5 Commonly Overlooked Factors to Include in Your Recruitment Market Analysis
Searching for top talent in today’s competitive recruitment market takes more than an attractive job description and a strong sense of company culture. With unemployment rates near pre-recession numbers, targeting quality job seekers requires an in-depth understanding of your market – an area that many employers often overlook. So, what information do you need to be successful in your search?
1. Market Salary Range
The keyword here is market. Many employers make the mistake of looking at national salary averages for a position to determine what they should be paying. However, each market varies greatly and could require significantly higher or lower salary thresholds to capture talent. The Society for Human Resource Management (SHRM) recommends conducting a salary review every 18-24 months. In challenging and competitive markets, this information should be reviewed more frequently.
2. Hiring Difficulty
The qualifications and desired skill sets of a position can make it harder or easier to fill depending on your market and the talent available. Assessing the hiring difficulty can give you a realistic idea of whether or not your position requirements align with similar positions in your market and how long it will take to fill. There are a number of factors to consider when assessing hiring difficulty, including:
- Number of potential candidates in the workforce
- Unemployment rate
- Number of current openings that share your target candidate pool within your market
- Average length of time a requisition has remained open
Depending on your findings, you may need to modify your job description or enlist the help of a third-party recruitment agency that specializes in hard-to-fill positions.
3. Competition Assessment
Evaluating employers who are currently hiring for similar roles and employers who have hired for similar roles in the past will give you a better understanding of where your company falls in terms of desirability compared to the competition. When multiple employers compete for talent, job seekers often have stronger bargaining power. Anticipate what your competition will offer and be prepared to provide something just as enticing.
4. Employers of Choice
Once you’ve assessed the competition, identify which companies would be considered employers of choice. According to a survey conducted by CareerBuilder, employers of choice are distinguished by the following:
- Clear career paths and growth opportunities
- Strong training
- Flexible schedule
- Employee recognition
If you don’t have perks similar to this, consider adding a few to your offer. If you do offer these perks, make sure to advertise them just as adamantly as you are advertising your job description. Sharing your employment perks will better position your company as a top employer within the market which significantly improves your chances of candidates seeking out opportunities with your company versus you having to seek out talent.
5. Outside Markets
This may seem counterintuitive, but if your analysis shows that your market is particularly challenging, considering other market locations to attract top talent may be your best option. Understanding where talent resides outside of your local market helps with determining where you want to target your recruitment efforts. If you decide to concentrate recruitment efforts outside of your market, be prepared to assist with relocation. Unless candidates have previous ties to your market, asking them to relocate for employment without assistance can be a big request.
Understanding the factors that drive candidates’ decisions is critical to your sourcing success in today’s competitive recruitment market. Conducting an in-depth market analysis that includes market salary range, hiring difficulty, a competitive assessment, employers of choice and outside markets can help you craft the right employment offering and reduce your time to fill.