In today’s tight job market, how can you ensure that your company is competitive and securing the professionals who will be the best fit and the greatest asset for your business? Below I’ve outlined five ways your company can gain a competitive edge in recruiting talent in 2019.
1. Understand the Current Job Market
It’s best to base your recruiting strategies and decisions on the current economy and how it impacts today’s job market. Economic growth nationally is driving the decisions companies are making about their recruiting processes. More and more jobs are being added to the economy each month, despite volatility in the stock market, and, according to the Bureau of Labor Statistics, the current unemployment rate is 3.9 percent. These two factors essentially demonstrate that the demand for skilled employees outweighs the supply of jobseekers. More economic growth also leads to more mergers and acquisitions, which leads to even more activity in today’s talent market. There are currently more jobs than there are people actively looking for them, which results in an increasingly active job market and increasing pressure on employers who are looking to make new hires. Having an accurate perception of the economic factors that are driving the job market will equip your business to create an effective hiring strategy.
2. Target Talent that is Already Employed
Because the unemployment rate is so low, it’s more likely that the people you are targeting for your company are already employed. And, in addition, the more specialized the skillset you’re looking for in a candidate, the harder a job is to fill. Do you know an exceptional CPA who can’t find a job? Chances are, the answer is no. The accounting industry in particular has been this way for some time, but it certainly isn’t the only one. To acquire the right talent, it’s important to consider that you are most likely targeting those who are already employed. Allow this understanding to direct your strategy for hiring. For example, it may not be the most effective tactic to post a job opening to a hiring website and trust that your target is seeing it. Because so many top prospects are employed, they are generally less likely to be consistently checking hiring websites for a job posting, and they are likely to never see your opportunity. Identify your ideal candidates, and build your hiring strategy around the best way to reach them in today’s job market.
3. Use the Right Recruiter for Your Business
The job market is highly active, and a majority of the highest-skilled candidates are already in jobs, so hiring a recruiter to find the right talent for you is one of the most effective ways to build your hiring strategy and execute it effectively. This also allows you to outsource the heavy lifting of recruiting so that you can continue to focus on running your business. But, having a recruiter that isn’t a good fit for your business could put you more behind than not having one at all. It’s important to find the recruiter who is right for your company. Having a recruiting firm who understands the job market, your company and its goals and values is essential. It’s important to select a firm that will act as your partner—not just a temporary vendor. Ask the recruiters what their strategy is, and evaluate if it falls in line with what you know about the economy and what you believe is best for your business. How do they identify talent? What is their method? Find a recruiter who you trust and who will provide a solid relationship throughout your hiring process.
4. Understand how to Keep Compensation Competitive
Because the demand for employees is greater than the pool of those who are looking for a job, wages and compensation rates have been increasing. To secure the best talent, it’s important to evaluate what you are offering to employees and ensure that it’s competitive with what other companies are offering in today’s job market. Many companies haven’t updated their compensation data in light of recent changes in the economy, and they may not realize that what they are offering to new hires, as well as their current employees, isn’t competitive in today’s market. It’s also important to remember that competitive compensation may not just include an employee’s salary; benefits, 401k plans, work/life balance, culture and other advantages can be influential in a candidate’s decision-making process. To be competitive with other companies looking to hire the same qualified people, you need to offer the whole package.
5. Retain Your Current Employees
Retaining your current employees is a huge part of being competitive in today’s job market. It’s true that your current employees can help or hinder your company’s position with candidates through avenues like Glassdoor or through word of mouth, but, just as you may be targeting candidates who are employed by other companies, your most valuable employees may also be targeted by your competitors. It’s important to create a competitive employee experience at your company. Especially in an active job market with a high-performing economy, if employees are approached by a recruiter, they may be more willing to make a change than they would if the economy were bad. While that factor may be an advantage to your business as you are looking to acquire new talent, it can also be a detriment to your current staff roster. You may want to consider bringing in an outside resource or consultant who can effectively evaluate competitive compensation and your company’s employee experience in order to help you develop a plan for retaining your most valuable talent. Look ahead, and develop a plan that is consistent with your company’s values and culture, isn’t static and allows room to adapt as the job market continues to change. Retaining your current employees is important for many reasons, not to mention that losing employees will create more recruiting for you to do.
When you evaluate the economy, its impact on today’s talent market and how your company stacks up, you’re more equipped to create an effective hiring strategy and to secure and retain the talent that’s right for your business.
If you have questions about how to retain your employees, how to evaluate your competitiveness or what the advantages are of hiring a recruiter, contact Warren Averett Staffing & Recruiting. Warren Averett Staffing & Recruiting is a full-service recruiting and executive placement firm that specializes in finding the right talent for companies operating in the accounting, finance, engineering, IT and medical industries. We work with our clients to gain a thorough understanding of their goals and operations so that they can hire the best employees. To learn more about how we can add value to your business and your hiring process, click here.