How Do You Know if the Job Market Is Good

The labor market has gone a scrap crazy. In the Us, there are more 161 million people working and xv.7 million jobs open. This means that roughly i in 10 seats in your office are empty, and you lot're competing with everyone else for staff.

Calculation to this frenzy, the task creation continues. This month more than 530,00 new jobs were created and the unemployment charge per unit is now down to 4.6% (and dropping). Equally the Biden administration pours even more than coin into the economy, we can look this trend to continue. In fact, Citibank's economist unit believes that next yr nosotros will have more than twenty million job openings in the US, bringing the percent of seats unfilled to one in eight.

(PS the EU is experiencing similar growth. In Q3 the EU unemployment charge per unit dropped to vi.iii% and well beneath 4% in Federal republic of germany and other countries.)

Wages are going upwards also. The BLS research shows that boilerplate wages are rising at over four.two% and in Q3 alone jumped by 1.v%, the highest growth on record. Lower-paid workers take seen the biggest gains, with pay ascension for employees at restaurants, bars, and hotels by 8.1% in the third quarter from a year earlier. For retail workers, information technology's jumped v.9%. This means job seekers are looking for more money, they experience more empowered than ever, and they're really looking around.

In fact, the Quit Rate, the number of people who voluntarily go out positions, is at present 3.iv% (4.four meg last month), by far the highest we've ever seen. So in the heart of all these job openings, about a 3rd of Americans will voluntarily modify jobs this twelvemonth. McKinsey's research found that two-thirds of these job seekers do not accept a new position, and so people are feeling very optimistic near their opportunities.

Then recollect about the numbers. One in ten (xvi million) jobs open up, over iv 1000000 people leaving their jobs each month, and wages increasing at the highest rate always. This is a crazy chore market.

All this may be great for the workers, simply it'due south a huge burden for employers. As Larry Summers put it, "in that location is no slack in the labor market." (The trending hashtag in TikTok is now #quitmyjob.)

Companies are finding information technology extremely difficult to hire and recruiters are in high demand. In fact, there are now more than recruiter jobs open than software engineers! We need to accept think about recruiters as the near valued workers nosotros take!

What Should Companies Do?

Let me outset past observing that 3 things are going on at once.

• Outset, the job market itself is on burn down. At that place are so many jobs open that almost every position feels like it'southward tough to fill up. Lots of HR managers tell me they're posting jobs and seeing no qualified candidates at all.
• Second, the nature of work is changing. With so many jobs disrupted by the pandemic and digital transformation, we have to search for skills and culture fit, not just feel. Many of the new positions nosotros're creating don't have large pipelines of experienced candidates.
• And tertiary, the psychology of job seekers has inverse. Candidates feel burned out, empowered, and set to negotiate.

ane/ Focus On Employment Brand, Culture, and Leadership

The biggest factor in recruiting great people is creating what we call an Irresistible Company. In other words, if your organization is non known for its good deeds, fair pay and piece of work practices, and potent commitment to customers and the community, you'll have a hard time finding people.

People don't only expect for a chore – they look for a company. And then if your company is unknown or poorly respected, they'll wait elsewhere.

Yes, wages affair. People will come to companies that pay more than, but in our list of 80 practices for recruiting, total pay ranks pretty low (number 72 out of lxxx in creating an attractive workplace). The existent wage outcome is fairness: you accept to make certain your wages are off-white and yous treated people deservedly: this factor rates #6 in importance.

2/ Identifying Culture and Skills Fit

In a more than normal labor market you lot would typically look for someone who has done this job earlier. In other words, yous look for specific job experience, validate the candidate's success in prior roles, and call their references for feedback.

Today, equally jobs change faster than e'er, it's ever more likely you will rent someone who has some of the feel you need, but is more probable to be hired based on skill, not experience. So this means you're hiring for culture, intelligence, appetite, and potential.

And this means recruiters are more important than ever. Our new research (coming out early next twelvemonth) shows that high-performing companies develop recruiters who can appraise fit, culture, and growth mindset as well as skills, job fit, and experience. In fact, one of our findings is that "Human-Centered Recruiting" is more of import than ever.

Non but does our research bear this out, my personal experience does every bit well.  I've hired more than than l people in my career and in most cases when I hired someone with deep experience but not a civilisation fit, I was distressing. The new employee came into the company ready to redesign and "fix" everything that was broken, and in many cases created more bug than we already had.

I'm not saying that experience is not important, merely in this task market, y'all may have to live with less experience and rely on skills and power to grow.

3/ Don't Chase Pay.

For many jobs, especially hourly and highly regulated roles, you must pay what the marketplace demands. This means yous may have to raise hourly wages, add more benefits, or fifty-fifty pay a bonus to get someone to join. Simply be careful, this is a dangerous strategy to follow.

Call back that the nearly expensive person yous rent is someone who doesn't work out. If you "chase pay" to get someone to join your company, y'all risk alienating existing employees and perchance hiring someone who feels so empowered they don't perform to your hopes. So unless the person is a senior executive or well known by your squad already, I'd be careful almost "chasing pay."

Right at present this is a challenge. Nosotros are trying to hire a professional person for a particular role correct now and one of the candidates told me during the interview that she was making $140,000 in her current role. Subsequently several weeks of interviewing she came to the final interview and told me she wouldn't accept a job for less than $200,000 per yr. I was floored.

Of class, I decided non to hire her, but the bulletin hither is clear. Job seekers feel very emboldened correct now, so you accept to exist conscientious about chasing pay.

(I of our manufacturing clients told me many of the candidates with accustomed offers don't show up for work. When she calls them they tell her "I establish a job with college pay over the weekend, I'm not coming.")

4/ Don't Over Extend Yourself.

This gets me to my fourth point. Nosotros are at the very elevation of a xiv-year economical bike, the longest upswing in our country's history. Some fourth dimension in the next yr or and then the economy (and stock market) is going to slow down. If you hire like crazy and overpay people for the next year, y'all'll find yourself with a lot of challenges ahead.

And call back this. Even though y'all may be in a hiring frenzy, bringing in too many people tin can backfire. Each new employee creates a burden for onboarding and may change the culture of the squad. I'd be careful over-hiring at this stage of the economic wheel.

v/ Focus on Recruiters, Not Technology.

Finally, take good care of your recruiters. Every bit I talk over in this weeks' podcast, recruiters are yet the key to great hiring. Aye, recruiting engineering is astonishing – but it'southward a lot like self-driving cars. The tech helps you stay out of problem but yous still have to take the cycle.

As I discuss in the podcast, a new era of Man-Centered Recruiting has arrived – empowering the recruiter themselves. I've interviewed hundreds of talent acquisition leaders over the years and they always tell me the same thing: great recruiters hire nifty people.

Swell recruiters are practiced at many things: they know your company's culture, they work closely with hiring managers to empathise your jobs, and they have a deep knowledge of the market. Non simply practice they know a lot of people, but they can search people out, appraise their readiness and fit, and convince them that your company matters.

6/ Take Intendance Of The Employees You lot Have.

Let me leave y'all with this. If almost a third of the workforce is going to change jobs this year, you lot don't desire them to exist the workers in your company. In order for the Quit Rate to exist 4.iii%, at that place have to exist some companies losing a lot of people every month. That shouldn't be yours.

Now is the time to really focus on Employee Experience, and EX is all most treating people well. Spend some time getting to know the people you have, edifice a culture of internal mobility, and taking care of your leaders. It'due south the most important recruiting strategy you accept.

Recollect this: recruiting is the well-nigh important affair we do. If we don't bring the correct people into the company, no amount of direction can fix the problems.

It's a crazy task market place out at that place. Now is a time to build your employment make, focus on your civilisation, and become back to basics and recruit for potential, fit, and growth.

Additional Resources

Talent Conquering At A Crossroads: Stories From The Best (Certificate Program in the JBA)

The Healthy Organization: An Integrated Arroyo to Wellbeing, Productivity, and Employee Brand

Secrets To Recruiting In This Crazy Labor Market place

The Rise Of The Talent Intelligence Platform

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Source: https://joshbersin.com/2021/11/the-job-market-is-going-crazy-and-its-going-to-get-worse-how-do-we-recruit/

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