COO at Orpheus Cyber, Cyber Security Awards and American Cyber Awards Judge, Industry Speaker.
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With a number of high-profile layoffs this year, the job market has changed. In late 2021 and early 2022, salaries had increased despite trailing inflation, especially for second jobs and those in their mid-career. Control was firmly in the hands of the candidates who were in the market. While the numbers have not changed much recently with the unemployment rate hovering at 3.7%, the sentiment has. It seems that candidates are less demanding than they were six months ago. Nobody is sure if companies corrected enough or if there is more to come.
Yet other factors are at play, too. Executives are more nervous about moving. Understandably, they don’t want to risk moving to companies only to find out there isn’t enough runway or there are problems in the sales team. There are also reports that a number of people who moved earlier in the year now regret those moves. This is also to be expected. If you received a salary significantly higher than you were earning previously, the expectation of you is also significantly higher. And if your earnings are higher, and you're new to a business, you may be concerned that you are first in line for any more layoffs. News like this is making people consider any move far more carefully.
As much as companies did adjust the size of their teams, employers may feel like they have more control over the process than they did previously. While their position may have improved, it remains a candidate-driven market. The best companies invest in their people to get results. So here are three things employers can do to win in the current market.
1. Demonstrate their wider value proposition.
Candidates want to know that the company they are joining has a place in the market. While VC funding is a good indicator of validation, plenty of companies don’t make it. If budgets get tighter, candidates want to know that they are working for a company that offers real value and will make sales regardless of the market condition.
2. Be prepared to demonstrate financial security.
Runway is important. Some companies have four years of runway based on recent investments and smart decisions. Many companies changed their strategy to have as close to two years as possible. Candidates want to know that they aren’t going to be a casualty of the poor cash flow of a company they have just joined. There is also an increased focus on profitability or a route to profitability. Explaining to candidates where you stand may give you an edge. Expect to give reassurance when hiring.
3. Give candidates what they want.
Companies that think that changing market conditions make for a good time to call people back to the office have got it wrong. With inflation and fear about what is still to come, many candidates don’t want to spend their money commuting. While many candidates are missing an office environment, finding a work pattern that suits the individual, as well as the business, is going to be necessary.
A key thing to note for candidates is that a company that has just made layoffs may be a good place to be. These companies have taken early action to set themselves up for whatever market conditions are to come. They have likely reviewed the org charts extensively to make undoubtedly hard decisions. This means they understand what positions are needed and how they will add value to the company. If they are hiring now, it’s because they really need that role.
So while the market may have changed, companies aren’t quite in control yet. Ensuring you adapt your hiring proposition to the current market can help you get the best people. Having the best people in your business is truly the best way to grow under any circumstances.
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