Solutions for Recruiting in a Candidate-Driven Market

Employers recruiting top-quality talent face new challenges as they navigate the current candidate-driven market.

During 2020, the pandemic gave us an employer-driven market, where high unemployment rates and reducing hiring meant more candidates competed for fewer openings. By mid-2021, the dynamic shifted to a candidate driven-market, as the economic recovery created job openings that remain unfilled. The effects of the pandemic continue to ripple through the job market, including:

• Fewer in-person interviews and more virtual interactions;
• The Great Resignation, in which millions of people change jobs or left the labor force to pursue lifestyle choices;
• The Great Retirement as Baby Boomers exit long-term positions, accelerated rates, creating a knowledge drain.

These factors have helped shift the balance of power to job seekers and current employees. How can employers more effectively recruit and retain talent in a candidate-driven market? Here are several tips to help you fill those openings.

Employer Branding

Good recruitment and retention begins with a strong employer brand. Candidates are interested in understanding companies’ brand values and culture. Salaries and benefits remain relevant, but companies that try to compete on compensation alone may find that strategy is not sustainable over the long term. More often, candidates are interested in companies’ values, mission, community outreach, vision, and social responsibility. Your employer brand conveys how your organization reflects those values.

These statistics from LinkedIn reflect the importance of employer branding:

• 83% of employers who have a strong brand say it supports their ability to hire top candidates.
• 75% of candidates research potential employers before applying for a job.
• 69% of candidates would not work for a company with a poor brand.

Differentiate Yourself from Competitors

Setting yourself apart in the marketplace begins with a strong employer brand. Many companies compete for the same candidates’ attention, so focusing strongly on what makes your company or opportunity unique is critical to winning the talent wars.

Think about why a candidate would choose your company over competitors and other organizations. Some leaders believe that pay, benefits, and growth opportunities set their companies apart. However, if you look at the competition, you may find your offerings are not significantly different from others’ packages. Highlighting other factors (such as how you address work/life balance) will help you better stand out in the crowd.

If you’re a small to mid-size company competing with larger, more recognized companies, you may be able to tout your ability to be nimble and navigate through change easier. You could also stress that your employees can contribute to decisions and impact change more effectively, rather than cutting through red tape and rigid protocols at a larger corporation.

• Culture matters. Many candidates say money is not the main reason they leave a job or accept a new one. Finances do play a role in their final decision, but candidates also look for a positive workplace culture that aligns with their lifestyle and values. Again, it’s all about the brand.
• Keep pay competitive. While money may not be the main factor, salaries still matter. Government statistics show wages increased by 1.5% over the five years leading up to the Great Resignation. In today’s tight labor market, companies are paying higher rates for the same roles than they did a year ago. Recruiter surveys indicate 73% of candidates are negotiating higher salaries from employers – a more than 20% increase since 2020. Bidding wars are more common, but you can’t always win with pay alone (even if you could afford to).
• Offer remote working options. Half of the U.S. labor force worked remotely during the pandemic, and most people are not ready to forego that approach. A 2021 survey by Owl Labs found 32% of workers said they would quit their job if they were unable to continue working remotely. Another survey by GoodHire found that 85% of candidates are seeking remote or hybrid positions. In May 2021, only 10% of jobs listed on LinkedIn offered remote working options, yet those positions drew 25% of the applications.
• Add new benefits. Traditional benefits such as healthcare and 401(k) plans remain in high demand. However, new benefits such as wellness initiatives, child care, and parental leave are growing in popularity.
• Gather data. Feedback from current employees and exit interviews help you identify why people stay and why they leave. Trends from this data can help you identify room for improvement and what features you should promote to candidates.

Hiring Managers as Sellers

The traditional role of HR and hiring managers has evolved in recent years. The entire interview process has become more about how your candidate service initiative is conducted, which means treating candidates like clients or customers. A productive interview should always be a two-way street. However, in today’s market, the process is more about the manager selling the candidate on the company than the candidate convincing the hiring manager they are a good fit.

• Public impressions. The candidate experience has become more visible. Social media platforms and online sources such as Glassdoor and Trustpilot allow candidates and consumers to share their experiences more readily. A candidate who has a positive experience is twice as likely to recommend that company as a potential employer — or to recommend that company’s brands or services.
• Make a good first impression. Remember: as you evaluate candidates, they are also evaluating your company against their expectations for an employer as well as against other companies. Everyone who interacts with the candidate should put their best foot forward, both personally and for the organization.  
• Be transparent. Make sure you clearly communicate details about job duties, schedules, perks, and all the essential aspects of the position. Candidates want to know what to expect before they join a company; unpleasant surprises may lead to more turnover.

Make Your Process User-Friendly

If your hiring process is slow, complicated, and cumbersome, you run the risk of losing candidates to more nimble competitors. A 2021 Jobvite survey found 64% of applicants feel the job-seeking process is somewhat more stressful that it was before the pandemic began. Test your process and career site to get a feel for the user experience. Be aware of how many steps you put your candidates through. If you have too many layers or too many steps, they will back out of the process.

• Improve the online process. Millennials – who will make up 75% of the workforce by 2025 — expect a quick, easy, Amazon-style experience when they interact with companies. Create a seamless, straight-forward recruiting platform that works on laptops and mobile devices. Poor easy-to-find information about your job openings, benefits, and brand values. Offer chat-bots and query forms to provide answers to their questions.
• Post jobs across multiple platforms. The number of online job sites and social media platforms continues to grow. You can’t post on every job site, but you should try for several of the most popular ones – particularly ones that allow candidates to apply directly from the website. Track which sites generate the best candidates so you can better focus your future efforts.
• Follow up with prospects quickly. Keep a close eye on incoming applications and inquiries. Respond as soon as possible (preferably within 24 hours) while your opportunity is still fresh in their minds.
• Shorten the recruitment cycle. Companies can no longer afford to take months to fill an open position. Strong candidates can quickly generate multiple job offers, and your competitors are moving quickly to snap up talent. Streamline your onboarding process for faster results. Vet candidates thoroughly yet quickly. You should be able to decide within a few interviews whether a candidate is right for you. Strive to make decisions, and target making an offer within 24 hours of the final interview. Once a decision is made, contact the candidate quickly and seal the deal.   

We all know the recruiting world has changed drastically over the past two years, and no one can be sure when the candidate market will return to normal. Companies simply have to work harder to attract new talent and keep what they have. Strategies such as the ones above can help you creatively tackle the ongoing challenge of staffing the right people for your organization.