Is Industry Missing the Chance to Capitalise on a Recovering Economy?

Posted by Tom Austen on July 2, 2014

As the global economy continues to experience relatively stable growth following a period of recession and stagnation, a new problem faces companies looking to capitalise on improving conditions: demand is now exceeding supply.

Whilst the developed world was in the midst of depression, the Emerging Markets became key for the export of commodities from around the world – allowing exporters to somewhat offset the struggles of countries in recession. With most GDPs around the world improving through 2013 and 2014 we are now faced with a scenario where demand for commodities is often outstripping supply. Though many manufacturers and distributors are operating at full capacity, they are unable to fully exploit improved conditions due to inherent supply shortages.

Talent is no different to any other commodity. A recent study of over 38,000 employers around the world found that a staggering 54% of companies are openly experiencing a talent shortage that has a medium or high impact on their ability to meet client needs.

Understanding the Battle

The single most important resource available to companies in coming years will be talent: intelligent, driven individuals who are commercially astute and operationally agile. The basic rule of economics dictates that as demand for talent goes up, supply invariably goes down. The obvious result of this is that competition increases even further. Talent Matters; and identifying, recruiting and retaining the right talent is vital to move your business forward. The first step in this process is understanding the battle…

A recent paper published by LinkedIn (Talent Trends 2014) gives some insight. Here are some of the headline statistics for the UK (101% total due to roundup):

• Only 11% of fully-employed professionals are actively searching for a new job
• A further 15% are casually looking around the market a few times a week
• 13% are speaking with their close network about opportunities
• By some distance the largest segment, representing 41% of fully-employed professionals, are not looking for a new job but would be open to talk to a recruiter and pursue the right opportunity
• Finally, 21% of the talent pool is completely satisfied where they are

We can see that only 26% of fully-employed professionals are looking for a new job at any given time. Relying on traditional, reactive recruitment methods and adverts means that you are effectively ignoring 75% of the total talent pool within your industry. Additionally, research indicates that the most motivated, well-qualified individuals are performing excellently and are happy where they are (with your competitors). One could therefore reasonably conclude that the very best individual for that important position is somewhere in the unobtainable, unreachable 75%. So how are you going to unlock this potential?

Reaching the 75%

This is where an experienced recruitment search consultant comes in. The 75% ARE obtainable; however, you need a skilled professional to identify the top-performing individuals, approach them confidentially and, deliver them to your business in a discreet, reliable and timely manner.

Many recruiters work by matching a CV to a job description, running their own adverts and scouring a stale database; before sending a plethora of wholly unsuitable candidates through and allowing the client to pick the best of a bad bunch. Sure, you pay these recruiters low fees but ultimately they are only tapping into the 26%; though perhaps reach a higher percentage than you (out of sheer bloody mindedness, if nothing else!). As demand, and competition, for the best talent increases – this is not going to cut it.

A great recruiter goes further and works harder than others are prepared to. They fully understand your company, its goals and challenges and the position you are filling. By combining technology with the ‘craft’ or recruitment; they proactively target, approach and engage the ‘outliers’ in your industry and present your opportunity in the way most likely to secure the appropriate candidate. Crucially, by understanding what drives passive candidates and acting accordingly, they are able to manage the whole recruitment process and deliver results (more on this motivation in our next article).

Ultimately, success is not achieved by strategy, R&D, product, reputation or investment. Success is achieved by people. Talent Matters. At a time where demand for talent is exceeding supply, a great recruiter gives you a competitive edge in securing the right talent to help build your business.

Are you suffering from a shortage of talent? How could your business grow with the right talent in place? How do you go about finding the BEST candidate for your vital positions?

 

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