In May 2022, we conducted a survey in conjunction with the Channel Marketing Group and David Gordon. This industry survey showed some validation of trends we have seen in our real-world recruitment experiences to date. It also contained insights into the current trends in the recruitment world from actual candidates and HR executives. In this paper, we will highlight our findings and show actual survey results.
The survey audience consisted primarily of distributor and manufacturers executives from across plumbing, waterworks, heating, HVAC, industrial/safety, and electrical industries. It also included employees (candidates) that currently work in those segments. This survey data includes people from large, medium, and small sized companies.
SURVEY HIGHLIGHTS
What are an employer’s biggest challenges in today’s recruitment marketplace?
We found that an overwhelming amount (49%) said that just finding the talent was the most difficult task. Employers are also frustrated by the lack of qualified, quality candidates that reply to their online ads, and they are questioning the impact that those job posts are making.
Remote work:
Data shows that candidates are leaning towards hybrid and work from home more than employers. This could create potential conflict in which employers want (and expect) employees to return to a pre-covid work from office mentality while employees are comfortable with hybrid and work from home. These conflicting views could present a battle in the very near future. Employees have found happiness with the flexibility that they have become accustomed to, while employers seek to redeem control of the workplace. Who will win will be dictated by just how happy the employee is, how their lifestyle has changed, how their work/life balance has improved, and how much the employer believes that they need to be back in the office. We see resignations continuing for top talent who will always be able to find suitable work, challenge, and balance elsewhere. Whereas employees that are marginal, will go back to the office and be miserable.
Candidates:
It is a candidate dominated market where top talent has choices and lots of opportunity to increase income and determine their ideal role. Candidates want flexibility to decide how they work, where they work and for how much money. They want to have a work environment driven by empowerment, trust, and challenge. Employee happiness is becoming more important as employees consider staying in their current role vs. venturing out into the market. The economy is also making candidates think twice about making a move. With so much uncertainty, maybe riding the wave is better than jumping into unchartered waters.
Employers
Employers still view themselves as the destination of choice in the labor market. We are not seeing many changes in the way companies interview or try to control and dictate the process. Companies continue to not take into consideration that candidates are still employed while seeking new opportunities. They put pressure on candidates to interview multiple times and this is a big turn off to candidates. Employers who put candidates through more than two or three interviews and string candidates along could lose the top talent. Candidates feel that after two interviews, employers should be in position to make a decision. Employers need to be more organized and sympathetic to candidates. To do background checks and testing before even a first interview is a major turn off. Testing done upfront is good for employers but not candidates. Top talent have choices and their view on a company’s interview procedure can taint a candidate’s view of the company culture.
Workforce
Retirements make up 25% of job openings. There is a question as to if companies have adequate bench strength to insert an existing employee into the unoccupied role. The aging workforce is not being replaced with youth. Very few organizations have a formal college hire program in which they visit local colleges. Those that do have bench strength and the chance to grown talent “their way”. Between resignations, retirements and lack of specific talent, companies are finding a labor shortage of the talent they desire. We think shortage of talent could take years to replace. Those that hire college grads and have a training roadmap, can grown talent their way and have a much better chance of retaining top employees.
Interviewing
Two interviews is enough. Get your team assembled, organized, and focused. Create a sense of urgency and be aware candidates have choices and are likely currently employed. If your process is elongated it gives the candidate the opportunity to shop around, reassess their current role, and eventually shop your offer if it doesn’t match their expectations. Time kills all deals.
Your recruiting process
The ideal recruitment process is to assemble your interview team, have a point person that is responsible for driving the process and moving candidates quickly through the interview and vetting stage. Conduct two to three interviews and decide. Use testing as a knockout or area to focus on improvement (remember tests sometimes are not accurate).
It is questionable to waste the time and effort upfront on a background check, conduct that while checking references as a final step. With sign-on bonuses make the employee sign a one year pay back clause if they leave during that period. Present offers late in the week and ask for a acceptance on Monday. Do not elongate the process and allow the candidate to shop your offer, tighten up on this timeline. Make it clear upfront what your process is to weed out tire kickers.
Compensation
Candidates are looking for 15-20% raises and employers are looking to give 10%, this disparity is making candidates turn down offers more so than ever and seek counter offers to stay.
Candidate desires
Candidates want a caring and compassionate boss that understands their needs outside of work. They a collaborative, ethical, and rewarding workplace. They want work/life balance, and they will fight for benefits on day one and extra time off. Candidates seek a growth environment which has a supportive boss that has a job progression roadmap, training opportunities, coaching and mentoring. They need to believe that they are being compensated at their true market value. Employer’s feel that their culture, providing a good work/life balance and growth makes their companies attractive.
Employers know money is important to employees, but they also recognize the importance of their culture and work/life balance.
Why make an employment change?
Why do candidates desire to look for new employment opportunities, a lot depends on their boss and their relationship with him or her. Most of the time (25%), they leave for more money or growth opportunity(15%), and 10% leave because of company leadership or their boss. This shows how important having a career path map for each employee is, as the relationship they have with leadership is critical.
What is the preferred method that candidates like to hear about opportunities?
Candidates prefer the personal touch. Whether it is an internal recruiter from your company or a hired recruiter, they want to talk to someone live about the company, culture and role. They do not want to respond to posts and do online applications. Companies that rely on spray and pray mentality of postings must have a hiring manager review all resumes submitted to a post to find the talent.
Candidates prefer to talk to someone knowledgeable on the position and industry dynamics.
Skill based hiring
This is becoming more and more important as companies look for candidates that can make an immediate impact based on their inherent skillset. We don’t see companies looking to train employees as a preferred recruiting strategy. Many companies have too many openings which prevent training – time is not on their side. Paying more now to get high impact productivity immediately is a difference maker.
Cultural impact…an employers view
Summary
We feel strongly about this being a candidate’s market and companies need to really tighten up their recruitment efforts. Just as you are evaluating the candidate, they are evaluating your company. Be more proactive and welcoming. Truly be a destination of choice based on today’s market and not your past. You need to adapt to changing times. Covid has changed the workplace dynamics, code of conduct and the companies that adapt will win the top talent and those that don’t are at risk of having a talent drain.
For further discussion and more survey driven information, feel free to contact:
John Salvadore
Managing Partner
GRN Coastal
Jsalvadore@grncoastal.com
508-479-3137 cell
David Gordon
President
Channel Marketing Group
dgordon@channelmkt.com
o) 488.8635 c) 919.395.1492