The job market hasn’t been this hot in a long time. In April, the U.S. unemployment rate fell to 3.6 percent, the lowest it’s been since 1969. Canada recently reached a 40-year low in its unemployment rate. Similar stories are playing out around the world, from the Czech Republic to Germany to Scotland.
A buzzing economy is great, but labor shortages can cause serious challenges for businesses trying to soar. How can you thrive when talent is so scarce?
Luckily, Deloitte’s 2019 Global Human Capital Trends Report offers some proactive steps you can take to hire the talent you need. Here are Deloitte’s biggest lessons for finding great employees in 2019 and beyond.
Look in your own backyard
According to Deloitte, the desired capabilities may be right under your nose. The report cites studies that show while upgrading the skills of an existing employee may take a year or so, it can cost as little as 17 percent of the cost it takes to hire an external candidate.
Meanwhile, half of survey respondents told Deloitte it was easier to find a new job at another company than with their current employer. Somebody is missing an opportunity here!
The market is starting to pick up on this glaring need. AI-driven recruitment company Gloat recently launched a talent management platform called InnerMobility, which helps employers give their employees advancement opportunities while simultaneously filling their recruitment needs. It does so by analyzing the skills, experience, and goals of a given employee and matching them with an ideal mentorship opportunity, project or job swap.
So before you rush to a headhunter to fill an open role, remember that the human capital you need may very well exist already within your organization.
Take a strategic approach to the alternative workforce
The so-called “alternative workforce” includes contractors, crowd workers, and freelancers. These temporary workers can be sourced from traditional staffing firms, online freelancing platforms like Upwork, Fiverr, 99designs, and Toptal, and many other places.
According to Deloitte, the number of such workers is expected to triple to 42 million in the United States by 2020, with many people doing these gigs part-time to earn extra money.
Companies in desperate need of talent are increasingly drawing on these talent pools to address their skill shortages. For example, last year at Google, the number of contract workers outnumbered permanent employees for the first time in the company’s 20-year history.
Deloitte recommends going beyond using this pool on an ad hoc basis. Instead of merely filling gaps, you should think about the alternative workforce strategically and develop long-term hiring solutions that “put the right talent in place where and when it’s most needed to get results.”
Find the right recruiting technology
Deloitte’s research found that only six percent of companies thought they had best-in-class recruitment technology and processes. Even more incredibly, four out five believed their recruitment procedures were standard or below standard.
That’s a shame because the AI-powered tools emerging on the market can make the recruitment process both cheaper and more effective. This may be why Deloitte calls this particular area “one of the recruiting function’s’ biggest opportunities.”
Do a quick Google search and the options aren’t hard to find. Take Tempo, for instance. Tempo is an intelligent video-based platform that allows organizations to instantly hire quality candidates for a fraction of the cost of a traditional recruitment agency. With a few clicks, organizations can view a video introduction of the candidate along with their experience, education and even references. A rapidly expanding healthcare provider in the U.K. used this very platform to hire 16 people, saving nearly $60,000 USD in recruitment costs and reducing the averaging hiring time to less than two days.
Think beyond “show me the money”
When Deloitte asked 2,400 workers to state what’s important to them, the number one answer was not money. In fact, money wasn’t even second.
No, what was most important was the nature of the work and the ability to learn and grow.
Deloitte calls this a “shift from reward to relationships”, which means going beyond compensation and paying more attention to employee experience, well-being, learning and development, and career progression.
Away, a luggage brand in the United States, made it their goal to build a “company that people truly loved to work at.” They did this by offering unlimited vacation, sabbatical opportunities, and even paying employees extra to exercise. They also developed a strong work culture strategy, offering “a culture where people are encouraged to bring their full, authentic selves to work, and everyone is given a seat at the table.”
Develop your competitive advantage
Finding great talent can be tough in a hot economy. But the most successful companies know that having a solid hiring process is just as important as developing killer marketing campaigns or building strong customer relationships.
If you’re struggling to find the right people, there’s never been a better time to do things differently. Consider looking at your existing talent in new ways, leveraging the alternative workforce, developing new recruitment methods, or revamping your work culture. Your future employees are out there — all you have to do is help them find you.