Founder and Director of Network 20 & Employee DNA.
I’ve been in talent management for 20 years,
During this time, the only constant within the recruitment market is that there is never an equilibrium, never a time when we have a perfect storm of requirements from clients, balanced with candidates looking for work.
Currently, we sit in what is being heralded as a ‘war on talent’ where companies are openly doing battle to attract and retain the best talent in the market, sometimes, no matter what the cost is.
No sooner than when Australian organisations have hired and on-boarded new talent, do competitors target them and in some cases, are willing to pay a premium of up to 167% to poach them.
We regularly hear stories from our clients about American technology companies entering the Australian market and actively targeting companies known for recruiting the top 5% of technical talent. They effectively monitor the market and leverage public data to efficiently approach talent when they are most likely to jump ship. Interestingly enough, this can be within the first 3 months of a new role, and the day your newly hired Engineer updates their LinkedIn profile with their new job title and company details, is the same day the in-house recruiter at Amazon is sending them an Inmail with a package that very few (if any) Australian companies can hope to compete with.
They are genuinely relentless in their pursuit for the best talent in the market.
If you think we’ve had it tough here in Australia: Here’s how long employees are staying at the ten most prominent companies in tech worldwide: (2017) – Business Insider Magazine
Facebook: 2.02 years
Google: 1.90 years
Oracle: 1.89 years
Apple: 1.85 years
Amazon: 1.84 years
Twitter: 1.83 years
Microsoft: 1.81 years
Airbnb: 1.64 years
Snap Inc.: 1.62 years
Uber: 1.23 years
And in case you’re wondering, here are the premiums they are willing to pay (and that you will need to compete with) to lure your staff from you;
Netflix – 167%
Wikia – 72%
Lending Club – 48%
Microsoft – 48%
Groupon – 38%
Akamai – 37%
Salesforce – 37%
Palantir – 37%
Twitter – 37%
Docusign – 35%
So to stand a chance, you may need to pay up to 55.6% on average to lure someone into your company (or keep them from going to this stiff competition).
How long until the Australian market starts to move in the same direction given the talent shortage we face locally?
Candidates or ‘Talent’ as they are now being referred to, are spoilt for choice. They don’t even have to apply for roles any more (sorry SEEK, but it’s only going to get harder), and for the most part, all they have to do is tick the ‘open for opportunities’ box on LinkedIn, and the offers coming flooding in.
It is now as it always has been, a dog eat dog world where a company’s recruitment and retention strategy is key to its success. Where combining the best internal and external recruitment teams might get the job done, and if you’re fortunate, it may even keep the relentless American tech giants at bay.
These in-house recruiters for Amazon and the like, hunt like a pack of wolves and are keenly aware that if a candidate has recently been tempted to move to a new company, with enough encouragement, they’ll do it again without too much hesitation. This is not by chance. It’s achieved by the intelligent use of data allowing them to continuously monitor the talent market, i.e. your staff.
So what can you do? How can you keep the wolves at bay and hit that 100% year on year growth target your shareholders are holding you accountable for. You bite back, fight fire with fire – or in this case leverage the same data and insights as the giants.
If you want to know about the data we’re leveraging to and the tools we’ve been successfully using to reduce attrition and create a first mover advantage for our clients, then shoot me a private message.