Employment Roadmap: Changes in the Labor Market for 2023

This article originally appeared in January 2023 issue from Security Business Journal. When sharing, don’t forget to mention Security Business Magazine on LinkedIn And @employee on Twitter.

If you’ve read this column over the past year, you’re well aware of the candidate-driven market we all know and love. When we were all learning how to navigate it, I’m here to tell you how fast it appeared, it vanished!

Where does that leave us for 2023 and beyond? With the calendar officially turning, the market finally turned out to be more of a corporate move. If you’ve been in a hiring situation, you’ve probably noticed that there are more candidates on the market, and the days of astrological questions are over. While this may sound exciting, there are some adjustments that need to be made to be successful in 2023.

Candidate-led markets are characterized by a decrease in active search for candidates. With so few candidates in the market, companies have to roll out the red carpet, increase compensation ranges, and move quickly to avoid candidates for other positions.

While company-led markets bring some changes to how hiring is handled, including allowing a little breathing room in the pace and rush to pitch, there are still a few things to look out for:

1. It is essential that companies do not lose urgency.

Just because the job market has slowed down a bit in competition, it doesn’t mean that companies should wait weeks between interviews and take their time to make offers. Make no mistake, your urgency in the process will help you win in any market. Candidates want to feel the “warm and fuzzy” of prospective companies and waiting for next steps or offer letters doesn’t make them feel wanted or special. Also, other competing offers could still come up and time could cause the company to lose a potential great candidate.

2. Developed or launched?

With the changes in the economy, many companies will engage in layoffs. While some corporate layoffs are nothing more than random budget cuts, some companies have a purpose in who they choose to let go and who they keep. Many fired candidates may attempt to disguise the termination with the term “lay off”. When interviewing a candidate who claims to have been laid off, do a little research. Don’t just buy into the story without getting more details. Ask them how many people were affected by the layoff, if they could use their former manager as a reference, and always be sure to ask about their performance—especially if they worked in sales.

3. Compensation negotiation.

The past 12 months have been marked by companies paying a premium to entice candidates to join them. While today, that may not be necessary, I would caution companies to think about what they lose each day by having an open seat. When negotiating with a candidate a small amount of compensation, it may still be worth paying the candidate to avoid these costs. Remember, too, that meeting a candidate’s compensation needs can also attribute to their happiness and lead to better retention.

The bottom line is how the company treats the candidate that sets the tone for his tenure. Respecting their desires to compensate within reason, communicating effectively, and ultimately identifying good follow ups will send the right message to the prospect. Candidates still have plenty of opportunities to be considered and in this post covid market work life balance is leading the way in ranking requirements in order of importance in almost every field.

Ryan Joseph is the Executive Recruiter for Recruitment Group (https://recruitgrp.com), focusing on security industry operations, sales and sales leadership. To assist with security recruitment efforts, contact her at ryan@recruitgrp.com Or call (954) 278-8286.

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