In 2018, Korn and Ferry estimated there will be a global human talent shortage of more than 85 million people by 2030. Just a few months ago, this seemed to be a highly-believable estimate. However, now there are predictions of a 2020 recession, meaning talent acquisition pros could see an unexpected flood of candidates.
Yet despite the projected 2020 outlook, Jeff Daniels, a reporter at CNBC, says the national economy is forecasted to rebound in 2021. The ebb and flow — and uncertainty — of the economy is constant. And as a talent acquisition pro, you must prepare strategies for these fast-moving, drastic market shifts.
Here’s how you can adjust your talent acquisition strategies to keep up with the changing market:
Cut costs with new tools
No matter what the outlook of the economy, you’re always under pressure to reduce talent acquisition costs. However, those reductions need to be made without sacrificing the quality of talent you hire.
Naturally, you want to implement every proven tool and take every reasonable measure to attract and hire top talent. But there’s a vast difference in where you spend your budget during a talent shortage compared to a talent surplus. Unfortunately, when the market takes a drastic shift, you’re more limited than ever because budgets tighten with the market.
Reassess where your talent acquisition process needs the most help during a talent surplus. Tools focused on attracting or sourcing talent may take the back burner as more candidates enter your pipeline. Now, the most effective tools for your team could be automation and assessment software.
In the instance of a talent surplus, you might be tempted to use AI to analyze candidate information. However, to operate effectively and accurately, AI needs a LOT of data, and especially data specific to the job opening. Without this predictive data, AI actually increases your likelihood of unconscious bias.
In a tight labor market, the number of candidates you source and assess for each role is limited. A decline in the market causes those numbers to increase, oftentimes, rapidly. If you’re not prepared for this shift, the sudden influx of qualified applicants makes it more challenging to quickly and effectively source the best-fitting talent.
It’s critical you focus on streamlining every step in the process to decrease time-to-hire and, as a result, cost-per-hire. Use tools, like interview scheduling software or recruiting chatbots, to cut time out of your talent acquisition process without negatively impacting the candidate experience.
Scheduling software allows you to make one less time-consuming touchpoint while improving the candidate experience. Candidates actually feel more in control of the scheduling process. And you decrease the amount of time between application and having an interview on the books.
Review more applicants
No matter what, your goal is to efficiently and effectively review talent in the early stages of the hiring process. During a talent shortage, however, it doesn’t take as long to review candidates as it does during a talent surplus simply due to a lower number of candidates.
Unfortunately, when the market suddenly shifts, you can’t spend more time reviewing applicants without impacting some other area of your talent acquisition process. It’s even more important to find talented and dedicated employees to help pull the company through any upcoming hardships.
Additionally, candidates facing or in the midst of a recession are anxious. They’ll be even less willing to wait around for opportunities as you review an onslaught of applicants.
Adding one-way video interviews to the early stages of your interview process helps personalize the process while quickly reviewing candidates for cultural fit and soft skills.
Assess with your team what candidate information is critical at this early stage of the interview process. Then, determine the minimal number of questions candidates should answer to ensure you’re effectively assessing who should move into the next round.