What is a candidate driven market?
A candidate driven market is when candidates are in the driving seat and have strong bargaining powers when negotiating terms with a new or existing employer.
It’s the opposite of a client driven market which is when jobs are in limited supply and employers have more control.
Why are we in a candidate drive market?
The main driver of a candidate driven market is a shortage in skills, which is typically driven by economic factors. This present candidate market has been strongly influenced by:
- Brexit – with candidates in certain industries leaving the UK or losing the right to work in the UK
- The Covid-19 Pandemic – where many workers have changed industry, retired early or chosen to move to a more flexible work model
- The War on Ukraine – which has impacted the tech and manufacturing industries.
Who benefits from a candidate driven market?
The obvious answer is candidates – if their skillset is in short supply, they can demand more in terms of pay and benefits. They have a higher chance of being head-hunted which also comes with financial opportunities.
It is an opportunity for employers too. The perfect time to review their retention and hiring strategies and ensure that what they offer in terms of pay, benefit and culture is comparable to other businesses who may be of interest to their employees.
When will it shift?
There’s no answer to this one we’re afraid, and it’s likely to shift in some industries sooner than others. With hybrid and remote working here to stay, the geographical reach for many candidates has widened which makes for a more competitive market.