5 Things You Should Do to Hire Top Talent in An Unpredictable Market

Let’s face it: the labor market is more confusing than ever. A potential recession is causing industries to experience layoffs, whereas others are increasing hiring levels and retaining talent even if they are underperforming. However, despite macroeconomic headwinds, studies show that employers will continue to encounter significant competition for in-demand talent for the foreseeable future.

This is confirmed by Employ Inc.’s new Quarterly Insights Report, compiled from employer and job seeker activity across its 18,000 customers. In the report, 64% of recruiters said filling jobs this year has been harder than last year, and 69% believe attracting and hiring talent will be difficult for the remainder of 2022. Furthermore, 60% of organizations plan to increase hiring levels over the next 12 months.

“Companies of all sizes today are grappling with an increasingly complex and unpredictable labor market,” said Allie Kelly, CMO of Employ Inc. “To remain competitive in one of the most difficult hiring environments in history, companies must be better equipped to respond to these long-term labor shortfalls and adapt their hiring processes to attract top talent.”

Here’s what the report says about how companies can overcome today’s labor market.

Provide candidates with what they want.

The Employ report reaffirms that workers are still in the driver’s seat and acting accordingly. In the past six months, 72% of recruiters have encountered candidates who have received multiple offers simultaneously, and 63% have had six or more candidates not show up for an interview in the past six months. Therefore, it is crucial to understand job seekers’ preferences and what they want from an employer.

“Overcoming the tight labor market means prioritizing specific organizational changes to ensure that open roles and their respective workplaces are attractive to prospective candidates,” said Kelly. “Based on our report, offering flexible work schedules, fair compensation, and better work/life balance have been the most effective ways to attract top talent.”

Make the hiring process faster.

More than half of recruiters said the biggest challenge in hiring quality talent today is not having enough workers to fill positions. And with competition from other employers being a major roadblock, getting offers in front of candidates as quickly as possible is crucial.

“Competing on speed is the most important area that organizations must improve on,” said Kelly. “Our data says hiring speeds have increased by 8% compared to pre-pandemic levels, and 85% of organizations report their average time-to-hire is four weeks or less.”

Kelly also emphasized that “investing in technologies to source candidates faster can help organizations compete on speed” if it takes longer than a month to hire a new employee.

Invest in the right technology.

Per the report, business and talent leaders must provide recruiters with the tools and resources necessary to compete in a fierce labor market.

“Having access to the right technology to streamline processes and automate tasks, so recruiters can spend more time connecting and building relationships with prospective candidates,” said Kelly. “That’s why 63% of HR decision makers plan to increase recruiting technology spending over the next year.”

While 52% of organizations are retaining underperforming workers, other employers are becoming more agile to adapt to today’s labor market. For instance, one-third of recruiters said outsourcing more roles to freelancers and gig workers has been a successful tactic to hit their hiring goals.

With many workers switching industries, Employ data indicates that 71% of recruiters are taking chances on different types of candidates. Many have also admitted to overlooking gaps in resumes, lack of industry experience, and other areas that are typically red flags.

“While these tactics can help meet recruiting benchmarks, make sure it doesn’t impact the quality of hires-;the top priority for recruiters today,” said Kelly. “When evaluating candidates with different experience levels, ask the right questions during the interview to ensure their background is transferable to the skills needed for the open role,” said Kelly.

Sixty-three percent of recruiters have had new hires leave in the first 90 days after starting a new job, and onboarding can play a pivotal role in whether they stay long-term or quit early.