This article originally appeared in the January 2023 issue of Security Business magazine. When sharing, don’t forget to mention Security Business magazine on LinkedIn and @SecBusinessMag on Twitter.
If you have been reading this column for the past year, you are well aware of the candidate-driven market we have all come to know and love. Right when we were all getting the hang of how to navigate it, I am here to tell you as quickly as it showed up, it has disappeared!
Where does that leave us for 2023 and beyond? With the calendar officially turned, the market has finally shifted to become more company driven. If you have been in a hiring mode, you may have noticed there are more candidates on the market, and the days of the astronomical asks are behind us. While this may seem exciting, there are some adjustments that must be made in order to be successful in 2023.
Candidate-driven markets are characterized by a decrease in actively searching candidates. Due to a significant drop off in candidates on the market, companies have to roll out the red carpet, increase compensation ranges, and move quickly to avoid candidates taking other positions.
While company-driven markets bring some changes in how to approach hiring, including allowing for a little bit of breathing room in speed and the rush to make offers, there are still some things to look out for:
1. It is imperative that companies do not lose urgency.
Just because the hiring market has slowed slightly in competition, that does not mean that companies should be waiting weeks in between interviews and taking their time to deliver offers. Do not be mistaken, your urgency in the process will help you win in any market. Candidates want to feel “warm and fuzzy” from prospective companies and waiting around for next steps or offer letters does not make them feel wanted or special. Also, other competing offers can still pop up and time can cause a company to lose out on a great prospective candidate.
2. Laid off or fired?
With the changes in the economy, many companies will engage in layoffs. While some of the corporate layoffs are no more than randomized budget cuts, some companies are purposeful in who they choose to let go and who they keep. Many candidates that are fired may try to conceal a termination with the term “layoff.” When interviewing a candidate that claims that they have been laid off, do a little bit of digging. Don’t just buy into the story without getting more details. Ask them how many people were affected by the layoff, if they can use their previous manager as a reference, and always make sure to ask them about their performance – especially if they are in sales.
3. Compensation negotiation.
The last 12 months have been characterized by companies paying a premium to entice candidates to come on board. While today, that may not be necessary, I caution companies to think about what they are losing daily by having an open seat. When negotiating with a candidate over a small amount of compensation it still is probably worth it to pay the candidate to avoid these costs. Also, remember meeting a candidate’s compensation needs can also attribute to their happiness and lead to better retention.
The bottom line is how a company treats a candidate sets the tone for their tenure. Respecting their compensation desires within reason, communicating effectively, and ultimately setting good follow ups will send the right message to a prospect. Candidates still have a lot of opportunities out there to look at and in this post-Covid market, work-life balance leads the way in requirements in order of importance in almost every field.
Ryan Joseph is an Executive Recruiter for Recruit Group (https://recruitgrp.com), with a focus on security industry operations, sales, and sales leadership. For help with your security recruiting efforts, contact her at [email protected] or call (954) 278-8286.