Interest Rates Are Rising! What Does This Mean for Hiring?
With interest rates rising and unemployment edging higher, there is plenty of conversation about what the changing economy could mean for Australian businesses and employees.
For real estate employers, there is another question worth asking: will this make finding great people any easier?
At first glance, higher unemployment might suggest a larger candidate pool and therefore easier recruitment. But when it comes to experienced real estate professionals, it isn't quite that simple.
More job seekers doesn't always mean more suitable candidates
An increase in unemployment means more people are looking for work across the broader economy. It doesn't necessarily mean there are suddenly more experienced Property Managers, Sales Administrators, Business Development Managers or other property professionals available.
At Recruit & Consult, we see the difference between more applications and more suitable applications every day.
A role receiving 50 applications isn't necessarily in a better position than one receiving 10 if none have the experience the business actually needs.
This is why looking at the unemployment rate alone doesn't give employers the full picture of the candidate market.
Could candidates become more cautious about moving?
Higher interest rates can also influence the people who aren't unemployed.
When mortgages, rent and everyday living expenses are putting greater pressure on household budgets, job security can become increasingly important.
An experienced candidate who is relatively comfortable in their current role may think twice about moving into a new business. A higher salary might get their attention, but candidates are also considering flexibility, progression, workload, leadership, culture and the stability of their potential employer.
For businesses trying to attract someone who isn't actively looking, the question becomes: What are we offering that makes this person comfortable enough, and excited enough, to make a move?
Don't assume the market has suddenly shifted in the employer's favour
If unemployment continues to rise, employers may expect salary expectations to fall or strong candidates to become easier to find.
That isn't necessarily what will happen.
Experienced real estate professionals still represent a specific talent pool, and great candidates will continue to have options.
Businesses still need to present a compelling opportunity, offer a competitive salary and benefits, communicate well throughout the recruitment process and move quickly when the right person comes along.
At Recruit & Consult, we're speaking with candidates and employers every day. We hear firsthand what candidates are looking for, what is encouraging them to move and, importantly, what is making them stay where they are.
What does this mean for your next hire?
Economic conditions may change the employment market over the coming months. We could see more people actively looking for work, while others become increasingly reluctant to leave the security of their current employer.
For businesses, that makes understanding your specific candidate market more important than simply watching the national unemployment figure.
If we recommend adjusting a salary, highlighting a particular benefit, moving quickly with a candidate or changing the way a role is positioned, those recommendations are based on the conversations we're having in the market.
Because whether unemployment is rising or falling, the goal isn't simply to attract more applicants.
It's to find the right person for your business.
