When it comes to finding, wooing, and securing talent in today’s hiring market, nearly seven in ten hiring managers who participated in our most recent job market research agree that competition for talent has become even more intense in the last year. Over half of those who hire say it’s harder to get candidates to accept offers.Despite the tremendous competition for talent, four in ten companies are not making any changes to attract and retain talent. Of those rethinking their talent strategy, about one-quarter are improving their benefits offered, increasing compensation, offering flex schedules/remote work opportunities, or improving perks.Here’s what hiring managers said when we asked them what the primary obstacles are to winning over talent today:
Compensation shortfalls were the most significant obstacle cited by those who hire, by a factor of three versus the next obstacle on the list. Job seekers are looking to make a substantial leap in what they’re earning when they make a job move. Perennially, our job market research has shown that new job holders can expect double-digit percentage increases. This year, one-third of respondents in new jobs averaged a 15% salary increase. For candidates with the most coveted skills or experience, hiring managers must be prepared to fight for the sweetest compensation package they can get for them to secure them for their company.
Skilled Talent Shortage
With unemployment at historic lows, it is harder than ever to find active job seekers, let alone passive ones. Layer on top of that choosiness of the most-in-demand candidates, and the struggle becomes like looking for purple squirrels. This year, Marketing/Digital Marketing, Sales, and Creative talent top the list of most sought candidates. For this reason, working with a specialized recruiter is more critical than ever. Plugging into their network and leveraging their established relationships gives hiring managers a fast track to candidates enthusiastic about making a move, but perhaps more critically introductions to the hidden pool of passive talent.
Inadequate Hiring Budget
In this hiring market, companies need to pay to play. Unrealistic compensation expectations perhaps set when the job market favored the employer seem to be influencing talent budgets. Job seekers today can be highly selective, and many are considering multiple offers. To get a crack at the cream of the crop, companies need to loosen the hiring purse strings.
Lack of Flexible or Remote Work Options
These employment conditions are not a younger generation requirement – this is an ALL generation requirement. Given our technologically-enabled reality, where employees are reachable at all times, and some elements of work can be completed anywhere, it’s getting more difficult for companies to make an argument against flexible schedules and remote work. The fact of the matter is, when all other employment package features being equal, the company that offers these benefits will always have the hiring advantage.
In this job market, hiring managers say that not only is the compensation competition killing their hiring vibe, but so are the perks offered by other employers. What does talent want? According to this year’s research, beyond generous medical insurance, employees value and covet benefits and perks that center around time off, or those than help bring about work/life balance. Companies should note that research respondents believe that thoughtful, ample benefits are a signal of a company’s loyalty to its employees and its concern for the employment experience.To learn more insights that may help improve the employment proposition your company offers, download the 2020 Job Market Report here.