An employee has more leverage when the market has a candidate shortage
Employer, Job Market

The great candidate shortage

Changes to the nature of work and an uptick in resignations or career changes have contributed to the great candidate shortage.

If you’ve tried to hire in the past 12 months, you’d be aware of the candidate shortage in the Australian job market.

Disruption from the pandemic, changes to the nature of work and the uptick in resignations or career changes have contributed to the great candidate shortage. But just because the market is difficult, does not mean that hiring stops.

Here we’ll discuss how you can make a hire in a difficult market.

What can we do about candidate shortage?

  1. Tweak your hiring process

In a competitive market, such as one where demand outstrips supply, having an efficient and agile recruitment process is paramount.

In a candidate short market, it’s safe to assume that any person you are interviewing is also talking with your competitors. They will also likely be presented with multiple offers.

If a hiring manager hesitates or takes undue time to mull a hiring decision over, the rate of candidate drop-off increases. This will increase again if the hiring manager doesn’t communicate with the candidate to let them know why the decision may be taking longer than expected.

Look at your recruitment process and ensure when you are ready to interview, you are also ready to negotiate an offer should they tick most of your criteria.

Two employees work through a candidate shortage

  1. Remove rigid requirements

Last year Google, Apple, Tesla, and Netflix removed the requirement for a university degree to get a job at their respective organisations. Elon Musk went as far as saying, “having a college degree doesn’t mean you have exceptional ability.” This is part of a wider trend in the market that is questioning whether university/college prepares students for the workforce and is becoming more welcoming of atypical career pathways.

In a candidate short market, cast a wide net, including exceptional individuals who may not have a traditional background. Having someone with a different background is a huge value add to a team and will invite opportunities to grow.

  1. Understand your value proposition

More and more candidates are looking for meaningful work and career progression opportunities alongside a competitive salary.

Be sure you can articulate your value proposition in the interview.

Does your organisation prioritise social consciousness? Are the team early technology adapters (meaning employees will always be learning something new)? Are diversity and inclusion core strategic goals in the business?

Whatever it is that sells the opportunity, practise your elevator pitch. This could sway an exceptional candidate who values purpose over profit.

Managers discuss tackling the candidate shortage

Longer-term solutions to candidate shortage

Improving your candidate attraction and retention will help you immediately make hires in a difficult candidate short market.

However, in the longer term, there are a few other ways to solve the candidate shortage. This includes:

  • Educating yourself on skilled migration pathways.
  • Focusing on internal training to fill any skill gaps in your organisation.
  • Helping university graduates gain skills that will directly translate into the workforce.

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