The U.S. economy and labor force with it are going strong in 2019. Early estimates for March say that 170,000 jobs were produced — after the possible anomaly of only 20,000 in February — while unemployment remains historically low at 3.8%.
A strong economy is great news for job-seekers: The imbalance between job supply and demand for skilled workers increases pay rate and other benefits. However, the labor shortage has been sending employers into a hiring tailspin, and you’re not wrong to wonder how to adapt!
Focus on Smart Recruiting & Retention
Do you identify with the findings of Monster’s 2018 State of Recruiting survey, which found that 67% of recruiters say their job is more difficult than it was five years ago?
Job seekers are few, top talent is even scarcer, and competition is fierce! In this economic climate, HR is going to have to up its game.
Offering competitive compensation and benefits is important. But there’s more you can do to attract quality candidates even in a tough market. Two major ways to reinvent your approach involve recruiting outside the box and focusing on retention from the get-go.
So how can you formulate a retention-forward mindset when you need to fill positions, fast?
Rethink your approach
According to The Undercover Recruiter, the average length of the hiring process in the U.S. is 23.8 days from early vetting to decision.
If recruiting efficiency keeps you up at night like it does HR chief Sherry Whitely of Intuit, remember that hiring processes are not set in stone and talent for your vacancy does exist.
You just have to look in the right places.
Go for diversity and overlooked talent pools
Take this chance to review your current methods: Are you hiring as widely and diversely as you can be?
While unemployment remains low nationally, it’s higher in demographic groups like African Americans and people without a high school diploma. Tap into these and other frequently overlooked talent pools like veterans, people who have been unemployed for a longer time, and people in non-urban areas.
Companies who embrace diversity in all forms will naturally attract a wider range of candidates, which increases your chances of finding the skillsets and cultural fits you need. In fact, a Deloitte survey found that 75% of senior execs would leave their company for one that more highly values diversity!
People want to work in an environment that promotes equality, so the many benefits of having a diverse team bring hiring returns, too, improving retention and appealing to an ever wider range of individuals. Full circle!
Learn more about partnering with a diversity-driven, direct-hire firm like TDG to get access to the hidden networks in which your next candidates are hiding.
Meet candidates where they are
Job boards are great tools, but you won’t find your diamond in the rough with them alone.
Jobvite reported that 87% of recruiters use LinkedIn while 55% use Facebook. You can get a leg up on them by checking out online forums where professionals gather to network and discuss interesting questions. Examples include Stack Overflow (tech), Doximity (healthcare) or even Quora (all industries).
Reaching out through all channels at your disposal, including less-mainstream social networks, referrals, and personal connections will turn up trustworthy, pre-vetted candidates.
Emphasize what makes you attractive
If you want your top picks to accept your offer, consider recruitment from the candidate’s perspective.
There’s no longer time for multiple interview rounds, as highly-skilled people are likely looking elsewhere too! Sherry Whiteley has reinvented Intuit’s recruiting by having a team tasked with judging top talent to collectively make hiring decisions after candidates undergo a day of interviews and tests.
However, you also have to make sure your candidate has decided on you. What sets you apart both in your field and as an employer generally? For example:
- What advancement opportunities are available?
- Is there an option to work remotely?
- What’s your community involvement like (this is particularly important to millennials)?
- Do you boast a friendly and open-minded team?
- Do you provide unlimited bananas and have the best coffee this side of the Atlantic (also important to millennials :)?
Emphasize what makes your company an awesome workplace in all parts of recruiting, from job ad to interview. Remember that at the end of the day, your potential employees are people who want to do meaningful and fulfilling work!
Don’t waste resources chasing a myth
This being said, we know you want the perfect employee. But in times of labor shortage, the search for a unicorn can continue for months and may not ultimately be an efficient use of your team’s time and resources.
The workers who tick all of your boxes are in high demand for a reason, because of which they may not even stick around long-term. Keep in mind that the cost of losing an employee is between 16-213% of the position’s salary (CAP), which is what makes a retention-focused approach important for both morale and the bottom line.
Passing on a great candidate because he or she didn’t have the exact title or credentials you were looking for could be a big mistake. If they’re a cultural fit and you believe they’ll work hard, invest in their training. They’ll see this as an investment in their skills and, happy knowing how they can contribute, they will be loyal and likelier to stay with the company.
Conclusion: Be the employer you’d want to work for
During a labor shortage, it’s worth getting creative. Reconsider your hiring processes to widen your net and leave no talent pool untapped. Plus, turn the focus inward on what you can do to ensure top talent is seeking you out, too.
Having a great company culture that inherently makes employees want to stick around is always a good look. Not only will it improve engagement and retention among current workers, but it will also make referrals likely and create brand ambassadors that attract excellent candidates by word of mouth.
When all else fails…
A recruitment firm can be a big help to a stressed HR department! We mobilize our talent networks and other resources to make sure you get the best fit, both in skills and culture, for your firm. That’s the TDG Advantage!