Recruiting In 2019, 2020 & 2021: From Acceptance To Witchcraft To Saviors

Recruiting In 2019, 2020 & 2021: From Acceptance To Witchcraft To Saviors

In 2019, unemployment hit a historic low and the market was “on fire”. In Q3/Q4 2019, unemployment was below 4% and degreed unemployment hit close to 1%, even though it felt more like 0%. In 2019, agency recruiters faced an extreme demand for our services, but we also faced an extreme candidate shortage, which equates to a drop-off in our ability to deliver our services.

In these supply/demand labor economics, recruiting agencies naturally raise their prices as they are faced with trade-offs when delivering talent for their book of business.  On a micro or individual level, “selling” agency recruiting services in 2019 became easy, but operations and delivery became increasingly difficult. What recruiting firms and companies experienced in 2019 was what the “biz” calls a “candidate market”. In a candidate market, companies have to get creative to attract and retain talent. These creative solutions included counteroffers, raising wages, offering flexibility, promotions, and career development.  We learned in 2019, that ping-pong tables no longer cut it to retain talent and recruiting in 2019 sharpened our pencils for what was coming in 2021.

~Skipping 2020~  (Recruiters were doing “witchcraft” in 2020 in a labor market with above 20% unemployment)

Here we are again in 2021 working our way through “the great resignation” as well as a “candidate market” the likes of which we have never seen. Except for this time, we are dealing with a far more complicated scenario. Below are a few things that are different in this candidate market in 2021:

  •  We have a “great resignation” occurring
  • We have a flurry of hiring due to pent-up demand
  • We have a candidate market with different “wants/needs” due to 2020

If you are curious about how to hire or navigate the Great Resignation and the candidate market of 2021 to the likes of which we have never seen, please do not hesitate to reach out to Frederick Fox. We are an executive search agency focused on Financial Executive and Technology-based roles.