Candidate availability has never been so low this side of 2008, with expertise being placed into positions quicker than ever before. There is a growing demand for top talent at the executive level but there is a shortage. It is a candidate driven market and some organisations are struggling to attract the best executive talent.
The job market has changed considerably since 2008. Countries such as the UK, Germany and USA find themselves with fairly low unemployment rates. Employees no longer see themselves as ‘lucky’ to have a job but understand there are a number of options available to them. This has given candidates leverage during the hiring process as they will typically have a number of companies seeking their services.
Reasons behind the candidate driven market
In part, most countries have recovered well from the financial crash. The USA has an unemployment rate of 4.7%, Germany 3.9% whilst in the UK that figure is 4.8%. The baby boom generation is also heading for retirement, creating a large vacuum of opportunities at senior levels. This issue in itself causes challenges for succession planning, leading to companies preparing millennials for senior roles.
The way in which organisations operate is transforming in a major way. Digitalisation of processes and procedures is changing the ways in which business is done. Leadership at the highest level is required to have an understanding of technology in order to implement these changes.
Collectively, this presents a difficult scenario in which to attract relevant, experienced and skilled candidates. What can be done about this?
Move quickly to attract top executive talent
The best executive talent does not remain available for long. The current inevitable scenario is that a candidate attends several interviews, has bought into the company culture, the organisation see him or her as the right fit and then, where there should be a job offer, there is a period of stagnation.
Quick feedback should be provided to ensure as smooth a process as possible. Regardless of the position, no candidate likes to be left hanging and it can leave doubts over the organisations ability and objectives.
Furthermore, candidates are likely to have a number of offers or interviews lined up. By showing a firm interest and generating excitement, candidates often buy into the organisation even more.
Executive salary considerations
There are a number of considerations when offering a remuneration package. Primarily, salaries have likely advanced significantly since the last time the position was recruited for. By understanding the market, organisations can ensure that they are offering the correct package.
Think of the net value for the candidate. If they are relocating from the USA to France where there is a higher tax bracket for top earners, the proposition doesn’t look as tempting if their net salary is reduced.
Be flexible with relocation
Organisations need to understand the challenges a candidate will face during relocation. By ensuring someone is on hand to help with the process will make a significant difference.
This help will involve, finding a place to live, schooling for their children, transport and visas for the family. By integrating flexible working solutions with technology, you can benefit from attracting excellent candidates by allowing them to work remotely if possible.
Create a positive company culture
Attracting candidates is just as important as retaining them in the future which is why an attractive company culture is very important. Building a company with opportunities for development is important for candidate attraction.
Innovation, transparency, communication, are all key factors too. An organisation’s branding and reputation are important for candidates who are keen to progress in their careers. Employees with a sense of pride are more attuned to the common goal than those who are not.
About Chad Harrison International
In any recruitment process, there are always other factors that will contribute to a successful conclusion. These are the most common issues that we experience as a search and selection consultancy. By following the above components, it will allow the process to run a lot smoother.
Chad Harrison International is a global executive search and selection consultancy operating across a range of heavy industries. CHI provide talent acquisition services to the cement, built environment, chemical, life sciences, plastics and packaging and mining and metals industries.
CHI places C-suite, CP/SVP/EVP, Director, skilled and technical specialists into organisations globally.
To find out more about Chad Harrison International, contact us.