Recruiting in a Candidate-Driven Market by Marijan Pavisic with Zagreb Global Group
The economy is stronger than ever since the melt down of 2008. The job market is growing and is highly competitive. We are now in an era where the labor force is younger, highly educated, career oriented, and willing to take risks in terms of changing jobs after 2-3 years. Sound familiar? These were opening statements in my last blog where I wrote about “Tell-Tale Signs an Employee is About to Leave.”
In this blog, my focus is on recruiting talent in a job market where the advantage has shifted from the employer to the candidates. My opening statements apply to this discussion as well. The return to a growth economy post-melt down, an expanding job market, reduction in the unemployment rate, heightened use of social media, etc., have all contributed to what is considered to be a candidate-driven market.
In a recent forum of seasoned recruiters, Marijan Pavisic, Zagreb Global Group Senior Consultant, spoke about the current state of the economy in the context of the job market. “The economy continues to grow and has produced growth in the job market. Companies are now hiring as a result of economic growth and a positive outlook for the future”. He went on to say that “traditional recruiting approaches many companies use are no longer effective in a candidate-driven market”. Marijan cited the results of a Recruiter Sentiment Survey conducted by the MRI Network in 2014. The study revealed that 83% of recruiters surveyed have recognized the shift to a candidate-driven market. Zagreb Global Group recruiter’s advice to clients has been to recognize the changes in the job market and adjust their recruiting approaches to maximize the acquisition of highly qualified talent.
Zagreb Global Group recruiters have found that today’s candidates have a lack of tolerance for a long hiring process. They have high expectations of timely communication and follow-up from the company. If they don’t get results, they move on in their pursuit and will consider other offers. As discussed in my last blog, after 2-3 years, they move on to their next job.
To understand what needs to change, it is necessary to understand the important factors that brought about the shift to the candidate-driven market. Below are some of the factors Zagreb Global Group cites to its clients:
- Economy – While the financial crisis in 2008 had a devastating effect on economic conditions in the U.S. and worldwide, the U.S. economy resumed positive growth in 3Q 2009. Quarterly GDP growth has been positive every quarter except two since 3Q 2009 when growth was reported at 1.3%, to 2Q 2015; reported at 3.7%. While the economy continues to recover, consistent growth and economic stability resulted in increased hiring and the shift to the candidate-driven market.
- Unemployment – The highest unemployment rate since the financial crisis was 10.0% in October 2009. The July 2015 unemployment rate of 5.3% is the lowest reported since 2008. The US Labor Dept. reported 215,000 jobs filled in July 2015; continuation of a positive trend of job numbers. The numbers speak for themselves; consistent growth in the economy led to increases in hiring and the shift to the candidate-driven market.
- Job Market – As stated earlier, we are operating in a highly competitive job market. As companies experience growth, the demand for highly qualified talent increases. Companies are finding themselves having to compete for candidates. In economic language, the demand for highly qualified talent exceeds the supply; the concept of supply and demand. The candidate has the upper hand. They receive offers from multiple firms. They decide which offer to accept; thereby leaving the companies they reject to have to continue recruiting. This is common in a candidate-driven market.
- Salary Increases – While there has been growth in the economy, salary increases continue to be flat. The median increase in 2014 across employee categories was 3.0%. The projection in 2015 is 3.0%. Since salaries continue to be flat, employees resort to seeking other opportunities at higher salaries to grow their income. They take the risk and leave for more money.
In a candidate-driven market, competition between companies increase dramatically given the realization by candidates that they have multiple options to consider. Zagreb Global Group recognizes the shift and advises its clients to be proactive and make adjustments in their recruiting approaches. Clients are urged to reassess their hiring process and accelerate it as much as possible. Every aspect of the hiring process, from initial resume screening where every candidate must be closely reviewed; interviews that focus more on selling the candidate, to a faster and improved job offer process. To be competitive in the job market these days, companies must focus on revamping their recruiting and hiring processes. This is the adjustment in thinking, attitude and actions which must occur, or risk losing talented candidates to other job offers.
Zagreb Global Group clients understand the phenomenon of a candidate-driven market. They know what is required and have implemented changes to ensure they attract and hire the best talent the market has to offer. As a result, they are hiring the best talent in the marketplace.
About
Zagreb Global Group, LLC, (ZGG), a human resources consulting and staffing company located in Hackensack, N.J. Zagreb Global Group markets a full range of HR consulting and staffing services to companies ranging in size and scope from start-ups to fortune 500. We serve the needs of customers in multiple industries in a dynamically changing environment.
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Zagreb Global Group’s mission is to provide HR consulting and staffing services to companies ranging in size and scope from start-ups to fortune 500, across multiple industries. We are committed to providing high quality services through HR solutions designed to help our clients achieve their strategic objectives and business goals in a dynamic business and economic environment.
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