The Sourcing Market

Hiring the wrong person is extremely expensive (in the long run) and can be very damaging to the company’s reputation.

For many recruitment consultants, 2020 was marked by a sluggish candidate market with applicants unwilling to change jobs. After covid, the industry was booming again, and many companies were facing the challenge of filling the numerous projects with talent.

The recruitment sourcing market in 2023 is expected to be a highly competitive and dynamic industry. With advancements in technology and the increasing use of online platforms for job searches, the way in which recruiters source and hire candidates has evolved significantly in recent years.

In 2023, the recruitment sourcing market is likely to continue this trend, with a focus on using data analytics and artificial intelligence to streamline and optimise the recruitment process. Additionally, the proliferation of remote work and the need for companies to adapt to a changing labour market may lead to a shift towards more creative and diverse sourcing strategies.

We interviewed Nick Rees, a recruitment executive for over 20 years in different industries in Russia and Europe. We wanted to discuss the actual Sourcing Market and get his insights as a professional recruiter about the changes in the market.

What does the sourcing market look like now, what challenges do recruiters face and what tips are there now for the right active sourcing?

Sourcing candidates hasn’t really changed since covid entered our daily lives, but sourcing good candidates, who are willing to consider new options, is definitely becoming more difficult.

While some candidates have reevaluated their lives and become far less ambitious, others see this time as an opportunity to fast-track their careers. Knowing which candidate is which, is what makes the difference between a specialist recruitment team and a simple generalist.

How do you see the candidate market now? What developments can be seen in the “post-Corona” period?

As mentioned above, it’s important to identify the difference between those who still have a hunger to progress and those who would prefer to stay in their pyjamas all day.

Too many candidates have gotten used to working from home and the flexibility that this brings, but also it has created a land of opportunities for real specialists with a determination to succeed.

Many companies are laying off, mostly in tech, but the hospitality industry is hiring and in need of many talents. Do you think that the candidate market will change again due to the actual recession? Will the lay-off wave also touch the hospitality industry?

The hospitality industry, in the majority of Europe, has certainly changed, in many ways.

Hospitality was one of the most affected by the Covid recession and it has forced many companies, both large and small, to re-evaluate their structures, their cost base and, in many cases, their whole business model.

Many of the stronger companies are seeing opportunities to increase market share, but they also understand that this requires hiring the best possible staff to improve their chances of not just “building bigger”, but “building better” too.

How are companies positioning themselves in terms of sourcing? Has there been an increase in awareness that post-pray is no longer sufficient and that an active candidate approach is essential?

That all depends on which region you look at. German companies, for example, have a better understanding of the benefits of using external specialists, whereas many southern European regions still follow a more old-fashioned approach, which is significantly less likely to reap any rewards.

What is far more obvious is the demand for real market (recruitment) specialists, who don’t just understand the industry as well as those working in it, but they are also ahead of the trends – we see and hear what is really happening on the inside of most major businesses.

What do you see as the biggest challenges in Active Sourcing?

As mentioned before, going on past reputations can be a serious mistake, as the covid era has made many candidates happy living in their comfort zones.

Knowing who’s still ambitious, still hungry for success and still looking to stand out from the others is what we do best, but it is a very time-consuming exercise and needs the careful attention of a truly professional recruiter.

It is also worth evaluating your current staff too, as it is extremely likely that many of your current teams aren’t performing as well as their direct competition.

Measuring the cost of keeping the ‘bottom 10%’ is an essential part of running any business (or team) but replacing them with the best possible performers is a critical part of that process.

Using the best industry specialists to ensure the efficiency and accuracy of this, is simply common sense.

What tips can you give companies for this?

Hiring the wrong person is extremely expensive (in the long run) and can be very damaging to the company’s reputation, both internally and externally.

Before signing off on your next hire, retain an industry specialist to give you a comprehensive shortlist of the very best available candidates. Forget past reputations and invest a small amount of money in order to avoid yet another expensive mistake.

This interview has been led by Margaux Sauvage, Marketing Manager at LHC International

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LHC International is a leading executive search firm for the hospitality and operational real estate industry.