Hypercompetitive labour markets for human capital management

The current hyper-competitive labour market means that companies are having to go the extra mile in order to attract the best applicants, with businesses reporting that finding the correct candidates for positions is harder than it was 5 years ago.

Recent research from advisory firm Gartner shows that simply paying the applicants more than your competitors isn’t enough to secure the top talent. Work/life balance, stability and location are also important applicant priorities when choosing which job offer to accept. Gartner suggest that when advertising a role, HR managers present all the compensations of the opportunity, including paid holiday, flexible working and professional development. Many employers now offer newer working concepts such as remote working and 4-day weeks as standard. Together, these job characteristics make up the EVP (employee value proposition) which attract top quality talent, and this is a market where the best candidates get their pick of the bunch of opportunities.

In addition, companies must ensure that they follow through on their promises in order to retain staff. According to Gartner, companies that deliver on their EVP increase new-hire commitment by 30%. Brand weaknesses should be confronted head on, with conversations with candidates providing valuable feedback about where improvements can be made. The cost of a bad hire can have huge financial and reputational costs, as well as affect the morale of the existing staff, so is something that can and should be avoided by providing the most competitive working conditions to foster maximum engagement.

With job descriptions often stuck in the past, it is important for employers to continuously re-evaluate their job descriptions, to make sure that they not only represent the role clearly and accurately but are also innovative in their approach.

By looking at brand strengths and weaknesses and casting a critical eye over what is actually being offered from financial remuneration through to working hours, businesses will find it easier to see why candidates might or might not want to take up an offer of employment, and tweak their propositions accordingly.

In this candidate led labour market, competition between employers is high to secure the best candidates. Companies must ensure that they put their best foot forward in order be effective in filling all their roles.