Now that the market is generally considered at full employment, job seekers, (especially top tier passive candidates) have a lot more options and leverage when making their next career move. In a candidates’ market, hiring managers will need to be swifter in their hiring decisions. They simply cannot expect top tier talent to make a career move for a marginal increase in salary.
Right now, the top candidates in their industry own the market, and they have their choice of suitors. In today’s market, top candidates do not have to sit and wait while hiring managers muddle through their hiring & interview process. The most sought after candidates are securing offers quickly. In fact, the nimblest of companies wanting to attract & hire the best talent, are engaging their candidates within 24 to 48 hours of a recruiter piquing their interest.
Smart hiring managers are moving items on their calendars to accommodate interviews and speed up the interview process. Why is this smart? Well for one, this not only shows the candidate that you’re genuinely interested and ready to make things happen, but it also puts the hiring company in a better position to make an offer to the candidate before the candidate has multiple offers in front of them to consider. The hiring process is a candidates’ first glimpse into how your company & team operates. If you can’t demonstrate that you can handle this simple process in an agile manner, how are you going to convince the candidate that your team or company is efficient with the everyday stuff?
But we have a great team and environment…
You know what? Everyone says that, and in a full employment market, top candidates really don’t care as much. Don’t get me wrong, culture is great and it’s at the top of most candidates’ wish lists, however in a full employment market, culture typically won’t be enough to sell the candidate on a lateral or slight salary increase, unless they dislike their current company/role or the commute is vastly shorter. So, although your company culture may be exceptional, it’s no excuse to not adjust your hiring strategy to fit the marketplace.
Another thing that hiring managers & teams tend to do is let their egos effect their ability to make swift decisions around the interview & hiring process. Yes, you may have a strong team of talent in their individual skill sets, but don’t pretend that your company & team are the best out there and that you would be bestowing this tremendous honor to anyone you hire . Being a rock star is great, but being a diva is annoying. Try to remember that you didn’t walk into your current role with all of those skills and knowledge.
Interviews & vetting…
Do you really need an interview & vetting process that exceeds 3 steps? In a full employment market, you should look to streamline and simplify your interview & hiring process. How many times have you been called back for a 4th interview and thought to yourself…really, another one?!?!
In a full employment market, you’ll probably need to ante up when it comes to money. That means you may have to exceed your salary range and/or offer a candidate a salary that conflicts with your internal equity scale. Internal equity is static in many companies, which doesn’t make sense in a constantly changing market. If you’re getting push back from your compensation or HR team when it comes to internal equity, you might want to educate them on the current market demand for your open position.
It also makes sense to take the following items into consideration:
How much will it cost your team not to hire the right person in a quick fashion?
How much will you have to spend to remarket your job ads or spend on additional recruiting fees, if you can’t hire the person you interviewed &wanted?
Are you actually saving yourself money, by not offering the candidate the salary they’re seeking?
If you’re working with a recruiter or agency, ask them to give you some insight to the current salary demands for your open role and use that to counter any push back from your HR team. If you’re simply worried about your employees finding out how much you’ve offered a new hire, then you probably have bigger issues other than internal equity. As a hiring manager, you sometimes need to be flexible to what the current market is dictating and your employees need to be cool with that.
In a full employment market, you should probably expect to offer at least a 15% to 20% increase over what the candidate is currently making. If you can’t get your HR or compensation team over the line on salary, then you’ll want to get creative with bonuses, relocation and/or stock options. Sign on bonuses can go a long way since they’re immediate money in the candidate’s pocket.
The term is cliché, but the definition of insanity is doing the same thing and expecting different results. If you’re finding yourself struggling to attract & hire top talent in timely fashion, then you probably need to adjust the approach on your end. Simple fixes, such as making yourself more available for interviews, pushing your internal equity thresholds up 10 to 15% and making a true effort to simplify your interview process can yield great hiring outcomes for your team.
It you’re using outside sources to help you fill your open jobs, it helps to work with a company that has recruiters who have worked as both hiring managers themselves and also in an HR capacity. Half Price Recruiting is keen on what it’s like to be a hiring manager, so we have a unique understanding not only of your role, but also of the various hiring influencers that exist within your company.
Give us a try today, we will beat any staffing firm price!
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