For years the power of employment has favored employers as witnessed by slow hiring processes, generally stagnant salaries and lack of meaningful advancement opportunities. In the down economy, people that looked for work were willing to take what they could get and bide their time until economic conditions improved.
While people might argue over specifics, statistically, the economy has improved and more jobs are steadily being created. Over the past year, the U.S. economy has added almost 3.3 million jobs in a variety of industries. The jobs currently being created tend to be better paying jobs compared to a few years ago, including the return of job growth in the business service sector.
These gains have shifted power to jobseekers. According to MRI Networks, the primary reason for job offers being rejected is that the candidate accepts another offer. Employers are losing sought after talent to “lengthy hiring practices, lower-than-expected salaries and a poor job of selling the company, the role and advancement opportunities.” For workers that have been under-employed in recent years, retention problems will most likely surface if companies are unwilling to offer competitive compensation along with genuine advancement opportunities.
Technology Changes the Game.
A recruiter commented on the MRI Network 2015 Study: “[Companies] are operating with the mindset that there are an abundance of candidates, all willing to jump through hoops to get a job at their company, and that is just not true anymore.” In fact 75% of recruiters in the LinkedIn 2015 Survey said that the talent brand, the current and past employee perception of a company, has a significant impact on the ability to hire talent.
Websites such as indeed.com and glassdoor.com can define a candidate’s interest in working for a specific company. A former client had this issue with hiring programmers and a negative company review on one of the job seeking sites. The review came up consistently in candidates’ questions prior to accepting an invitation to interview, and it was a hard hurdle to overcome – as candidates had already formed a strong opinion about the company based on the review (and it was only onenegative review).
Once in the company interview pipeline, the lengthy and often torturous interview process is also hurting employers. Active job seekers are often speaking to several companies simultaneously and passive job seekers need to be lured away from current employment. The longer the process of hiring – even for senior level professional – the greater chance the company will lose the talent to another offer.
As you might guess, internet job boards and social professional networks in every region of the world are noted as top sources for quality hires. Look to mobile apps to dominate recruiting in the future. With mobile comes employer videos – from employee profiles to job postings to branding, video enhances that element of culture and feel of excitement that other forms of communication cannot match.
Employers have to adapt to this big shift to remain competitive. It requires new recruiting strategies, tools and approaches along with more marketing, communications and HR collaboration. The economic sexiness of start-ups will continue to lure top talent from larger, established industry companies. For employees the job climate offers the opportunity to “upgrade” their careers and move into positions that offer them what is missing from their current situation.