2020 was a year of unprecedented change, and the job market was no exception. In the past, the job market was largely candidate-driven, with employers competing for the best talent. However, in 2020, the tables turned due to the high unemployment rate, increasing the size of the workforce looking for a new job.
According to a survey by Deloitte, 91% of companies actively recruited new employees in 2020, compared to only 57% in 2019. Fast forward to 2023, the demand for new employees has slowed down due to the possibility of a recession, but for the employers that are still actively hiring, they are now having a difficult time filling their job openings. The reason? We are back to being in a candidate-driven market.
According to a recent survey, over 77% of surveyed employers report that they are struggling to find highly qualified candidates – a 17-year high. This indicates that the candidate pool is small, and those who do have the right skillset can be selective in choosing the right job. According to the Bureau of Labor Statistics, our current unemployment rate is the same as it was before the pandemic, meaning less candidates for employers to choose from.
In addition, many employers are reporting that candidates are rejecting their offers more often than in previous years. This trend looks set to continue as competition for jobs remains high and employers struggle to offer competitive salaries or stand out from the competition.
Another indicator of a candidate driven market is the increasing length of time it takes to fill open roles. On average, employers now take around 75 days to fill a position – an increase of almost 30 days compared to 2020.
These statistics all point towards a candidate-driven market in 2023 where hiring managers need to work hard to attract and retain top talent.
What is a Candidate-Driven Market?
A candidate-driven job market is one where candidates have the upper hand. This means that there is an abundance of job opportunities available and candidates can be more selective when it comes to choosing which positions they apply for. Candidates may also have more bargaining power when it comes to negotiating salaries and other conditions of employment.
In contrast, a company-driven job market is one where employers have the upper hand in the hiring process. In this type of market, employers can dictate and negotiate terms with potential candidates, setting the salary range and other conditions for employment. Companies are also able to choose from a larger pool of applicants, as there is more competition for jobs.
It’s important for companies to understand the difference between these two types of markets in order to effectively recruit and retain talent.
How to Not Miss Our on Candidates in a Candidate-Driven Market
When the job market is candidate-driven, it can be difficult for employers to fill roles quickly and efficiently. With a low unemployment rate and fewer qualified candidates seeking work, candidates have more choices when it comes to finding a job – meaning that companies are now competing for top talent.
As we adjust to this new normal in recruitment, employers must think outside of the box in order to attract top-tier talent and make sure they don’t miss out on great candidates due to a lengthy hiring process or poor recruiting techniques. In this blog post, we will look at how recruiters can better compete with their competition in candidate-driven markets and ensure they hire the best possible employee for every role.
Act Quickly on candidates
The biggest tip we can give you is to act quickly on candidates to speed up your hiring process. When receiving a candidate’s resume, make sure to view it as soon as you can. When you wait to view a resume, you are giving other companies the advantage of reaching out to that candidate first.
On average, candidates send out 10 to 15 job applications per week – meaning the other companies a candidate applies to could contact them 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 candidates, 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 would be a good fit for your company, 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
In 2020, 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 for a job opening. 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. Remember, there is always the option to train new employees if they lack experience.
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.
Reduce Your Cost-Per-Hire by working with a staffing agency
The last thing we will talk about is your company’s cost-per-hire. You are spending more and more money in this job market to attract, interview, and hire candidates – and sometimes 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 spent towards training a candidate with an excellent work ethic that lacks experience. In addition, a staffing agency 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.