Industries that are expected to hire the most are Information Technology, Health Care, Hospitality, Financial Services, Manufacturing, and Retail, and 47% of employers are planning to increase starting salaries to remain competitive.
Matt Ferguson, CareerBuilder’s CEO, said, “There’s a favorable dynamic happening in the labor market today. Companies are feeling more financially secure and increasing their headcount.
This is creating a more competitive hiring environment, which is having a positive impact on wages and the labor force participation rate. We expect to see continued strength in these trends with nearly half of employers looking to add staff and raise starting salaries in the months ahead.”
How to Beat the Competition
On the flip side, CareerBuilder found that 29% of workers plan to change jobs in the next 12 months, which is up from 25% last year. Furthermore, LinkedIn’s 2015 Talent Trends report found that 80% of professionals want to hear from a recruiter, even if they aren’t actively job searching.
Their top motivation for accepting a new job? 49% said they would accept a job offer for better compensation. 21% would accept a new job for a better culture, and 14% are looking for more influence within the company.
Understanding your candidate’s motivations is the key to recruiting top talent in a competitive market, and a good direct hire agency will always try to uncover them early in the recruitment process. While some candidates are interested in professional development or more challenging work, others are looking for a better work/life balance.
Knowing what motivates your candidates gives you, and your agency, the opportunity to show them how your company is the best fit for them. Or, if it turns out that you’re not the best fit for a particular candidate, catching the misalignment early can help you avoid inevitable turnover later.
Regardless of whether compensation is a major motivating factor, it never hurts to offer the candidate an increase over their current salary. The competition for talent has led to higher starting salaries, and a lowball offer can easily knock you out of the running. Strong candidates may have several offers to choose from and, all other factors being equal, would likely choose the one with the best compensation package.
Competition for talent has been heating up over the first half of 2015, and there aren’t any signs that it will slow going into the second half of the year. Companies that hope to grow will need to sell candidates on their opportunity and present strong offers if they want to reach their hiring goals.
What are you doing to beat the competition for talent?