Since the beginning of 2022, the US economic climate has climbed to a level that companies weren’t ready for: a hot job market, but inflation is at an all-time high. The effects of the COVID-19 pandemic, the Russian invasion into Ukraine, soaring gas prices, a supply chain shortage, and a falling stock market are accelerating towards an impending recession.
But what does this mean for those who are still looking for jobs?
Although the US opened thousands of jobs over the last couple of months, candidates now have more power in negotiating for higher pay, work-from-home flexibility and better benefits. Unfortunately, with the afore-mentioned external factors impacting the economy, companies (including big tech) are initiating hiring freezes, even going as far as rescinding job offers to avoid a recession.
Meanwhile, on the other side of hiring freezes, the hiring process has been getting longer. Companies are trying to ensure new hires are equivalent to those they’ve lost; however, the search for the “perfect” candidate results in an extended hiring process (as far as 16 rounds of interviews and background checks), costing the company not just thousands of dollars, but company culture and morale. This type of recruitment, described as defensive hiring may help companies find better candidates, but the margin of error is too small that most companies won’t take a risk on it.
What should companies do now, moving forward?
If your company is already dealing with an extended hiring process and involves the candidates interviewing with more than 5 people, then start considering a shorter process. According to Google, 86% of the value they discovered in candidates were found within the first 4 interactions, and only increased by 1% with every interaction that followed. There are numerous strategies that companies can use to help make the hiring process run smoothly, and we hope leaders will take these factors into account for their next hew hire.
How can Compass support you in your hiring search?
With all these factors that may look concerning, Compass is here to support you every step of the way. We help find the best qualified candidates and advise companies on current hiring procedures so they don’t miss out on exceptional talent. Connect with us to learn how our recruiters can support you today.