One of the hardest battles as a recruiter is to try to educate candidates that the market fluctuates often and cannot always bear the rates they desire. It’s always a struggle to convince them the rate number you are quoting is not pulled from thin air, and it’s actually a rate created from the result of fluctuations in the market and client demand. In all industries there are times when markets shift, and with those fluctuations comes a need for expectations to change. Clients are paying less due to a myriad of reasons including internal costs soaring, budgets being blown, etc. All this adds up to recruiters having to educate candidates about current market conditions.
So what’s the problem? Everyone wants the truth, right? Speaking the truth and hearing and actually listening to the truth sometimes don’t all land on the same playing field.
Remember Y2K? Everyone had to have all of their computers coded to recognize the new four digits dates to replace the two digit dates. Leading up until Y2K, the need for computer programmers to code the computers increased because of supply and demand. But does anyone remember what happened on the morning of Jan, 1, 2000? The Y2K scare was over, and the demand in the market for programmers — and the rates — went back down again. Not to mention many programmers were unemployed because there was no longer a demand in the market for them. The programmers that moved onto new roles accepted the new lower rates because they were educated about their industry and knew once Jan. 1 came, the demand would also change and so would the boom in the industry. The same thing happened with the real estate boom in the 1980s. There are many of these types of examples where a once hot market cools.
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As a recruiter it is important to be truthful and educate candidates on the factors that are affecting the market and what types of rates they should expect. There are many websites that will tell candidates what rates to expect based on a specific industry, role and geographic location. The candidate should do their homework by searching the websites that offer salary rates and also by talking to their recruiter about the rates in the market.
Share your industry knowledge with the candidates by explaining to them what factors are affecting the rates in the industry. To stay informed on the industry you’re recruiting in, join linked.com groups and follow companies that are related to your industry. Join industry related websites that will update you on any changes coming. Is it simply supply and demand? Has the industry changed because of the influx of candidates in the market compared to the current demand?
When a candidate truly understands the reality of the market and is educated on what factors caused the changes they will know that the rates you’re offering them are fair. Candidates will want to be fully utilized during the market slowdown and will take the new rate offered. Then once the market stabilizes, the rates will increase again.
The solution starts with you as a recruiter; you must always be honest with candidates and stay educated on your industry to be able to explain when changes come, the good and the bad.
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