We are only a few days into March, and we already see the job market continue to be candidate-driven. One year ago, millions of unemployed workers sought work but were not able to find any. However, one year later, we are in a market where there are more job openings and fewer qualified applicants applying.
We took a look at Indeed and found that not only are fewer people applying for job openings, but fewer people are even searching. In fact, more people were searching for job openings in January 2019, with an unemployment rate of 4%, than today, with an unemployment rate of 6.3%. With less people searching, companies are competing now more than ever to attract candidates to apply for their job openings.
Agencies all around the country have been experiencing the same thing. They are receiving more clients and less qualified applicants. Last month, February saw around a 46% decrease in job searches and more than a 50% decrease in applications.
Cost per application for Indeed is up 27% compared to last year. Companies are spending more and more to attract the right qualified candidate to apply for their job opening. With fewer applications per job opening, candidates have the power in this job market. What does this mean?
What is a Candidate Driven Market?
We are no longer in a company-driven market. A company-driven market is a job market where you would be able to hold off on hiring great candidates because there are so many other options. However, this is no longer the case.
These past few months have been interesting. Many times, we have seen companies who have held off just a few days on hiring a candidate end up losing that candidate to their competition.
Great candidates are finding jobs within days, no longer weeks. Top caliber candidates are now applying to fewer companies because they hear back from most of their applications. We hope that these tips will help you not miss out on qualified candidates in this job market.
The biggest tip we can give you is to act quickly. When receiving a candidate’s resume, make sure to view it as soon as you can. When you wait to view a resume, you give other companies the advantage of reaching out to that candidate first. On average, candidates send out 10 to 15 job applications per week. Meaning 9-14 other companies could contact that candidate before you if you wait more than one week to review a resume.
Once you review a resume and find that the candidate is qualified, setting up an interview within that week is ideal. Top caliber candidates are receiving job offers within a week in this job market, so acting quickly is essential. If you hold off a few days before reaching out to a qualified candidate for an interview, there is a high possibility another company has already contacted them. The quicker you are to review a resume and interview the candidate, the faster you will fill your job opening.
If you delay the job offer for a few days after an interview, you have probably already missed out on that candidate. If you think a candidate is hireable, don’t you think other companies do as well?
Delaying a job interview is one of the most common mistakes that employers make. According to The Balance Careers, job offers are usually received within 24-28 hours of interviewing. Don’t wait, or you may miss out on great talent and have to start the whole process over again.
Don’t Settle, But Don’t Look for Perfection
We live in a new economy today than we did just a year ago. We also have a completely different job market. A year ago, it was much easier to find the perfect candidate for your job opening because you had so many qualified candidates applying for jobs and looking for work. However, in this economy, we are seeing fewer applications than ever before.
During these times, you will need to adapt and understand that waiting for the perfect candidate will hurt your company in the long run. Some hiring managers have several requirements for a position that they are not willing to compromise. We have seen hiring managers willing to hold off for months until they find someone that fits all their requirements. Meanwhile, someone with less experience could have got up to speed in a matter of weeks and possibly outperform the candidate you are holding off for. If you need to fill a position, don’t settle, but also don’t look for perfection.
An example of missing out on the perfect candidate is not offering them the job because they requested to work from home on Mondays, even though it is an in-office position. In this job market, making necessary adjustments to your search is essential. If you are having trouble selecting candidates to interview, learn more about what you should look for in a resume in our blog.
The last thing we will talk about is the cost-per-hire. You are spending more and more money in this job market to attract, interview, and hire candidates. However, if you are looking for a perfect candidate, it may take months to fill a job vacancy. The money you are spending to post jobs and interview to find the perfect candidate could be used towards training a candidate with an excellent work ethic that lacks experience. In addition, a staffing agency, like ours, will be able to supply you qualified candidates, saving you time and money.
Remember, others are adapting to the current job market. If you are hesitant about hiring a candidate because they don’t fit all of your requirements, or are requesting to work from home a few days a week, there is a chance they will be hired within a week by your competition. Don’t settle, but also understand that your requirements for a job opening should adapt in this job market, so you do not miss out on qualified candidates. As you can see with the image above, the average cost per hire is $4,129 and it takes an average of 42 days to fill a position..
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