“Job Market Inefficiency: How Employers are Contributing to High Unemployment”
As political figures wipe their brows post the long awaited completion of the fiscal agreement, businesses still hold their breaths on just how effective this plan will be. The truth is unfortunately the economy is still not in its optimal condition, companies are modestly hiring, and the job market still remains inundated by fierce talent competition. Truth is… there are many individuals who have remained unemployed or underemployed since the onset of the recession in 2009.
There are very few individuals who are not soured by this realization, however despite this truth, employer expectations have consequently skyrocketed to take advantage of these conditions. Those interviewing for new opportunities are faced with great challenges to remain relevant and sharp as they seek their next move. In such an unforgiving job market, it becomes very difficult for individuals to properly market their talent, when employers meticulously sift through candidate profiles in search of the “perfect candidate,” most often defined by the extensive “honey-do” criteria list, also known as today’s position descriptions. Studies show that employer expectations have become so extensive, that the goal of finding the “perfect candidate,” seems to be working against the goal of filling empty positions, thus contributing to the country’s unemployment rates.
Companies today want to minimize the upfront investment made in new employees. It is for that reason there is a decreased incentive to hire high potential candidates who although talented, may require the new employer to invest in professional training and certifications courses they would like for a candidate to leverage in the new position. Employers are expecting candidates to not only come in the door with all relevant academic and professional experience, but they are also requiring individuals to hold certifications that were once listed under the “ Bonus skills but not required” category of job descriptions.
Employers are padding job posts with narrowly defined certifications and experience with the goal of increasing the perceived success potential of their hired candidates. However unfortunately, the reality is that this practice excludes many talented professionals who, in the event they are unemployed or underemployed, often lack the resources to enroll in such professional certification courses during their career transitions.
With a lack of personal resources and no current government supplemental funding options to cover the fees for most professional certification courses like the PMP, SPHR and others, qualified, experienced, high performing talent “appears” less attractive to employers. Job market trends suggests that companies are hiring less “high potential” candidates and focusing on “already proven success.”
As a result of this trend, many Generation Y jobseekers who are not “job market newbies” but possess less than 10 years work experience is being crushed by the lack of senior level movement, and the re-entry of more experienced talent into the workforce.
1.) Companies must re-assess their “Employee Wish Lists” when they are seeking to fill open positions. Although the current state of the economy has enabled them greater selection advantage, failing to consider adequate triangulation of experience and perspective can result in you choosing what appears to be the “best candidate” on paper, but result in a poor hiring decision over the long-term.
2.) Use talent acquisition software wisely. Although this tool helps to segment candidate profiles and increase the efficiency for HR professionals, keep in mind that technology only tells part of the story. It is possible that your talent software systems, are automatically excluding some of your optimal talent pool. Besides, it’s important not to forget the “Human” in “Human Resources.”
3.) Professional Certifications are great, but Productivity and Corporate Culture Fit is most important. As companies are looking to hire great talent, it is important to note that everything that “glitters” isn’t gold.
4.) HR Managers…very few employees will stay forever. Do not avoid hiring great talent, simply because they are “too ambitious.” If you find a candidate who has acquired many diverse achievements, this is not an automatic indication that they have CADD (Career Attention Deficit Disorder). Find ways of properly channeling a promising candidate’s energy to benefit your company.
5.) Senior leaders…despite the feeling that you can and will last forever, succession planning is a must. Employers must begin re-engage the generation Y career audience, because they bring an appropriate balance between “fresh ideas and career experience.” These individuals are professionally strong enough to contribute new energy, while also positioned to be groomed for future leadership seats.
6.) Employers, must begin assuming ownership over their contributions to the unemployment rates and the state of the economy. Manipulating hiring behavior based upon political preferences is just as much of an issue as the frowned upon practices, policies, and overall activity of those representing America Washington D.C. During this past Presidential Elections, while delivering his infamous “not-so-private speech,” Senator Romney very candidly revealed this very same understanding when he said “…if I am elected President, the economy would automatically begin to improve because companies will start hiring again…”.
The bottom-line is simple. In order to close the existing talent gaps within the job market, it is necessary for organizations to get re-acquainted with the idea of investing in their new talent’s professional growth and right-sizing position job requirements to increase hiring efficiency in today’s market thus supporting economic recovery.
How Kestada Can Help….
Kestada works with clients to help them launch sustainable talent development infrastructures. Kestada also offers a multitude of talent enhancing training modules centered around Leadership & Management, Operations & Productivity, Organizational Culture, and Professional Advancement. To view our upcoming training schedule, please contact us at email@example.com.
Who We Are
Kestada Strategy Consultants LLC is a management consulting firm that provides cross industry advisory services in the Business Strategy, Sales & Marketing, and Organizational Training & Development disciplines. Our consultants work with public, private, academic and non-profit organizations to develop and implement sustainable solutions that position them to successfully navigate diverse organizational complexities, empowering them to maximize their business performance.