U.S. unemployment is now below 5%, and over the last 12 months the average hourly earnings have risen 2.5%. That is good news! The labor market seems to be on a good trajectory. So if you are a recruiter, or a company who is actively hiring, what does this mean for you?
Just a few short years ago, unemployment was at a 10-year high, and the job market was considered "loose." We would hear, "Well it must be easy to find people in this market!", but that was far from true, because you are looking for the "right" person, and having more applicants to sort through, many completely unqualified, was a drain on recruiters. The recruiting machine had to be in full gear and use all resources at our disposal to sift thru thousands of applicants to find that shiny, gold candidate that was the best one for the job.
In that type of job market, to be successful, a talent acquisition team needed three things –
- Best-in-class applicant tracking software to help manage the overwhelming applicant flow;
- Screening and assessment tools which provided objective information to the process to identify which applicants were qualified for the job; and
- Skilled recruiters who, despite the throngs of applications coming in, were actively sourcing for new candidates.
Are you surprised at #3? Some hiring managers think that great candidates just show up at your doorstep, especially when millions are looking for jobs, right? Not so. Whether the market is loose or tight, sourcing is the differentiator.
Not Just Lots of Candidates – But Qualified Ones
Now let’s fast forward to today, and in the last five years there has been positive growth in the job market. Job openings have increased, hiring has increased, and unemployment has dropped. Interestingly, given the number of job openings, history tells us that the unemployment rate should actually be lower. As a result, some labor economists believe the U.S. may be experiencing a skills gap that is resulting in a mismatch of people to jobs. If you are a recruiter, that means you have more positions to fill, but you may be finding it more difficult to find the right person. Successful hiring in this market is, therefore, still contingent upon having the right tools in place, and optimizing your recruiters’ sourcing strategies/skills.
Think of it this way: those really cool screening tools, realistic job previews, assessments, simulations, and even video interviews that you are using today, will only be effective if you are filling the pipeline with qualified candidates, not just lots of candidates. If you are attracting people who are a mismatch for your jobs or your company from the beginning, those sophisticated tools cannot fix it or work miracles. You will have more people drop out of the process or not get thru the assessment hurdle, and then you are left with a rather shallow pool of candidates to take to the hiring manager.
Sourcing practices have advanced significantly in a few short years: utilization of social networks, social media, talent communities, the importance of branding, and other cutting edge methods have been embraced by talent acquisition professionals. Filling your pipeline with qualified, interested, and ’great fit’ candidates fuels the rest of your hiring process.
Sorting Out the Gold Nuggets
Your recruiters are like gold miners. Gold miners use a machine called a slew that sorts the precious gold from the ordinary dirt and rocks. If miners are digging in generally the right place, they may get lucky and find some gold. But to get the big payout, the miners have to choose the right ground to dig first. When quality "pay-dirt" goes in, the more likely it is you will find those precious gold nuggets.
Investing in innovative technology and tools that seamlessly link with your sourcing strategies is key, but the big pay out will be when your recruiters have the skills, tools, knowledge and creativity to know exactly where to look for those solid gold candidates.
Related Resources
Want to keep learning? Explore our products, customer stories, and the latest industry insights.
Blog Post
Who cares about employee experience - a webinar with Ben Whitter
Employee experience once came down solely to a desk, office space, and possibly some free cake at the coffee station. This has completely transformed in recent years, the initial catalyst being the pandemic. The mass exodus from the workplace forced employers to rethink the employee experience (EX), as keeping morale high and workers connected to each other was paramount. However, even in the aftermath of Covid-19, the EX has continued to evolve.
Blog Post
How SMBs can embrace Digital Transformation to Revolutionise Talent Management
Small to mid-size businesses (SMBs) are the lifeblood of the British economy. They generate over £2 trillion each year – around half of the private sector turnover – and represent a staggering 61% of the country’s workforce, equivalent to 16.3 million people. SMBs are more than just a melting pot for innovation – they also promote sustainable improvement, and foster organic growth. The key to unlocking new success for these mid-market companies lies in talent management and investment, whether that be in attracting new talent, or in retaining and enhancing the current workforce.
Video
Employee Learning Experience Journey with EdCast LXP
EdCast by Cornerstone Learning Experience Platform (LXP) unifies learning, skill building and career development in the flow of work. From communications and productivity apps in everyday use to functional specific systems, EdCast Learning Experience Platform fosters a culture of learning enabling you to attract, develop and retain high performing talent.