Why Recruiting is The #1 Industry
It’s my belief that every interesting blog post starts with hardcore facts. Over the past 15 months, the number of jobs available has been much greater than the number of active job seekers. According to the Bureau of Labor Statistics, the number of job openings in May of 2019 were 7.3 million for the U.S. and the number of hires were 5.7 million. New job openings in just May was a little over 200,000, which means, if my college degree permits me to do basic math, we are at 1.8 million total job openings left open in May. If we also consider the number of “total separations” (quits, layoffs, discharges, etc.), which was 5.5 million, a fraction of this number is also leaving jobs vacant and causing higher level management to do 2-3 jobs at once.
Now if you’ve made it this far, I’m glad that you agree that these facts are extremely interesting. But why do these numbers matter? These numbers show that the only way to hire in this market is through a recruiter. Recruiting passive candidates is the number one industry in the nation and it is continuing to grow. This growth attribution boils down to three causalities.
We Are “Beneath Unemployment”
The unemployment rate currently is at 3.7%, the lowest it has been in 50 years. The natural rate of unemployment is between 4.5% - 5% for the U.S. which means we are below the optimum level of unemployment. Long story short, this means more people are working overtime and doing more jobs than what they were hired to do. This causes more job openings that cannot be filled through a simple job posting because the candidates who are qualified to fill that role are currently employed elsewhere. Whether they are happily employed or desperate to leave every day, they will never apply for your job because they are not actively looking. At this instance, a recruiting firm is not just desired, but needed.
What the Candidate Wants Has Changed
We live in a time where memories and experiences are valued more than money in our pocket. Hiring managers used to be able to increase employees pay to keep them happy, and now that just is not the whole story. What candidates want more than ever are what used to be considered as “perks” such as paid time off and work flexibility. From my personal experience, many candidates are willing to make a lateral move for better benefits, better work flexibility, and overall what they believe to be a better work environment. In these instances, recruiters act as personal agents for the hiring manager and the candidate in order to have both parties satisfied. When it comes down to negotiations, candidates and hiring managers are more likely to be satisfied regarding pay, paid time off, and other benefits when a recruiter is involved in the negotiation process.
Who The Recruiter is Has Changed
I have heard some horror stories about back in the day where people would get a call from a “Paul McCartney the Headhunter” and obviously know that Paul McCartney was not the name of the person behind the phone. People could not trust recruiters if recruiters were not even going to give them their real name. Now that was never the case for all recruiters – a few bad eggs spoil the bunch – but because of the few distrustful ones many recruiters were stigmatized and avoided. Today, that is nowhere near the case. We want you to know who we are – we want your trust, and we will work all day and all night to obtain that trust. We are in the business of “job match-making” and as much as we wish we had Cupid’s bow and arrow to make everyone love each other, none of that will happen without establishing relationships with clients, candidates, HR, etc. Recruiters are experts in what they do and they know they cannot help you without establishing trust first.
As I said before, the recruiting industry is the number one industry in the nation, and it is not going away anytime soon. These genuine, human interactions with passive candidates give rise to new opportunities for both candidates and companies.
Now it is also my personal belief that a good blog post ends with “a call to action”, so if you are interested in learning more about your recruitment options, give us a call!
Economic News Release: Job Openings and Labor Turnover Summary. (July 9, 2019). Retrieved July 11, 2019 from https://www.bls.gov/news.release/jolts.nr0.htm
Economic Report 2018 Edition. (n.d.). Retrieved July 11, 2019 from https://www.wecglobal.org/economicreport2018/key-findings.html
Lobosco, Mark. (January 28, 2019). LinkedIn Report: These 4 Ideas Are Shaping the Future of HR and Hiring. Retrieved from https://business.linkedin.com/talent-solutions/blog/trends-and-research/2019/global-recruiting-trends-2019
McHugh, Bob. (February 6, 2019). The Top Global Recruitment Trends for 2019. Retrieved from https://www.bullhorn.com/au/blog/2019/02/the-top-global-recruitment-trends-for-2019/
QY Research. (August 28, 2018). Recruitment Market: Global Industry to Attain Huge Value of US$ 334.28 Bn by 2025. Retrieved from https://www.prnewswire.com/news-releases/recruitment-market-global-industry-to-attain-huge-value-of-us-334-28-bn-by-2025-qy-research-893326038.html