Álvaro Cárcel, Partner.
The year 2023 has been a complex year in terms of selection, and we believe that this is a complexity that will continue to evolve upwards in the coming years.
We affirm the above, first of all, because of our long experience in executive search, which allows us to compare what the selection processes were like just a few years ago (duration of the processes, number of optimal applications, percentage of offers accepted/rejected, etc.) and how they are today.
And secondly, because of our daily conversations with companies and their People departments, who tell us about the difficulties that their recruitment teams have in successfully closing the processes.
The reality is that, increasingly, the processes are longer, the available talent is scarcer, and the number of offers rejected in the final phase of the process is increasingly high.
In view of the situation, how do we explain what is happening?
It is clear that there is no single cause, but that we are facing a complex situation that requires further analysis. We try to group them into 2 broad categories:
1) Causes "attributable" to companies
2) Causes "attributable" to the candidates
We can start by analysing the causes attributable to companies:
1) Lengthy and inefficient selection processes
Companies, in their quest to find the ideal candidate, often implement selection processes that are too long and complex. In an environment where immediacy is increasingly paramount, this can be counterproductive, generating frustration in candidates and leading them to explore other opportunities that offer a more agile process.
2) Lack of communication throughout the process
On many occasions, companies may fail to provide clear information on process status, expectations, and deadlines. This can often be explained by an excessive workload that prevents recruitment departments from dedicating the necessary time to the processes.
3) Unattractive offers
In today's competitive job market, companies must offer attractive packages to attract (already scarce) talent. We continue to see on many occasions the inability to make attractive offers even knowing the expectations of the candidate to make a change.
A lack of competitiveness in terms of salary and other benefits can lead candidates to explore other opportunities in search of more favorable terms.
4) Not valuing the corporate culture
In an environment where candidates increasingly value purpose, companies that do not prioritize the candidate experience and put their organizational culture at the center of the process can face serious difficulties in successfully closing processes.
5) Risk aversion or fear of making certain decisions
We live in a time of talent shortage. In the past, it was common for companies to have several valid applications for the same position, which allowed them to compare before making a decision. In today's environment, there is often only one valid candidacy. Many hiring managers have not adapted to this environment and fail to make decisions, which often leads to losing the candidate in question due to excessive delay.
And we continue with the analysis of the causes "attributable" to the candidates:
1) The Era of Individualism
In today's society, there is an increase in individualism due to a number of social, economic, and cultural changes. This explains why professionals, on many occasions, seek to maximize their own goals and aspirations. This approach can manifest itself in the reluctance of some candidates to quickly commit to a company and disengage very easily from the selection processes in which they are immersed.
2) The constant search for better deals
The proliferation of online job search platforms, as well as the greater accessibility of information, means that candidates have access to offers constantly with a single click. This can feed a mentality of constant search for more favorable conditions, turning candidates into "job shoppers".
3) Growing impatience
It's the other side of the coin of the company's lack of efficiency. Lengthy processes, with multiple phases, can exasperate candidates who demand greater speed and agility.
If we add that, on many occasions, candidates are in several processes at the same time (see previous point), the chances of losing candidates throughout the process are increasingly high.
In conclusion, the causes mentioned above provide a possible explanation for the challenges faced by selection processes.
However, it is important to recognize that these are not the only causes influencing hiring dynamics. There are several variables, such as economic factors, changes in job expectations, and fluctuations in the market, that also play a significant role in this complex scenario.
Understanding these diverse causes and constantly adapting to changing trends are essential to designing more effective selection processes in the future, and cultivating more satisfying company-candidate relationships.