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.
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.
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. Let's discuss how recruiters can better compete with their competition in candidate-driven markets and ensure they hire the best possible employee for every role.
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.
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.
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.