2016 in Review

2016…a year of change and growth, not only for Key Resource Group, but for the staffing and recruiting industry in general. A lot of the changes in the industry deal with new technologies, changes to federal/state laws, and shifts in the workplace.

Here are the top 7 trends that affected our industry in 2016.

Unemployment continued to drop throughout 2016

The talent pool shrunk as the few people available got absorbed by the workforce. Today the federal unemployment rate is 4.6%, lower the 5% that the Federal Reserve considers full employment. As the year progressed, it became more difficult to find qualified people for open positions, especially in the high demand IT and healthcare fields.

Work style flexibility

As 2016 comes to a close, 50% of the workforce has a job that lets them work from home at least part of the time. That will continue to increase as employers try to offer perks that will be attractive to new employees.

Annual performance reviews go by the wayside

New management styles which are effective for today’s workforce trend towards more frequent, casual check-ins with employees. After all, it is much easier to correct mistakes and implement changes as necessary, rather than waiting for the annual review.

Increase in minimum wage

Just as the minimum wage increased last year in New York State, as of December 31, 2016, it will increase again from $9.00/hr to $9.70/hr for most non-exempt employees. The increases will continue to occur each year on a set schedule until 2021.

Generation Z entered the workforce

2016 was the first year that members of Gen Z graduated college and entered the workforce. While they share many characteristics with Millennials, members of Gen Z tend to be more cautious and value safety and security, trends picked up from their childhoods during this past Recession.

“Gig economy”

This phrase was big in 2016 and it represents the increasing use of freelance workers, consultants, and independent contractors. Today approximately 1/3 of our workforce is made up of gig workers, a number sure to increase over the next few years.

Increased investment in wellness initiatives

Companies are finally coming around to the idea that employee burnout is a real thing. It negatively affects productivity on all levels. Sick and tired employees cost the company money in terms of absences, decreased productivity, and increased health insurance costs.

So there you have it, 2016 at a glance. We’re excited to see what will happen in 2017. If your company plans involve hiring new employees during 2017, get in touch with our recruiting team sooner rather than later. Then we can find that perfect person for your role when you need them.