In today's hiring climate, timing is everything. Recruitment is a candidate's game, with a record five million more job openings than job seekers. The result? Competition is fierce. Candidates are no longer willing to sit through several interviews when your competitors might make a quicker offer.
So, to fill your positions with top talent, it’s vital to be quick and proactive throughout the hiring process. The first step to achieving this is to put your 2023 hiring and compensation plans in place to stay ahead of the game.
Let's take a closer look at the importance of being quick and proactive in your hiring strategy...
It’s a Job Seeker’s Market
The year 2022 is quickly revealing itself as another skewed in the job seeker’s favor. January reports revealed that unemployment remains steady at 4%, despite the omicron variant surge throughout the holidays.
In the meantime, job openings and employees leaving their jobs for other opportunities are at an unprecedented high. Also, due to inflation, wage growth is higher than in previous years due to businesses competing for top candidates. Interestingly, according to Indeed, annual wage growth has jumped to its highest point in 20 years.
At the beginning of April, claims for unemployment benefits fell to the lowest level since 1968. Claims in November of 1968, just two years after the Labor Department began tracking jobless claims, were at 162,000. In April of 2022, they were only slightly higher at 166,000. Astonishingly, today’s labor force is more than twice the size of that in the ‘60s, making this milestone a near historical event to observe.
The Candidate Mindset Has Changed
Candidates seek wages that can match continuously rising costs of living and inflation. But, at the same time, they also look for benefits like work flexibility that they experienced during the pandemic. Not to mention, job seekers are better aware of their worth to businesses and have gained new confidence in negotiating better conditions. As a result, they're less likely to put up with a poor work-life balance, unfair compensation or unnecessary inconvenience in the hiring process.
Businesses Need to be Quick and Proactive
To attract talent in these unprecedented times, businesses need to understand what they can offer candidates to gain an edge over the competition. For instance, more comprehensive medical insurance, improved mental health support, remote working flexibility, and a more understanding approach to parental leave.
Along with these considerations, speed is vital when it comes to hiring. Businesses that are proactive about planning attractive compensation packages are better positioned to make offers more quickly, and, as a result, hopefully, snap up talent before competitors get the chance.
Speed means that:
- Fewer in-demand candidates will drop out. If your hiring process is too slow, the competition will likely poach the top candidates. It stands to reason that the more in-demand the talent, the sooner they'll cut frustrating hiring processes short and look elsewhere.
- You'll attract the best with fast decision-making. Many consider fast hiring a reflection of an effective corporate culture.
- Make an early offer, and you're more likely to avoid a situation where competitors make a better offer. In such bidding wars, you risk losing your candidate or paying a much higher salary to retain their interest. Speed can help protect your budget and remain close to your planned compensation packages.
Get Ahead: Establish Compensation Plans for 2023
The importance of a quick, streamlined hiring process is plain. But what can your business do to ensure you're ready to make speedy decisions during the recruitment process?
Of course, you can decide on benefits packages and more flexible work policies now. But the best way to get ahead of the game is by proactively planning your compensation.