Manager of Sourcing & Talent Strategy in Advanced RPO.
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If you're currently in the midst of developing a talent acquisition strategy for 2021, don't look to past recessions for help. Previous economic downturns have been caused by an event or series of events that happened during a moment in time, and what followed was a slow, somewhat predictable return to normalcy.
Our current downturn is unlike any other we've experienced, sparked by a virus that is very much alive and morphing into something new every day. Case in point: After a historic low of 3.5% in February, the unemployment rate rose to 14.7% in April, and then just six months later dropped back down to 6.9% in October. That said, it's really much more complex, as some industries like health care and logistics are experiencing unprecedented talent demand while others like entertainment and retail are feeling the brunt of the virus's impact.
The result is a reality in which the lines between an employee-driven job market and a candidate-driven one are blurred beyond recognition. Hiring success will take more than simply flipping through the "employer's market" or "candidate's market" playbooks.
Follow your plan, not the market.
An employer-driven market favors employers in the sense that it takes some pressure off of recruiters and creates an environment where it's easier to fill positions with the best hires. For companies experiencing this, the temptation is to hire overqualified candidates at lower price points. It's seen as a win for the bottom line.
Don't do it.
In reality, the long-term negative impact of those types of hiring decisions can be even greater than leaving positions unfilled.
First, overqualified candidates have nothing to gain from your offer. They won't get the experience they need to further their careers nor likely have a chance to work on challenging projects that keep them engaged. With development opportunities being a huge ask of most candidates today, this is a bad sign for retention.
Also a bad sign for retention? The instability of the market. Just as the unemployment rate shows, our current downturn is rebounding quickly. The future is hard to predict, but with more companies getting back to hiring, it's only a matter of time before your overqualified talent finds a new role that's a true fit.
Bottom line: Hire the best fit, in terms of meeting both of your needs. Retention is an important marker of hiring success, and taking advantage of talent that would normally be out of reach could cause problems down the line.
Attract top talent with the right perks and benefits.
When talent demand outweighs supply, candidates have a much louder voice in the hiring process. In order to fill positions, employers have to pull out all the stops, courting top candidates and catering to their demands. It often means increasing pay and offering enticing perks and benefits to win over high performers.
Whether your industry is experiencing a talent shortage or not, candidates will be paying closer attention to the perks and benefits offered by your company. They used to be considered "nice to haves," but today they're playing a much more important role in the employee experience. Here's why.
Health and safety is the No. 1 priority of candidates. They need to hear what companies are doing to protect them if they're required to work on-site, and even if remote, what policies are in place for time off, etc. should they test positive for Covid-19 or need to care for family members who do. This concern will top the list for the better part of 2021, or until restrictions are lifted and transmission is less widespread.
Speaking of remote work, the ability to work from home when needed used to be on the top of the employee request list. Now that many employees are working remotely (permanently or temporarily), how are you supporting their efforts to balance their professional and personal lives? Recruiters should make this part of the conversation with candidates for remote positions. In lieu of monthly lunches, transportation reimbursements and the like, how are companies showing their appreciation for employees?
Bottom line: In 2021, employee perks should be relevant to the needs of today's workforce. They are a reflection of the value you place on employees and drive retention in meaningful ways.
We're all wading through uncharted hiring waters in the year ahead. The best advice I can give is to stay true to who you are as an organization and your mission, and maintain a healthy respect for the continued uncertainty that is sure to come our way.
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