Businesses and employees generally welcome a booming economy. After all, companies benefit from increases in revenue, and workers ultimately receive their share of the bounty. However, a hot job market can have adverse effects on staffing efforts. This is particularly true when sourcing candidates in accounting and finance recruitment.
Here Are Five Ways the Tight Labor Market Specifically Impacts Accounting and Finance Recruitment:
1) High Turnover
No honest discussion on recruitment can be had without first addressing the issue of “retention.” Every accountant who leaves their job for greener pastures represents a new staffing need. Companies that don’t “plug the leaks” are constantly playing catch-up.
A tight labor market demands that employers keep their staff happy. One of the best ways to provide loyalty incentives is through competitive pay and benefits. However, less-costly perks can also offer high ROI. Creative leaders can find ways to show employee appreciation while still staying within budget.
2) Limited Applicant Pool
Overall reductions in job applicants mean that organizations must cast a wider net when conducting accounting and finance recruitment efforts. Perhaps one online job board was sufficient back in 2010 during the recession. But now, candidates must be sourced using a variety of tools.
In addition to leveraging multiple job sites, companies should tap into “passive” recruitment channels. These may include LinkedIn, Facebook, and social media posts. Employers may also consider offering significant “referral bonuses” to current workers whose recommendations ultimately convert to new hires.
3) Unrealistic Candidate Expectations
Some candidates get “greedy” in tight job markets and set unrealistic expectations for prospective employers. There’s nothing wrong with workers knowing their worth, but companies must be careful about giving in to unreasonable demands. Hiring managers can offer prospects compelling incentives that are still sustainable for the organization.
For example, an accounting or finance applicant who requests an extra week’s vacation upon hiring may have unreasonable expectations. However, the company can promise additional PTO after the successful completion of six months’ service. In this arrangement, both parties show good faith from the onset.
4) Lack of Commitment to Job Offers in Accounting and Finance Recruitment:
One of the lesser-discussed topics of recruitment in a tight labor market is the challenge of “flakey” hires. Although it’s incredibly unprofessional, some candidates will accept multiple job offers in hopes of leveraging one against the other for more favorable terms.
The best way to prevent candidates from changing their minds last minute is to set the expectation of commitment right from the start. Hiring managers should inform prospects of the seriousness of their candidacy and that any rescinded job-offer acceptance could be construed as being in bad faith.
5) Under-Qualified Applicants
Hiring managers need to accept that they may not be able to procure their “ideal” accounting or finance professional in today’s tight labor market. Simply put, the candidate who checks off every box on the job ad may secure other, multiple job offers and/or be out of budget.
Hiring managers can’t compromise on all candidate requirements, but some expectations can be reconsidered. The accountant prospect may need their CPA, but perhaps the “five years experience” requirement can be relaxed a bit. Ultimately, less-than-perfect applicants can be up-skilled and may provide better value.
Accounting and finance recruitment certainly can be challenging in an age of historically-low unemployment. However, that does not mean there aren’t ways to procure great workers. In the end, creative and flexible approaches to staffing help to ensure success while staying within budget.
If you’re seeking help with accounting and finance recruitment, be sure to consult with the industry’s best staffing agency today!
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If you are looking to hire and need help sourcing great candidates quickly, connect with Goodwin Recruiting.