We’re halfway through 2021, and the economy is almost back to pre-pandemic conditions. Unemployment in the U.S. is now just under 6%, compared with 14.9% at the end of April 2020. And with the recent economic recovery comes growing buzz around the resurgence of a Candidate Driven Market.
But what is a Candidate Driven Market? As opposed to an Employer Driven Market, a Candidate Driven Market refers to a job market where candidates—not companies—have the upper hand.
In this type of market, jobs are abundant, and top-tier candidates are often scarce. Employers have to compete for top talent in their industries, which leaves them more willing to offer higher salaries and better benefits to attract and retain valuable candidates.
On the flipside, an Employer Driven Market occurs when jobs are scarce and candidates are abundant. Against the backdrop of the pandemic economy, 2020 was a prime example of an Employer Driven Market year. More people were seeking jobs due to unemployment, but companies halted hiring processes—creating an environment where employers could capitalize on desperation.
But now, many experts believe the tides are changing. Let’s take a closer look at the concept of Candidate Driven Markets and why we may already be in one.
What Conditions Create a Candidate Driven Market?
In a Candidate Driven Market, the candidates get to call the shots in the hiring process. Candidate Driven Markets arise for a number of reasons, but most directly result from the rising demand for talent across industries—especially those that are seeing unexpected booms.
For example, we saw a pandemic-driven spike in demand for supply chain workers, healthcare workers, and even talent in the tech space. In fact, a recent study concluded that 76% of employers believe that hiring will return to or even exceed pre-pandemic levels in 2021. Historically, economic recoveries tend to shift Employer Driven Markets to Candidate Driven Markets.
What Do Candidate Driven Markets Mean for Employers?
Candidate Driven Markets spell great news for people on the hunt for a new job. But what do they mean for employers?
It’s true that candidate-favoring markets tend to leave employers with less bargaining power. If employers struggle to find the right talent for specific jobs, they’ll need to adjust their hiring strategies to accommodate the new type of market.
While some employers may feel discouraged by Candidate Driven Markets—particularly the uptick in demands for higher salaries—there’s nonetheless a silver lining. Candidates who believe their employers compensate them fairly, offer flexibility, and treat them like valued assets (read: people) are more likely to stay with their employers long-term. While an Employer Driven Market may cater to businesses’ bottom lines on the front end, higher turnover rates are virtually guaranteed to follow.
Tips for Hiring in a Candidate Driven Market in 2021
If you’re searching for highly-skilled talent in this emerging Candidate Driven Market, follow these five key tips to land—and keep—the best talent for your organization’s needs:
- Job post on multiple platforms. With potential candidates on so many job sites and social media channels, it’s important that you post your job opening in at least a few different locations.
- Optimize your hiring process. One of the fastest ways to lose great candidates is a slow hiring process. Make sure your candidate-vetting process is thorough—but move quickly.
- Be transparent. Candidates appreciate employers that are transparent about job duties, benefits, perks, and other job essentials, so make sure you’re clear about your offerings and expectations.
- Clarify your values. Now more than ever, candidates are looking for companies whose values and cultures align with theirs. Make sure your organization’s values are clear, and make it obvious that you care about employees’ wellbeing—with policies that speak to people-centricity.
- Enlist expert help. In order to quickly match the best candidates to your open roles, utilize specialized agency support from talent search and recruitment firms like CSS ProSearch!
When hiring in a Candidate Driven Market, your best asset as an employer is to view candidates as long-term investments; the happier the employees, the greater your ROI.
CSS ProSearch is a sales recruiting firm that places top sales and marketing talent for growing businesses in the healthcare, technology and consulting verticals.
Our sales recruiters take a consultative approach to recruiting, acting as a true partner in the success of both our clients and our talent. With over 50 years of combined experience, our team combines best-in-class recruiting practices, technology, research and innovative approaches to deliver exceptional service with every engagement. Learn more here.