2018 will soon be a distant memory, but the challenges faced will follow recruiters into 2019. As you ring in the new year, you will need to start thinking of your recruiting strategy. Based on trends and projections, this year may be the most challenging market to find top talent in years. Candidates are scarce and the job market is still booming, make sure you are aware of the specific areas you need to be aware of.
Tight Job Market
A strong job market is great for the economy, but not so great for Recruiters. There are a ton of jobs open and there are no indication that it will be slowing throughout 2019. While the number of open jobs will be a bit lower than 2018, according to USA Today, the unemployment rate will continue to drop. This will make it increasingly more difficult to find candidates who are looking for a new role. Even if you are able to convince a candidate to take the leap, employers are now in a much better position to make counter offers.
Ghosting Interviews
Applicant ghosting has become a trend. With so many opportunities applicants are not showing up for in person interviews or missing interview calls. Many applicants have faced a poor candidate experience and don’t feel like they have to justify not showing up for an interview. It’s a two sided issue that has really increased in the last year.
If the candidate experience isn’t what the candidate is expecting, you may find yourself ghosted. The candidate’s have the upper hand in this market and if you aren’t making them feel special during the interview and on-boarding process, they may just drop out. They aren’t as concerned about burning bridges with companies because of the multitude of opportunities available to them.
Lower Pool of Applicants
Due to a strong economy, many highly-skilled candidates are not interested in leaving their current positions. Employers have been able to provide bonuses and raises because they are profitable. Some companies are still downsizing, but it isn’t to the degree that it was in years past. Without a reason to look, there are less people actively pursuing a new role. It can be difficult to entice a happy employee to leave their known company for a new position.
Another reason for a lower pool of applicants is the retiring workforce epidemic. The annual Glassdoor Job Market Trends Report points out the first wave of Baby Boomers are now starting to retire. To compound the problem, the birth rates are lower than in the past, meaning there aren’t enough younger people entering the workforce to replace those that are leaving. The report states, “For the first time in U.S. history, there will likely be more retirees in America than children under age 18 by 2035.” This signifies it won’t only be a 2019 issue, but one to watch over the next two decades.
Candidate Expectations
A fantastic job market has led to candidate expectations that can seem nearly impossible to meet. At a minimum, they expect a company they can be proud to work for. If your employer brand is not doing well, it will be quite difficult to attract candidates. Applicants are not focused on office perks anymore. They are focused on gaining leadership experience and working for a company that gives them a real purpose.
Low Salaries
Even though the economy is doing well, many companies aren’t raising salaries enough to entice candidates to leave their current company. Employers who are looking for candidates are still relying on data that isn’t relevant in the current environment. People aren’t leaving for a small percentage increase, they want a big pay raise in order to leave what they know.
Work Life Balance
Candidates are also expecting a work life balance that they can be happy with. Just because we have the ability to be connected at all times, doesn’t mean we want to be. Millennial’s have grown up with parents who worked constantly and are adamant not to be in the same situation. If your company hasn’t jumped on the new wave of flexibility and disconnecting, candidates won’t be excited to join your company. If the work life balance isn’t what they are looking for, employees will leave and rate your company low on sites like Indeed and Glassdoor.
While it won’t be easy to fill roles in 2019, it is possible! If you focus on these areas and ensure candidates are feeling the love, you can stand apart from your peers. The biggest opportunity recruiters have is to share these trends with their businesses to raise awareness. Sell the features of the company to candidates and make sure you are attentive and responsive to them. 2019 will be a tough environment for recruiting, but with the right mindset you can fill those roles with the best and the brightest.
Update: Wow, I was wrong with this statement. 2020 took the cake on this one. Here’s my reflections on 2020 here: A Recruiter Reflecting on 2020
Recommended Reading:
Amy Miller Interview Spotlight
Top Diversity Recruiting Tools to Find Talent
How to Create a Diversity Sourcing Strategy
I agree with this for First Quarter. Think we are in for a rockier 2nd half of 2019.