Recruiters have a difficult job. And in a tight labor market, the job becomes even more difficult.
The unemployment rate in the United States, as of October 2017, was 4.1%. This is the lowest it's been for more than 10 years. We also know that, according to ManpowerGroup’s 2016-2017 Talent Shortage Survey, 46% of U.S. employers are having difficulty filling jobs – the highest percentage since 2007.
Why has recruiting qualified candidates become so difficult?
There are several factors that have changed the hiring landscape over the last ten years.
- There are fewer candidates in the job pool. In a tight labor market, the unemployment rate is low. This means the rate of people openly seeking employment is lower than ever. This forces recruiters to be more creative when uncovering prospects.
- Competitors have introduced new incentives. With fewer applicants looking for a job, employers need to find inventive ways to lure top talent. Perks like unlimited PTO to 30-hour work weeks have become commonplace. Recruiters must work with their company to find incentives that are both scalable and feasible for their organization.
- The professional landscape has changed. The skills needed for jobs in 2018 are vastly different than the skills needed in 2008. Industries that once dominated the workforce, like manufacturing and transportation, have slowed hiring rates. Conversely, professions in industries like healthcare and technical services are increasing. Healthcare and tech industries evolve quickly, too. New skills are required from both employees and employers which recruiters must adapt to.
Understanding how recruiting has transformed in the last decade can make your recruiting efforts in 2018 more manageable.
What do we know about the hiring landscape of 2018?
According to a study done by Indeed, 61% of 1000 respondents expect to hire more people in 2018 than they did in 2017. Still, 42% of employers worry they won't be able to find the talent they need to fill vacant positions.
In order to keep up with the changes in industries, applicant needs, and hiring frenzy, recruiters need to evolve to new practices:
Recruit via social media over job boards
Digitally-competent millennials aren’t using online job boards the same as applicants were ten years ago.
Social media has become a place for more than sharing personal updates. According to Jobvite’s 2016 Job Seeker Nation Study, 67% of job seekers use Facebook to find jobs. LinkedIn and Twitter are also major sources for job hunting. Finding employers or recruiters on social media makes it easier to start conversations privately, and connect with more substance than a bland resume.
Let candidates know they are in charge
According to a study by Mercer 97% of employees want to be recognized and rewarded for the wide range of contributions they make each and every day. Though the need for recognition is obvious, employers aren’t providing the awareness. As a result, 1 in 3 employees are satisfied with their current role but are still planning to leave in the next 12 months.
This gives recruiters leverage. By offering incentives that show employee recognition and rewards every day of the week, can go a long way. Workplace incentives like DailyPay allow employees to be paid their earned wages each day. This is a great way to express gratitude because you’re reciprocating efforts.
Consider employee referrals the most valuable
Employee referrals are the most common source of new hires, with 73% of companies using this method to hire new employees, according to the aforementioned Indeed study. In order to earn referrals, employers must ensure their employees’ feel connected, energized and empowered, which takes work from the inside.
According to HBR, only 72% of people said they are authentic at work, and it takes an average of two to three months before employees feel comfortable showing their true selves. Those who feel more authentic at work are happier, more engaged and more productive. The foundation of a strong workplace culture. It’s on employers to create a culture that is accepting and rewarding and in turn an environment your employees are proud of.
The effort to create a strong culture is what encourages positive word of mouth. If your employees are excited to share their experience at work within their network, your recruiting pool will grow.
Focus on the strength of job descriptions
Finally, it may be time to look at your job descriptions again. A study by global management consultancy Hay Group reveals that a poor job description is one of the principal drivers of staff turnover. Specifically, they found businesses with 100-249 employees saw an average turnover rate of 21% each year which cost more than $185,00 per year.
At the end of the day, it’s up to employers to give their recruiting team the tools they need to perform their job effectively. From specs on a job description to collaborating on inventive incentives, working together to create a strong recruitment strategy will benefit your company in the short and long run.