If fewer and fewer qualified specialists are available on the labor market, but at the same time the demand of companies is increasing, then this can only mean one thing: War for Talents. Especially in the so-called MINT professions (mathematics, information technology, natural sciences and technology), there has been a shortage of skilled workers for a long time, which has increased the pressure of competition among companies.
How to assert yourself in the War for Talents? How can you attract the right candidates for your vacancies?? In this article we will help you. You will learn the background of the war for talents and which recruiting strategies will help you to be successful now. Let’s go!
What is the War for Talents?? A definition
The "battle" for qualified specialists is referred to as the War for Talents. The term was first used in 1997 in a study by management consultants McKinsey& Company used. Author Steven Hankin recognized even then that it is becoming increasingly difficult for companies to find qualified personnel.
Why are we in a war for talent??
The development of the War of Talent is a gradual process. That there is no end in sight becomes clear when you look at the following background information:
#1 Increasing competition on an international level
Globalization means that companies’ products and services no longer compete only with regional suppliers, but must compete on an international stage. At the same time, this means that excellently trained skilled workers and specialists are in high demand internationally.
Talents are becoming more flexible and are quite willing to move abroad for the right conditions. To ensure that key employees do not leave, companies must now come up with measures to increase employee satisfaction and loyalty.
#2 Demographic change
Demographic change means that fewer children are being born in industrialized nations today than in the past – while life expectancy is rising. As a result, the average age of the population is increasing and the proportion of people of working age is decreasing.
This means that graduates entering the workforce today simply face less competition in terms of numbers. At the same time, members of the baby boomer generation (1955 to 1969) are now retiring, further exacerbating the bottleneck. Companies should therefore invest in the training and further education of specialists at an early stage and retain them in the company for the long term.
#3 Knowledge society and digitalization
Rapid technological advances are transforming the world of work, and with it the demands placed on workers. In recent years, many new job profiles have emerged that previously seemed unthinkable. For low-skilled workers, this means that available jobs are becoming scarce. At the same time, the demand for highly qualified talent is increasing.
Workers now need to bring not only specialized knowledge and skills, but also the potential to constantly educate themselves. With the rapid digital development, the half-life of our knowledge is decreasing. A lifelong learning mindset and the ability to acquire new knowledge quickly are critical now. Not all workers are up to the task and companies are faced with the challenge of finding solutions for these employees.
#4 Changing values in society
While previous generations were content with job security and a lavish salary, today’s young talent has different expectations. Pay still plays a role, of course, but is no longer the decisive factor in choosing a job. The nature of the work, flexible work schedules, special benefits and opportunities for further development now carry more weight.
Employees want to work for a company whose values they can identify with. 58% of respondents in a study by ManpowerGroup Solutions said that their employer’s brand has become more important to them. Companies can increase their attractiveness in the long term through targeted employer branding campaigns.
How the war for talent affects companies?
The consequences of the war for talent are being felt most in the midmarket. Here, the auditing company Ernst & Co Young in 2017 revenue losses of around 50 billion euros annually. The shortage of skilled workers is also already having an impact on everyday working life. In a survey by DZ Bank, SMEs said they regularly fail to execute orders and meet deadlines. Employees would have to work considerable extra hours to make up for the shortage. A full 85% of the companies surveyed also said that their employee recruitment costs had increased. The resulting increased labor costs would reduce profit margins and put competitiveness at risk.
This is not surprising, considering that qualified candidates are now in a better position to negotiate contracts. They can often choose their employer and are therefore more demanding. Therefore, companies now need to create new incentives to attract candidates. Old-fashioned recruiting strategies will not lead to success here. Now is the time for clever personnel marketing to increase the attractiveness of the company as an employer and to attract the right applicants.
6 recruiting strategies for more success in the war for talent
Passively waiting for suitable applicants to respond to the job advertisement placed? This should be a thing of the past. Rather use the variety of these modern recruiting methods to actively approach candidates.
1. Employer Branding
When candidates apply to or are approached by companies today, they don’t just take a quick look at the company website. You research on social networks and read reviews on employer rating portals like Kununu or Glassdoor. Your brand image can therefore determine whether qualified professionals are interested in your company or ignore it from the outset.
How to build a strong employer brand? First, define what makes your company special, why you are worth working for, and what benefits you offer employees. Then communicate this to the outside world.
2. Social media recruiting
Why not meet candidates where they already spend a lot of time: social media. At the very least, no company should do without a presence on LinkedIn and Xing any longer. These portals offer the ideal opportunity to pre-select interesting talent and make direct contact with them. The bottom line is that you reach more potential candidates than through conventional sourcing channels alone.
You can use social media in a variety of ways for your recruiting purposes: Target talent, post your job ads, engage in content and influencer marketing, and build a talent pool. Successful social media recruiting increases your company’s visibility and reach in the long run.
3. Active Sourcing
Instead of trusting that suitable candidates will find your job ads, active sourcing means proactively searching for them on the job market. In this way, you can often fill hard-to-fill positions faster and more cost-effectively than with classic methods. In addition, you can also reach passive candidates who are not actively looking for a job at the moment. However, keep in mind that this method can be very time consuming.
The most important approaches to active sourcing include profile mining on social networks, Boolean searches on Google, and scouring the resume databases of job boards. But offline channels such as job fairs and own events are also suitable for active searches.
4. Recruiting videos
The trend towards videos is slowly but surely spilling over from marketing into recruiting. With moving images you can better address younger generations and inspire them for your company. Especially complex information and emotions can be conveyed more easily in a short time with a video.
Use videos to give an insight into everyday working life or let employees talk about their experiences and your corporate culture. You can integrate the finished masterpieces into your job advertisements and publish them on social media. This way you are sure to attract more attention.
Google showed the way in 2004 with its Billboard Riddles: Combining recruiting and entertainment is an effective recruitment method that is guaranteed to get attention. Recrutainment is especially popular with young talents of generations Y and Z. Candidates and companies can learn more about each other in an entertaining way and test whether they are a good match.
What this can look like? There are almost no limits to your imagination. You can meet potential new employees in person at events such as CodeCaching. As an online variant, there are tests and simulations that resemble computer games. Playful, entertaining and interesting, they bring candidates closer to the job and test their skills at the same time.
6. Talent Pools
Imagine that for every open position you only have to look into your talent pool and pick out the best candidate. Wouldn’t that be ideal? With a well-maintained talent pool, you are always one step ahead of your competitors and your own personnel requirements.
This database of interesting talents can be filled with former interns, working students, applicants or contacts from social media and events. Since you have already had contact, there is a connection and the chance of a positive response increases. Creating and managing a talent pool is easier than you think. Here you can learn how it works.
How recruiting software helps you win in the war for talent
No one can say for sure how the war of talents will develop in the future. But there’s one thing recruiters agree on: modern software solutions make the battle for talent more effective. At Recruitee, we’re committed to making the recruiting process as easy as possible for you. You can now find talent faster, automate tasks and predict your success. Try it out for free!
In her thesis Luisa has already dealt intensively with the topic of employer branding. At Recruitee, she creates the content for the German-language blog and is happy to report on current topics and trends in HR. &