As a recruiter or employer, you know how much the economy affects your recruitment and retention efforts. You aren’t just in competition with companies in your industry, but you are also fighting against inflation, recession, unemployment rates, and so much more.
Less than two weeks ago the US president, Joe Biden, spoke about the state of our economy and job market. Here’s what you need to know.
What Does This Mean?
So basically, the unemployment rate is low, and there are still plenty of job openings. Additionally, CNBC reported that voluntary quitting is at a historic high, indicating that the Great Resignation is still in full swing. Not to mention, layoffs are slowing, which suggests that companies are trying to keep their employees.
So what exactly does that mean for you?
To simplify it, job searchers still have a lot of bargaining power. Because there are many job openings and fewer people searching for jobs, job searchers have less competition. Instead, it is companies who are competing with each other for talent. This competition all boils down to a game of recruiting and retention.
How Can We Retain and Recruit in a Tight Market?
Get to Know Your Employees
Quitting is at an all-time time. So, the best way to retain your talent is to get to know your all-star employees. It is vital to know what’s important to them, how they work best, and what their career goals are. Brainstorm how you plan to create a relationship with them – stay interviews, special collaborations, etc. In the end, high retention rates positively impact company reputation and revenues, which indirectly assists in recruiting.
Whether you know it or not, retention starts with a great recruiting and hiring process. The key to recruiting the RIGHT candidates for your company is building candidate personas. By having ideal candidates for open positions, you become more intentional in your hiring process – eliminating many “great” candidates that still would not the be the right fit. In the long run, improving how well your new hires fit within the organization will help retention efforts going forward.
Workers and job searchers are likely to decide between two or more offers. Strive to remain competitive by doing research into your competitor’s compensation packages, work environments, and onboarding strategies. Focus on what’s important to most job searchers and craft an offer that keeps your company in the mix.
Prioritize Candidate Experience
Because job searchers are juggling multiple applications and offers, we have seen a rise in recruiters being ghosted. Often, recruiters are ghosted due to slow response times. In the age of technology, there are many tools, such as ATS and asynchronous video. These tools enable us to streamline and automate communication, interview scheduling, screening, etc. Relying on automation and quick processes are key if you want to retain recruits during the hiring process.