Where have all the good candidates gone?

In the past few months, several of my HR and Recruiter contacts have all been talking about a similar concern: a drop-off in the number of applications they’re receiving and a noticeable dip in the overall quality of candidates.

What’s more, the candidates they are reviewing are demanding even greater salaries and have unrealistically high expectations of what they want from a future employer. This seems particularly true when comparing CVs against the same role you recruited for perhaps only 6 or 12 months ago.

It’s disrupting hiring timescales and, at such a crucial time of year to get ahead for January, impacting plans for growth. Sound familiar?

If so, you’re not alone so I wanted to raise some key points about why this is happening and how recruitment teams can adapt to this shifting hiring landscape.

Poor quality CVs are causing delays to hiring processes and concern for HR managers

Understanding the Decline in Applications

There’s a number of reasons for a reduction in application numbers and poor quality CVs, but the mixed stats in the news can create a confusing picture. The short version is there’s greater demand from employers and fewer candidates actively looking for work. But here’s what it looks like when you delve a bit deeper:

• 24% increase in advertised vacancies in the North-West

There’s almost a quarter more jobs advertised now than back in January 2020, meaning more vacancies for candidates to choose from and greater competition for the best applicants. Although this has been falling consistently over the past two years, some sectors are absolutely booming which makes the jobs market feel a bit chaotic.

• 9.4 million people in the UK are economically inactive

The unemployment rate in the UK is relatively low by historical standards, at 4.3% in the period between July and September 2024. However, according to the BBC, 9.4 million people in the UK are economically inactive (which means they’re not currently employed or actively looking for work). This means fewer candidates scrolling through your adverts and filling in your application forms.

• Economic instability, the ‘C’ factor and Candidate Behaviours

It’s fair to say that uncertainty in economic conditions often makes potential candidates nervous about switching jobs, preferring stability over new opportunities. Plus, many job seekers pause their job search in the lead up to Christmas holidays, thinking that employers aren’t actively hiring. It’s also important to note the ongoing changes in jobseeker behaviours particularly when it comes to recruitment technology – with nearly three-quarters of candidates saying they’d abandon an online application if it takes more than 15 minutes to complete.

Why Candidate Quality is Affected

Skills shortages are no new thing, but in a competitive and candidate-driven jobs market, the impact is severely amplified. The increasingly rapid adoption of technologies and automation in certain sectors has created a gap between the skills and experience employers need and those that candidates have to offer. Plus, there’s a few other factors affecting CV quality that are important to take into account:

• Minimal Training Budgets: Over the pandemic years, many businesses were forced to restrict investment in upskilling and training their existing workforce, meaning those now looking to switch roles might not have the competitive advantage they once did.
• Increased Noise in Recruitment Channels: With more than half of candidates using Chat-GPT and other AI tools to create their CVs and applications, recruiters are seeing a flood of low-effort, untailored submissions, which dilutes the pool of genuinely qualified candidates.
• Lower Engagement from Top Talent Whilst there’s a lack of skills generally, those higher-calibre candidates who have everything to offer on paper will naturally prioritise opportunities from organisations with strong employer brands, leaving others with a narrower talent pool and feeling like they’re choosing from second best.

The impact of Wage Inflation

Wage inflation is also playing a big role in creating disparity between employer and employee expectations. Many candidates are looking for work having not had a pay rise in a few years. They therefore see a 10% salary increase as moving for parity on where they feel they should be pay-wise and expect 15-20% to feel like they’re seeing an increase.

In return for higher wage demands, employers naturally want more in return. More and more businesses expect future hires to be ‘job-ready’ and able to hit the ground running (even for graduate or entry-level hires), without the time or resources to invest in training. They therefore expect a ‘perfect’ candidate in exchange for top buck rewards and are often found wonting.

What HR and Recruitment Professionals Can Do

While the challenges are significant, there are actionable steps you can take to attract more applicants and ensure a higher quality of hires. Here’s my top 5:

1. Revisit Job Descriptions and Offerings

• Conduct a market analysis to make sure you’re offering a salary and benefits package commensurate with market expectations (and your competitors).
• Ensure that your job postings are clear, compelling, use the right language to attract diverse candidate pools and highlight unique benefits that your target audience actually wants (e.g., remote work, flexible hours and development opportunities).

2. Streamline the Recruitment Process

• Simplify application procedures to reduce drop-off rates.
• Use candidate-friendly tools that emphasise engagement.
• If in doubt about the quality of an application, give the candidate a call.

3. Leverage Employer Branding

• Launch your social recruiting strategy to raise awareness about your business and employer brand.
• Invest in authentic storytelling and employee advocacy to promote your workplace culture and success stories.
• Actively engage on platforms like LinkedIn to share insights and make the company visible to passive candidates.

4. Expand Sourcing Channels

• Tap into diverse talent pools, including universities, trade schools, and non-traditional sources like boot camps or community networks.
• Partner with recruitment agencies for specialised roles or upskill your HR team so they can headhunt target applicants.

5. Invest in Upskilling

• Offer training and development programs to bridge skill gaps, both for internal employees and potential hires.
• Highlight these opportunities in job descriptions to attract ambitious candidates.

To sum it up

While the current hiring landscape poses challenges, it also presents plenty of opportunities to innovate and redefine recruitment strategies. By understanding the root causes of declining application numbers and poor quality CVs, HR teams can build resilient processes that attract and retain top talent.

Success in recruitment today requires flexibility, data-driven insights and a focus on long-term relationships with identified talent pipelines. By prioritising a strong employer brand, streamlined processes, and competitive offerings, it’s possible to navigate the talent scarcity and emerge stronger.

Need help getting started? If you want to redefine your recruitment strategy and think differently about your hiring challenges, get in touch to discuss how we can help you plan for growth.