Candidate glut: swimming in a sea of resumes, HR stays afloat by tweaking recruiting and hiring practices - Employment & Staffing Agenda

HR Magazine, August, 2003 by Martha Frase-Blunt

A typical hire for Linweld is an entry-level applicant who has the potential to move into sales, "and usually doesn't mind driving a route truck to sell and deliver product," says Bayer. But she has noticed a dramatic increase in the number of overqualified applicants vying for these entry-level positions. "I find myself interviewing all sorts of people because they meet a certain experience level, but they aren't necessarily the type of candidate I'm looking for."

Companies faced with a wealth of overendowed applicants may be tempted to hire a star to fill a lower-level position, but that could be a costly mistake. Matthews learned that when he was hiring an entry-level employee relations specialist for his department. "We had applicants with HR director and manager experience willing to work at a lower-level job at a lower salary."

The offer was enticing, but short-lived, since overqualified hires tend to keep their resumes in circulation. "Our first hire turned over after six days. The second lasted just one day," Matthews recalls. He now strongly cautions his hiring managers not to make the same blunder.

Get Ready for 2004

Economists have predicted a moderate economic recovery for the latter half of this year and into the next. The Washington, D.C.-based National Association for Business Economics, a panel of U.S. economists, continues to forecast 3.5 percent growth for the U.S. economy in the third quarter, and 3.9 percent in the final three months of the year.

For 2004, the panel predicts continued strength with an annual gross domestic product increase of 3.6 percent--potentially the best growth rate since a 3.8 percent rate in 2000, the year before the economy toppled into its first recession in a decade.

Companies will likely respond to positive indicators by filling the staffing gaps created by austere hiring budgets in the past year, boosting competition for the best candidates.

Matthews says his company will prepare for the eventual uptick in the economy by resolutely focusing on retention. "Right now our turnover rate is very, very low: In one year it has dropped from 24.5 percent to about 13 percent. What I am trying to do is to upgrade our policies and procedures to keep these numbers low." When the job market loosens up and employees start to look around for something better, he adds, "We want to make sure that our people are valuing AG as a company. We are looking at changes to our internal processes and infrastructure that will encourage them to stay."

Meanwhile, don't slack off on your networking efforts, Callisher adds. Maintain contact with interesting applicants you may want to attract down the line. "Keep the lines of communication open and sustain relationships with candidates and former employees who have gone elsewhere. A strong network will take you a long way in the better times ahead."

MARTHA FRASE-BLUNT IS A FREELANCE WRITER BASED IN SHEPHERDSTOWN, W.VA.