How To Deal With A Hot Labor Market

How to Deal with A Tight Labor Market

How to Deal with A Tight Labor Market

By: Nicole Ferrer

 

Every employer wants the best talent that they can find. They seek the highly educated, the most experienced, and the best leaders that money can buy.

 

While striving for the best is certainly not frowned upon, employers can and should do a better job of understanding how they square in the marketplace so they have a realistic shot at attracting the best talent.

 

Here’s the key - in a tight labor market, the most talented individuals are gainfully employed, and more often than not, they are satisfied with their current employer. This isn’t always the case, but generally speaking, it is.

 

In today’s market, if you’re recruiting strategy produces candidates who aren’t actively working, chances are, you aren’t getting the best talent for your company. A tight labor market requires different strategies to lure passive candidates. If you want the best talent, they will need to be manually extracted from other organizations.

 

Here are two quick areas of consideration:

 

Refine Your Brand / Reputation

 

After talking to a variety of leaders across the country, very few believed that their firms had poor reputations. However, with websites such as Glassdoor, Indeed, and Yelp, employers are able to get a glimpse of how their public profile interfaces with the labor market. Despite the large amounts of data online, this data is often ignored.

 

Companies may not want to dismiss warnings about the need to monitor their online ratings. Job seekers routinely view sites like Glassdoor for insights into the culture and working conditions at a particular company, and they regularly pass over employers with low ratings. 

 

Regardless of its accuracy, it is visible, and savvy candidates are very aware of your online reputation.

 

Only 1 in 5 job seekers would apply to a company with a bad online reputation

 

For those employers who reject these online forums, my advice to them is simple – take a look at your turnover rate. An above-average turnover rate can be a likely predictor of a poor reputation. Employees that leave voluntarily, leave for a reason.

 

Be Realistic About Compensation

 

In the world of business, consumers are usually willing to pay a premium for products that have exceptional value. In the recruiting industry, this is no different. As below average products are almost always priced below average, firms with mediocre hiring strategies will likely be unsuccessful with hiring top talent. As always, there are a few exceptions; however, this is usually the case.

 

Employers that have a lagging market compensation strategy will struggle to attract the best candidates, while those that have leading market compensation strategies will attract talent more easily. Further, from a candidate’s perspective, a firm’s compensation strategy is a central part of their brand.

 

Take the time to think through your firm’s compensation strategy. It speaks volumes about your organization – this is especially so in a hot economy when your competitors are growing.

 

Nicole Ferrer is the managing director of Diversity Recruiters™, an executive recruiting firm specializing in diversity.