Candidates in the driving seat?
An increasing number of companies are finding it difficult to fill senior, middle management and specialist positions which has led to candidates having more choice in dictating terms and remuneration packages and the selection process itself.
Smaller and medium-sized companies are generally reacting quicker and more effectively, offering the right candidates individually tailored packages. However larger businesses and multinationals are still for the most part slow to react to the change in the market and many still make the mistake of assuming that people will want to join them because of their name, status and image. Because of this many good candidates turn down these larger organisations in preference for smaller businesses that can offer more flexibility.
Searches will often fail because the company has mishandled the candidate management process. Candidates are no longer going to accept a process where they may be interviewed several times, often over an extended timescale and without proper communication, before the final decision is made. They are becoming frustrated with a company’s inability to conclude the process quickly and to get an offer out in a timely manner.
Why is all this happening? Because the need to recruit top talent is increasing and demand exceeds supply. Many companies are becoming desperate to acquire talent and consequently resorting to promoting too quickly. The competition for key players is intense and therefore the offer has to be attractive. While a competitive salary is important, other factors such as opportunity and career path have a strong influence. Lifestyle benefits i.e. having more holiday time, the ability to work from home on occasion and travelling less can be key in securing the best person. Candidates are asking more questions about the role, the company, the corporate culture, the prospects, determining for themselves whether the opportunity fits with their personal objectives.
The number of executive jobs that can be filled by advertising, online job boards or database methods, while never large, has decreased further. A key reason for this is that there are fewer candidates proactively job searching and many are understandably reluctant to let their CV out into the marketplace without knowing who will be seeing it. Therefore executive search with its accurately targeted, confidential and personalised approach becomes increasingly important as a recruitment method.
It is vital that recruiters maintain an open dialogue with candidates. If communication breaks down, problems will arise including candidates turning offers down at the last minute, or even not showing up to work, having received a better offer elsewhere. In these circumstances clients and consultants must jointly analyse where things are going wrong and put them right. Where counter offers are prevalent, consultants need to plan for this in advance and discuss the implications with the candidate right through the recruitment process.
As the demand for top talent increases and the supply continues to be restricted there is a temptation for some candidates to exaggerate their CV or remuneration. Many companies are not detecting these issues as often as they should. It is therefore essential for clients and consultants to thoroughly reference check as part of the selection process. And the need for thorough interviewing is paramount in a talent war where there is a temptation to be superficial.
In summary, search consultants need to be aware of the incentives that others are using to attract people and advise their clients. Companies must ensure their processes are well planned, streamlined and flexible. Consultants must provide feedback so the client is well informed. As the market continues to be candidate driven, search consultants should contribute to putting the actual terms of the deal together, so as to ensure that offers are on time, in line with the market and meet candidates' expectations.
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