The recruitment industry is facing a big change in this post-Great Recession market as employees begin to demand more from businesses. In fact, some global workforce analysts are referring to 2014 as the “Year of the Employee.” Employees are not only demanding higher pay in many industries, they also want greater flexibility, more technology, career opportunities and to work for companies with global reach. And, with less talent entering the market, employees are now the ones holding the cards.
According to the latest Bureau of Labor Statistics Occupational Outlook handbook, total employment is expected to increase by 15.6 million jobs from 2010 to 2020. Over the past four years, since the easing of the recession, hiring has increased by 20 percent, with 17 percent of the workforce voluntarily leaving their jobs. The availability of healthcare coverage outside of company-sponsored plans has also increased competition for talent, especially among the executive, managerial and professional ranks. Companies need to work quickly to adjust their short- and long-term strategies to ensure that they continue to attract, and retain, top talent. Here’s how.
Generational differences. Millennials entering the workforce want careers that hold their attention and fulfill their ambition. At the same time, more workers 55 to 64 are staying in the workforce and they have an entirely different set of expectations. Staffing firms must be able to match workers to their client’s needs while guiding their clients to offer the balance and growth opportunities these workers seek.
Streamline hiring. Candidates are increasingly turning down job offers and counteroffers are once again on the rise. Such a hiring environment requires employers to re-evaluate their recruitment methods. Companies will also see increased placements and reduced recruiting time by utilizing specialized recruiters, who best understand their industry.
Go mobile. More than two-thirds of job seekers search for vacancies on a mobile device, so reach them by making it easy for them to communicate via mobile technology.
Consider contingents. More often the traditional workforce structure is changing to include more contractual workers. The result is a mix of work arrangements ranging from full-time workers in the office, part-time or temporary workers, and contingent, remote workers who can help meet spikes in demand. This model enables companies to engage talent as needed, which lowers overhead costs and improves response times. The key to this talent-on-demand model, of course, is the availability of workers with specialized skills who are willing to work on a contingent basis.
Widen Your Net. With a persistent skills gap, sourcing and recruiting candidates is becoming increasingly global. Over the past few years, companies have often been reluctant to hire candidates that required relocation, but that’s a stipulation that’s becoming impractical. Companies that widen their net to a larger U.S. geographic range or to encompass the rest of the world will find candidates in certain industries where the supply is shrinking.
Utilize specialty recruiters. Specialized recruiters can be tuned into a specific industry, which improves placement. Additionally, recruiters in specific industries often have a network of talent for hard-to-fill positions. We frequently find that as one vacancy closes, often with an individual from another company, it creates another vacancy in its wake. This snowball effect can cause headaches for companies with limited talent pools, such as the STEM (science, technology, engineering and mathematics) industries. A specialty recruiter can tap into their personal network of talented individuals to fill the position.
Employment rates and recruiting budgets are on the rise once again as clients turn to industry-specific recruiters to help attract the talent they need. Recruiting companies are in a unique position to help shape the industry as we make these connections between employees and employers. Staffing organizations that provide insight into the new hiring landscape and the sentiments of candidates will add value to both their clients and their candidates through this consultative approach.
