Market Forces

Newsletter #1

I know you thought you’d opened an article on Region Beta and Stockholm Syndrome.

But I had two conversations this week which reminded me that –

a significant factor in the successful outcome of any recruitment is out of your control;

and in many cases that same ‘state of the market’ is the most important factor.

Establishing this state for any given vacancy is a key part of my consultation with employers before we go to market. It’s the first step in the market mapping process.

And really this should be the first port of call in any commercial endeavour.

The state of the market offers insight that informs strategy, tactics and execution.

Remember how, in March 2020, the recruitment industry went from boom to zero during lockdown?

Who here got on the phone to make business development calls that April?

More than having little point, it would have been crass to contact clients that were in existential crisis.

On we all popped to LinkedIn to become thought leaders extraordinaire.

Just one example of market forces affecting how we work.

So, back to these two calls.

Both of these conversations were with Directors, one hiring, the other a job seeker.

But it’s no coincidence that our conversations were similar.

The same reciprocity that threads through recruitment is shown through the common challenges of hiring and looking for work.

The ‘market’ is made up of intrinsic and extrinsic elements.

Intrinsic means forces that drive the market: evolution of recruitment technology, systems and processes; a move to increased automation and transactionalisation; the rise of ‘personal branding’. Even ChatGPT, but probably not til the next few iterations.

These, and others, are the rules of the recruitment industry.

Learn them, adapt or falter.

Extrinsic means forces that affect the market: the pandemic, the ensuing economic whiplash, the war in Ukraine, inflation, the Kwarteng show. Practical elements that affect affordability and the strategic consequence of perceived risk.

It’s easy to look back and see these factors, but it’s the now that is more important, and what you should keep learning to inform your approach.

No assumptions.

Extrinsic also means forces that affect the motivations of candidates: working from home, greater emphasis on some form of Ikigai over the rat race, the rising price of leccy.

These are all a consequence of what has happened since 2020.

What are the next consequences to affect candidate motivations?

The past three years have been a never-before-seen yo-yo of triumphs and tribulations – those we’ve read about in the papers and our feeds every day.

There is a caveat.

Have you ever read your LinkedIn feed and thought ‘that doesn’t sound like me at all’ when everyone is harping on about what seems to be the norm?

That’s because, for example, data centres and e-commerce software were pandemic-agnostic industries during the early part of lockdown.

More than that, the prospect of people stuck at home must have increased confidence in those arenas.

In adversity lies opportunity.

Or perhaps you read about how loads of people were getting CxO jobs, while your long-term job search misery was brought down more and more on your shoulders.

Even though it was mainly a lack of relevant jobs in the market not giving you what you need.

Both true stories (hi if you’re reading).

With the common point that what happens to the market is general, while how the market affects you is specific.

This means that the conversation moves from understanding the general state of the market to establishing what it means for you.

If you have a broad understanding of what’s going on, you can do this straightforwardly by talking.

Talk to your candidates, talk to your peers, talk to your competitors. Coaches and mentors too.

See what they are experiencing and what lessons you can learn yourself.

It’s just networking, and if you share equally you both win.

They are your gemba for the market.

Without understanding the market and how it affects you, it’s tempting to blame agencies for not delivering and candidates for being scarce.

It’s tempting to say adverts and outreach don’t work.

To lay blame elsewhere without looking at accountability as an opportunity.

Yet if you keep an eye on current and future trends, you can adapt your approach to the market proactively.

If no candidates are applying to the adverts that worked last month, how else can you find them and what does it take to get them on board?

If candidates suddenly stop responding to outreach, is it because of an explosion of relevant vacancies and the ensuing white noise from recruiters?

Or perhaps it’s the increased reliance on volume automation for outreach?

What can you do differently?

Five Why works a treat for establishing the root of any change in market, and therefore what you can do to set yourself apart from your competition – whether you are an employer, job seeker or agency.

Learn from the market and it will show the way.

Thanks for reading.

Regards,

Greg

p.s. While you are here, if you like the idea of improving how you recruit, lack capacity or need better candidates, and are curious how I can help, these are my services:

- commercial, operational and technical leadership recruitment (available for no more than two vacancies)

- manage part or all of your recruitment on an individually designed basis for one client

- recruitment coaching and mentoring (one place available at £250/hr + VAT. Yes, prices have gone up. I value my time.)

- recruitment strategy setting

- outplacement support

Just hit reply to check if my approach is right for you.