News & Comment (updated September 07)

Competing for candidates

Ten or more years ago, the recruitment climate was very different to the current one...

The industry was clawing its way out of recession, confidence was returning and companies were finally starting to recruit more staff to facilitate growth and ease the burden on over worked existing embers who had remained loyal through leaner times.

Those employers who had survived and prospered had the pick of the bunch and perhaps quite naturally, became complacent towards the ready supply of its most valuable resource.

During the recession, able personnel left the industry which in turn
failed to attract sufficient new blood, particularly with the emergence
of "more attractive" opportunities in IT and media. There was a
reduction in the supply of labour that went unnoticed due to an even
greater reduction in demand.

Fast forward to 2007 and climate change is evident. Whilst prosperity has, for the most part, become the norm, there have been several adverse consequences for companies looking to recruit the willing and able.

Demand has shot up and supply hasn't. Merger and acquisition activity has limited the number of established competitors that a recruiter can look to for trained and experienced staff; particularly within the merchant sector. Salary levels have soared at rates well beyond the rate of inflation and there is still an underlying expectation or momentum for this to continue.

To further compound the issue, loyalty from both the employee and the employer has been replaced by value for money; a change that is further exacerbated by the internet and the expansion of the recruitment industry, both of which have facilitated a greater flow of information into the employment market.

This all stacks up to fewer people chasing more opportunities, more often, demanding more money and for shorter periods of time, though they do expect to do more for it. Perhaps it would be more pertinent to say that there are now more opportunities chasing fewer people. The balance of power has shifted and employers who have recognised and adapted to this new climate have benefitted.

Companies are "competing for candidates". There are a finite number of top quality candidates and companies have the stark choice, either secure their services and benefit from their efforts or someone else will.

The good news is that it's not just about money.....

When you decide to recruit a sales person, you rightly look at their value to your business. Turnover and margin potential are the harder issues in this respect. You also consider numerous softer issues. CRM skills, likeability, stability, education, compliance, attitude, desire for the job, presentation etc... In the light of these softer issues, you may not always go for the best "money maker" but rather the candidate who best meets all of your organisational needs.

In much the same way, candidates certainly won't always go to the highest bidder, often opting for the one with the best "employment offering" instead. Democratic leadership, autonomy, training and development, benefits, pension, planning time, corporate image, marketing support, product reliability, prospects etc... In the same way that you look at them and decide whether or not you would be happy for them to meet your customers, they are asking themselves the same question!

I often remind candidates who are not sure about going for an interview, that they have no choice about whether or not to take the job until its offered - they first have to compete for that privilege. On the other side of the coin, employers who compete well for candidates are far more likely to attract the best ones and do so without paying through the nose.

Look at your own organisation. Why do people work for you? Why do they join and why do they stay? Why do they leave? Where do they come from and where do they go to? Do they tend to go of their own volition and if so is it usually for positive or negative reasons? In short, what is your value as an employer to them and how effectively do you compete against others for their services. What are your USP's as a potential employer?

We deal with clients who continually recruit good staff for relatively modest salaries alongside those who struggle despite offering much enhanced packages. By understanding your strengths in this respect and communicating them effectively you'll save money and secure the people you want.

Its common sense really, at a tactical level you are simply increasing demand. On a more strategic level, by developing good employment practices, a strong brand as a worthy employer and a firm understanding of how best to compete for staff, you'll pave the way for an easier and more prosperous existence in the long run.

It's about creating choice. The more attractive you are as an employer, the more choice you will have at any given salary level.

Alistair Ling

(This is a blog and views expressed in this are not necessarily the views of Careerbuild Ltd)