Applications are declining yet jobs continue to soar and recruiters are feeling it. Candidate availability is dropping and the challenge has shifted from managing an influx of applications to dealing with what is fast becoming an acute labour shortage. WaveTrackR’s Emily Buckley offers tips on how to increase your candidate attraction in a competitive market.
Mere months ago recruiters were on their knees, drowning amongst an influx of applications. Candidates were getting desperate in a seemingly ever-growing talent pool as redundancies mounted and unemployment grew. We’re seeing a very different story play out today, as applications decline yet jobs continue to rise. Data from the WaveTrackR June Report has shown a decrease in applications for June alongside a rise in jobs (taking them up to 235% above the 2020 monthly average). Not only that but the average number of applications per job has decreased for five consecutive months.
The REC, KPMG and IHS Markit’s UK Report on Jobs found that candidate availability plummeted in June at the fastest rate since 1997. Although applications are declining across the majority of industries, all data seems to point to particular issues in Hospitality, Manufacturing, Construction, Transport & Logistics, and even typically more stable industries such as Accounting (in which WaveTrackR has seen huge application drops). A survey of close to 6,000 UK firms published by the British Chambers of Commerce earlier in July revealed that 70% of businesses faced difficulties in recruiting over the three months to June.
The reasons for this drop in candidate activity are manifold, from uncertainty in the market, to furlough, skills shortages, a lack of overseas workers (thanks to both the pandemic and Brexit), time out for retraining, the high demands of parents at home coping with isolations, industry side-stepping, and older workers taking early retirement. Combine this with the rise in jobs caused by the rush to reopen from lockdown, with 38% of businesses in the British Chambers of Commerce survey expecting to expand in the coming months, and you have the beginnings of an acute talent shortage that could threaten economic recovery.
In an increasingly competitive market the fight for talent may feel like an uphill battle but there are a number of ways you can increase your candidate attraction.
Match salary to the market
Salaries are beginning to be pushed up by declining candidate activity – the REC/KPMG/IHS Markit report found that starting salaries had reached a seven year high – so ensure that the salary being offered is competitive. Many businesses are now raising salaries to combat the difficulties they’re facing in attracting staff so if you want to compete you may want to consider this. Some Hospitality businesses are even offering sign-on bonuses to attract talent in an extremely tough market and advertised salaries in the sector increased by an average of 5.6% in June compared with that in the second quarter of 2019, according to Indeed data (which also found that wages for drivers and construction had risen). If this isn’t possible after a year where many businesses have struggled, increase the non-financial benefits and make these clear on your job ad.
Carefully consider ‘must-haves’
Take a good look at your job ad – how many of the must-haves really are must-haves and how many could be overcome by other relevant skills and experience? Including an exhaustive list of must-haves will only narrow your pool, deterring talent from applying. Women and other diverse candidates, in particular, can feel discouraged from applying for a job if an ad that is crammed full of must-haves. There have been various studies that have found that men feel confident enough to apply for a job if they meet 60% of the criteria, yet women need to believe that they can tick at least 80% of the boxes before they will apply for a job. There are similar findings for BAME and disabled candidates. Some skills will of course be necessary, particularly in highly skilled and niche roles, but there will be many that are nice-to-haves rather than must-haves.
Flexible working
Flexible and/or remote working is now one of the most in demand ‘benefits’ for candidates when searching for a job and some won’t even consider a job if it doesn’t offer more flexible working conditions. After a year of working remotely, many don’t want to back to the office full time and a hybrid model is increasingly becoming expected. A YouGov poll found that the majority of respondents (57%) wanted to work from home for at least some of the time and 72% believed their employers would allow it post-pandemic. A huge 92% of millennials identify flexible working as a top priority when searching for a new role. For roles in which working from home is impossible, a degree of flexibility when it comes to hours is now being talked about with more frequency. And yet WaveTrackR data has shown that although the number of job ads including flexible working terms has grown from 2020 to 2021, it has only risen by just under 5%. This provides a fantastic opportunity for employers and recruiters to increase their candidate attraction and get the edge on their competitors without having to push salaries up.
Benefits for for 2021
If a candidate is weighing up several different job ads, or even offers, and the scope and salary are similar, they will make a decision based on the benefits. Not so long ago companies could lure talent with office perks such as free lunches, a games room, or an onsite gym. In 2021, with more workers working remotely some or all of the week and the pandemic prompting us all to re-evaluate what is important, the goalposts have moved. Candidates are looking for more meaningful initiatives, including a focus on mental health and wellbeing. Glassdoor found that 58% of employees place more emphasis on employee benefits relating to physical and mental wellbeing. Investment in employee mental health – and, importantly, creating a well-rounded strategy to deliver it – is key. Childcare and family benefits are also more important than ever post-pandemic as parents felt the challenges brought about by it acutely. Home office expenses are another top benefit for the 2021 candidate. The benefits a company offers can say a lot about its culture and values – what do yours say?
It’s impossible to tell how long labour shortages will last. The end of the furlough scheme in September and increasing candidate confidence as the vaccination programme continues at pace may combine to help meet job demand. We may be feeling a tighter jobs market for many months to come. Either way, ensuring that your talent attraction game is strong will stand you in good stead whatever the future brings.
WaveTrackR is an intelligent multi-posting tool, data analytics platform and candidate management system. It will advise you when, where and what to post, boost your recruitment power online and increase your ROI.
