Is your company prepared to hire in a candidate-driven market?
The world has changed drastically over the past decade for recruiters.
After the global recession it was the corporations that held the hiring power; openings were limited and highly skilled candidates were abundant. Over the past few years it has become apparent that the growing specialisation in key organisational roles, coupled with unemployment rates returning to the norm, has created a candidate-driven market. Competition for prospective employees is now fiercer than ever, requiring many recruiters to invest in better workflow automation to gain an upperhand.
State of the market
There are a number of factors that have contributed to employers losing their power at the negotiating table, and pay happens to be one of them. Compensation and competition were identified as the most pervasive obstacles to landing ideal candidates, according to the LinkedIn Australian Recruiting Trends fourth annual report. Overall, 42 per cent of Australian employers struggle to fill openings, a ManpowerGroup survey found.
42 per cent of employers struggle to find quality candidates.
Highly skilled professionals now often have multiple offers at once to choose from, especially if they specialise in a niche occupation. This has propelled brand recognition as a top priority for organisations' human capital strategies; currently, 60 per cent of hiring decision makers list this as their most important objective, LinkedIn reported.
Exacerbating the issue is the fact that just 49 per cent of Australian companies are passively sourcing their candidates, compared to the global average of 75 per cent. Many organisations aren't attracting talented candidates simply because they've already taken another job after leaving their last one, without giving any other businesses a chance to make their pitch.
At the core of the issue is workflow automation. Recruiters are using outdated tactics and methods to source talent in a market that has already shifted underneath their feet. By incorporating new strategies with innovative technology, companies can quickly adjust to meet the needs of candidates.
Words into action
The deficiencies of each recruiting department are specific; there isn't one single upgrade that will make all the difference. Of course, the most important change that needs to be made is to deploy digital recruiting software to help improve productivity through useful applications. This removes the possibility of unnecessary errors that accommodate traditional methods like losing applications, forgetting to respond to candidates and other regular mistakes.
One drawback for many recruiters is the speed with which they can identify highly talented candidates, schedule an interview and negotiate a salary. Nearly one-quarter of recruiters reported they've lost out on perfect fits for openings because they simply took too long to connect with the prospective employee, according to Forbes.
Recruiting software should integrate and streamline various applications.
To counteract this, recruiters should be using software that allows them to track and organise candidates to better identify top targets. Proactive communication is key, and the platform should also enable staff members to easily get in touch through multiple channels, like email and text integration.
In an effort to improve passive sourcing, recruiting software should also afford personnel the option to save searches and candidates so they can consistently keep in touch. Just because they've accepted another offer recently doesn't mean they should fall off your radar.
Most importantly, with all of the available channels for posting an opening, your recruiting software should integrate the collection of applications across all job boards. This allows you to reach the broadest audience without compromising time-to-hire, or missing out on the perfect candidate that fell through the cracks.
Word travels fast among those looking for new opportunities; diligently responding to all candidates can improve your organisation's brand recognition as a company that places a great deal of value on its human capital strategy. Avoid losing top-tier talent to competitors simply because you weren't able to get them an offer quickly. Contact a FastTrack representative today to learn more.