Over the past two years, recruiters in the executive and managerial space have observed significant changes in hiring practices, the most important being a shift from an employer-driven market to a candidate-driven market. Following this trend, new data indicates the talent market is now overwhelmingly driven by top performers. Recruiters who responded to the most recent MRINetwork Recruiter Sentiment Study provide cautionary advice to employers who haven't yet awakened to the new reality.
"I have been recruiting for nearly 11 years and I have never
seen the market more candidate-driven than it is now. Candidates
have choices and 'A' players are being heavily courted," said a
recruiter responding to the study. According to the report, in the
second half of 2013, 79 percent of recruiters described the labor
market as candidate-driven, up 12 percent from a year ago.
The executive and managerial market continues to be so candidate-driven, because the talent pool remains weak. As the economy rebounds, average candidates simply will not do - employers want star players to help them move their businesses forward. This leaves top performers at a strong advantage. Multiple job offers provide these candidates with more bargaining power and the ability to reject less desirable work agreements. According to the study, 49 percent of candidates refused job offers as a result of accepting an offer with another company, up 16 percent from the first half of 2013.
MRINetwork recruiters report several reasons for why more jobs are being turned down:
With rejected job offers on the rise, the candidate-driven market points to several things:
The good news is that more employers are realizing the executive and managerial market is candidate-driven. According to the study, 25 percent of employers are presenting job offers within two weeks of the first interview, up 6 percent from the first half of 2013.
While the study results demonstrate that hiring trends are highly favorable towards top performers in the executive and managerial space, the data is not representative of overall hiring, which the Federal Reserve noted in its most recent Beige Book, is holding steady or increasing at a measured pace. Even still the results are encouraging, showing consistent signs of economic recovery.