How to run a competitive hiring process in a candidate-driven market

There are now more jobs in the Australian economy than there were before the pandemic began, with 88,700 jobs created last month alone.

• In February 2021, Australia's unemployment rate decreased to 5.8%

• Employment increased to 13,006,900.

• Employment to population ratio increased to 62.3%.

• Monthly hours worked increased by 102 million hours.

While many industries were considerably exposed to the COVID-19 pandemic, thanks to Australia’s strong recovery, jobs are making a very promising comeback.

Businesses are optimistic regarding economic growth and workforce planning, with 20% of employers expecting to increase their staffing levels over the next 3 months, and 71% of Australian CEO's optimistic about increasing headcount over the next three years. 

These factors combined have created a candidate-driven market – where businesses are competing to attract and retain talent.

Candidates are often receiving more than one job offer from prospective employers – and their current employers are responding by counter offering increasingly more to convince them to stay.  

In February, job advertising platforms such as SEEK reported that job ads were up 6.5% compared to the same time last year – just before the pandemic began seriously impacting lives and jobs. They were also higher year on-year in almost every state and territory, showing positive signs of recovery across the country. States such as Victoria saw higher job loss as a result of its three-month lockdown, but with 1.8% more roles currently advertised than this time last year, the state is rebounding and recovering.

According to data from SEEK, the Northern Territory has seen the highest rebound at 27.8%, followed by Western Australia (26.5%), South Australia (24.8%) and Queensland (16.3%).

New South Wales and the Australian Capital Territory are seeing slower recovery at 1.4%, but are both at their highest point since the crisis hit.

In particular, Marketing, Contact Centre and Recruitment roles are in high demand.

New South Wales has recorded rapid growth for general Marketing roles (117%), and Product Managers (103%), while Victoria saw an increase for Digital Marketing Specialists. This bounce back correlates with our research in the Talent Guide, which found Marketing to be the occupation stream most affected by COVID-19, with 66% of respondents impacted and 30% made redundant. Marketing was also the largest occupation stream who were home schooling during the peak of COVID-19 restrictions, at 34%.

Sales roles within contact centres are up 206%, largely due to the impact this industry experienced on roles. With many of these roles being permanent part time or casual, it was easy for organisations to move to offshoring our outsourcing their contact centre workforce. Now business and economic recovery is on the horizon, the roles originally impacted are being filled once again.

Another industry that was largely impacted by the pandemic is our very own – recruitment. With businesses reducing their headcount, combined with uncertainty for any future recruitment, both agency and in-house recruiters alike were stood down during the pandemic, with many moving into different fields. These factors combined have seen job ads increase by 164%, and the subsequent lack of supply for highly skilled recruiters in the market means that candidates are really calling the shots.

Despite the rise in job ads, there hasn’t been an increase in job applications to match, creating what we refer to as a candidate driven market.

The key takeaway from all of this is that now more than ever, organisations need to seriously evaluate their hiring processes and Employee Value Proposition (EVP) in order to compete for top talent in the current environment.

How can I run a competitive hiring process?

If you’re actively recruiting, try not to default to your pre-pandemic hiring processes. The way we work has forever changed, and candidates now look for different benefits, role responsibilities and working arrangements roles than they did pre-pandemic.

Create certainty where you can

With so many people having been burnt by the pandemic, job security is front of mind for many when considering their next move. Candidate sentiment has been damaged, with hesitancy and uncertainty making active candidates reconsider every application they submit. Recent research tells us that almost 70% of job seekers implied looking for a job is overwhelming, while 34% implied they were planning to leave their current job, but decided to stay because of COVID-19. Communicate how the organisation responded to the pandemic, the level of exposure the industry saw, and whether they're taking steps to recover. Discuss leadership’s growth objectives, and reaffirm that the position they have applied for plays an important role in the future of the company.

Be direct

After such a period of monumental instability and change, many people feel reluctant about the potential stress and anxiety of the job market. The uncertainty caused by the pandemic means that, while candidates may have considered moving on, they aren’t mentally ready to make the first move and simply aren’t actively applying for roles. Both internal and agency recruiters alike should consider a more direct approach - identifying and reaching out to candidates before they’ve applied for the role. You may be surprised by how many say they saw the job ad (if there is one). 

Be specific

In the Talent Guide, we found that 32% of candidates said the responsibilities of a role was the top factor that attracted them to their current position. When writing job ads, it’s more important now that ever to really capture the imagination of prospective candidates and create excitement around the potential of the role. Include information on upcoming projects they will play an active role in, detail the day-to-day responsibilities, and outline the opportunities available for growth and development with the organisation.

Communicate your EVP

The strength of your EVP during a recruitment campaign can make or break your talent acquisition. Organisations are offering it all – onsite childcare, baristas, state of the art technology, health and wellbeing initiatives – it’s a competitive market. But what do your employees really want? Have you asked them? Because there's a high chance that the wants and needs of your prospective employees aren't dissimilar. Communicate your EVP regularly across both your internal and external channels - particularly in your job ads.

Dare to be different

Talent across varying fields will expect different benefits and initiatives from a role and an organisation - it's not one size fits all. If there’s a role you’ve been recruiting for an extended period of time, ask yourself, what you can offer to really beat out the competition? There’s candidates out there – where are they going? What are your competitors offering that you aren’t, and what can you offer that’s different and of value to talent in this field?

Be open to negotiation when it comes to benefits and working arrangements

In a candidate-driven market, negotiation is to be expected. If you’ve found your ideal candidate for the role, it's wise to negotiate on soft aspects of the role such as flexible hours and working locations, onsite parking or additional annual leave.

Be quick to communicate and respond

While this is an important aspect of candidate experience in any market conditions, it’s so important that you’re quick to respond to applicants, keeping them updated and informed throughout the recruitment process.

Despite the pandemic, job ads have been rising year on year, with some industries seeing more demand for candidates than others. If your focus is on hiring now, step one is to really reflect on what you have to offer prospective candidates - why should they choose you? Step two - seek the support of a Recruitment Consultant at Talentpath to help you win the battle for top talent.