September 21, 2022
We are all aware it is a very candidate-driven market. For those that are unsure what this means, simply put, there are not enough candidates to fill vacancies. According to the BBC, UK unemployment is at its lowest rate for 48 years. The lack of available candidates or labour shortage leaves employers struggling to recruit for positions and places candidates in the driving seat – thus, resulting in a candidate-driven market.
So, we know a candidate-driven market is one where the candidates are in the driving seat. They have choice and options for employment. To secure a top-tier available candidate, companies need to bend to demands. A candidate-driven market isn’t a new thing to 2022 and has pretty much been the way of the market since lockdown. You don’t have to look far to see that those with their CV on the job boards actively looking for a new position are in high demand.
Prior the world of Covid-19 and lockdown, employees took working life at face value. No one questioned attending the office Monday to Friday.
We know lockdown and the working effects of Covid-19 has added to this tug-of-war for power between employees and employers. Employees were thrown into home working. Over time, these flexible working habits became more ingrained, and many employees began demanding more flexibility to their working life. Ultimately, starting a shift to an employee-driven infrastructure.
Employees had begun to find a united voice. Now let’s throw in the labour shortages, rise in inflation and energy price crisis and we now have a collective employee-driven workforce demanding greater pay, support and flexibility from their employer. All armed with the knowledge that replacing employees in a candidate driven market is going to be a tough gig for their employer.
Both parties know retaining staff is a high priority. With employees becoming free to voice their dissatisfaction with returning to the office, many questioned other aspects of working life.
The voice employees found continued to grow, making way for some huge concrete changes to pre-covid working life. And while some companies have moved to accommodate some or all of these demands, many others have dug in their heels. Resulting in a power tug-of-war between employees and employers.
Abigail Marks, professor of the future of work at Newcastle University Business School, states that: “Currently, we’re still seeing low levels of unemployment and not enough people to fill vacancies. However, a recession could lead to cost-cutting and redundancies – clearly handing power back to bosses.”
The uncertainty recession brings could very well place candidates back in the market heating up competition for jobseekers and ultimately giving employers back control. We still suspect many sectors will remain highly competitive for talent – such as IT and pharmaceutical. However, those workers with skillsets that are less in demand, may find themselves more at the mercy of employers’ demands.
Many companies have adapted concrete solutions to incorporate candidate requirements which will be hard for employers to roll back. The most forward-thinking organisations understand there will always be options for top talent and ultimately incorporating/listening to your current teams wants and wishes is the best way to retain staff and allow your staff to flourish.
A change in the market is coming. Some workers will be in a position to hold on to the flexibility and conditions they have gained during the pandemic, while others may have to settle for whatever employers want to give them – which again, may provide some fresh candidates into the market.
Here at CMD Recruitment, we are always keeping up to date with the employment and recruitment market for changes, trends, and forecasts. We like to help our clients be prepared and consult them on how best to attract top-tier talent.
If you are looking to recruit now, at the end of 2022 or early next year, get in touch with our team. Become a forward-thinking organisation and let us help provide you with additional recruitment support, market advice, salary benchmarking and competitor analysis so you know how best to add to your team.
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