales managers started working on short-term contracts. 
Why is it convenient for companies? They can quickly assess the potential of such employees since they are motivated to show the results of their work immediately. As for the employees, a short-term contract will allow them to change jobs quite easily if need be.
Outsourcing, in general, has become way more common. Many companies were forced to cut contractor budgets due to the global crisis. According to Gartner’s report, 32% of organizations are actively replacing full-time employees with freelancers to save money. In response to this, HRs are adopting systems that are designed to quickly process a large number of new employees.
The one thing that remained seemingly untouched is the resume creation process. Every job search still begins with a resume that illustrates all the employee’s achievements and skills in the best possible way. To make a resume stand out, more and more applicants turn to to get professional assistance. Experienced writers know exactly what the recruiters want to see. They will make sure your resume will catch their attention.

Well-being Programs 

During self-isolation, the lines between work and personal life are almost non-existent. The working day no longer lasts for 8 hours since employees are constantly in touch (in chats, instant messengers, etc.). Some have already felt the negative effect of this lifestyle. Burnout and fatigue have become more common of an issue than ever before.
The personal problems of the employees affect the efficiency of their work. And considering the negative effects, it’s been having on many businesses, HR can’t ignore that. For example, Unilever found that they get a $2.50 return for every $1.00 invested in employee wellness. 
According to David Green, investing in healthy practices and strong employee experience helps businesses shape their future. The goal is to increase the level of the workers’ well-being and their involvement in the work process. Taking care of the workers’ health, mental balance, and financial stability play an important role in retaining talent. 
The Philip Morris International case is an excellent example. The company conducted a study as part of its employee support program. It turned out that many workers were concerned about family problems. Generation gap, in particular. 
So, management organized a webinar on improving parent-child relationships. This initiative helped employees to reduce family conflicts. As a result, this approach increased engagement and decreased employee turnover.


These days, the management of many companies encourages employees to take on whatever tasks they can complete. That includes duties that are not included in the job description. During the pandemic, many employees not only took up the challenge but also showed that they can apply their potential in the most unexpected areas. 

Additional Education

Much attention will be paid to additional training of employees. In a rapidly changing environment, skills can become obsolete in the nick of time. Thus, new tasks appear every day and employees need fundamentally new competencies to solve them. Only those workers who are constantly improving and raising their qualifications will be in demand in the labor market.

HR’s New Role

Previously, HR specialists worked with the staff. But now theu tend to focus on helping the company gain the trust of customers and potential employees, too. This sort of approach will see HR getting more involved in strategic planning and market analysis.

Data Analysis

According to Brian Kropp, vice-president at Gartner, it is essential for business leaders to understand that large-scale shifts have changed the way people work. So, management strategies are switching as well. Gartner analytics showed that 16% of employers began to use technologies to monitor employees’ activities more often. They take into account such indicators as: 

  • The length of the digital working day;
  • The usage of the work computers, e-mail, and instant messaging apps for business. 

The Most Sought-After Professionals

Employers rely on IT specialists, and this is understandable. Serving clients remotely has pushed many large companies to create their own applications. And their development requires experts of the appropriate profile. There is a growing demand for: 

  • Employees of technical support services;
  • Specialists who are ready to train colleagues to work with new software;
  • Professionals who can help customers to resolve all emerging issues quickly. 

HR has always been a universally skilled department. In order to efficiently do their job, they need to understand what it is company employees actually do. At least on the very basic level. And you can fully expect specialized IT skills to become a great asset for HR in the nearest future.

The Number of Middle-management Staff is Decreasing

The crisis of 2008 and 2014 showed that when a company saves its budget, midline managers are often laid off. This is especially true for large corporations. 
Earlier, experts warned businesses against such a step. It is middle managers who often oversee operating results, support company policies, and control projects across departments. However, the need for executive assistants is diminishing. Instead, more and more organizations will look for project leaders who know how to supervise the team.

Final Thoughts

It is essential to keep up the team spirit of employees that work remotely. Many employers today use various online platforms to help their employees engage in team building. And this task oftentimes falls to HR to deal with.
Video meeting venues, interviews through a chatbot, shared calendars, and scanning apps are changing the reality of recruiting.

Photo by M. B. M. on Unsplash