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New research has revealed that the talent market may finally be turning around, signifying ease of pressure on recruiters.
Job applications are rising while job advertisements are declining, according to the Q1-Q2 2023 State of Market: ANZ Talent Acquisition Report from JobAdder.
If these trends continue, candidates may lose the power they’ve had through the pandemic, creating a prime market for recruiters.
“JobAdder’s recent reports present a compelling shift in the recruitment landscape. While job creation has experienced a minor decline from the large influxes we saw in 2022, job applications have surged,” said JobAdder chief executive Martin Herbst.
“This implies talent acquisition is transitioning from a candidate-centric market to a market ripe with potential for recruiters. This shift could catalyse recruiters to take on a more strategic role in shaping the growth trajectory of the businesses they serve.”
Australian applications per job posting rose from 13.9 in Q2 2022 to 24.8 in Q1 2023 and 24.5 in Q2 2023. For talent acquisition, this has risen from 15.2 in Q2 2022 to 26.2 in Q1 2023 and 24.3 in Q2 2023.
Mr Herbst continued: “It’s an exciting time for the recruitment industry. After grappling with candidate shortages due to unprecedented job growth, the tables are turning. The abundance of job applications gives recruiters the opportunity to have a greater selection of potential candidates and reassess their talent acquisition strategies.”
“The reports’ findings serve as a timely reminder that the world of recruitment is ever-changing. Despite the challenges, it’s clear that exciting opportunities are on the horizon for those ready to adapt and seize them.”
Recruitment has been in a bad state for a while as talent shortages put the pressure on them to perform. These results could mean an end to this stress and more opportunities for recruitment professionals.
However, JobAdder adviser Greg Savage said these findings should not confuse leaders into thinking it isn’t still a candidate’s market.
“While it’s clear that new jobs per recruiter and account have dropped, it’s by no means a massive drop. The message instead for agencies is to qualify orders better and manage the process with more confidence and, dare I say it, assertion,” Mr Savage said.
“‘Filling a higher percentage of our jobs’ has taken equal priority with ‘taking more jobs.’ The overriding lesson from the findings is the need for agency owners to be agile and proactive in managing the critical drivers of recruitment success – recruiter activities, productivity per recruiter, and client and candidate behaviours. ‘Waiting for the market to return’ is entirely the wrong thinking. Learning how to thrive in a changing market is imperative.”
The recent stress that recruiters have been through has built resilience, which should not be understated.
“Looking ahead to mid-2023, we face uncertain times with mass redundancies, global conflicts, and rising interest rates affecting our ability to save and succeed. However, these ‘unprecedented times’ have also allowed talent acquisition (TA) to demonstrate its value and impact on businesses,” said Matt Woodard, founder of Scalr.
“The data shows a shift towards more candidates becoming available due to redundancies and right-sizing exercises in global organisations. This has resulted in a decline in the previously ultra-competitive salaries during the pandemic’s peak.”
He concluded: “The takeaway is that you’re not alone in thinking 2023 has been challenging, and we have the data to support this reality. Recovery and growth may be slower than hoped, but opportunities still exist. Maximising these opportunities in the second half of the year will be vital. Being considered and strategic in how we support our businesses will be key, as will be seeking additional ways to add value, often with fewer resources available.”
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The practice of actively seeking, locating, and employing people for a certain position or career in a corporation is known as recruitment.
Jack Campbell
Jack is the editor at HR Leader.
