Last week my blog post implied that an increase of available jobs would make finding talent more difficult for hiring managers, but would also spur them into making a hiring decision more quickly. In the past, you see, hiring managers were content to drag their feet believing that job candidates would wait a discourteous amount of time because few other jobs were available to them.
Now that more jobs are becoming available, I believe hiring managers will have to move faster to secure talent rather than wait to see if something better comes along. Recent survey results by Management Recruiters International appear to corroborate this hypothesis. According to their “Recruiter Sentiment Study” after the first interview has been conducted, nearly 40% of hiring managers take 3-4 weeks before making a job offer. According to MRI’s study last year, nearly 42% of their candidates who received a job offer turned it down. Of the 42%, 31% turned it down because they had accepted another job offer.
One MRI recruiter in the study provided these comments which echo my comments from last week’s post. “Time is the enemy when recruiting exceptional talent because these individuals have more choices. The longer the process goes on, the less likely the candidate will be around to take the offer. Clients need to speed up the hiring process because once a candidate is “in play” other recruiters will find them too.”
Not only is a significant amount of time passing before the candidate is made an offer but the majority of companies (43%) do not make an offer until the candidate has been interviewed three times. I understand that companies want to make good hiring decisions in an effort to minimize turnover but employers now must adapt once again to the changing economic climate and operate with greater urgency. New technologies such as video interviewing can be adopted so that hiring managers can more efficiently make hiring decisions. According to a study by the Aberdeen group, companies using video interviewing filled their positions three times faster than those not using video.
Aside from accepting another offer, the second most cited reason (26%) why candidates reject an employer’s offer is because the salary/benefits package was lower than expected. An additional sixteen percent accepted their current employer’s counter offer. Again here is another example of why employers must change their mind set. With jobs being scarce, employers could snag candidates with low ball offers, but now with more options available candidates can afford to say “no thanks”.
Corporate profits hit an all time high last year but despite this, wage growth has barely outpaced inflation. In fact wage growth hasn’t been this low since the 1960s and for many it has actually declined since 2007. Employers need to recognize the real costs of leaving their positions vacant, move to hire top talent more quickly but also offer reasonable wages. If you want your organization to get out of the basement the time to start ponying up some real dough is now. Take a hint from the Cleveland Cavaliers.