A snapshot of the job market in this quarter of 2019 suggests that the competition for talent is still tight, and candidates still perceive a landscape in which their options are wide and there’s no need to settle for a role they don’t like, a company they can’t support, or a salary that doesn’t meet their needs. So what does that mean for company leaders and hiring managers who may be scrambling to fill essential positions? Here are a few key ways you may suffer if you fall behind, and a few simple moves that can prevent this from happening.
Talent Shortages Increase Hiring Costs
Hiring can be an expensive prospect in any job market, but when competition tightens and candidates hold more of the cards, the price tag naturally gets higher. Open jobs stay open longer, which can drain company resources, and the interview and selection process can involve a high number of overall candidates since more are likely to drop out of the running along the way. Employers have to work a little harder and shine a little brighter to entice candidates to apply, and of course, those who receive offers may be less likely to accept them than they would in easier markets. A competitive edge can help your company stand out.
Candidates who do respond to posts, apply, and maintain interest throughout the interview and selection process may not accept an offer, and those that do accept may not stay for more than one calendar year. This churn can interrupt the social fabric of the workplace and prevent employers from gaining a return on their investments in hiring and training.
Finding the Right Skills can be Difficult in Tight Markets
If you manage to track down candidates who hold the exact skill sets you need, these candidates are probably receiving plenty of other offers. This increases the temptation to settle and accept a shorter list of required skills, or trade one strong skill set for lesser skills in other areas. You may find yourself with a candidate who can bring some of what you need to the table, but not all.
Salary Negotiations can get Tougher
This doesn’t necessarily mean that you’ll need to pay candidates more (though that may happen). But it does mean that you’ll need to polish your offer and be willing to give a little in order to get a little. If raising salary offers isn’t easy to do, you’ll need to improve your benefits package and take a second look at the perks you can provide that other employers can’t. (Keep in mind that savvy candidates know that free coffee isn’t a perk.)
If you stay focused on the goal, make sure your workplace culture speaks for itself, and get ready to treat your employees fairly and well, you’ll thrive in a tough market. For help, turn to the experts at PSU.