The post-COVID hiring hangover: A guide for employers
As specialist tech recruiters, one topic that consistently surfaces in conversations with clients is the current state of the job market. Here is a summary of what we are currently noticing.
In the two years following COVID-19, companies embarked on an aggressive hiring spree. Fuelled by overconfidence, organisations over hired, driving salaries to unprecedented heights and often compromising on candidate selection to avoid missing out on talent. Many believed this hiring boom would be sustained indefinitely.
However, the last 18 months have ushered in a stark new reality. Global economic uncertainties, driven by inflation, supply chain disruptions, and geopolitical tensions, forced companies to reassess their operations. Organisations have been pushed to scrutinise costs more rigorously, leading to widespread measures like:
Halting or scaling back projects: Non-essential or speculative projects were paused or abandoned, reducing the need for additional personnel.
Budget cuts: Many organisations reined in spending, particularly on talent acquisition, to preserve cash flow and manage rising operational costs.
Headcount freezes: Companies imposed hiring freezes and halting the recruitment of new employees.
Restructuring and redundancies: Many businesses undertook restructuring efforts to streamline operations, leading to layoffs and redundancies as departments were consolidated or downsized.
The shift has led to a once-in-a-lifetime surge of candidates, many from the earlier hiring boom, now competing for fewer opportunities. While it may seem like companies have more candidates to choose from, many expect salaries that were inflated during the boom. With fewer job openings and more selective hiring, the landscape is highly competitive, making it difficult to match the right talent to available roles.
A misconception of a buyer’s market
While it might seem like a buyer’s market with an abundance of candidates actively seeking employment, the reality is different. The shrinking number of job openings, coupled with less attractive roles, has significantly reduced the pool of exceptional candidates in the active market.
Why has the pool of great candidates shrunk?
Several factors have contributed to the shrinking pool of top-tier candidates:
Stability preference: Post-pandemic uncertainties have made skilled professionals prioritise job security over new opportunities. With economic instability, frequent layoffs, and restructuring across industries, many talented employees prefer to stay with their current employers rather than risk switching jobs. This "better the devil you know" mindset stems from the fear that moving to a new job could expose them to potential layoffs, reduced benefits, or unforeseen organisational changes. Stability has become a key factor in retaining top talent, as candidates are more risk-averse than before.
Market compensation discrepancy: During the post-COVID hiring surge, many professionals secured high salaries and lucrative compensation packages that are now above the current market rates. As a result, many candidates are unwilling to move to new roles where compensation might be lower or not as competitive. This discrepancy creates a challenge for employers seeking to attract top-tier candidates, as offering a lower salary may fail to entice those already comfortable with their current compensation. Additionally, organisations may be reluctant to match or exceed these inflated salary expectations given tighter budgets and the need to manage costs more effectively.
By combining these factors, employers face a tougher challenge in attracting exceptional candidates, as they must navigate both security concerns and salary mismatches in a more cautious job market.
The DIY dilemma: Why you need a specialist recruiter
Imagine taking on a complex DIY project, like a bathroom renovation, without professional help. The project would likely take longer than expected, cost more, and result in a less-than-desirable outcome, ultimately requiring rework or professional intervention. The same risks apply when navigating the hiring process without expert assistance.
Using a specialist recruiter is a no-brainer for organisations seeking to find the right talent. Recruitment is no longer as simple as posting a job ad and waiting for qualified candidates to apply. In today’s market, especially post-COVID, finding the right talent requires expertise, time, and access to resources that many companies don’t have in-house. This is where specialist recruiters come in, offering several key benefits that make their services indispensable. A recruiter provides:
Access to top talent: Recruiters can connect with both active and passive candidates, including those not reached by traditional ads or LinkedIn messages. Their extensive networks provide access to high-quality talent that companies may struggle to find on their own.
Time efficiency: Specialist recruiters handle the recruitment process from start to finish, saving companies time and effort. They quickly identify the best candidates, streamlining the hiring process and reducing the risk of poor hires.
Increased success rate: Recruiters excel at matching candidates with roles, ensuring a higher likelihood of a successful hire. Their deep understanding of job requirements and company culture reduces turnover and improves long-term success.
By partnering with a specialist recruiter, you can focus on your core business activities, confident that your recruitment needs are in capable hands.
Conclusion
If your organisation is grappling with the post-COVID hiring hangover, Ambition is here to help. Our team of specialist recruiters is equipped to navigate this challenging landscape and connect you with the best candidates available.
Reach out to us here to discover how we can support you in overcoming these market challenges and securing the talent your business needs to thrive.
