The Job Counteroffer Dilemma: 10 Reasons to Think Twice

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In today's competitive job market, job counteroffers have become increasingly common. Whether you're a job seeker actively looking for new opportunities or an employed professional considering a career move, it's crucial to recognize the significance of making informed decisions during these critical transitions. At Blue Signal, our recruiting firm's expertise lies in helping professionals like you navigate these complexities, and in this blog, we'll explore 10 reasons to think twice about your next career move.

The Allure of Job Counteroffers

First and foremost, the allure of a job counteroffer is undeniable. It often includes enticing components such as a salary increase, improved benefits, and sometimes even promises of a brighter future within the company. Forbes insightfully describes the dynamics of career transitions as a 'push' and a 'pull.' The 'push' signifies the dissatisfaction or unmet goals in one's present role, while the 'pull' is the allure of something new. Job counteroffers embody this 'pull,' offering attractive incentives like salary hikes and a brighter professional future. These offers are strategically designed to make you reconsider your decision to leave your current employer. While the immediate gratification of a counteroffer may be appealing, it's essential to take a closer look at the potential long-term consequences.

As you navigate the intricacies of job counteroffers, another challenge might present itself: managing multiple job offers. While it's a testament to your skills and qualifications, making the right choice among several offers can be daunting. To aid in this process, our partners at Resume and Career Services have crafted a comprehensive video guide on the art of handling multiple job offers.

"Job Counteroffers: 10 Things to consider" displayed over a list of 10 reasons on top of an image of a man pondering sticky noted options on a glass.

Reason 1: Lack of Trust

To begin with, one of the primary reasons to think twice before accepting a counteroffer is the potential erosion of trust. When you receive a counteroffer only after announcing your intention to leave, it raises questions about your employer's true appreciation and commitment to your professional growth. Accepting such an offer may lead to lingering doubts about your value within the organization.

Reason 2: Temporary Incentives

Additionally, temporary incentives, such as a short-term salary bump or a bonus, may seem attractive at first glance. They can provide immediate financial relief and tempt you to stay with your current employer. However, it's essential to recognize that these incentives often fail to address the underlying issues that prompted your job search in the first place. Accepting a counteroffer for these temporary perks might not lead to long-term job satisfaction.

Reason 3: Stagnation

Furthermore, stagnation is another critical factor to consider when evaluating a job counteroffer. It may limit your exposure to broader experiences and stunt your long-term career growth. You may find yourself stuck in a position that no longer challenges or fulfills you, ultimately hindering your professional development.

Reason 4: Company Loyalty

Moving forward, balancing company loyalty with your career goals is a delicate act. While loyalty to your current employer is admirable, it's essential to evaluate whether staying with your current employer aligns with your professional aspirations in the long run. Accepting a counteroffer solely out of loyalty may hinder your progress toward your broader career objectives.

Reason 5: Future Promotions

Additionally, your decision regarding a counteroffer can significantly impact your prospects for future promotions. Employers might question your commitment and dedication if they perceive that you were willing to leave. This perception can affect your advancement within the company and limit your access to more significant opportunities.

Reason 6: Cultural Fit

Moving on, when contemplating a job counteroffer, assessing cultural fit becomes paramount. Company culture and values profoundly impact your job satisfaction. A counteroffer may not address any misalignment between your values and those of your current employer. This misalignment could lead to ongoing dissatisfaction and discomfort in your role.

Reason 7: Burnout

Furthermore, accepting a counteroffer might not resolve the root causes of your job dissatisfaction. The underlying issues that prompted your initial job search could continue to affect your well-being and job performance, potentially leading to burnout in the long term. It's worth noting that burnout is a significant reason many employees decide to leave their positions. For a deeper dive into understanding burnout and its implications, check out our previous article on why employees quit.

Reason 8: Professional Relationships

Next, your choice regarding a counteroffer can influence your professional relationships and team dynamics within the workplace. Colleagues and superiors may perceive your decision differently, affecting the dynamics you've built over time. Managing these professional relationships effectively is essential to maintaining a positive work environment.

Reason 9: Market Value

Shifting gears, understanding your market value is crucial. Counteroffers may not always reflect your true worth in the job market. While your current employer may match or exceed external offers, it's essential to consider whether the counteroffer aligns with industry standards and your long-term career goals.

A closer look at people managers' counter offer concerns statistics over an image of a woman being interviewed by a panel

Furthermore, it's worth noting that while some people managers occasionally use counteroffers as a retention tool, there are reservations surrounding this approach according to research from the Society for Human Resource Management (SHRM). Among them, 37 percent of managers feel that extending counteroffers sets a concerning precedent, another 34 percent believe it erodes trust between employees and employers, and 30 percent see it as a factor that negatively impacts overall employee morale.

Reason 10: Missed Opportunities

Last but not least, accepting a salary counteroffer may mean missing out on potentially life-changing opportunities. It's essential to consider that the job you initially sought outside your current employer likely offered new challenges, experiences, and growth prospects. Opting for a counteroffer might keep you in your comfort zone, but it could also prevent you from exploring a more fulfilling and exciting career path elsewhere. By accepting the counteroffer, you might inadvertently close the door to a brighter and more rewarding future.

Conclusion

In conclusion, the job counteroffer dilemma is multifaceted, and it's essential to think twice before making a decision that can significantly impact your career. At Blue Signal, our expertise lies in helping professionals like you navigate these critical career choices. We invite you to explore our job board and reach out to us for guidance as you embark on your journey to a fulfilling career.

Remember, the decision to accept or decline a counteroffer should align with your long-term career goals. Make informed choices to ensure your professional growth and job satisfaction. The path you choose today will shape your future, and we're here to support you every step of the way.

About Melissa Carpenter

Meet Melissa Carpenter, an accomplished Sr. Executive Recruiter at Blue Signal. Melissa’s passion lies in helping professionals like you achieve their career aspirations. With a background in sales and recruiting, Melissa brings invaluable expertise to the realms of manufacturing, engineering, and finance & accounting recruitment. Her dedication to ensuring exceptional experiences for clients and candidates alike makes her a trusted partner on your career journey. Whether you're seeking the perfect job opportunity or the ideal addition to your team, Melissa is here to guide you towards success. Explore the possibilities with Melissa and the Blue Signal team by your side.

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Why Employees Quit: Top Reasons and How Recruiters Can Help

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Over the last year, more companies have seen employees quit than ever. The collective movement of workers voluntarily leaving their jobs, coined the Great Resignation, began in 2021 as a response to wage stagnation, rising cost of living, and job dissatisfaction – and has continued well into 2022. The Bureau of Labor Statistics recently reported that 4.2 million people voluntarily separated from their job in August alone. As a result, companies are left scrambling to replace employees and prevent further turnover. But what’s causing workers to voluntarily leave en masse? From burnout to bad management, we’ve identified the top reasons why employees quit, and how working with recruiters can help. 

 

Employees Quit Because of Toxic Company Culture 

The beliefs and attitudes of an organization can highly influence job seekers’ decisions to join a company; and conversely, be a contributing factor to why employees quit. According to a poll conducted with our LinkedIn followers, a toxic company culture was the number one reason for leaving their last job. If employees don’t feel connected to the mission or values the company holds, they’re more likely to be disengaged and unproductive, leading to higher turnover. Consequently, a high turnover rate can have a negative effect on company culture and be costly to the business – with the cost of a bad hire ranging between $17K and $240K. With dissatisfied employees leaving and poor management offloading the extra workload onto the leftover workers, a toxic company culture can be perpetuated and reinforced by that turnover. Ultimately, this destructive, cyclical movement forces employees to leave their job. 

How Recruiters Can Help Combat a Toxic Company Culture

As an outside, impartial party, recruiters have a unique perspective when looking at clients’ company cultures. Through conversations with leadership and management, recruiters can evaluate the culture holistically and offer recommendations for improvements. They can give advice on cultural initiatives – such as diversity, equity, and inclusion – that can transform company cultures from toxic to empowering. 

When it comes to establishing a positive company culture, it’s key that management is involved. Specializing in executive recruitment, our recruiters help build leadership teams that influence culture from the top down. Our recruiting team finds executives, senior leaders, and managers that drive results for both culture and performance; which in turn, results in engaged and productive employees. Establishing an inclusive, positive company culture will lead to higher retention rates and increased job satisfaction.  

"My company has been working with Blue Signal for several years. In that time, Blue Signal has changed our company for the better in so many positive ways, but especially from a cultural and performance perspective. Most of our leadership team and middle management have been permanent placements from Blue Signal. As a result of their incredible initiative on our behalf, we’ve earned numerous awards for culture (e.g., Best Places to Work, Certified Great Place to Work), performance (e.g., Inc lists, Fast 40 mid-market companies, Financial Times Fast 500 in the Americas, Charlotte Fast 50, etc.), and have been recognized as one of the leaders in our industry in innovation. We wouldn’t be anywhere close to where we are today without Blue Signal."

— CEO, Wireless Company

Employees Quit Due to Lack of Opportunities for Advancement

According to a Pew Research Center survey, 63% of employees quit a job in 2021 due to the lack of opportunities for advancement. On top of leaving workers hanging and disengaged, unclear promotion paths can also lead to low morale and efficacy in the workplace. As a result, employees feeling like they’ve hit a dead end in their current role are bound to leave for somewhere that offers upward mobility. 

How Recruiters Can Help Establish Upward Mobility

It’s a recruiter’s job to fully understand the scope of the role – including responsibilities, team organization, and growth opportunities. During intake calls with candidates, recruiters can set clear expectations of professional development and career growth within the company. This way, the candidate is fully prepped on what is expected of the role, and what can be expected from the organization. Additionally, recruiters can work with hiring managers to establish clear internal promotion paths and professional development ladders. With those processes established, candidates can envision what they’d be working towards, even before they take the job.  

Employees Quit Because of Burnout

The World Health Organization (WHO) classifies employee burnout as a “syndrome conceptualized as resulting from chronic workplace stress that has not been successfully managed.” While all employees are sure to experience burnout sometime in their career, it may be more prevalent for some workers. In fact, 84% of millennials say they have experienced burnout at their current job. Like a toxic culture and lack of opportunities, workplace burnout can directly affect job satisfaction. Thus, burnt-out employees are 2.6x more likely to be actively seeking another job. If you notice employees quit because of burnout, you may be missing the mark when it comes to supporting your employees’ mental health and wellbeing in the workplace. 

How Recruiters Can Help Battle Burnout

Bringing in an outside recruiter’s perspective can uncover what your company’s missing – whether that is mental health benefits, inclusion initiatives, or retention strategies. Recruiters are masters of employee retention and engagement, even with a remote workforce. After all, they want to see the candidate they placed at your company thrive long-term. Utilizing recruiters’ expertise, hiring managers can apply their recommendations to help battle burnout.  

employees quit due to burnout statistic

Bad Management Makes Employees Quit  

We’ve all heard the saying, “Employees quit bad bosses, not bad companies.” While sometimes a terrible manager is easy to spot due to their unprofessionalism or negative attitude, others can fly under the radar. Less overt characteristics like constant micromanagement, lack of transparency, and being ill-equipped to lead can affect employees’ morale and productivity. For those considering leaving the company, these attributes can be the breaking point. When it comes down to it, a bad manager can cause even the best employee to quit. 

How Recruiters Can Help Restructure Management 

One of the key benefits of working with a recruiter is having the ability to restructure management by finding professionals skilled in leadership. Recruiters can ensure the executives they place have the qualifications needed to lead and inspire a team, such as emotional intelligence and a strong work ethic. Conversely, they’re able to spot the red flags in an intake interview that could lead to bad management. As a result, recruiters can build leadership teams that inspire, mentor, and build a team around trust and collaboration. 

 

Employees Quit Due to Poor Compensation

It should come as no surprise that employees quit due to being compensated poorly or unfairly. In fact, low pay was a major factor for more than a third of workers who left their jobs in 2021. With tools like Salary.com and LinkedIn Salary Insights, employees can easily find their market rate – and if their employer isn’t paying fairly, they might think it’s time to move on. Additionally, job seekers are looking for higher paying jobs to offset inflation. With the rising costs of everyday essentials, employees may look at their employers to provide an inflation or cost-of-living adjustment. At the end of the day, poor compensation is not always the primary factor for making employees quit, as it could be a combination of all the reasons above – but it may be the deciding one. 

How Recruiters Can Help with Compensation

As experts in the space, recruiters have deep insight into market conditions and can determine what candidates are expecting in terms of compensation. Hence, recruiters have the unique advantage of being able to advise hiring managers on salary, commission, and bonus structures that will give their job offer a competitive advantage. In addition, they will have insights on whether a candidate has multiple offers, or higher offers, from other companies throughout the interview process. Using this inside information, they can also advise hiring managers on decision speed, to not risk losing a candidate to another offer. Recruiters can also properly inform candidates on the company’s salary range at the beginning of the hiring process, so that they are not blindsided in the offer stage. Setting clear expectations for compensation, to both candidates and clients, is an essential way recruiters can help prevent employees from quitting.  

 

Conclusion

Employees quit for a multitude of reasons; it may be because of a toxic company culture, lack of opportunity, burnout, bad management, poor compensation – or a combination of each. If your company is wondering why employees quit, look internally to see if any of these factors are prevalent. Then, if you’re not sure how to mitigate them, reach out to a recruiter. At Blue Signal, our recruiting team is your partner in the hiring process, even after we make the initial placement. By utilizing our recruiters’ expertise, you can avoid the top reasons employees quit, and establish groundwork for a thriving work environment. Contact us today to partner with a recruiter on your next search.  

Confidential Search: What are the Benefits and When is It Necessary?

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According to CNBC, 70% of jobs are never published publicly – and a large part of this number comes from jobs filled through a confidential search. When filling any position, there are many things for a hiring manager to consider. The first, and most important decision, should be whether the job needs to be posted publicly or kept confidential throughout the search process. When it comes to conducting a confidential search, there are many factors that make hiring more tedious. Because of this, most companies choose to outsource these roles to recruiting firms experienced in this type of search.

But what is a confidential search? When is it necessary? And why should you look to recruiting firms to conduct them? In this blog, we’re diving into all the instances when a confidential search is important and the benefits of partnering with a trusted recruiter for these types of roles.

What is a Confidential Search?

A confidential search is when a company is seeking to fill a position without advertising or alerting their employees, competitors, and/or clients that the job is open. When choosing between a traditional search and a confidential search, there are a few simple factors that determine which is needed. How you’ll advertise the role, how you’ll source candidates, the urgency of filling the position, and of course, the level of confidentiality desired, all should be considered.

Whether a position is vacant, newly created, or replacing a current employee – conducting a confidential search could be essential. When filling a confidential search, companies can’t carry out typical advertising and job postings online like they usually would. This results in much more time sourcing candidates in a more hands-on and direct way. Even without typical job postings live online, keeping an open position confidential can still be difficult to do for an internal talent acquisition team if not experienced.

Confidential Search Tips

When is a Confidential Search Necessary?

Replacing Executives or Management Positions – Avoiding Leadership Gaps

The most common reason companies choose to conduct a confidential search is when they’re replacing high-level positions in leadership. Based on a recent LinkedIn poll we did with our followers – 70% of hiring managers agreed that they conduct a confidential search when replacing an executive-level role. When planning to replace a current employee, especially one with a high level of responsibility, it’s better if they aren’t tipped off about the change before coverage has been arranged. Ideally, you’ll have a replacement lined up and ready to step in when the time comes, avoiding any gaps in leadership.

In general, the process of filling executive and senior management roles take longer than lower level roles. According to Monster, the average time it takes to fill an entry- to mid-level role is about eight weeks, while a high-level role can take anywhere from six months to a year. This makes it even more important to ensure the position isn’t left empty, when possible.

Exploring New Sectors/Products/Industries

Another common reason hiring managers choose a confidential search is when their company is rolling out a new product line, business model, secondary company, etc. In most cases, it’s important to keep industry competitors in the dark about upcoming expansion news until the public launch date. Posting detailed job openings that obviously allude to new product development, sector expansion, or a first-of-its-kind service, can lead to increased market competition. When looking to launch any type of industry disruption, being first to market is key when filling a need or service gap. No matter the industry, every company has competitors, and you never know who’s keeping a close eye on you as competition.

Experiencing Internal Changes or Reorganization

Companies going through drastic internal changes such as mergers, IPOs, or restructuring may want to keep certain open positions quiet. Often, these situations can be sensitive information when it comes to internal staff. If you have not made the big announcement yet, posting certain job titles may give it away. The last thing a company needs when going through an organizational change is panicked employees – which can often lead to early resignations. In these situations, a confidential search can also ensure you’re not deterring candidates from applying. Outsiders may see these changes as the company being unstable and would result in less of an applicant pool to choose from.

For the same reason, you also don’t want to put off your clients by the amount or type of jobs you have posted online. This can be especially true for executive level roles. Even if a current employee in leadership is retiring and aware of the hiring need, it still might be a good idea to fill their role confidentially to avoid clients questioning internal stability. Many companies also need to consider their competitors in this same situation. If competitors see a time of weakness for your business, they may begin to pose a bigger threat and possibly poach your customer base.

Reducing High Volumes of Unqualified Applicants

When it comes to a globally recognized brand name or commonly sought after company, it’s always better to hire confidentially. This helps avoid receiving an overwhelming number of unqualified applicants to sort through. If a role is going to be highly desired among a large group of candidates, (i.e., a sales executive at a Fortune 500 company) you can expect hundreds or even thousands of applicants. With such a large number of applicants, it’s likely only a small percentage will be fully qualified for the position.

Conducting a confidential search also helps to avoid candidates from adjusting and falsifying experiences and skillsets on their resume before they apply. Unfortunately, this can be a common occurrence and if you’re not familiar with the signs of a candidate exaggerating during interviews, it can lead to a bad hire – meaning the search process has to begin again. When a candidate connects with a recruiter, they are asked to present a resume before they are even sent the job description. This helps ensure you’re getting an accurate representation of the candidates’ authentic experiences.

Confidential Search Benefits

Benefits of Outsourcing a Confidential Search

Stress-Free Process

Overall, partnering with a recruiting firm ensures a stress-free environment for you and your staff. As mentioned, one small mistake can void confidentiality all together in a job search, causing a stressful hiring process for you and your internal hiring team. When using a recruiter who is experienced in confidential search, you can be confident that the position will be filled the right way.

Not to mention, an extra layer of confidentiality can be put into play when recruiters use NDAs in their search process. This is something Blue Signal does with 100% of our candidates. Having candidates sign NDAs before moving forward in the interview process and discussing company information is a great safety net to ensure confidentiality. Signed NDAs hold candidates accountable, so they don’t communicate any details related to the job opportunity with others. Recruiters also can guarantee an exclusive list of candidate outreach, so the info doesn’t get into the wrong hands. This is done by sourcing passive candidates rather than posting detailed job descriptions on online job boards.

Larger Candidate Pool

Because confidential searches are made primarily through passive candidates you can guarantee a much larger candidate pool, but without the added time screening unqualified candidates up front. Passive candidates are people who aren’t necessarily looking for a job change. They are thriving in their current role, which means regular job posts don’t typically reach these top performers. Recruiters can reach out to passive candidates directly and communicate the opportunity on a personal level. Through these one-on-one conversations, they’re able to relay certain aspects and details about the role that may pique their interest in making a move.

Save Time

Overall, facilitating a confidential search requires much more time to source and review talent. Studies have shown that 44% of candidates don’t receive feedback from a potential employer for weeks after applying. Not to mention, tests have found that the average hiring manager looks over a resume for only six to seven seconds. When working with a recruiting firm, especially on a confidential search, they are able to get back to candidates FAST and take the time to review each resume in full detail.

Recruiters also take on the added inconvenience of conducting initial candidate screenings and phone interviews. This allows them to fully vet candidates for your role before their resume even comes across your desk. Not to mention, the candidate will be fully briefed on the confidential aspects of the role and meet with you only after signing an NDA. This then allows you to interview candidates in detail without the stress of exposing sensitive company information.

Continued Recruiter Support

One of the most beneficial reasons to work with a recruiting firm during a confidential search is the overall partnership you receive along the way. Throughout the process, you’ll have the opportunity to gain expert-level advice, learn about best practices, and get questions answered by your recruiter. Once your recruiter identifies a great candidate, your partnership doesn’t end after the candidate’s first day. Recruiters are industry experts, and they are there to act as a partner for you and your company’s goals long-term. A great recruiter will offer support throughout new hire onboarding processes and candidate retention. Furthermore, once your recruiter understands your company’s goals, they can keep you in mind when another ideal candidate comes along in the future.

Conclusion

In the end, a confidential search done in partnership with a best-in-class recruiting firm will protect your team, brand, and drive authentic alignment with your hires. Blue Signal keeps 100% of our searches confidential, regardless of the type of search our clients choose. This helps us better protect the hiring manager’s time, gives us an exclusive candidate pool, and allows access to our own audience – which is wider than theirs on their own.

It’s important to remember, confidential searches can be much more difficult for non-experienced hiring managers. Don’t risk it – a minor slip up can cause a snowball effect and blow confidentiality fast. This is why we always recommend getting help from an experienced recruiting firm for all confidential searches. If you’re ready to partner with an expert or want to learn more about our search processes, reach out to us and we’ll connect you with a recruiter who is specialized in your industry.

Top 20 Interview Questions to Ask a Sales Executive

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Sales roles in particular have some of the highest turnover rates when compared to any other department or industry. Because of this, it’s important to productively utilize your time interviewing, on-boarding, and training a new sales executive. As a hiring manager, it’s crucial you go into each interview as prepared as possible in order to make the best decision.

Asking the right questions during an interview will lead to key insights you’ll need when weighing the options. Information related to the role, company culture, and a candidate’s work ethic are all important to touch on. Use this list of interview questions as your guide next time you’re hiring a sales executive. You may be surprised to see what insights you’re able to gain when you dive deeper than the stale “walk me through your sales experience” type of inquiries.

Sales Executive Interview Guide

Personality & Relationship Skills:

1. What’s your favorite part of a sales job/process? Least favorite?

This response will offer key insight when fitting candidates to your exact sales role. For example, if the role you’re looking to fill is 60% cold calling/prospecting and the candidate replies with this being their least favorite – the role most likely isn’t a fit. Often, sales executives will shy away from admitting something they don’t enjoy in fear of not coming across as a team player. There are multiple ways to frame this ask if you don’t think you’re getting a straightforward answer from a candidate. Asking “In your last position, how much time did you spend cultivating customer relationships versus hunting for new clients? Did you enjoy that?” often does the trick.

2. If you asked your manager what your biggest strength and weakness is, what would they say?

Asking sales executives about their strengths and weaknesses may seem like a basic interview task but it’s common for a reason. Framing this from the perspective of their current or previous manager will give you even more insight to their past experiences. This will also shed light on the candidate’s confidence level in those roles. Often, sales executives will dodge the weakness aspect of the question. Don’t take “none” for an answer and try to uncover how they are at “selling” themselves, and how they are at critical thinking/problem-solving.

3. Given these three terms: promotion, money, and recognition; put them in their order of importance.

This question will give insight into what a sales executive values in both their career and in life. As a follow up question, ask them to explain what each of those terms look like to them. Their answers will explain what they’ll be motivated most by and what they’ll use as a benchmark for success. Be sure to leverage the answer if you end up managing them, and you’ll already be ahead of the game.

4. If you had no obstacles and could start your dream job tomorrow, what would that role look like?

This more creative way of asking the tired “Where do you see yourself in 5 years?” question will keep an interviewee on their toes. It still allows you to break down their short-term and long-term goals, but also sidesteps the possibility of a candidate providing a manufactured answer. Oftentimes, the 5-year question usually prompts a response that the candidate thinks you want to hear.

Regardless, planning for the future of any employee you decide to hire is important. Thinking in terms of the future benefits not only the sales executive, but the manager and company as a whole as well. When forecasting team strategy, you’ll need to know your sales executives are here for the long haul. To help avoid even higher turnover rates, asking this question weeds out the candidates who aren’t truly passionate about the position, and helps you determine whether or not you’d be able to offer them their dream job, either now or in the future.

5. Tell me about a time when you collaborated with other sales team members and those outside of the sales team.

This answer will be key when deciding if they’re a team player or a lone ranger in the field. If one or the other is important to the role, the response can be extremely useful. In most sales roles, relationship building and collaboration skills are essential, so don’t be shy with follow up questions if you need more information! Asking “What impact were you able to make or what goals did you achieve?” can lead to further insights. Again, this will depend on the exact position the interview is related to. If the role will have a high amount of internal collaboration with a team – focus on that, and vice versa.

Ideal Work Environment Insights:

6. What type of work environment do you thrive in?

This question and answer often gets overlooked but can be one of the most detrimental if discovered post-hire. In order for a sales executive to thrive in any position, the environment and culture around them needs to be a fit. Take the candidate’s response and compare their preference to the environment they will be in at your company. Does it seem like a match? If you don’t value the same things here, turnover can be expected and moving forward with the hiring process wouldn’t make sense.

Another thing to consider is that all 2022 hiring trends point to the remote and hybrid workforce continuing to grow. Experts predict that by 2025, roughly 36.2 million employees in the US will work remotely. If the role you’re hiring for permits, be sure to ask candidates key questions surrounding their remote working experience. Ask if they thrive most in a remote, hybrid, or in-office work setting. From there, you should be able to gauge if they require consistent team interaction to succeed, or if they are sufficient working independently majority of the time.

7. Have you ever had a manager you didn’t like? Why?

Management styles can alter the success of a hire in the same way as a work environment. Dive deep into the candidate’s ideal management style and compare it to your own. Can you see yourself working closely with this candidate? Do they seem eager to learn from you and willing to take direction? These are all good follow-up questions to ask yourself after reflecting on their answer.

Also, be sure to note how they portrayed their past experiences. Did they bad-mouth their previous manager, or did they offer facts and expand on the lesson they learned from their experience? Venting and talking negatively about a past role or leader can be a sign of arrogance and lead to a toxic relationship down the road.

8. Which sales metrics do you pay attention to and why?

In sales, personal drive is essential. Asking what metrics they specifically look at when determining success for themselves will give great insight into how they operate. Are they motivated by the same things you use to track success and promotions? If not, it may be hard for the sales executive to feel fulfilled and experience growth in the role.

Ability to Remain Resilient:

9. What do you do to regroup and recover when you have a bad day? Bad week? Bad month?

Sales requires a lot of resilience and the ability to deal with rejection frequently. Asking if sales executives have an established coping mechanism will be telling in how dedicated they are to succeeding in their role. You’ll also be able to reflect on how much experience they’re bringing to the table. This is especially important if the role you’re hiring for will require a lot of cold-calling. Have the sales executive provide personal examples of this experience, which will shed light on how they’ve succeeded in previous roles.

10. How do you motivate yourself?

Along with overcoming rejection, sales roles typically require a good amount of self-motivation. Similar to the previous question, asking how a candidate motivates themselves will highlight their work ethic. An ideal sales executive will have a detailed answer based on past experiences.

11. Describe a time when you had a difficult prospect but were able to persevere and win the sale.

Ideally, the last two questions will lead into a version of this question naturally - but if not, it’s a good one to follow up with. Don’t be afraid to ask for specifics! Some sales executives are pros at misdirection. Candidates who give vague, wordy answers should be a red flag. By asking for a specific time when candidates managed a difficult prospect, and how the situation played out, you’ll be able to gather the details you need to trust their skills. An ideal sales executive will offer insight on lessons they learned and will be able to explain how they applied that knowledge to future situations – preferably without having to be asked. This highlights strong customer service and interpersonal skills that are essential in any good sales executive.

Sales Executive Expertise & Other Skills:

12. Explain the steps you take from the beginning of the sales process to the end.

Look for detailed answers here that point to their confidence and industry expertise. See which tasks will be similar to the role you’re hiring for. Make note of what will need to be retrained and what will be a breeze for them to pick up when it comes to transitioning into your company’s processes.

13. Pitch me our company’s product/service.

This question is a spin on the classic “sell me something” concept and shows how much knowledge the candidate already has. The biggest underlying insight you’ll gain from this question is the amount of research they did to prepare for this interview with your company. A sales executive with a firm understanding of what the company does and the products and services they provide will ultimately be a dedicated addition to the team. Those who did their homework should be noted, as it directly reflects one’s work ethic and initiative.

14. What’s your proudest sales accomplishment?

This question leads to insights into the candidate’s skill level, confidence, and how large or small of sales they are used to closing. This will also point to their passion for the industry. From their response, you should be able to tell what gets them excited about sales.

15. Have you used CRM software before? If so, which one and how advanced are your skills?

This may seem like a basic, technical question but it allows for major bonus points if the candidate will be able to breeze through learning software during training. Even if the candidate hasn’t worked hands-on with the exact software you use, you can ask them if they’re familiar or have heard of it as follow-up questions. Even a little bit of familiarity and knowledge is better than starting from scratch!

16. How do you stay knowledgeable about your target audience?

A dedicated and passionate sales executive will take the initiative to stay up to date on their industry’s trends and updates. Ask what specific resources they leverage or how often they review industry news. Watch for vague answers here, this is one candidates may try to talk themselves into a circle about if they don’t have a solid answer. Bonus points if they can tell you a bit of recent news they’ve heard with specifics on how they are planning to implement it into their process.

Company Culture Fit:

17. Why did you apply for this position?

This question is a great way to uncover why they’re looking to leave or why they left their current role. Be sure to take notes on how they talk about their previous or current company. As mentioned earlier, bad-mouthing of any kind should be a red flag. This question will also give insights into what drew them to your company specifically. If the vision that was portrayed to the candidate doesn’t fit what you want it to, this then gives you insight on how to better market yourself as an employer.

18. Are you ready to jump on a sales call right now?

In other words, this question asks, “Did you do any research on our company and product offerings?” This will show either a strong work ethic and desire for the role, or a lack of ambition. If you like the answer you receive, another great follow-up could be “If you were to start the job tomorrow, what would you be doing tonight to prepare?” Again, this will shine a light on their motivation and drive to succeed in this role.

19. Why do you want to work here/sell our product/service?

It’s no secret that an employee who is passionate and invested in the company they’re working for will out preform those who aren’t. Gallup's report on employee engagement shows that companies with a highly engaged workforce have 21% higher profitability. This question allows sales executives to open up about what they find intriguing about the role and overall company. Play close attention to see if any buzzwords from your company’s core values show up in their response. Finding candidates that have similar values to what your company is striving for is an excellent bonus.

20. How do you think our company can improve?

Loyalty plays a big role in employee retention. If you can decide which candidates already have initial loyalty to your brand, that’s a big plus! By asking what the company can do to improve, you’re really asking “How much do you care about the company succeeding?” This is a good question to watch for some common red flags as well. Often, you’ll be able to notice if the candidate is the type to tell you what you want to hear, or if they are critical thinkers. Those that answer honestly and critically are more likely to work through challenges to help better the company.

Conclusion:

Ultimately, not all sales roles are created equal. Leverage these interview questions as an outline but be sure to adjust to fit each role’s specific needs. While it’s very important to prepare and have a roadmap for leading the interview, don’t be afraid to get creative and be ready to pivot with follow-up questions based on candidate’s answers.

Once you’ve ran through all the questions you prepared, a great way to wrap up the interview process is by opening up the floor to them to ask you questions. Sales executives who ask questions show they are inquisitive about the role and company culture – which means they are trying to picture themselves there. Declining to ask any further questions is a tell that they may have bad communication skills and may be afraid to ask for what they want – not a skill you want in a strong sales executive. In this sense, be prepared to answer some questions of your own! 67% of employed Americans say that job interviews influence their decision to accept a job – so be sure to portray your enthusiasm for the role, company, product, and/or service offered. LinkedIn reported that the most important considerations in accepting new jobs are compensation (49%), professional development (33%), and better work/life balance (29%). Make it a point to touch on these key points to get sales executives excited about joining the team.

When preparing for the undertaking of hiring new staff, remember that Blue Signal can help alleviate the stress. As experts in the hiring process, our recruiters can help not only coach you through the interviews, but help with sourcing candidates, scheduling interviews, negotiating hiring terms, and so much more. Contact us today to get matched with a specialist in your industry!

Employee Referrals: A Sourcing Secret

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The Importance of Employee Referrals

Employee referrals may be the best kept secret when it comes to recruiting. Whether you have just begun a search or are months in the trenches, employee referrals can be an important tool when sourcing talent. Traditional methods of recruiting through career sites and job boards are starting to become less fruitful as the platforms become saturated with candidates that have dozens of recruiters pining after them. When you hit a dead end with your traditional sourcing methods, it’s time to turn to your network. Recruiters and hiring managers are realizing that qualified (and often passive) talent can be found through word of mouth – that is, through asking their network for employee referrals.

Why Employee Referrals are the Best Source of Hire

They’re Effective:

Research from Jobvite found that the most effective way to find top talent is through employee referrals, citing that 78% of recruiters find their best quality candidates using this sourcing method. Despite career sites and job boards having the highest number of applications, employee referrals have the highest conversion-to-hire rate. This makes employee referrals cost effective while streamlining the timeline of the search. According to Jobvite, only 7% of applicants come from referrals. Incredibly, this small number accounts for nearly all hires – further proving that employee referrals are lucrative when recruiting top talent.

Graphic explaining why to hire employee referrals. Paragraph of text next to a horizontal bar graph of hires by source type vs. applications by source type.

In addition to being cost and time effective, employee referrals are the most efficient when it comes to onboarding. Employee referrals onboard with an average of 29 days from their application date, which is 55% faster than applicants on a career site (with an average of 55 days). By onboarding faster than other hire sources, employee referrals are able to get up to speed and start succeeding in their new roles quicker. Consequently, this saves companies money. With the average cost of an open role being around $18,000, having an vacancy for months on end can be detrimental. At the end of the day, employee referrals are the most effective way to save time and money during your search.

They’re a Better Culture Fit:

When it comes to hiring, determining if a candidate is a culture fit can be a make-or-break decision. Despite job boards and career sites attracting hundreds of applicants, candidates referred by a current employee are more likely to reflect and/or adapt to the core values and attitudes of an organization than those from other hire sources. Consequently, recruiters consider an employee referral to be the second most important factor when evaluating a candidate because those candidates are proactively evaluated as a good fit for the company by the referring party. In addition, the new hire has a cultural support system before they even step through the door; the referring party will be genuinely invested in the new hire’s success and will help them navigate the corporate culture. As a result, having an employee that you know matches the organization’s ethos and structure will not only strengthen company culture overall, but decrease turnover.

They Have Higher Retention Rates:

Employee referrals have the highest retention rate compared to hires from other sources, with the average length of employment being over three years. Having been referred by a previous or current employee, candidates that come in with detailed insights of the company – such as company culture and structure – have a significant advantage over their counterparts. This knowledge eases new job nerves and guarantees less speedbumps during the onboarding process. Equally as beneficial, employees who refer others also have a higher retention rate, and stay at the company 20% longer. With increasing retention rate becoming a major recruiting priority for 2021, hiring managers need to invest in employee referrals – they’re a win-win-win for the referrer, referee, and the company.

How to Get Employee Referrals

Employee referral programs are a tried-and-true method of unlocking top talent. According to Jobvite, 79% of organizations offer an employee referral program, and 48% of organizations are seeing a higher participation in these programs in 2021. By tapping into their current employees’ networks, companies could potentially expand their talent pool by 10x. Although employee referral programs have potential for great success, they are entirely dependent on the motivations of the referring party – whether it’s wanting to help their friend, wanting to support the company, or wanting to receive the monetary incentive provided. Therefore, this could be unpredictable and unreliable for filling urgent roles. Whilst established referral programs can be a great source for roles that aren’t time sensitive, it is also important to consider other ways to reach employees’ networks.

Today, one of the most important networks is the one found online. Utilizing social networks among recruiters has been a common practice, but has picked up momentum in the recent years. Over one third of recruiters are leveraging social media to supplement employee referral programs. Additionally, 80% of recruiters believe that investing in social media is absolutely crucial, as more and more candidates are being found through social networks. As your network expands, so does the opportunity for employee referrals. An action as simple as a LinkedIn connection could lead to your next placement. For example, if you have 500 connections on LinkedIn and each of your connections has 100 connections, that totals 50,000 reachable contacts. When it comes down to it, it really is all about who you know.

Conclusion

Employee referrals are an unparalleled source when it comes to recruiting top quality candidates for your organization. The quality of employee referrals is reflected in their time and cost efficacy, higher conversion and retention rates, and likelihood to be a better culture fit. When searching for employee referrals, turn to your network – utilizing your company’s employee referral program or sourcing from your social network can yield an unmatched talent pool. In the midst of fighting the War for Talent, trust in Blue Signal as your partner in the process and for industry-focused tips.

6 Ways to Attract Remote Workers

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COVID-19 has forever changed the workplace in addition to how, when, and where people work. Companies have come to the realization that remote work is not just smart, strategic, and sustainable, but it improves their bottom line and provides benefits to their overall staff.

Before the pandemic, only 5.2% of the U.S. workforce worked from home full time. Today 58% are working remotely. According to a recent FlexJobs survey, 65% of 2,000 pandemic remote workers would prefer to stay fully remote after the pandemic, and 58% say they would “absolutely” look for a new job if they weren’t allowed to continue working remotely in their current position.

Having a significant number of “work from anywhere” employees brings new challenges for benefits design and administration. In addition to traditional benefits, like health insurance and vacation time, remote workers and job hunters seeking remote work opportunities are adding items to their checklist of qualities they’re looking for in a new job. If you plan on hiring remote workers for your team, follow these 6 tips to attract new talent.

1. Set Clear Guidelines About Working Hours

Since remote workers don’t necessarily have to be living near a home office location, businesses can hire candidates from different time zones. This is great for sourcing talent outside of the local pool of candidates. However, that does open the door to another set of problems, specifically ensuring coverage during hours of operation. Managers may find candidates that have a flexible schedule and can wake up early or stay up late in other time zones to meet with a team located somewhere else, but this might not always be the case.

For organizations to stay competitive, leaders need to partner with their Human Resources teams to establish a clear set of rules regarding when people can and should be working online. It’s not just for employees based in different time zones, flexible working hours are also becoming relevant for job hunters. They want to be able to pick up their kids from school or make appointments during the day. Organizing clear expectations surrounding flex time can help companies attract the best talent.

 

2. Continuously Review Compensation Plans

Compensation, pay, earnings, they’re all the same thing: money. People still need to make a good wage in order to survive. With prices rising on everyday items, as well as housing and food, pay is something all job hunters are watching. Properly compensated employees are key to a company’s success.

Although there are many factors that go into how employees are paid, businesses that take pay away from employees are often tossed into the people’s court of opinion. For instance, DoorDash received negative press after the company took tips away from their delivery drivers. Google also received backlash after cutting pay for their remote workers.

In order to avoid risking an organization’s reputation by shortchanging employees, companies need to review their compensation plans periodically to ensure that they meet the standards of the current economic climate. As many states raise the minimum wage, remote workers are able to determine the level of pay they should receive for their work.

 

3. Invest in the Technology That Employees Need

Aside from proper pay, candidates need the right tools to do their work. Individuals shouldn’t be expected to outfit themselves with the technology they need to do their job, so companies need to keep the cost of technology in mind when they establish a budget for their remote workers.

If in-office staff need two monitors for doing their work, then remote workers should be offered this option as well. If an individual needs a Wi-Fi booster in their home, that’s something else offices would normally provide for in-person workers, and need to provide for remotes as well. There is a baseline that managers can set for what will and will not be provided to their employees. This should be established by management so that everyone is held accountable.

For remote workers, there needs to be a technology support system. Leaving them high and dry with a broken device can lead not only to frustration but possible turnover. A job seeker may ask a hiring team about their technology support for remote work in an interview, and having prepared answers will help give that person an understanding of what they can expect from the role.

Infographic containing a list of 6 ways to attract remote workers

4. Treat Everyone as Individuals

In today’s climate, job seekers are digging deeper and looking beyond pay, technology, and schedules when it comes to making a career move. They want to know how they’ll be treated as an individual. It can be easy in a remote setting to group everyone together in endless meetings and not touch base with people for one-on-one sessions. However, this can cause problems for both employers and employees.

Each person on the team has a unique set of expectations, concerns, and experiences. At the same time, each person has their own way of doing things and interacting with other team members. Managers need to consider that much like a traditional office setting, remote teams need to have individual sessions to get people’s perspectives. This isn’t just for performance conversations or project check-ins; this can also be a way for leadership to gauge how effective they are supporting their teams and discover what the company can be doing better for employees. After all, individuals are what really power successful businesses – and we should treat them as such.

 

5. Consider Different Levels of Stability

Everyone has their own unique work style and a preference in regard to how much they want to work. Some employees thrive working multiple jobs, while others prefer to work a single, steady nine-to-five. Companies need to think about how their current job openings can meet the standards of different types of remote workers. As flexibility and freedom become more important to new hires, businesses need to rethink their job descriptions.

Perhaps it’s breaking one position into a few that can be outsourced to freelancers. Maybe it’s combining two different part-time jobs into one for a full-time position. Workers are being more thoughtful in their approach to returning to work, so investigating open slots to find these opportunities before making new hires will help companies operate more efficiently in the long run. Recall that these openings are meant for remote workers so consider those unique requirements as well for attracting the best person for the position.

 

6. Create an Interactive Business Culture

All work and no play doesn’t make the job any fun, and that’s something worth considering when hiring remote employees. How will you build a culture around people who are located around the globe? Will you video conference with everyone daily? Are people going to have to report to the office once a month?

Knowing the answers to these questions will help organizations build a collaborative and fun virtual work environment. When potential candidates are reviewing a business, they want to know the values of it, and how everyone interacts with one another. While it is quite different pulling off culture in a completely digital world, there are many ways to succeed in doing so. Whether it’s an in-person event or a slated video conference every month, take time to relax with your team rather than talk shop.

Much like businesses would’ve hosted in-office events like holiday parties or other celebrations, leaders need to think about translating this into the virtual world. Virtual events build comradery within a team and give the opportunity for people who don’t normally interact with one another the chance to do so. New hires rely on these events in order to network and feel part of the company. When hosting these types of events, photograph them to showcase on social media and other channels, so job seekers can see an insider’s view too.

Job seekers are looking for many things when searching for a new position. But as remote workers, companies need to get creative and strategic with their offerings in order to stand out. By following the six ideas mentioned above, organizations can successfully pull in the best talent possible for their teams, and more effectively retain their remote workers. If you need additional help recruiting top remote talent, reach out to Blue Signal today.

About Our Contributor, Sara Carter:

Sara is the co-founder of Enlightened Digital, entrepreneur, and Bostonian. She spends her days writing code, chasing her children and/or dog, and perfecting her brownie recipe.

About Enlightened Digital:

Enlightened Digital is a digital magazine dedicated to the top tech and business news, updates, and analyses from around the web. Their aim is also to explore how these changes affect business growth and professional development for women. They believe that delivering objective facts and figures on the newest releases and events in the tech world no longer suffices to keep consumers informed. As new technology and updates hurl businesses faster and faster into a future that seems less predictable, Enlightened Digital will try to make sense of not only what is happening, but why, and how it impacts our lives.

Winning the War for Talent in 2021

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As the competition heats up among industries to snag the best of the best to fill open roles, it’s becoming more clear we are experiencing a “War for Talent.” The phrase “War for Talent” is not a new term in the recruiting industry, as it was first coined in 1997 by Steven Hankin of McKinsey. In their 2001 book The War for Talent, authors Ed Michaels, Helen Handfield-Jones, and Beth Axelrod predicted that “the make-or-break for firms in the next two decades would be the ability to attract, develop, and retain talent.” In 2021, we’re in the thick of that battle, struggling to beat out the competition and win over top talent. Though there is an uptick in hiring across the board, with a closer look you’ll see just how small the market is when targeting top-tiered talent with niche skills and specialties. With over 7 million jobs recently posted online, the industry is experiencing an abundance of open roles and a lack of qualified candidates to fill them. In light of this sudden and increasing need for talent, job seekers are left with the upper hand. In today’s market, when it comes to winning the war for talent, employers need to take meaningful action by offering unique benefits, remaining flexible, improving branding, and focusing on retention post-hire. 

War for Talent: 4 Steps

Roll Out the Red Carpet

The current job market is in the hands of the job seekers — so it’s important to get to know your audience. Millennials for example, (who in just five short years will comprise almost 50% of the workforce) have different expectations for jobs than their predecessors did. 86% of Millennials put values, like respect for peers, before salary and 82% prefer to work from home at least one day a week. Now more than ever, hiring managers and companies need to be rolling out the red carpet and concede to the demands of those on the job hunt. Large, leading tech companies such as Amazon, Google, Microsoft, and Facebook have been perfect examples of this in the past as we’ve seen them building, buying, or rehabbing office spaces to make them attractive and appealing to workers. However, today’s climate calls for a little more creativity as the majority of companies and candidates are switching to the work from home model, making fancy office spaces obsolete. Companies are now branching out, offering new incentives like Peloton bikes, paid time off for mental health, additional vacation days, raises, and bonuses to keep their employees motivated and happy. Unfortunately, if you’re not doing your homework to find out what benefits your employees actually care about, you’ll be taking a shot in the dark. 

Poaching and persuading top talent isn’t an altogether new concept but with today’s market, it’s now become a crucial part of everyone’s talent search. The rule of thumb when recruiting for top talent while competing in any industry is to assume there is always another offer on the table. Whether the candidate is actively interviewing for other roles or gets offered a promotion/raise by their current employer when handing in their notice - push your boundaries and dive deep to find what you can offer that no one else will. 

Be Flexible & Act Fast 

With so many competing offers and employers incentivizing candidates to stay where they are - quick decisions in the hiring process are crucial. Just imagine, while a hiring manager is contemplating possible,  better candidates, the perfect candidate they let go cold is accepting another offer. With the majority of talent currently working from home, the process of taking an interview during the day has become a breeze. Candidates can resign from their current position and start a new one with the simple act of shipping back one laptop and receiving another in its place. This simplified and fast-acting turnover is exactly why it is imperative to remain flexible, open, and decisive when recruiting top talent. 

The flexibility shouldn’t stop there. Being open to offering a flexible schedule in today’s market is another “must-have” on a majority of applicants’ lists. It’s been reported that “up to half of employees might quit their jobs if remote or hybrid work arrangements are not provided post-pandemic.” Due to this new norm, industries across the board are now competing on a national scale rather than with their local markets. By choosing not to employ remote workers, you are actively limiting your candidate pool. Offering a flexible work schedule is becoming non-negotiable when keeping up with the competition. With job seekers in the driver’s seat and in a position to make demands, hiring managers need to be listening. 

Step Up Digital Branding & Awareness

Enticing a candidate to join a new company goes beyond what’s written on an offer. Most potential hires are conducting their own research on companies they’re looking to join, digitally. With the internet as the new marketplace, it is absolutely crucial to have a stellar online reputation and top-notch digital branding in place. As a simple fact of life, first impressions are everything - and more often than not, that introduction doesn’t come straight from a company email. 

When a candidate is deciding if they should apply to a company, their first instinct will be to dig up some background information and see if they can picture themselves at the company. Ensuring consistent, clean, and up-to-date branding across all platforms positions you as a well-oiled machine, and instills a sense of confidence - which will result in more applicants. 

Beyond consistency and aesthetics in branding, companies should be going above and beyond to create buzz in their industries. PR initiatives and posting exciting company news online can get job seekers’ attention and spark a good impression before they even land on your website/social channels. Another common way candidates look into a potential employer is through their online reviews and testimonials. This goes without saying, but poor reviews are one of the most passive reasons top talent will walk away from a job offer or even an initial interview. Open the door to communication by conducting exit interviews with employees leaving the company to uncover and address issues before they affect your incoming talent. Better yet, encourage satisfied customers to leave a positive review about their experience.

Invest in Training

With the added competition of today’s recruiting market, it’s important to remember that your job isn’t done when a new hire is made. In some cases, this is when the real work begins as your focus shifts to retaining that hire. One of the best ways to ensure retention of new hires is training, training, training! Investing in thorough and continued training programs is crucial in today’s market when the act of making the initial hire is already such an uphill battle. Hiring professionals agree that “in every industry and sector, among companies large and small, a new conversation must occur as upskilling and reskilling become the new norm.” Employers need to be more proactive by providing employees with the resources and time needed to learn the material and skills. Companies can focus on creating their own internal training that’s specific to their processes by including real on-the-job examples. The biggest mistake you can make after landing a top talent hire is to go into their employment blindly. Do your research and leverage tried and true methods to make sure you retain that expertise in-house. 

With the intensity of today’s job market, offering unique benefits, remaining flexible and fast-acting, and ensuring retention after a hire is made can give your company the edge it needs to land top talent. Just like this job market overall, the way recruiting is conducted is changing at unprecedented speeds. If you’re feeling overwhelmed, Blue Signal can help. We’re experts in this realm and most importantly, we have the dedicated time to complete the open job searches you need filled. A significant benefit in working with a recruiting firm such as Blue Signal is the ability to target passive candidates, which is a game-changer in this climate. The days of waiting around for candidates to come to you and apply to your job posting on their own are over. According to a LinkedIn study, only 15% of employees say they are completely satisfied with their jobs and would not be open to a change. In the midst of this “War for Talent,” you want to be working with the best. If you’re ready to start a conversation about how you can better target and retain top talent in your field, reach out to us today. 

Talent Gaps in Electrical Engineering: Awful or Opportunity?

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With the 4th Industrial Revolution, there have been expansive job opportunities in emerging technology such as artificial intelligence and data science. Locally, reports show that every 100 tech jobs created in Arizona result in 252 jobs in other sectors. From manufacturing all the way to sales - each job vertical has expanded due to new developments in systems, applications, hardware, and software. However, it seems like much of the allure within these jobs leans more toward high-profile software-oriented companies like Facebook, Apple, Amazon, Netflix, and Google (FAANG). In one survey by Deloitte, over 77% of respondents believed there is currently a talent shortage within the semiconductor industry. Without chip designers, system engineers, and other EE talent, those FAANG companies would not be able to operate. Is this cause for concern? Or is there opportunity within this talent gap? 

Issues with the Talent Gap   

Last year KPMG found that 64% of semiconductor executives named “talent risk” as one of the top three threats to their organization’s growth. As technologies like IoT, Artificial Intelligence, and 5G evolve and are streamlined, new enhancements need to be invented to support them and remain competitive. The end of Moore’s Law put this need for innovation into an even clearer perspective. Yet, industry leaders are struggling to react to this need through skill development, education utilization, and developing an overall talent strategy. This means,despite growing demand for semiconductor technology and innovation being developed in this space at lightning speeds, industry leaders are still struggling to attract qualified talent and retain their skilled employees. 

The number of qualified candidates in the industry today are not meeting the growing need. MRL, a recruiting group, estimates that half of the current semiconductor employees are likely to retire in the next 10 to 15 years - with hardly anyone qualified enough to fill those gaps. With people retiring out, and few newcomers - the talent pool is shrinking. In order to keep up with demand and to stay relevant in the marketplace, semiconductor companies need to establish better plans to address the talent gap.

Part o the problem lies within the marketing of the semiconductor space. Today’s STEM graduates want to be on the cutting edge of technology - and are drawn to the allure of big-name software companies which are constantly covered by the industry, and make a visible impact on people’s lives. On the flip side, the direct impact semiconductors, electrical components, and analog technology have on everyday life is not as well-known. Compared to other tech giants, 59% of respondents in Deloitte’s survey said that the semiconductor industry’s career path was just not as attractive. They also found a high rate of turnover in semiconductor companies, as well as a lack of knowledge on how to apply those highly technical skills to grow their career throughout the industry. 

The industry is in need of a recruiting update - with one survey finding that 55% of companies feel unprepared to tackle the issue of attracting larger numbers of young people and graduates. These chip design and electrical engineering-focused companies need to focus on attracting and developing new talent to keep pace with the rest of the tech industries. Particularly, they need to learn how to market to millennials - as they have become the largest demographic group in today’s workforce. 

EE Talent Gap Stats Infographic

Areas of Opportunity 

All of this information seems pretty bleak, however, it leaves some pretty clear action-items on ways to turn this talent gap around. If the semiconductor industry wants to attract more talent, they must work on marketing themselves better to those entering the workforce. If they wish to retain their talent, they need to create more skill development opportunities and establish more career paths. 

A key trait of the career-seeking millennial is wanting their work to have a tangible impact on daily life. That’s why they are so drawn to big software companies; it is easy to find people who use those products and services every single day. Competing with this brand familiarity and accessibility is difficult, over 60% of executives surveyed by Deloitte felt that companies in the semiconductor supply chain suffer from poor brand image compared to those other technology companies. Better employer and industry branding could help reverse this. When it comes to marketing to graduates, it must be made clear the exciting and direct impact semiconductors have on everyday life - whether that be through 5G, IoT, automotive, industrial, or consumer applications. By showing the impact, millennials will come to imagine a satisfying and rewarding career within the space. 

It doesn’t help that the methods are outdated. From slow hiring processes to uncompetitive salary offers, millennials are not lining up for this old fashioned workplace and recruiting model. One microelectronics researcher stated that, “The jobs waiting for them after graduation are often limited and pay relatively poorly. It is much more appealing for these top engineers to go to big internet companies and create applications and software, rather than spend 5-10 years in a small lab doing extremely difficult and expensive hardware research.” From the outside looking in, they are seeing a lack of support and collaboration within these roles, and are having a hard time envisioning a solid career path within the field. To combat these feelings of disdain, a tech recruiting firm out of Europe suggests increasing recruiting efforts at universities and reevaluating what is offered to employees. Initiating R&D projects with universities, providing more mentorship and trainee programs, and other career development opportunities would help engage internal employees while also giving students an inside look into the job. 

As the digital design of systems and applications continually changes, so should the methods by which employers build their roadmaps to keep ahead of the innovation and develop their internal talent. Those within the electrical engineering space today are experiencing some key pain points as well when it comes to entering and staying in the semiconductor vertical. One survey found that 60% of their semicon employees leave their jobs within 3 to 5 years, pointing to an employee retention issue. In addition to regular salary and title evaluations, on-the-job learning, advanced degree training programs, and other career guidance pathways should help retention. 

The United States is not alone in this struggle, with the semiconductor talent shortage impacting businesses all across the globe. China and Singapore have been developing talent acquisition and talent retainment strategies in recent years, and we can learn from them. China is taking the homegrown talent pool approach, and looking to strengthen education for graduates, improve the benefits for their current engineers, and support research and development throughout the STEM sector. Meanwhile, Singapore is using strategies backed by Accenture and their own Economic Development Board to bolster the talent pool. This includes collaborating with the government on building out a roadmap and support stream in preparation of Industry 4.0, implementing new routes for cross-functional learning within the tech space, and forming workforce support in the form of unions and business chambers to develop transition paths. All of these efforts help to create long-term solutions that build the talent pipeline for semiconductor jobs now and in the future. 

Key Takeaways 

It is estimated that the semiconductor industry is the fastest growing electronic component industry in the US. There is significant opportunity there for those that have the knowledge! And, for those who know where to find the talent. Moving forward, retention tactics need to be better emphasized, and marketing efforts better funded. The semiconductor industry has a lot to offer, but has done little in the way of advocating for itself when competing against software and application giants. The good news is, you now have a friend in the business who understands the gap in the market and can help you build your pipeline and strategy to ensure your company comes out on top. Through strategic developments in marketing, education, and recruiting efforts, the semiconductor talent gap can be minimized. 

In Blue Signal’s home state of Arizona, the technology sector is growing at a pace 40% faster than the rest of the nation, with a 5% wage growth. Here, the governor plans to budget $12.5 billion to STEM workforce training and education. Arizona is ranked second in the nation for net new tech business establishments - right behind New York City. By tapping into local talent and Arizona college programs, Blue Signal has a unique opportunity to capitalize on this growing job market and talent pool. We understand the challenges and competition out there and have proven ourselves successful in overcoming these obstacles to help find companies educated and experienced professionals in the electrical engineering space. Contact one of our specialized recruiters today to discuss your opportunities for talent acquisition - some of which might be right in your backyard. 

You’ve Lost Your Star Employee, Now What?

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Losing a star employee is one of the most challenging things employers have to face. Top performers are typically among the most engaged in a company and when they make an unforeseen departure, this makes their leaving even more difficult to swallow. While no company is immune, (particularly in today’s competitive market), there are ways to ensure you’re better equipped to handle the situation when it does. Read on for best practices on how to recover from the loss of a top employee.

Think before extending a counter-offer.

Assuming there is still time to counter, your initial thought might be to do so in hopes of retaining a top performer. However, you have to consider the long-term implications of this. It’s possible that compensation may be the main driver behind their departure, but your star employees will likely have addressed this concern prior to making a decision to leave. Whether they have or not, this leaves both parties in an awkward spot. Your employee will be left wondering why it had to come to this point for them to get a raise, and you will feel that it took a form of blackmail in order to keep them on-board. 

Make sure their departure is as positive as possible.

While emotions are still likely running high, it’s important that you treat your employee’s departure as professionally as possible. Conducting exit interviews that allow them to speak to any frustrations should be a regular practice. Even if their reasons for leaving have no bearing on their experience at your organization, they’ll appreciate the opportunity to be heard. In turn, they’re much more likely to leave with a positive view of their time spent with you and will be more likely to recommend future candidates to your organization. In fact, employees that leave with a positive experience are 2.9 x more likely to recommend their former employer to their network.

Take your time in finding a replacement.

Losing a top performer is a tough blow, so it’s important to take a step back and not act on emotion. It may be your first instinct to try and find a replacement as soon as possible, especially if you’re going to be hiring from outside of your organization. This could be an excellent opportunity to hire an executive placement firm. Let them know what your former employee did well, and possibly where they fell short. They can often be an invaluable resource in finding your next big star, and you can continue to focus on business as usual.

Show a little extra appreciation for your current employees.

When any employee leaves, it can start a chain reaction. Present employees wonder what caused the departure and may reassess their own place internally. When a top performer leaves, however, this is doubly concerning. This can cause worries around lack of stability or merely open people’s eyes to greener pastures. While the feeling will likely be fleeting, it’s important to re-address why each individual employee is valuable. 

So how do you go about that? It could be something as simple as having conversations with individuals about their career paths within your company. Another option that’s mutually beneficial is to identify opportunities for development. If employees have expressed an interest in training in a specific area or skill and you have the resources, invest time in doing just that. The bottom line is that your people want to feel that their work is valued and that there is room for growth and learning within your organization.