Distance and time away provide an excellent lens in which to see changes in your business.
My wife and I were lucky enough to spend a month in Cambodia and Vietnam mid-December through mid-January (BTW, if you want insights/contacts on a trip to this region, feel free to give me a call). On return, I’ve noticed a number of trends in the wildly competitive hiring landscape.
Counter offers are on the rise
Companies are a lot more willing to counter offer a good employee than used to be the case. The prevailing sense was that there was a real stigma associated with offering and/or accepting a counteroffer. This was because the trust had been broken and historically you would never last longer than six months to a year.
I’m seeing companies make counter offers much more regularly, especially in the case where the company has not kept up with the marketplace. As a hiring firm, you may start seeing significantly more candidate turn downs of your offer, so make sure you have a real understanding of why the candidate is moving on. so the potential for losing offers to new candidates is now a not uncommon scenario./
Candidates want something truly different to make a move
Good benefits and foosball tables are nice, but making a move is fraught with unknowns such as the true job responsibilities, company promises versus realities, financial status, culture and fit. Unless you are offering something unique, why would they take a job with your firm? Make sure you have the answer.
U.S. firms are more active than ever in hiring Canadian tech talent
Crazy money is being offered by US companies to Canadian talent. These are offers that in many cases simply can’t be matched. The talent shortage, the strength of the US dollar, the great prevalence of workers comfortable with working remotely and the lack of additional healthcare costs make us a truly tasty recruiting ground. That’s why you’ve got to provide a great experience when recruiting, interviewing, hiring and simply staying in touch.
There is a continuing trend towards tech professionals turning to contract work
There has always been a sub-set of the market that is contract focused. On average, contractors make 50-70% more than full-time employees and, if they organize themselves professionally they end up paying significantly less in taxes.
Here are comparisons:
An employee makes $100K and works approximately 2,000 hours per year (50 weeks x 40 hours per week).
- A contract employee will often make a 50-70% premium to their full-time salary as it takes into account no benefits, no vacation pay and a ‘pain’ premium for not working full-time and potentially being on the bench.
- This 50 – 75% premium means a contractor will earn the equivalent of $150-$175K/2000 hours = $75-$87.50 per hour.
- This trend is continuing and because of the tech shortage, companies and employees are learning to live with this growing model. This makes the acceptance that some roles are more project based and also demand a unique skill set.
‘Ghosting’ is a lot more popular than most of us want to admit
As Canadians, we shy away from confrontation. We’re busy, and rather than say ‘no’ to someone, people ghost each other. Candidates shut down the conversation by simply not responding. I’m not sure if it’s generational or if it’s a function of the amount of social media noise but, regardless, it’s there and more prevalent than ever. A simple no would work wonders.
No matter what the trends, I’m a big believer in doing the basics right. As the industry changes, you can stand out by putting yourself in a candidates shoes, being respectful of their skills and their time, and trying to add value throughout your process. Check out our Peoplescope process and give me a call. I’m happy to have a free 30 minute conversation to provide you with tips that will make a significant difference.