In late 2011, the power and leverage in recruiting was considered to be an even split between candidate and employer. However, over the past months, recruiters have observed significant changes in hiring practices, including a shift towards a candidate-driven market.
A Candidate-Driven Market – Recruiter Sentiment
New data from the MRINetwork Recruiter Sentiment Study reveals that highly skilled candidates drive the talent market. Experts attribute the candidate-driven market to the talent pool being weak. As the economy continues to recover, employers are increasingly searching for star workers with specialized skills and experience. This leaves top performers with a distinct advantage, with multiple job offers providing these candidates with more bargaining power and the ability to reject less desirable work positions and arrangements. According to the MRINetwork study, 42 percent of candidates refused job offers due to having accepted an offer with another company.
The candidate-driven market and the increasing number of rejected job offers signal certain things to recruiters:
Employment branding is important to entice star talent. Employers need to identify the reasons why their company is a good place to work, and market it to attract star performers.
HR departments should find ways to streamline their hiring processes to avoid losing top choice candidates.
Salary and benefits packages need to be aggressive, not simply market-competitive.
When it comes to in-demand workers, counter-offers are important to consider to retain skilled workers. Data indicates that the number of candidates accepting counter-offers from their current employers is increasing.
Employers need a faster decision-making process and awareness of the competitive nature of the talent market.
“Many respondents to the survey pointed to the fact that ‘A’ players are being heavily courted and have multiple offers to consider. Aggressive counteroffers are also on the rise, with employers making more tempting and lucrative offers.” ~Rob Romaine, President of MRINetwork