When business leaders think about competition, they typically focus on industry competitors—companies offering similar products or services in the same market. These rivals stay top of mind during strategic planning and market positioning. However, when it comes to hiring, the real competition may be from an unexpected source. Talent competitors, organizations that vie for the same skilled workforce regardless of industry, can significantly impact hiring strategies. They may not share your business model, but they actively recruit from the same talent pool. For instance, skilled production workers are sought after by companies in healthcare, automotive, consumer goods, and electronics industries. By focusing solely on industry competitors, a company may unintentionally overlook a broader, more qualified talent pool.
Analyzing the Labor Market
Using labor market statistics is pivotal in identifying talent competitors and understanding where potential hires are currently employed. Awareness of recruitment patterns, salary norms, and workforce availability in the area can shape the hiring strategy effectively. Advanced RPO, an example from the labor market, worked with a medical equipment manufacturer struggling with high attrition and hiring bottlenecks. This client initially analyzed their industry competitors to inform pay ranges for entry-level hourly workers but overlooked other local talent competitors. They ultimately evaluated retail, hospitality, warehousing, and logistics companies to devise a more inclusive strategy.
This expanded analysis revealed that the company was not offering competitive wages. Based on the newly acquired data and recommendations, the CEO strategically increased the pay range. Consequently, the company experienced reduced turnover, quicker position fillings, and a boost in productivity, directly affecting revenue growth positively. Such comprehensive labor market analysis can recalibrate your understanding of the competitive hiring landscape, leading to more effective hiring practices.
Comparing Local Employers
Competitive pay, benefits, and workplace environment significantly influence a candidate’s decision to accept or decline a job offer. Understanding what various organizations are doing, regardless of industry, plays a crucial role in attracting and retaining employees. For instance, if a retail company seeks front-desk associates, it should benchmark against local employers offering similar roles in medical clinics, salons, and hospitality sectors. This broader comparison strategy provides a more comprehensive view of what attracts top talent.
This approach uncovers competitive elements in compensation packages, benefits, and work culture that may be missing in the company’s own offerings. For example, while an industry peer might offer a similar salary, a talent competitor in a different sector may provide exceptional benefits or a more enticing corporate culture. This knowledge enables organizations to refine their compensation packages to meet or exceed those offered by talent competitors, ensuring they remain attractive to potential hires.
Utilizing Internal Workforce Data
Recognizing the backgrounds of successful employees can reveal patterns in previous job experiences that help refine ideal candidate profiles beyond direct skillset matches. Internal workforce data provides insight into where successful employees previously worked, which skills have proven valuable, and how these attributes align with current job requirements. This deep understanding facilitates the creation of comprehensive job descriptions that attract unconventional candidates.
These insights can be instrumental in broadening job descriptions to include candidates who may not possess industry-specific experience but have transferable skills and potential for growth. For instance, a position requiring analytical skills may attract candidates from fields as diverse as finance and logistics, rather than just one specific industry. By focusing on these attributes, companies can diversify their talent pool while ensuring that new hires meet job requirements.
Focusing on Skills Over Industry Experience
In many cases, skills like problem-solving, adaptability, decision-making, and initiative are transferable across sectors. By identifying roles where high-quality candidates can be upskilled or reskilled, companies gain an advantage in today’s competitive labor market. Focusing on candidates’ skills and trainability, rather than prioritizing industry-specific experience, can dramatically widen the hiring pool. This approach acknowledges the evolving nature of today’s job market, where continuous learning and adaptability are key.
Hiring based on skills rather than industry experience allows organizations to tap into a larger pool of talent, including individuals looking to pivot careers. By offering training and development programs, companies can nurture these non-traditional candidates into highly effective employees. This practice not only fills immediate vacancies but also fosters a culture of growth and continuous improvement.
Enhancing Hiring Strategies for the Future
Utilizing labor market data is crucial for identifying talent competitors and understanding where potential hires are employed. Knowledge of recruitment trends, salary standards, and workforce availability can significantly shape a hiring strategy. For instance, Advanced RPO dealt with a medical equipment manufacturer facing high attrition and hiring issues. Initially, the company analyzed industry competitors to set pay ranges for entry-level hourly jobs but ignored other local talent competitors. Eventually, they evaluated retail, hospitality, warehousing, and logistics sectors to create a more inclusive strategy.
This broader analysis revealed their wages were not competitive. With the new data and recommendations, the CEO strategically raised the pay range. As a result, the company saw reduced turnover, faster position fillings, and increased productivity, which positively impacted revenue growth. Such in-depth labor market analysis can change your understanding of the competitive hiring landscape, leading to more efficient hiring practices.