What The F is going on with Recruitment?
Not being able to fill vacancies is a frustratingly common story right now.
We’ve accumulated data from a range of Australian sources which paint a pretty bleak picture for recruitment right now. But as with any major industry disruption, there are ways to battle it out - if you don’t mind getting a little creative!
Data Source - ABS
Data Source - Seek
“To put this in perspective, we can compare application rates for in-demand roles. Currently, there are over 4,000 ads for chefs on our site. At the end of 2019, this role received an average of 38 applications per ad; looking at the last three months, this is down 53 per cent at 18 applications per chef ad.”
Kendra Banks, MD SEEK ANZ.
1 in 4 employers cannot fill vacancies
The most frequently reported reasons for this struggle by the ABS are:
The lack of applicants (74%)
Applicants not having the required skills (66%)
International border closures (32%)
Job location (29%)
There is only 1 unemployed person for every role advertised
In June 2022 (the most recent data at time of writing) there were 480,000 job vacancies, with only 494,000 people unemployed.
That's 1.03 unemployed people for every role advertised, the lowest unemployment rate in 50 years. (ABS)
The trend in Unemployed Persons
Data Source - ABS
We’re seeing the second-worst skills crisis in the developed world
According to a recent OECD report, Australia is experiencing the second-worst skills crisis in the developed world.
Why is this happening?
The perfect storm…
Conservative approach from candidates moving to new jobs
Very little mobility interstate
Reduced talent coming from overseas
Businesses are on a hiring surge, making up for lost time due to Covid
What can be done?
Here are 5 ways for you to compete in this talent scarce market:
Know what candidates are motivated by, leverage that to your advantage
Think broadly and be open minded about other backgrounds
Be prepared to negotiate
What are your perks and benefits?
Consider borrowing the capability to bridge the gap until you’re in a better position to build it internally
1. Know what your candidate is motivated by
By knowing what’s high on the priority list for your candidate/s you can construct your ad copy accordingly, bringing your role to the top of the pile.
We chat to many candidates every day, and these are their priorities in 2022/3:
Flexibility is demanded, with the culture in place to support it
Interesting problems to solve / ability to have an impact / make a difference
Opportunity to learn and grow
Job security and how employers showed up during the pandemic
Leaders who empower and inspire
An organisational culture that supports an individual to thrive in and out of work life
2. Think broadly and be open minded
There are many benefits to diverse hiring. By thinking left of centre about the role you’re trying to fill you can cast a wider net, attracting candidates who are still extremely capable and eager to learn.
What are the skills you need for the position?
Look for transferable skills rather than exact experience
Be flexible and embrace people who have a learning mindset
Be aware of employing people who are ‘just like you’
3. Be prepared to negotiate
Considering the fact that your candidate is holding multiple offers in their hot little hands right now, learning the art of negotiation could be what you need to get the deal done.
Be ready and armed with the following knowledge so you know exactly how much wiggle room you have, and what you have to offer is ready to be laid out on the table.
Learn your candidate’s current salary, including any benefits, and find out their expectations.
Have a clear idea of the salary range for this role - using market data together with your internal budget.
What are the other perks & benefits (below) of working with you? Do you have a great culture, can you offer flexible work arrangements, career development schemes?
Is there a clearly defined career pathway? Can you help them see how they will be making a meaningful contribution in the immediate and down the track?
4. Sell your Perks & Benefits
Using your perks and benefits as additional carrots for your candidate/s is particularly important. Refer back to the previous section, “What candidates are motivated by”, to help design relevant perks and benefits, keeping in mind that what you come up with has to work and be sustainable for your business so they don’t deteriorate.
A great way to approach this, is to involve your existing employees directly. You’re more likely to create a benefits package which reflects your core company values as well as the individual needs of the people who work for you, and they are more likely to attract the “right-for-you” employee to join.
A few popular options worth floating to your team are:
Paid Parental Leave
Salary Packaging Options
Paid Study Leave and Educational Support
Professional Memberships
Health & Wellbeing Initiatives
Flexible Working
Community Support Initiatives
Social and Engagement Programs
5. Consider borrowing
Even with all of these considerations, the fact remains - there is simply not a lot of talent to go around.
You may also be competing against some heavy hitters. And as great as your company is, you’d be forgiven for feeling like you’re fighting a losing battle.
Having another avenue at your disposal could be the answer in the short term until more talent options become available.
Benefits of borrowing:
If it’s a new role, you’re able to test the function before committing with a long term employee
It is an instant solution
There is an increase in amazing outsourced partnership options
They can come with a full team / more resources / more skills so you get much more bang for your buck.
Chat to us if you’re looking for ideas on how to do more with less, stand out from the crowd and take a more open minded approach to hiring.