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Businesses around the world are increasingly facing significant challenges in the competitive recruitment market. It’s therefore crucial for employers to understand why these challenges arise and how to overcome them strategically and efficiently.
Difficulties can arise for a variety of different reasons, including location, salary expectations, and role requirements. With 69% of employers admitting that they are struggling to find qualified candidates for open positions, according to a LinkedIn report, it’s important for organizations to adapt to the evolving recruitment market to find high-calibre talent capable of filling business-critical roles.
A shortage of talent is one of the main hiring challenges businesses face, and traditional hiring criteria such as specific qualifications and years of experience only exacerbate the issue. Some employers expect candidates to have had a tenure of over 5 years with the same company to prove reliability and commitment, but this approach is very restrictive. Today’s workforce often views roles lasting 2 to 4 years as sufficient for growth and career advancement, so failing to consider candidates who don’t have a set amount of industry experience can result in businesses overlooking talented individuals who have the potential to succeed.
To successfully overcome talent shortages and attract high calibre talent to their business, leaders and hiring teams must be more agile with their hiring strategy and consider more flexibility in their expectations and requirements. Globally, on average, talent pipelines can increase by nearly ten times when using a skills-first approach to hiring, according to the World Economic Forum. This focus on tangible skills allows companies to find candidates with experience in other industries that can successfully transfer their skills to a new sector. This can lead to a more diverse workforce where individuals can provide fresh perspectives and ideas. It can also be beneficial to train and upskill your existing workforce to improve employee satisfaction and retention rates.
For more expert insights on how to combat talent shortages, check out our recent blog.
When it comes to salary expectations, there’s often a disconnect between what businesses are willing to pay and what candidates expect. Some employers set unrealistic expectations regarding the quality of candidates they can attract and the salary they offer, which can lead to roles remaining unfilled for long periods and affect the business.
Ryan Goodricke, who heads up CSG Talent's Technology & Engineered Products division for the APAC region, has experienced challenges regarding salary expectations in different countries: "I’ve found that companies based in Asia or other regions often have unrealistic expectations about salary levels in Australia. Australia is an expensive place to live, and salaries are inflated to reflect this. What might be sufficient for a similar role in Asia, such as a Business Development Manager earning $100K AUD in China, could require $150K AUD or more in Australia. This level of salary increase is not always realistic, which can cause significant challenges within the hiring process.”
On the other hand, some candidates have heightened salary expectations because of temporary post-covid wage spikes in certain industries. Now the markets have stabilized, some of these expectations are seen as unrealistic. James Carlill, Director of Civil Design and Construction Management at CSG Talent, feels another reason for increased salary expectations is candidates are confident they will receive a counteroffer from their employer when receiving another job offer:
"Salaries are increasing massively because candidates with sought-after skillsets can request huge pay rises of up to 50% from new employers, knowing their existing employer will provide a counteroffer with an improved salary to keep them. Even if the potential new employer offers a large salary, the candidate may not accept."
To bridge the gap in expectations between employers and candidates, salary benchmarking is essential as it helps keep offers competitive and realistic. During negotiations, it helps to be flexible and open to changes, such as companies accepting fewer years of experience in exchange for staying within the salary budget. It also helps to be transparent about the salary and full compensation package from the early stages, as studies show that 67% of candidates consider salary transparency as a key component when evaluating potential employers, according to Glassdoor.
Another global recruitment challenge is finding candidates willing to relocate to remote or undeveloped areas, like Saudi Arabia’s emerging cities. Roles in these locations are generally less attractive to professionals with families, as they can be hours away from major cities and facilities. Even the new cities under construction often lack schools and healthcare facilities, making them unsuitable for families.
To address this, businesses should make sure to ask early in the process if the candidate would be satisfied with the amenities available in the location. Research from a 2024 survey by Smart shows that 84% of people said the benefits offered by their employer played a part in their decision to move to Qatar, the UAE, or Saudi Arabia from their home country. Therefore, highlighting the benefits of the roles, such as tax-free salaries, quicker career progression, and the chance to contribute to innovative projects, can help attract talent.
Sam Aubry, Principal Consultant at CSG Talent, emphasizes the diverse factors influencing candidates' willingness to accept roles in remote locations:
“How open a candidate is to relocating for roles in remote areas is personal and depends on their circumstances. For example, professionals with experience working away from home for weeks or with limited amenities are often more receptive to remote opportunities. Individuals who prioritize their family life or are not used to spending time away from home may find these roles less appealing. It’s important tailor the recruitment approach to address the needs of each candidate.”
Relocating for a job is a major decision, and the logistics of the move can get in the way of promising hires. Candidates often find it challenging to move their families and adapt to new cultures, making it crucial for businesses to offer competitive relocation packages that can attract top talent and manage complex processes.
However, businesses often struggle to balance the cost of relocation with the need to provide attractive packages. If communication is poor and delays occur during the process, the candidates could lose confidence and withdraw their interest in the role.
To overcome relocation issues, it’s important for businesses to clearly communicate each stage of the relocation process, from initial visa applications to housing arrangements and onboarding. Competitive packages that cover the cost of moving can also help persuade a candidate and make them more likely to accept the offer.
For further insights on relocating for work, listen to recruitment specialist Ben Wignall on Conversations with CSG, where he discusses living and working in Dubai.
The shift towards remote work has created a divide between the expectations of candidates and employers. According to a study conducted by World Economic Forum, 68% of employees favour a hybrid work routine, with almost 25% favouring fully remote working. However, some businesses are requesting employees to return to working in the office, a move that would see 31% of workers search for a new job, according to OfficeRnD.
Because of this, businesses should gather feedback from existing employees to help them design flexible policies that meet the needs and goals of the team. When hiring, it’s important to be fully transparent about hybrid working expectations so that candidates know exactly what to expect. Hybrid or remote schedules can open the door to an increased talent pool, helping companies attract more skilled candidates from a wider range of locations.
For more expert insights on the remote vs. office debate, check out our recent blog.
Navigating the complexities of global recruitment requires expertise, market insights, and a deep understanding of recruitment trends. As executive search recruitment experts, CSG Talent specializes in connecting businesses with top talent that aligns with their unique needs and goals. Our tailored approach ensures organisations attract and retain the best candidates from across the globe.
Contact CSG Talent today to discover how we can support your recruitment strategy and help your business thrive in the competitive global market.
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