Posted on 29th October 2018 by Katrina Docherty
For both job seekers and HR professionals, interesting recruitment trends emerged in 2018. You’ve probably already heard that we’re in a candidate’s market and the most talented job seekers are in high demand, but what does this mean for any of us? How do you know what candidates are looking for, and what challenges recruiters are facing as we head into 2019?
Below, we break down exactly what you need to know about the latest hiring and job seeking trends, and how both candidates and companies can maximise their recruitment successes going forward.
Talented Candidates are in High Demand
Around the world, according to the ManpowerGroup 2018 Talent Shortage Survey, employers are reporting difficulty in attracting the most skilled and suitable candidates to fill their roles. In a candidate’s market, businesses are doing all they can to retain their best talent. However, in what’s sure to be good news for us all, research shows that the talent shortage in Australia is 34%, which is well below the global average of 45%.
What does a talent shortage mean for Australian businesses? Companies are investing more in employee training and support, which in turn improves job performance and increases employee satisfaction. This means companies are more likely to retain their best employees in the longer term and salaries do not need to radically increase to do so.
Candidates are choosing who to work for
If we consider that companies are hunting for the brightest talent to fill their job vacancies, we should look at another trend affecting recruitment in 2018: how job seekers are looking for their next challenge.
In 2018, at least 86% of recruiters and 62% of employers believe that candidates have the power in today’s job market. The brightest job seekers know that they’re in high demand, and they can be more selective in their approach to job searching. In fact, 73% of candidates are only passively searching for employment.
Job salary is not one of the most important factors that candidates search for, according to a survey of 2500 people by Indeed. Out of the 2500 people surveyed, only 12% cited salary as a critical factor in whether or not they’ll apply for something new or stay in a current role. What’s even more telling is that 24% of those surveyed cited job satisfaction and enjoyment as the most crucial factor.
It’s equally important for companies to sell the opportunity to any potential employee at the interview stage. Potential employees want to see how passionate you are about your own company and the values you’re promoting. In a candidate’s market, companies must be proactive in promoting the benefits of working with them to prospective hires.
What all this means for recruiters is that it’s just as vital for an employee’s personality and passions to align with the company ethos as it is for a candidate to be the most talented potential hire for a job. Recruiting employees who will be happy in your company makes the hire far more likely to be successful in the longer term.
Branding affects your Hiring
Worried that you’re not attracting the quality of candidates you’re looking for? There could be a simple reason that these job seekers aren’t attracted to your company brand. Don’t worry, though -This is something you can address.
Candidates want to know everything they can about a company before they even apply for a job there. What’s more, prospective hires will often comment online on the application and interview procedure if they’re not treated well during these stages, and it may discourage others from applying. A recent survey by CareerArc found that 60% of job seekers surveyed had a poor recruitment experience, and at least 72% will talk about it.
Just as importantly, research reveals that at least 84% of job seekers value a company’s reputation, and 50% wouldn’t work for a company with a poor reputation or work ethos, however big the salary.
How can these issues be addressed? Make sure you communicate frequently and clearly during each stage of the hiring process, and you’ll earn not only the trust of job applicants but of those reading recruitment reviews. Engage with and moderate bad reviews to demonstrate professionalism and a willingness to grow and improve.
Candidates and Employers are turning to Social Media
Research shows that employers are increasingly turning to social media to screen potential hires at all stages of the recruitment process. A recent LinkedIn survey revealed that around 90% of employers who responded use social media in the hiring stages.
Additionally, statistics show that over half of job seekers use social media to aid in their job search, and 69% are more likely to apply for a job with companies who manage and develop their company brand.
The Growth of the “Gig” Economy
Flexible and short-term employment arrangements are becoming increasingly popular with both employers and candidates alike.
Within the recruitment sector, employees of all levels from entry to executive are being placed into short-term contracts to learn new skills or provide expertise to startups, and it’s working for everyone. “We’re placing senior people with experience of working in large companies into smaller companies for short periods, in order for the company to absorb their expertise,” says Matthew Gribble, Regional Managing Director of Michael Page ANZ.
For recruiters, employers, and candidates alike, the growth of the gig economy presents a worthy opportunity to share niche skills, grow, and make the entire current employment model more flexible and collaborative.
Increase in Flexible Working
Perhaps surprisingly, Australians would sacrifice pay in order to work more flexible hours. According to the Robert Half 2018 Salary Guide, 84% of the 1000 workers surveyed would accept a pay cut in order to work from home, work flexible hours, and have more vacation time.
The popularity of flexible working is only set to increase. With over 70% of Australians currently engaging in flexible working, whether it’s fewer days in the office or fewer hours, the demand for these opportunities will continue into 2019 and beyond.
By offering these flexible, non-salary-based benefits, companies will build a happier, better-motivated workforce, which will in turn decrease employee turnover.
Take Away Message
What can we take from these stats? Flexible recruitment and working patterns are on the rise, and this trend will continue. Candidates are being more selective in who they apply to work for, and employers are looking for the brightest talent who will thrive in an increasingly diverse and skilled environment.
At MAYDAY Recruitment, our specialist team understand the challenges facing both employers and job seekers in the modern Australian job market. Contact us today to see how we can help you find your perfect match.