The Importance of Candidate Experience

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With the job market being at an all-time high, and unemployment at record lows, companies are in dire need for top talent. This is creating more competition among employers and as a result it is fostering a more particular candidate pool. Candidate experience plays a huge factor for a company’s hiring processes with more than 82% of job seekers saying that it is an important factor in their decision.

So, why is candidate experience so important to job seekers? Well, not only is it a reflection of employers, it also affects their brand and the culture that they have built. Recently, CareerBuilder conducted research on candidate experience and it revealed that “68% of candidates think the way they are treated in the hiring process reflects how the company treats its employees.”

There are many ways that employers can improve candidate experience, but the most important way is by setting clear expectations, having a clear and responsive process, maintaining a good impression, and simplifying the hiring process.

 1. Set Clear Expectations

Candidates need to be intrigued by a job description and the company in order to apply. It sounds simple, but it comes down to how you market the job. It’s important for employers to set clear guidelines on what type of candidate they’re looking for, and what background they need to have. The Namely Blog stated that “an HRDive report found that 73% of hiring managers say they provide clear job descriptions, while only 36% of candidates agree.” Having a clear and accurate explanation of the overall job responsibilities, requirements, benefits, perks or incentives, and even compensation details are important. Although some employers may not disclose compensation during the hiring process, be sure to discuss that at some point - particularly early on.

2. Have a Clear and Responsive Process

Throughout the hiring process it is important to keep candidates in the loop on what is going on. Interested in taking next steps? Let them know! Not interested in speaking further with them? Let them know! According to Workable, “75% of candidates never hear back from a company after sending in an application and 60% of candidates say they’ve gone for interviews and never heard back from the company.” This eventually leads to a bad reputation considering that “22% of candidates will tell others not to apply to the company.” So, it’s crucial to be transparent and responsive to not only maintain a good reputation, but to improve the overall candidate experience.

Candidate Experience Stats

3. Simplify and Speed Up the Hiring Process

Some hiring processes can be tedious and take a lot of time. Candidates are usually unsure of what to expect so a simple, fast and clear approach is the way to go. Hiring new talent can be time consuming and costly for companies. The Society for Human Resource Management states that, “companies reported spending nearly $4,500 per hire–not including the cost of lost time and productivity while the position sits open.” It’s important to be efficient and simplify the process - not only for the company, but for the candidate. The hiring process is ultimately a candidate’s first impression, so be sure to stand out.

4. Maintain a Good Reputation 

We’re in a social media driven era and people can find positive or negative reviews on a company with a simple click. A candidate’s experience is especially crucial for the people companies don’t end up hiring. According to a LinkedIn survey, “83% of candidates said a negative interview experience can change their mind about a role or company they once liked.” Providing a good experience can maintain a good impression and it is important for organizations to consistently build a positive reputation as a great place to work. Candidate experience goes hand in hand with company culture, and research states that 95% of recruiters say that it has an impact on employer branding. Recruiters connect with candidates daily, so they have a full understanding of companies hiring processes and have dealt with both good and bad experiences. It is crucial to listen to what people are saying, and most importantly take their feedback into consideration in order to maintain a good reputation.

recruiter graphic

There are many ways employers can enhance candidate experience and improve the current processes in place. Learn what needs to be improved on and listen to what candidates have to say - whether it’s positive or negative. Feedback is important and can be a great resource. Even doing a simple Google search or browsing Glassdoor can give employers clarity on what people really think about them. Remember that setting clear expectations, having a clear and responsive process, maintaining a good impression, and simplifying the hiring process is a great way to improve a candidate’s experience.

We Are Here to Help

Are you a hiring manager or talent acquisition professional looking to expand your team? Ask us how we can help coach your hiring process as needed! Blue Signal’s search process continues to impress our clients and our recruiters are dedicated to finding top talent within any industry. Contact us today on ways we can help your organization. (480) 939-3200

Blue Signal Expands to Meet Growing Demand

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In response to our recent successes, and increased demand for Blue Signal’s recruiting services, we have recently expanded our internal teams. We have nearly doubled in size with the addition of 15 incredible team members. With three new classes of recruiters in the first half of 2019, Blue Signal is poised to multiply our placements in the upcoming quarters. We are proud to announce this expansion of our team, and are excited to see what change and development we can shake up next!

Meet Blue Signal's 2019 New Recruits

Select a name to meet our new hires!

Michaela Newheart - Sr. Executive Recruiter

Connect with Michaela on LinkedIn!

Jeffrey Williamson - Sr. Executive Recruiter

Connect with Jeff on Linkedin!

John Ross Wilsey - Sr. Executive Recruiter

Connect with John Ross on Linkedin!

Trevor Gamble - Executive Recruiter

Connect with Trevor on Linkedin!

Rachel Zuckert - Executive Recruiter

Connect with Rachel on LinkedIn!

Sal Salerno - Executive Recruiter

Connect with Sal on LinkedIn!

Lauren Gallagher - Executive Recruiter

Connect with Lauren on LinkedIn!

John Stuart - Executive Recruiter

Connect with John on LinkedIn!

Dominique Ziegler - Content Marketing Specialist

Connect with Dominique on Linkedin!

We look forward to working together with our new team members to deliver the best available talent to our clients. Meet the rest of the Blue Signal team here.If you are interested in getting in on the fun, you can also check our jobs page as we are constantly looking for talent to help us expand our own internal capabilities as well.

Blue Signal Launches New Women Empowerment Program

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Blue Signal kicked off its women’s empowerment initiative by holding the first annual meeting of “Blue Signal Search Women of the Workplace” (BSS WOW) at its Phoenix Corporate office.  The team’s working purpose is, “To promote education, connection, and empowerment for women (and those who support strong women) and their contributions to the broader goals of Blue Signal… and beyond!”

The group plans to create an assembly that unites the workplace to further the goals of each other as individuals, and propel Blue Signal to be the best recruiting firm in the world.  We believe that connected, empowered women, and those who support them, are unstoppable. Other goals of the group are to serve as a platform to give colleagues the tools and resources needed to support their growth and to build long-term relationships with clear goals for professional development.

BSS WOW meets once per month over lunch and addresses issues relevant to working women today exploring topics such as professional growth, teamwork and cohesiveness, and work-life balance. We have explored industry-related articles, discussed other women-driven initiatives in companies we are inspired by, and have reviewed podcasts for new ideas. In the meetings, members are encouraged to discuss pain points they are currently facing, ways they are developing themselves in their role, and ultimately how to make the workplace better for all. This not only helps participants tackle issues at hand, but also gives them a space to collectively brainstorm and use as an outlet and think tank for areas to improve the company as well as their individual roles. So far, the feedback has been incredible and the meetings have delivered so much support and innovation generation.

"Blue Signal's team is comprised of over 44% women; well above the industry average of 26%."

Women are historically underrepresented in the tech space.  They make up over half of the working population, however only 26 percent of jobs in technology are held by women.  Blue Signal is no stranger to breaking records and surpassing what is considered the norm.  In contrast to industry standards, Blue Signal’s team is comprised of over 44 percent women (and growing!) and our female-led marketing team shatters not only the glass ceiling but places us ahead of all competitors.  We’re passionate about not only our clients and candidates, but our dynamic team. We continue to empower and support one another as well as market Blue Signal to its best potential.

Want to get in on the action?

Drop us a line or follow us on social media!

Contact Us!

Blue Signal Hits Major Milestones this Month!

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Blue Signal has been making major moves in the recruiting industry and internally as a team. As of June 2019, we are proud to announce our 700th placement as a company! Starting from a one-man team back in 2012 - this accomplishment is an incredible testament to what putting relationships and individuals first can do for any business. Working as a partner with our clients and candidates, Blue Signal provides value by truly caring about establishing long-term employees, hiring the right people, and making an impact. These values are key to unlocking Blue Signal’s base goal - becoming the best recruiting firm in the world.

With this surge in new clients, roles, and exciting opportunities, we have also expanded our marketing and sales teams to meet the demand! Nationwide, we have hired 8 new Blue Signalers to support our amazing candidates and clients in their job searches. This brings us up to 137 years of combined recruiting experience! Our recruiters are experts in their spaces, and bring with them extensive backgrounds in executive hires for HR, finance, engineering, sales, and much more.

Don’t take our word for it - the following speaks for itself! This month we also achieved over 30K followers on our LinkedIn page. Here, we share not only important information about our job updates and company announcements, but also some great insights into our key industries, hiring best practices, interview tips, and more!

If you are a client with a hiring need, or just wanting some insight into our process - this can be an amazing tool for you. Or, if you are a candidate looking for your next opportunity, or are just curious about your potential, our social media are a great way to start! You can follow Blue Signal and reach our recruiting experts through any of these channels:

Are you hiring?

Drop us a line today for a free consultation! We look forward to connecting.

Contact us!

Top 5 Reasons Employers Should Partner with Recruiters

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The problem with today’s job market is not the lack of open jobs, but lack of available talent. The Bureau of Labor Statistics reported that January closed with 6.9 million job openings. As the talent pool is shrinking, businesses are having a difficult time finding qualified, high caliber talent to fill lucrative roles. With this shortage, businesses are turning to recruiting firms for help. Recruiters are focused on finding the best candidates and can provide several benefits to a job fill. Recruiters ultimately save time, increase productivity and efficiency, have the ability to access passive talent, are fully transparent, and understand how to market companies.

1. Time Savings

An average hiring manager may only be able to
set aside 1 to 2 hours a day to review resumes. Recruiters, on the other hand,
devote their entire 9 to 5 – and then some – to comb through candidate skills,
backgrounds, evaluate market trends, and ultimately build long lasting
professional relationships. They have pipelines to build from, along with a
readily accessible network to quickly find qualified candidates. Recruiters are
dedicated to building relationships with industry leaders and market experts
and offer unparalleled access to market conditions when it comes to salary
negotiation. This cuts out the bargaining and guessing games and takes clients
right to the numbers and hard skills. Recruiters have the confidential “in” on
who is looking to make a move. Filling a position can be time consuming, but
recruiters are willing to do what it takes to find the perfect candidate.

2. Increased Productivity & Efficiency

Talent acquisition and HR departments typically have many job openings to work on simultaneously, often nationwide. Utilizing a recruiting firm will alleviate the stress in filling time sensitive positions while saving companies money. NPA World Wide stated that companies on average are losing more than $18,000 per month while a position remains open. If you consider that profitable companies’ employees generate 3 to 5 times their annual salary in value, a position at $70,000 could be throwing $29,000 out the window in just a month! This adds up, and 60% of employers admit to being very concerned with the cost of unfilled positions. In this case, time may very well be money. Businesses can’t afford to lose this time.

These numbers don’t even consider the on-the-clock time that a hiring manager may be using in the talent search. It’s typical for employers to sort through submitted job applications for openings and reach out to potential candidates themselves. However, in the hiring process, the average job opening attracts 250 resumes. What hiring manager has the time of day to sort through 250 resumes? How much productivity is a company losing over posting jobs themselves, and having their head sales management or engineering director read CVs? Blue Signal recruiters take the time to submit candidates with the right background, skill set, and experience employers are specifically looking for, without wasting anyone’s time.

3. Ability to Access Passive Talent

According to LinkedIn, 70% of the global
workforce is made up of professionals who aren’t actively job searching and 87%
of the passive talent are open to new opportunities. This means the ideal fit
is likely in a job today.

How does a company have an appropriate, confidential way to approach these happily employed candidates?

A third-party recruiter!

Through training, knowledge, and expertise, recruiters have access to top talent that businesses cannot find on their own - whether a candidate is actively looking or not. Blue Signal recruiters have their own talent pools to draw from and act as a bridge to connect with otherwise inaccessible talent. Our recruiters can devote industry leading teams to fill high priority roles fast. Through extensive sourcing and research, a list of highly qualified candidates in the industry can be found instantaneously. Keep in mind, the best candidates are usually off the market within 10 days, so when a recruiter finds a candidate with the perfect experience and skill set, it’s important to interview fast.

4. Full Transparency

Studies show that 66% of candidates believe interactions with employees
are the best way to get insight into a company. Rather than have them skim your
Glassdoor reviews (which can be incomplete and biased), let recruiters get the
inside scoop right from the source. When trying to fill a position, recruiters
provide all the essential information to their candidates. It’s important to be
transparent and inform candidates about the opportunity they are looking to
pursue. Blue Signal recruiters set themselves apart by providing detailed job
descriptions, company history, culture, financial statistics, and even
leadership within the company to help ensure the candidate is a cultural match
as well as a talent match. Providing this information helps the candidate
through the entire process and if selected for an interview, they will already
have the information they need at hand.

Along with being fully transparent, recruiters
are a partner throughout the entire hiring process. Beginning with submitting a
candidate, to scheduling an interview, and being offered the position, a
recruiter’s work is far from done when an offer letter is signed. They continue
to check in with the candidate to ensure a successful hire was made – both for
themselves and the company.

5. Understanding of How to Market Companies

According to LinkedIn, the #1 reason candidates change jobs is career opportunity, followed by company culture and growth. Blue Signal takes pride in only partnering with companies that value their employees by offering great culture and career growth opportunities. Recruiters know what candidates are looking for by staying in communication, building a relationship and being transparent throughout the process. They have the inside scoop and go the extra mile to sell a candidate.

Once you partner with Blue Signal, our recruiters use many resources to locate your ideal hire. This includes our sales team, marketing team, internal database, and extensive referral network. Before reaching out to candidates, our recruiters conduct their own research about the company and the job itself in order to describe the opportunity best. They are able to draw from Blue Signal’s values and strong history of success to best market the position to stand out from the competition. This is good news for the right company, too! That means that they want to grow alongside the organization just as much as the organization wants to utilize their skills to grow themselves.

Blue Signal is here to help.

There are hundreds of recruiting firms to choose
from, but Blue Signal operates the most efficient and effective way. Our
recruiters are dedicated to finding the high caliber talent your organization wants
and needs and specializes in placing candidates within your industry. Through
our extensive search process, we can provide top talent candidates. Contact us
today for a free consultation. (480) 939-3200

Believe it or Not: Recruiting Edition

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People can be full of surprises. And there is nothing quite like the stress and excitement of a new job. With a combined 99 years in recruiting – here are some of the worst (possibly best?) recruiting stories Blue Signal has seen.

(Disclaimer: Names and details have been altered to protect privacy.)

 

A Retention Tactic

My candidate went for an in-person interview – and it went really well. Got up, shook hands with the interviewers. They left ahead of him so he could gather his things, and unwittingly locked him in the conference room.

Embarrassed, the candidate had to call me on his cell from inside the room so that I could contact the hiring manager, the receptionist, or literally anyone to let him out.

He got the job. I guess they liked him so much they didn’t want him to leave!

A Classic Case of Telephone

I had just received news from a hiring manager that they wanted to meet with my candidate, Bob. I called him up immediately to congratulate him and caught his voicemail instead.

An hour later, my other candidate Robert gave me a call. I thought it was Bob, as they both have the same area code.

I proceeded to tell “Bob” that he had an interview. Robert was very excited for the opportunity – one he hadn’t even applied for.

The whole thing was a little embarrassing, but after calling then to clarify, they understood and we all had a good laugh.

 

Celebrated Too Soon

When I first started, I had one candidate who seemed like a Rockstar – good phone presence, good technology sales experience, etc. The client skipped the phone screening based on their resume and our glowing feedback and got an immediate in-person interview.

Shortly after the interview, the hiring manager called to let us know that the candidate seemed to be on drugs/alcohol for the interview. He explained they were completely out of it. Obviously, the candidate was cut and both me and the PM on the role were stunned based on how well they were on the phone during our initial screenings.

Guess we should start booking interviews before happy hours.

 

You Again

I once set up a candidate for an interview in Chicago. To get there on time, he was making some super risky moves – “Chicago” moves – to get in and out of traffic.

After one particularly close lane change, he cut off some guy and really ticked him off. The guy started to follow him, roaring up behind him red-faced and yelling. The guy passed him pulling into the parking lot, and the candidate gave him the bird.

There was one parking spot left, so the candidate’s final move was to cut the guy off once more and steal the spot. It paid off though, because he walked in to the building on time.

He thought he was in the clear and waited in the office for the hiring manager. Turns out the hiring manager was the same guy he had cut off in traffic. He did not get the job.

 

The Perfect Fit

Back at my old firm, I once received a call from a candidate about a job inquiry. He had all the relevant experience and perfect qualifications, but after talking to him for a while I slowly realized the situation. He applied for a job we posted – without knowing the job he applied for was the job he currently had.

The hiring managers were doing a highly confidential replacement to line up a candidate before letting the guy go.

 

A Request for an Advance

During my previous recruiter job, I once had a candidate as average as ever go in for one interview with a hiring manager that went as normal as expected. This was the first time they had met. As is standard, the client and candidate exchanged contact information in case there would be next steps, however I was contacted by the client and informed they would take a pass. No real reason other than he wasn’t qualified to the level they were looking for.

Before I got the chance to contact the candidate and tell him the news, I got another call from the client.

The candidate, after the interview, was involved in a car chase with police. He had called the hiring manager asking for help – during the pursuit. Needless to say, his request for bail was swiftly denied. Yikes!

 

An Important Detail

My first solo Wall Street run was the worst day of my recruiting career. Back in my financial recruiting days, I was sent to visit a notoriously difficult hiring manager at a banking client who had shot down my managing partner and my recruiting manager. Now I, the little junior recruiter, was ordered to see if I could show up uninvited and convince her to have a meeting. Because I was so junior, my recruiting manager told me to name-drop another managing partner in a different office, “Vicky.” I’d never met Vicky, but they filled me in on some details and sent me on my way.

I took the train into Manhattan, I was wearing my very best suit and was frightened out of my mind. I didn’t feel prepared to do this alone, and I didn’t want to name-drop someone I didn’t know well. I arrived on Wall Street, got upstairs, and sat outside the client’s office. She sent out her assistant to tell me she was busy and didn’t want to see me. It already wasn’t going well.

I did what I had been instructed to do: mentioned that I worked with Vicky and went into some detail about how she and I worked together and how great she was.

The assistant stared very hard at me. “Vicky is a man,” she said.

I sat frozen for a moment, as the realization washed over me. Then I stood, quietly gathered my things, and left.

 

The Blushing Bride

One of our contractors had recently started a very lucrative software engineering contract and was performing well on the job. He was thrilled and so were we.

Suddenly, he missed two days of work in a row. No call, no show. The client called us, furious. We scrambled to try to track him down. Another day went by, and we still couldn’t reach him.

Turns out, he had flown to the Philippines to pick up a mail-order bride without telling anyone. No one would have known, except they had both been detained at the border with visa issues. He and his bride were stuck in Manila until their visa paperwork cleared.

He did eventually make it home and finished the contract with no further issues, but he never would tell us if he was able to bring his wife with him.

Saving Face: Shaking Bad Brand Reputation

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Did you know it takes an average of 52 days to fill a position, and that US companies typically spend $4,000 to fill an open position? This data from Bersin by Deloitte includes findings from 412 organizations, and the results are stunning. It found that high impact organizations have a 40% lower new-hire turnover rate and are able to fill roles 20% faster than companies with tactical recruiting functions. This has a lot to do with reputation. Whether you are a hiring manager, an interviewee, or a recruiter – you have probably had to handle some bad press in the professional world. Here are some tips for best practices when approaching this sensitive topic.

 

As a Company

A study by Glassdoor found that 84% of workers would be willing to leave their current jobs for a company with a great reputation, and that this would only require a 1-10% pay increase. More and more, people are looking to work for companies based on the culture over the paycheck. Meaning that your brand’s reputation is worth more than you think.

If your company has a bad reputation, the biggest thing is to not sweep it under the rug. The internet is a very unforgiving place and bad reviews on Glassdoor or Indeed will leave your business driving away potential employees.

So, your first step should be to own up to your pitfalls. Respond to Glassdoor postings and ask questions. See where in the process you went wrong and work to alleviate it in the future. When it comes to new hires, it would be beneficial to discuss these bad reviews and tell them about how you are working to change, because if they do research like they should, they’ll find those answers and come to conclusions on their own.

Finally, after working to fix the internal issues that caused the bad reputation, make your employees your brand ambassadors. Just as bad ratings can drive people away, good ones can draw them in. Encourage (but not incentivize) employees to share their experiences online. Not only will this help potential new hires to familiarize themselves with your company culture and set their expectations for the position, it will also help your current employees feel heard, validated, and valued. If you give them a voice, they will be empowered to help drive your brand.

bad reputation

As a Potential Employee

As someone in the market for a new job, there is nothing worse than researching a company you’ve landed an interview with and finding negative reviews about them online. All that excitement of finding that new opportunity can easily wash away with a few frightening reviews from old employees. It’s that much more nerve wracking sitting in a room with a hiring manager and having to answer that question, “Why do you want to work for us?”

Instead of sitting there and thinking Well, I’m not so sure I want to anymore… while flashing back to your midnight internet FBI-type investigating, take some steps before going to their office to make sure you’re not missing an opportunity.

First things first, call it out. If you are working with a recruiter, ask them head on what they think about the company and its issues. It doesn’t benefit the recruiter to lie about it or talk around it. Chances are they have asked the company these same questions after doing their own research and have had to share this information with other potential candidates. Recruiters will be the best resource for knowing the inside scoop on the issue without harming your reputation with the company.

And, if you’re not working with a recruiter, know that it isn’t necessarily a bad thing to ask the hiring manager during an interview what the company has done about these reviews. Be respectful and try not to place blame. Try So I researched your company and I had some questions about your management team or There have been some rumors going around in the market and I just wanted to hear the truth from you. Chances are, if they are a truly good company, they will admire your ethics and recognize the courage it takes to bring up those concerns. Hopefully they will be able to address the issue and provide you with some answers about how they have moved forward to alleviate those problems. It’ll give you good insight into who their leaders are, and how they operate. Otherwise, if they push back or don’t provide answers, follow your gut and think about whether or not they are the right fit for you.

bad reputation

Most importantly, when you see these bad reviews, consider the source. Look closer at the review and see where the problem truly went wrong. Think about the last time you bought something off Amazon. You may have perused the reviews and come across a customer claiming, “this is the worst sweater on the planet, it showed up full of holes! Would never buy again!” Is this the only bad review among all others like “I bought 12!” and “Perfect fit!” Realize that in reality, the angry customer’s dog perhaps got to the mail first. Recognize that not all reviews are honest or hold the whole story. The single bad review from an employee on a Glassdoor page could be from someone who left the company on bad terms, or had their boss’s dog eat their sweater.

Finally, recognize the opportunity a “bad” situation can provide you. If you meet with a company, and hear their history and how it’s turned around, think about how you can elevate their reputation and work alongside them to build them back up. The companies in these situations are clearly in need of some new ideas, and there were probably several other applicants who read those reviews and turned away their offers without knowing the full story. Of course, never take a job that may be harmful to you or your career. But, if you see the company making a true effort you may be given an opportunity in disguise to grow with them. Don’t limit yourself based on someone else’s opinions!

 

As a Recruiter

This is a tough situation for a recruiter, because as the middle man there is nothing you can do to fix it. You are simply being employed, for a short time, by the company. On the one hand, you want to be selective of the companies that you place in because if they treat your candidates poorly, that can reflect on your firm. Depending on the issue it can also conflict with your company’s ethics. On the other hand, it really isn’t your fire to put out, and you should still maintain a good relationship with the company and its industry.

So your options are pretty limited. But you know it is important to not ignore the company’s standing, especially with candidates. As an industry based heavily on customer satisfaction, you cannot afford to be dishonest or misleading. It isn’t worth it to waste potential connections with a candidate or company for fear of stepping on toes. Which leads to the talk – with both the candidate and the company.

First, approach the company with the right attitude. There’s no way to possibly know the entire story surrounding bad press, after all it could be just a rumor. Try asking So I heard something in the market about your company surrounding ______. Give details, be specific and direct keeping in mind your relationship with the company. As the story unfolds, keep a neutral tone and avoid using statements that could be perceived as placing blame. Make sure to approach it with the candidate in mind, too. Ask What have you done to mitigate the situation? Or Moving forward, what will your philosophy be with new hires? What is your sizzle? Why should someone work for you despite this hiccup? More than likely, you aren’t the first person to bring the damaged reputation to their attention and as a company they have taken steps to repair their image. Let them be the ones to tell you their side of the story.

Hopefully your candidates do their research and can come to you with questions. But- even if they don’t- feel free to be proactive and let them know about the buzz in the market surrounding the company. If there is a turn-around story where the company has mitigated the issue, tell it. If there isn’t, discuss the candidate’s options. Worst case you scare them away from a “bad” company but build their trust in you and you can retain them for a future role. Ethical candidates = ethical business tactics = ethical growth.

All in all, be the closer. Ask the company the tough questions and relay the information accordingly.

 

Need help with your recruiting strategy? Contact us at (480) 939-3200 or reach out to info@bluesignal.com.

Don’t Panic, but the Talent Pool is Shrinking

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The US broke many long-standing employment and labor records in 2018, with the effects rippling through all business verticals nationwide. With the 2008 recession now 10 years behind us, the 2018 economy showed strong jobs growth and shrinking unemployment. This is good news for job candidates who are looking to upgrade their jobs. For businesses, however, last decade’s hiring strategies won’t work anymore. The talent pool is shrinking, and updated strategies are a must.

In a talent shortage, candidates (not employers) have the power to dictate wages, benefits, and job content. Competition for qualified candidates is stiff, and potential employees have demand on their side. Just this year:

  • Youth unemployment hit its lowest level since 1966.
  • The number of open jobs exceeds unemployed persons by 659,000.
  • The economy has created 2.5 million jobs, representing 66.7 million hires.
  • The Bureau of Labor Statistics reported that April closed with 6.7 million job openings.
  • Unemployment dropped to 3.8%, its lowest level since 1969.

Despite high demand, only 50% of employees feel like their wages are competitive with market rates.

 

Death by Automation

Despite the longest bull market run in history, candidates don’t always have it easy, either. A recent McKinsey report estimated that 50% of today’s jobs are susceptible to automation by artificial intelligence. This used to be a distant vision of the future, but today, many of these technologies are already available on the market. Half of the tasks employees do today can be automated, reducing the demand for some skills that most people use as leverage in qualifying for a position. Once While less than 5% of all occupations can be automated entirely using technology, about 60% of all occupations have at least 30% of activities that could be automated.

talent pool - cities with skills shortages

Skills Shortages

Not to mention the staggering skills shortages throughout the nation. If candidates want to remain marketable, they must learn some new skills. According to a LinkedIn survey, the hard skills companies need most are cloud and distributed computing, statistical analysis and data mining, middleware and integration software, web architecture and development framework, user interface design, software revision control systems, network and information security, and SEO/SEM marketing.

The trend is obvious here – companies are desperate for digital skills to keep up with the increasing amount of technology required in modern business. Software development skills, such as performance tuning and SQL are required for over 850,000 open roles right now. To put this in perspective, the talent pool only contains 472,000 professionals with those skills.

The need for highly specialized workers is at an all-time high, while the pool of educated and qualified candidates is strikingly low. Trends in education levels and projected employment needs indicate that employers will require about 18 million more college-educated workers than will be available in 2020, a gap representing 11% of demand. Complicating the situation is the student debt crisis, called a bubble by many leading economists. The burden of debt is unsustainable based on the earning potential of most college degrees, especially arts, languages, and other non-STEM areas of study.

Talent pool - 2020 labor shortages

Economists don’t expend a reversal of this trend any time soon. Underqualified talent cannot leverage skills that are universal or able to be automated, lowering performance. Low performance reduces revenue, and therefore capital. Without the capital to modernize, companies cannot compete – in their markets or for gaining candidates. This cycle feeds itself, reducing candidates and marketability, sometimes to the point of bankruptcy.

 

Talent Pool Predictions

What’s next? Employee development and training is a proven way to reduce turnover. Companies nationwide are investing more in educational programs and expanding the skill set of their internal teams. This can help in modernization and retention, fending off some of the competition poaching. The promise of personal and professional development can be a key factor in a potential candidate’s decision making.

If companies want to boost growth, they need the right employees. However, to get the right employees, hiring managers need updated recruiting strategies. They must focus less on what the employee can do for the company, and more on what the company can do for the employee. Today’s professionals are looking for not only financial rewards, but recognition and a future. Despite employer belief, the top reason individuals left their jobs was due to career progression – not salary. Out of the employers surveyed, 48% have a strategy in place to promote company culture to make their company more attractive, and 43% leverage competitive salary packages.

What makes your company a place that a qualified, highly-desired candidate wants to work (or in many cases, leave their current company for)? At Blue Signal Search, we call this a company’s “sizzle”. If you are experiencing some of the growing pains of this shrinking talent pool and the digital age, contact us today. We can help you find your true value proposition – your sizzle – and market it to find the right candidate for your open role.

Need help with your recruiting strategy? Contact us at (480) 939-3200 or reach out to info@bluesignal.com.

How America’s Most Popular Companies Are Winning the War for Talent

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LinkedIn recently released its report listing the Top Attractors, the US-based companies with the strongest power to attract top talent. This list of the 40 most popular companies was compiled from billions of actions of job applicants, employees, and industry professionals. Find the full list on LinkedIn here, along with data for the world and selected other countries.

How does a company become a Top Attractor—the employer equivalent of a celebrity?

 

Their brand is idealism.

The main driver behind the success of Top Attractors is not their financials—or even their products—so much as their mission. Top Attractors have powerful branding that supports a lofty mission statement.

In 2009, Simon Sinek gave a clairvoyant TED Talk that described how the top companies of the last decade had succeeded in doing the impossible. It was called Start with Why, and it described how “people don’t buy what you do—they buy why you do it.” Many Fortune 500 companies have a large market share but fail to inspire top talent because people cannot trust or connect with their vision. On the other hand, Top Attractors want to change the world, and they convey it clearly to their customers.

Two-thirds of the companies on the list are run by founders. This is important: entrepreneurial founders have strong ideals and a gift for inspiring people with their mission. Elon Musk famously said he focuses on company rules at Tesla, because company ideals are “fairly obvious.” But even at Tesla, lofty ideals reign supreme. Elon Musk excels in harmonizing an environmentally friendly problem-solving message with beautiful technology that customers feel good supporting: stylish electric cars, affordable solar panels, reusable rockets, and self-driving technology.

Image: A $150,000+ investment in brand ideals. Tesla is #8 on the Top Attractors list.

A $150,000+ investment in brand ideals. Tesla is #8 on the Top Attractors list.

 

Uber describes its mission directly in its job descriptions, offering applicants “the rare opportunity to change the way the world moves. We’re not just another social web app, we’re moving real people and assets and reinventing transportation and logistics globally.”

 

Top Attractors create meaningful buzz.

Company size matters a little, but not much. The more important factor is their reach. These companies employ just 1.6 million people altogether. By contrast, the #1 Fortune 500 company (Wal-Mart) employs 2.1 million people worldwide, more than all 40 Top Attractors put together. However, the company has to have a big enough reach to create buzz and reach people deeply and often.

Even the most popular companies are not above negative press. The New York Times sharply criticized Amazon in 2015 for its “bruising workplace,” and Tesla faces possible bankruptcy if its Model 3 does not perform to standards. Apple has showed up in the media several times for horrendous factory conditions in China. But these same companies know that if people believe in them strongly enough, no bad press is strong enough to deter them.

Many of the founder-CEOs are household names: Mark Zuckerberg, Bill Gates, Elon Musk, and Jeff Bezos. People follow them on social media and know what they think about politicians. They make outrageous claims about what projects they plan to tackle next. Sometimes they even tweet back. By comparison, Wal-Mart, Exxon Mobil, and CVS Health from the Fortune 500 list are faceless—and faceless corporations are not popular with many people.

 

Glamorous employers are stylish, surprising, and almost always B2C.

People want to work for the brands that make products they love, and so consumer-facing brands dominate the list. Out of the top 10 companies, 9 are omnipresent B2C brands, like Google, Facebook, Apple, and Amazon. All invest heavily in delighting customers and providing a seamless user experience loaded with helpful, free features. Their brands prioritize sleek innovation. People trust them because they always seem to be ahead of the curve.

Consumer products have the power to be status symbols, which holds incredible brand power. By contrast, B2B companies have a much harder time attracting top talent through brand value. People want to work for the companies whose mission and products align. Salesforce and Tableau are two notable exceptions. They achieve high brand visibility by putting themselves in front of top employees every day with a fresh, sleek product line and a forward-thinking philosophy.

[Image: iPhone progression]

Image: iPhone’s touchscreen technology amazed the world in 2007. Touchscreen technology was invented in the 1960s, and IBM released the first true smartphone in the 1990s, but Apple usually gets credit for both.

 

The element of surprise is fundamental to these brands. Apple’s culture of innovation has trained people to expect to be surprised and amazed at every new product. Each of the Top Attractors has magic in their brand, an appearance that they can do the impossible. This also drives competition. When competitors fail to delight and surprise their customers, Top Attractors gain both customer base as well as top talent looking to make a move to more exciting and popular companies. They are not loyal to the product as much as they are to the company and what it represents.

 

The most popular companies promise skills, not tenure.

Image: Jeff Bezos came under fire in 2015 for Amazon’s high turnover and troubled workplace culture.

Image: Jeff Bezos came under fire in 2015 for Amazon’s high turnover and troubled workplace culture.

Pressure is intense inside the halls of Top Attractor companies. Less than 15% of Amazon’s workforce survives beyond the 5-year mark. Even with huge perks, the fast-paced workplace forces many employees out after a short stint. Not only that, but salaries are not always the highest in the industry.

How do these popular companies continue to attract the best of the best? Because even a few years at a rockstar company like Facebook or Amazon can guarantee an employee success for years after they leave. The talent war has many layers, and companies compete strongly for alumni of top-performing companies to get access to their skills. Therefore, candidates feel that even if they burn out at a Top Attractor company, the skills they learn there will pay dividends for the rest of their career.

 

Need to attract better talent? Blue Signal can help. Contact us with your hiring need at: info@bluesignal.com.


Before You Hire an AWS/Cloud Engineer, Read This.

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Cloud computing is growing faster than ever. The cloud market reached almost $150 billion in 2016, and is growing at 25% annually. Traditionally, companies’ top concern was security. But this year, the #1 challenge reported by cloud adopters is a lack of people with the right skills.

At the forefront is Amazon Web Services (AWS), the public cloud division of Amazon. Their business-friendly cloud options ranked #1 in Gartner’s Magic Quadrant. AWS has been around since 1999, however, with the spike in cloud migrations, demand for qualified people has exploded.

The natural response is to scramble to get approval for a new top AWS/cloud migration expert. But many companies run into trouble by hiring the wrong type of person, hiring without a plan, or hiring before their infrastructure is ready. This leads to poor retention and an expensive cloud-based disaster.

How to lay the groundwork for a new AWS/cloud project:

What is the goal?

AWS has many modules; its tagline is “A platform for virtually every use case.” It is the CTO’s job to set a goal and narrow the focus. Too many companies jump into new technology because everyone seems to be doing it, but the reality is that no project can succeed without a clear, realistic goal.

The worst possible approach is, “We need to invest in cloud. What should we do with it?” The goal should address an existing problem that ties directly to revenue. For instance: streamlining a data center, improving security, speeding up data processing, or meeting compliance standards. AWS and cloud-based technology cannot solve every problem, but it brings many exciting tools to the table.

What are the options?

Cloud technology is not an all-or-nothing investment. After defining the goal, choose the features and modules that make sense. For many companies, a hybrid solution is best for their needs, especially for companies with existing infrastructure and assets. Smaller companies can simply rent or buy into existing cloud platforms and software, especially for data storage and security needs. Enterprises and companies doing large cloud migrations will more likely need to hire an expert.

AWS Cloud computing technologyWho is driving?

Without a clear leader to head up the effort, a cloud project will quickly fall apart and become a chaotic, over-budget mess. A director or department head may seem like the obvious choice, however it may not be the best choice if this person already has a totally full schedule, travels a lot, or does not understand the technology.

The best person to lead is someone who is highly project-oriented and a big-picture strategist who communicates well with many types of people. Someone detail-oriented risks getting lost in the weeds. Ideally, they have technical experience or manage technical people.

Now what?

With the groundwork in place, the hiring need should be clearer.

Before interviewing, know the right questions to ask, and have at least one interviewer who can ask technical questions on the AWS technology. This is for two reasons: it screens out underqualified candidates, and it gives the interviewing company legitimacy. Experts gravitate towards companies who have done their research and ask the right questions. It is an indication that the company will treat them well and respect their expertise.

Beware of hiring a complete team of outside people to manage a brand new big-budget technology project. Even if they are experts in the technology, they are not familiar with the company culture and team. Even the best person can run into problems if current employees perceive that an “outsider” is coming in and trying to change everything overnight. A more neutral strategy is to hire an engineer or architect who reports to a trusted leader within the organization who can act as the liaison.

Train some, hire some. Who can be retrained? Competition is so fierce that some companies will inevitably be stuck with a person who has the technical skills but is not the best cultural fit, or vice versa. Therefore, the lower the budget, the greater the need for flexibility.

Virtualization Cloud Computing AWS Amazon Web Services Software Technology Engineer Enginering

Work to change technophobe attitudes before the project starts. Share responsibility and ownership in the project with the whole team, and get as many people as possible on board. Take their ideas and try them out, where possible. New technology can feel like a threat and a burden, so open communication does wonders to make current employees feel more at ease.

Lastly, have a follow-through plan. Once the cloud project is complete, have a plan in place for who will maintain it and run it. Hire or train them with plenty of time. Success in the early stages is critical for employees to get on board.

As with any complex project, it pays to work with a recruiter who knows the space well and can locate the best talent for the company’s budget. If your company is considering a large-scale cloud or AWS project, contact us for a free evaluation of your hiring needs. Reach our cloud specialists directly at info@bluesignal.com or give us a call at (480) 939-3200.