While the job market is booming, competition for workers is still fierce. Employer demand currently exceeds the supply of job seekers, two to one. It’s never been more important to have the right recruiting strategies in place to attract talent. Here’s how to position your business to successfully compete in an employee’s market.
The state of the job market: what you need to know
The good news is, recent numbers from the Bureau of Labor Statistics show the U.S. experienced widespread job gains in April 2022, with nonfarm payroll employment rising by 428,000. Locally, the Austin job market is being called the hottest in the country, featuring the lowest unemployment rate in Texas. The Austin Chamber of Commerce states that:
First-time job postings in April increased to 40% of all available jobs, showing a continued influx of new opportunities and demand for talent in the area.
The Austin metro area boasts 92,000 more jobs than in February 2020, having recovered all of 2020’s pandemic-related job losses by last May.
Austin has been the fourth best job market over the last 12 months and the best-performing major job market since the beginning of the pandemic.
The bad news? Employment opportunities are growing, but openings and quits are at record levels. Government data from March puts the gap between job openings and job-seeking workers at 5.6 million, with quits increasing to 4.5 million—that’s 3% of the labor force.
Bottom line: there simply aren’t enough workers to meet current demand. It’s tough out there, and staffing gaps aren’t going away any time soon. If you’re going to successfully compete for skilled workers so you can grow your business, it’s time to fine-tune your recruiting strategies.
Five recruiting strategies to stay competitive
1. Focus on sourcing, not just screening
Ideal candidates don’t always apply to job postings. Go beyond simply screening candidates who submit applications by sourcing them in the market.Though time consuming, this step is the most impactful in locating quality candidates. It also requires the right recruiting technology to expand your talent pool.
2. Do your compensation research
Many employees are leaving their current jobs to seek greater compensation. This has created labor shortages and skills gaps. Employers have responded to these quit levels by offering higher wages and more attractive benefit packages.
The first element of effective recruiting strategies involves conducting a market-based salary analysis in your industry and location. This will help determine if what you’re offering is enough to successfully compete so you can adjust your approach as needed.
3. Sweeten the deal
Even if your business pays below market rate, there are also other methods for compensating employees to compete in today’s job market. Both cash-based and non-cash benefits play an essential role in recruiting strategies by encouraging workers to choose your business over other available positions that may offer similar salaries. What can you offer to spark interest in your business over others? In addition to quality medical and retirement benefits, perhaps offering a hybrid or flex-work arrangement would give you the competitive edge you need while staying in your labor budget.
Consult with an HR Advisor who can help you design a competitive compensation package and offer strategies for building a culture that attracts talent.
4. Automate your process
Hiring multiple employees across a number of roles? Consider streamlining your recruiting process with an applicant tracking system (ATS). An ATS collects applicant information in one place and automatically organizes them based on experience and skill set, while filtering out unqualified candidates and identifying the best prospects. Your current payroll software may even offer ATS, so you wouldn’t need to invest in a new system to boost your efficiency and results.
5. Outsource your recruiting
Effective recruiting strategies take time, experience and skill. Whether you need to find qualified candidates for key roles, quickly fill full-time or temporary positions, or simply want to improve hiring results, outsourcing your recruiting and hiring saves valuable time and resources, while offering better results. But how do you choose the right recruiting firm for your business?
How to choose the right recruiting firm:
Do they have a good reputation for building client relationships? The right recruiter will take the time to develop a thorough understanding of your business and its unique staffing needs. Look for reviews and testimonials, and don’t be afraid to ask for references!
Do they have a proven recruitment process? An adept recruiter will have experience under their belt and be able to clearly explain their methodology and how it delivers results.
How do they source job candidates? Make sure they go beyond simply interviewing and hiring to researching and identifying viable candidates.
What are their recruiting fees? Know what services you’re paying for! Does their fee include a guarantee and comprehensive recruiting services, or just candidate sourcing?
Recruiting…that’s our expertise!
We are a team of Austin HR Advisors who will work with you to develop and execute customized recruiting strategies, digging deep to understand your business, your workplace culture and what success on the job looks like. We’ll ensure you offer competitive, market-based salaries for today’s job market and guide you through the entire recruiting process, from sourcing optimal candidates, to interviewing, vetting, and hiring top talent for your organization.
To get started, schedule a free consultation today.