Realities of Hiring in a Candidate Driven Market

You may have seen headlines lately saying “? of Americans will seek a new job in 2019,” but in reality what does that mean for employers? Before you get too excited about all the great talent you are going to hire, let’s look at the reality of the situation.

Unemployment is the lowest it’s been in 5 decades and for the first time ever there are more job openings than there are unemployed workers in America. Does this mean that there are an abundance of candidates in the market? Does that mean hiring will be easy? It may seem counterintuitive, but more candidates actually makes for a more difficult and complex hiring environment. Here is a breakdown of the realities employers need to be prepared for...

Consequences of a Candidate Heavy Market

Bidding War - 33% of the market looking to make a move means they are probably being targeted by multiple employers, which means competing offers for the same talent. This potentially gives qualified candidates more power in negotiations and can create a bidding war where your company needs to make sure compensation and benefits are competitive in the marketplace. According to a study done by Monster, 72% of Americans overall believe the job seeker has the upper hand in terms of having job options and negotiation power, younger Americans may be disproportionately benefitting from the modern search process: 83% of 18-24-year-olds and 84% of 25-34-year-olds say they have the upper hand, vs. 64% of 35-65-year-olds.

Ghosting - It’s not the “right” thing to do, but it’s the reality. Ghosting, which is a common term in today’s dating world, can now certainly be applied to the corporate landscape. It means that candidates are no-shows for interviews or even worse, the first day on the job. According to USA Today, businesses are reporting anywhere from 20-50% of applicants are pulling no-shows in some form during the hiring process. These talent groups are likely contacted for multiple job opportunities, are actively interviewing for several roles or are considering job offers from multiple employers; therefore many of them will react to the first and best offer, not worrying about informing others of their choice.

Low Hanging Fruit - Because there is so much talent available many organizations are relegating themselves to the first candidates that come along. The question becomes, are they actually the “best” candidates? In many cases the answer is no. The ? of the market that may be actively looking is made up of a mix of highly skilled and qualified talent that is ready for a new motivating opportunity as well as others who are looking because of underperformance, impending job insecurity, or just eternal job hoppers.

This candidate driven landscape doesn’t mean all employers have to live in fear, but instead be mindful of the realities of the situation at hand. In fact here are the keys to executing effective hiring strategies in today’s marketplace.

Keys to Hiring Successfully in a Candidate Driven Market

Speedy Hiring Process - Do an audit of every touch point an applicant has to ensure the process is as efficient as possible. Then, be ready to hire with a sense of urgency. Qualified talent is often interviewing for multiple roles, so if you interview a candidate with the right skills who seems like a culture fit, make an offer ASAP or risk losing out to a competitor that does. Time kills all deals...

Passive Candidates - Just because ? of the labor force will be looking to make a change, don’t assume that it is the top 33%. Have in place a process that can attract passive candidates that are crushing it at your competitors. There is too much competition over the 33% active candidates, why not target the other 66% that undoubtedly may have even more talent...and less competition.

Candidate Experience/Communication - Work to provide open and frequent communication throughout the recruitment and hiring process. Be transparent about where you’re at in the process, and request applicants do the same. Showcase your culture and brand identity. Be upfront about any required skills tests, and provide an accurate timeline for when they can expect feedback. By focusing on improving the candidate experience, you’ll find you can avoid some of the core hiring challenges that arise in a candidate-driven market.

In the same study done by Monster, candidates said the following would have helped them feel more respected by recruiters and potential employers (all of them revolve around communication!):

• Being told why they weren’t moved to the next stage (32%)
• Recruiters followed up in a timely fashion after the interview (31%)
• Company acknowledged receipt of application (28%)
• Knowing if the application had been seen by a recruiter or hiring manager (27%)
• Recruiter/hiring manager sent a rejection in a timely fashion (23%)
• You were told you'd be considered for future opportunities (23%)

Competitive Compensation - Offering below-market value for in-demand roles and skill sets is not an option in a candidate-driven market, especially in remote or undesirable locations. The recession is over, so the salaries you’re offering for available roles must match the competitive rates in the market, or talent will find offers that don’t undervalue their skills or experience. Additionally, talent today places more importance on a strong company culture or benefits like working from home. If your budget doesn’t allow for a higher salary, look into what other benefits candidates are interested in that you might be able to offer instead. Do your market research, or hire an expert that knows.

Hire an Expert - Outsourcing your hiring needs to a recruiting firm can create a valuable partnership with an expert who knows the ins and outs of the current market conditions and can help you navigate your hiring efforts to success. Their market research and insight as well as inside track on communication can make the difference between being successful or left out in the cold when it comes to securing top talent.

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To sum things up, you now need qualified applicants more than they need you, which is a challenging hurdle to overcome when you have an urgent hiring need. Take these steps to address the realities of today’s current hiring landscape and set yourself up for successful hiring.

If you are a candidate in this scenario, please practice respect. It’s sad to say, but common decency and not “ghosting” employers will set you up for future success and leave doors open should you even need them.

One last note to employers...while hiring new talent is important, don’t forget to do everything in your power to retain top performers as well. It’s easier to keep the best than replace them.

***Of course this is a complex issue with many angles. If you have thoughts, comments or questions I'd love to hear them!