It’s a Good Time to Be in Recruiting. Here’s Why
The recruiting challenges caused by the talent shortages have made their fair share of headlines in the past few months. The Great Resignation — or Mass Exodus, as some have coined it — is having significant repercussions on business ecosystems across the nation.
When more than 4 million US workers a month quit their jobs, the impact reverberates loudly through corporate budgets, production schedules and operations. With several organizations scrambling to fill key roles and meet pent-up demand, businesses must face the consequences on their revenue.
According to Randstad RiseSmart’s Q3 2021 Career Mobility Outlook, 95 percent of organizations are actively looking to hire — either internally or externally — to fill existing job openings. And while more than two-thirds, 68 percent, are optimistic about filling open roles with current workers, that number is down 11 percent from the second quarter. That may be because, as the report shows, only 30 percent of employees are likely to opt for an internal job change.
Many organizations are compelled to sweeten the pot to improve their recruiting efforts and lure skilled talent away from competitors. But first understanding the elements at play in this equation may be key to determining who'll come out on top when the dust settles.
Growing Misalignment Between Employees and Employers
One thing that’s interesting to understand about the current work environment is the apparent disconnect between employers and workers. Randstad found that fewer than half of employees, 43 percent, feel positive about finding new roles internally, down from 52 percent in Q2. The number who believe their employers are open to their taking a new internal role dropped to 48 percent during that period. That's the lowest level of 2021.
Yet, the increased pessimism among employees isn't substantiated, according to the data. The report shows 79 percent of employers are open to recruiting within their ranks, with an overwhelming majority adding they're optimistic about filling existing openings with internal candidates.
Randstad also found major disconnects regarding skills and career development opportunities. Nearly three-quarters of employers, 74 percent, believe they offer their workers chances for development. Only 52 percent of those workers agree. The disconnect is even larger within specific industries, such as financial services. Employers and employees also diverge in the type of skills they believe are important.
“Individuals are telling us that they want to learn new skills to be able to grow and develop their careers, and businesses want to train their employees so they can advance within the company,” said Randstad RiseSmart CEO Dan Davenport. “But for some reason, they can’t get on the same page.”
This highlights tremendous opportunity for companies to improve their internal communications and provide clear career-advancing paths to their best talent. Doing so can support an organization's retention efforts and reduce the recruiting and turnover burden.
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Increasing Optimism Among Employers
Another considerable gap between employers and employees is their outlook on the economy. Nearly half (49 percent) of employers have a positive outlook on the US economy, the Career Mobility Outlook shows, while just 15 percent of employees shared that view. When asked about the economic prospects of their own sectors, however, the numbers are higher: 72 percent of employers and 47 percent of employees share a positive outlook.
“The progress we’ve seen in our nation’s economic recovery has led to an improvement in overall economic sentiment among both employers and employees, but individuals continue to operate with cautious optimism,” said Davenport. “Employees are rethinking their career opportunities … and as a result, employers are facing challenges [in] recruiting and retaining talent."
Because of all this, organizations have prioritized career development initiatives and adopted more proactive employee retention strategies. Seventy-six percent of them reported offering skill and career development opportunities to their workforce — and those efforts may be paying off: 60 percent of employees said they have a positive view of the opportunities available with their current employer.
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More Internal Recruiting and Talent Mobility Programs
With a growing focus on developing talent from within, organizations are more often pursuing internal recruiting — or internal mobility — programs. According to Randstad’s survey, 87 percent of employers believe that at least 10 percent of their open jobs can be filled that way. That is up from 71 percent earlier in 2021.
Additionally, the survey found that managers may be more willing to share talent: 61 percent of employees surveyed (compared to 51 percent in the first quarter) had a positive outlook on their current manager’s openness to internal opportunities.
“The current supply of talent is simply not meeting existing demand,” said Davenport. “Due to the high cost and overall difficulty of recruiting in today’s labor market, organizations are recognizing the numerous benefits internal mobility can offer.”
The Rise of Recruiting Work
If all this puts the labor market, well, in flux, there’s good news for at least one group of professionals: recruiters. Their salaries rose by 14 percent during 2021, according to Bloomberg, which cited research conducted by the workforce analytics firm Revelio Labs.
Revelio’s data illustrates how well wages are — or are not — keeping up with prices. While hourly earnings are falling when adjusted for inflation, Bloomberg said, candidates who can fill in-demand roles are getting raises that outpace rising consumer prices. That doesn’t surprise industry observers.
“The need for recruiters is indicative of the fact there’s such high demand for these other jobs,” said Traci Fiatte, head of professional and commercial staffing at Randstad USA.