Blog

The tech industry is booming. While that is good news, it means that the war for talent is raging on with no sign of subsiding. Highly skilled IT professionals are finding that they have their pick of jobs, and no matter how great the perks found across the tech industry are, tech organisations (even the giants of the industry) can’t totally avoid the job-hopping nature of today’s workforce. While talent shortage is set to be the single biggest hurdle faced by recruiters across almost all industries, a recent PayScale report shows that the employee turnover rate among Fortune 500 companies in the IT industry is the highest among industries surveyed. Chances are that employee retention is an issue in your business. And you’re not alone. Nearly half of all employees across the UK are worried they won’t be able to find the talent they need with over three quarters saying they are struggling to find relevant candidates. With employers so keen to fill tech roles quickly, there is a temptation to just hire on instinct (or in some cases, desperation), making bad hires a growing issue across the industry. What is a bad hire? We define a bad hire as somebody who leaves your business within the first year of their employment. But it is also someone who just doesn’t have the skills to fulfil their role, who underperforms and doesn’t fit seamlessly into the rest of the team. According to the REC’s latest report, 85% of HR decision-makers admit their business has made a bad hire. 1 in 3 HR decision-makers also think it didn’t cost the business anything when they hired the wrong person, while 1 in 5 stated that they don’t know what the cost of a bad hire is. What is the true cost of a bad hire? Everyone knows that hiring is expensive. But so is re-recruiting to replace people who turned out to be bad hires. There’s the cost of creating job descriptions, advertising roles, reading through CVs, and carrying out interviews all over again. And it doesn’t stop there. After a new hire joins the business, you need to facture in onboarding costs and training. In most cases, the true cost works out to be roughly 3.5 x their annual salary which, clearly has a negative impact on business. What are the consequences of a bad hire? Apart from the substantial monetary cost, a bad hire can affect team morale and lead to low productivity. They also have a detrimental effect on your brand reputation over time as they are likely to interact with your customers. Poor performers lower the bar for other employees and bad habits spread like a virus. If an employee is not working to their full capacity, there is bound to be a knock-on effect on the rest of the team. According to Agency Central, 39% of hiring managers said poor hires had cost them productivity. When a team is struggling with lost productivity they may be urged to start assuming additional duties that aren’t really part of their role. In addition to impacting their own performance, it will also affect their ability to meet deadlines and targets. The negative change in the team’s morale will almost always be one of the first indicators of a bad hire. Disengagement is contagious, and the resulting toxic atmosphere puts your remaining employees at risk of leaving also. In the long run, it’s more difficult for managers and their teams to accommodate a poor performer than it is to invest in recruiting quality candidates. It’s clear that the cost of not firing a bad employee far outweighs the cost of keeping a bad hire in your business. How to avoid bad hires While there’s no obvious formula to avoid making bad hires, there are ways to retain employees for longer and conquer the battle of talent. Businesses can start with promoting a flexible and inclusive workforce, implementing soft skills assessment tools and properly inducting new recruits. Low pay, lack of clear career progression opportunities and no flexible working solutions are the main reasons why employees leave. By boosting these, businesses can increase engagement, productivity and teamwork, while also retaining talent for longer. Investing in learning opportunities and innovative training provides a better and more immersive experience to employees while also developing the next generation of leaders. A recent study by Udemy uncovered that 46% of employees cite limited opportunities to learn new skills as the top reason why they’re bored in their current roles and looking for a change. For more tips on how to fix your recruitment process check out this blog. Tools you can use Using a specialist recruitment agency can dramatically reduce the risk involved in taking on a new employee. Consultants are experienced in matching the right candidates to the right employer daily and are skilled to spot the tell-tale signs of a bad fit from the get go. Dale Swords, Managing Director Understanding Recruitment, recently told the Global Recruiter: “We have a responsibility to our clients to make sure that we offer the solution to an industry wide problem. Ultimately, finding the talent others can’t is what separates the good from the great recruiters.”

Whether you’re at the offer stage for a new job or are gunning for a promotion at your current one, honing your negotiation skills is crucial to getting the salary you want. Yet surprisingly, a survey by Salary.com showed that only 37% of people always negotiate their salaries while 18% never do. In addition, a staggering 44% of respondents claim to have never even approached the subject of a raise during their performance reviews. We’ve put together some tips to help you take your salary negotiation game to the next level! 1. Understand your worth Always use research to inform your negotiation technique. Walking into a negotiation prepared will make the outcome so much better. The better prepared you are the more confident and informed you will come across. If you don’t have an exact salary figure in mind your Manager will have the upper hand from the start and will take control of the conversation very quickly. To avoid this, find out how much the job is worth and then research how much your skills and experience are worth to the company. The Glassdoor salary search is a great tool to do this with but most jobsites have a tool to help you find this information. Speaking to a recruiter can also be useful as they know what people with your experience are worth. Research the salary range for people in similar roles to you to give you a better idea of what you should be earning. Remember this will differ largely depending where you are located and the industry you work in. Once you find a range, set an exact figure that you would be happy with that is both realistic and leaves room for negotiation. To be on the safe side, always ask for more than what you want as your Manager will want to feel like they negotiated with you and got a good deal. 2. Timing is everything After you’ve done your research, you can set the wheels in motion and book a meeting with your Manager. Many people wait till their performance review to start negotiations, but it’s a better idea to start talking to them three to four months in advance, as this is when they set the budgets. According to The Muse, several studies show that you’re most likely to get a raise if you ask on a Thursday as people become more flexible and open to negotiation closer to the weekend. Whichever day you opt for, double check your Manager is available for the meeting and schedule it into their calendar, so they don’t forget. Make sure you have a space for your meeting that is confidential to avoid having an awkward conversation in the hallway. ​ 3. Be persuasive but stay flexible Every negotiation will have an element of back and forth, so you need to be flexible but still stand your ground. Be prepared for some resistance and be sure you have put together a case to show why you deserve the salary figure that you’ve put forward. This is the time to sing your own praises so put together a summary of all your achievements, awards won and testimonials you got from your colleagues. It’s a good idea to talk your Manager through your achievements before you start talking numbers. You can also give them a printed copy of your summary of achievements to look at while you talk them through it. But don’t make it all about the past. Make sure you outline your plans for the future. What projects are you going to take on and how will this help your Manager? Will it free up their time? Do you have ideas that you want to own and implement? Try to put yourself into the shoes of your Manager. What is important to them? Listening during a negotiation is a hugely important part and will let you understand the needs of the person you’re negotiating with. How can you sweeten the deal for both of you? Instead of being forceful, try to convince your Manager that it’ll benefit the business to pay you more. Be sure to listen and understand their views as well as getting your point across. Present all your facts and give them time to consider your proposal, as they will probably have to run it past Human Resources and possibly other Managers. Don’t expect an answer immediately. 4. Consider your options A ‘no’ doesn’t mean the end of the negotiation but usually marks the start of it. If your Manager seems uncomfortable with the figure you have put across ask them why this is and what you can do to convince them to move in your direction. To come to an agreement, you both will have to be flexible, but you need to still stand your ground and not accept an offer that is too low. If your employer has made a counter offer it’s ok for you to ask for some time to consider the offer. Doing this will make sure you don’t panic and accept a minimal increase. When it’s an initial job offer you can also make a counteroffer 10-20% more than their offer. Consider that your benefits are up for negotiation as well, so if your Manager won’t budge on your salary increase, they may be more open to enhancing your benefits such as additional holiday, training or flexible working. Sometimes these can be just as valuable as a salary increase. 5. If it doesn’t work out Most departments have budgets assigned by the wider business and sometimes it might not be possible to give you a pay increase at the time you want one. There may be factors that aren’t known to you so have a plan B in place. It may be that a raise is possible further down the line, but the timing isn’t right now. You need to know the point, you want to walk away from negotiations. Consider what you want to do if the answer is no or the figure is much lower than what you had in mind. Consider the whole package including the working environment, benefits and job role. Is this enough to make you stay without a pay increase? If the company won’t pay you what you’re worth, looking elsewhere may be the best option. But don’t burn your bridges just yet. You still want to keep working with this person for now so staying positive throughout the conversation is important. Once you’ve successfully negotiated a raise, make sure you get a written confirmation of all the details including how your responsibilities will increase.

You expect for lots of questions to come your way during the interview but are you prepared for your interview to be a two-way street? Preparing a set of questions you can ask the hiring manager at the end of an interview will show your interest in the role and company, but it's also the prime opportunity to find out if the job is right for you. Not having any questions makes you look unprepared and uninterested, so make sure you research the company and take a note of topics you can ask about. Your best bet is to prepare at least four questions in case some are answered during the interview or you forget any. Here are a few suggestions what to ask when it’s your turn to call the shots. Have I answered all your questions? – This gives you a good chance to clarify any questions or doubts the interviewer still has. You can also expand on answers you may have given during the interview and it will give you a good idea of how you’re doing so far. What is your company culture like? – It’s a good idea to find out what the company’s philosophy is and if you can see yourself fitting into their environment. What are the day to day responsibilities of this job? – Hopefully this will shed some light on what your day to day in your new job would look like and if it sounds like something you want to be doing. What are your expectations for this role during the first 30 days, 60 days, year? – Find out what expectations they have for the role to see if it aligns with what you’re looking for in your new role. What are the biggest challenges you’re facing? – Asking about their challenges not only makes them think but also is a way of uncovering trends and issues in the industry. Who do you consider to be your major competitor? – You should have already researched the company’s competitors but getting your interviewer’s insights can be useful and could be different from the information available on the internet. What are the challenges of this position? – This question will help you identify areas the role will be focussing on over the next months. What qualities are the most important for doing well and advancing at this company? – This question can uncover information that’s not in the job description and gives you a chance to show you’re a good fit for the team. Is this a new position? If not, why did the person before me leave this role? – Asking this will uncover what happened to the person doing the job before and why and how they left. If you had to sum up the company in three words what would they be? – This can give you an interesting and spontaneous insight into what the company is really like and gets the interviewer thinking. What do you like best about working for this company? – Asking your interviewer about their personal experience at the company is a great way to gain insight into the company and to make a more personal connection. Watch for any tell tale signs here in their expression or body language that might indicate some issues or underlying negativity. Where is the company headed in the next 5 years and how can I grow in this job? – Find out if the company is growing and if there is room for you to progress your career over the coming years. Can you tell me a bit about the team I would be working with? – Some companies will volunteer this information and even introduce you to the people you’d be working with during the interview process. If not, it’s a good idea to clarify what the team looks like and what the pecking order is. What are the next steps in the interview process? – This is a great way of finding out how many stages are left in the hiring process and clarifies when you can expect to hear from them.

What was your first job? Working in a clothes shop as a Retail Assistant at 16. How did you get into recruitment? After dancing professionally around the world, I transitioned into dance teaching, but I knew it wasn’t as sustainable as I originally thought (especially with back injuries). I knew I needed to start a new career, somewhere where I could grow. I interviewed for many jobs within sales, customer service and recruitment. As soon as I came into Understanding Recruitment’s offices I knew it was a place where I could see myself working long-term. ​ What do you love most about your job? How busy it can be, the harder you work the more rewarding this job can be. What’s your top job to fill? That’s a tricky question as I work on every single contract role that comes into the business. One minute it’s a QA tester, the next a Senior Architect, the next Programme Manager and interim CTO positions! Who’s your role model – in life or in recruitment? My Dad. He started his first ever job as an Admin Clerk in a major oil organisation the Monday after his O ’levels and worked his way up to the top, travelled the world, relocated with his family to America for his job, and made himself extremely successful. All down to hard-work and determination. What’s your favourite meal? Love a bit of Sushi, Mexican and I have a major sweet tooth so loads of chocolate! What’s been your most memorable experience with a candidate? I placed a Java Developer into a Global Publishing Organisation at the beginning of the year, he is French and went home over Christmas before he started his new contract in January. There was a parcel delivered to me at work with a hand-written note about how happy he was to find this role and he was really complimentary of the whole experience working with me and Understanding Recruitment. Alongside the note were 3 boxes of truffles he bought back with him from France. What would be your theme tune? Beyoncé – Who Run the world What is your top tip for candidates? Be as honest and open with recruiters as possible, it is hard as contractors get contacted by us all the time, but it helps us do our job a lot better if we know your current work status/commitments and avoids surprises along the way!

After recently celebrating his eight year anniversary at Understanding Recruitment, Sam McBroom was promoted to Director in recognition of all his hard work and commitment. We caught up with Sam, who also heads up the Java team, about how he got into recruitment, his career progression and Oasis. What was your first job? Working at a sports park as a ‘Recreation Assistant’ – setting up sports equipment and getting involved in the general day to day running of the park. How did you get into recruitment? I was working in the public sector but grew frustrated about the lack of personal and career progression available in the area that I was in. So I looked for a career offering a meritocratic environment with plenty of opportunities to take on more responsibility dependent on performance and recruitment seemed ideal. What do you love most about your job? Two things mainly. The people here are fantastic to work with and everyone gets on really well, regularly socialising together. When you have a tough day everyone is there for you. Secondly, the opportunity and progression available. Working here truly gives you an opportunity to build a team in a specialist area in a rapidly expanding market! What’s your top job to fill? Ironically we’re recruiting a Senior Java Developer to work specifically for another recruitment company! They don’t have the reach or specialist knowledge so we’re happy to help recruit a Developer for them to re-architect their internal CRM system with AWS & Microservices. Who’s your role model – in life or in recruitment? My grandad was a Lancaster pilot in WW2. Once the war finished, he was liberated from a POW camp and worked in the cutlery business in Sheffield. He ended up employing over 150 people and became a well-liked and respected figure in the city. What’s your favourite meal? Tuna, or Steak. Or Tuna Steak. What’s been your most memorable experience with a candidate? I placed a Graduate Developer with a startup company 6 years ago. They’ve since moved into a Senior / Team Lead position and we now help them recruit for the original position we placed them in! It’s a pleasure to be able to work with this person for an extended period of time and build a great personal and professional relationship with them. What would be your theme tune? Oasis – Live Forever What is your top tip for candidates? Work closely with one specialist recruiter in your area. They’ll have a wide range of suitable opportunities for you, so will work with you to find you the position that is truly what you’re looking for.

Artificial Intelligence (AI) and machine learning are set to be game changers for the recruitment industry and are already changing the jobs of recruiters. ​The recruitment industry has come a long way from reviewing printed CVs spread out across the floor in the 80s, to today’s modern era of digital databases and AI powered search, enabling recruiters to go through thousands of CVs in seconds. AI is here to stay and has already become a big part of recruiter’s day to day with the likes of LinkedIn Recruiter, that uses algorithms to sift through its database of 7m candidates looking for jobs. Early adopters of this new technology are sure to gain an advantage over competition in a crowded market. A new world of work With this rapidly evolving technology it’s hard to predict exactly where things are heading but according to Forbes, the use of artificial intelligence will play a key part in reducing human racial and gender-based biases. Using machine learning algorithms also makes it possible to screen CVs and applications for keywords and skills that indicate a candidate’s suitability for a role. It’s worth mentioning here that most successful hires are made based on behaviours and softer skills, which AI is not great at identifying yet. This is down to humans not knowing which behaviours to tell AI to look for in candidates but also because AI still lacks human interpersonal skills. According to LinkedIn, there are several ways AI will change the way we recruit: Programmatic advertising will make job ads more targeted and effective. Profile augmentation will allow jobs to be recommended based on the job a person wants to do, not just what they do now. This would make finding profiles for new tech jobs, that are hard to fill, such as Blockchain Developers easier as it matches experience with interests and recognises a candidates’ potential. Chatbots are already being used by some recruiters, answering candidates’ questions 24/7 and can also fill in the gaps in candidates’ CVs, giving recruiters a clearer picture of their suitability for the role. AI can be used to analyse candidate’s speech patterns to find out more about them but can also check language competency. Advanced competency tests will allow candidates to demonstrate their emotional and cognitive abilities through fun games – a great way to test soft skills that can be difficult to detect. Video interviews are also set to become automated. A candidate may only have to speak to the camera while the machine takes them through a list of questions. This may help eliminate unconscious bias and saves recruiters’ time. Facial and speech recognition software may can also be used to analyse the candidate’s body language, their tone of voice and their stress levels during the interview. Finally, automated appointment setting will help recruiters quickly and easily schedule meetings with candidates. What’s the mood of the industry? According to Tratica Research, revenue generated from the direct and indirect application of AI software is estimated to grow to $36.8 billion by 2025. Bullhorn’s 2018 UK Recruitment Trends Report shows that 29% of recruitment firms consider improving core business efficiency to be one of their top three challenges for the year ahead but only 16% said introducing automation is one of their top three priorities. 30% of respondents believe that AI will create more jobs while 41% think it will lead to job losses. A recent survey by Jobvite was slightly more optimistic with 49% of recruiters feeling positive about the effects of AI automation on their jobs with only 7% believing AI will have a negative effect. 72% of recruiters believe their approach to hiring will need to evolve as AI and automation become more prevalent. Matthew Ferdenzi, Chief Operating Officer at Understanding Recruitment commented: “We’re already seeing the huge potential AI has to disrupt industries across the board. There has been a sharp increase in demand for specialist talent which we predict to continue over the coming years. We already have a specialist AI & Machine Learning team of four people based in the UK and towards the end of the year we’ll be expanding into the American market, opening an office in Boston, that will specialise exclusively in AI and machine learning roles.” Will AI replace recruiters? AI will impact what the job of a recruiter looks like, but instead of a threat, it should be seen as a tool that will make the recruitment process more sophisticated. A modern recruiter needs to be knowledgeable, highly networked and understand the industry. The use of AI will free up their time to put the human element back into the heart of the hiring process. Time saved by automating the mundane and time-consuming tasks including scheduling interviews and sending routine emails, can be spent competing for candidates and focussing on making decisions about which candidate is best for the job. Of course, AI could lead to the loss of admin-heavy jobs, but new roles will also be created. overall, the benefits of automation and other tools outweigh the risk and help recruiters do a better job and be more productive. How AI can help recruiters In this competitive industry, recruitment firms need to constantly evolve their services to stay relevant. The crucial role of recruiters needs to be to bring people together. AI will free up time for recruiters to meet with more candidates in person and to be more creative in the hiring process. While AI will enable senior recruiters to spend more time on business development and winning new business, more junior recruiters will be able to spend time dealing with candidates and clients from the start which will have a positive impact.

What was your first job? When I was 16 I worked at the local golf club and hotel as a waiter during Christmas parties and I managed to buy myself an iPod touch. How did you get into recruitment? When I left college, I wanted to get a job instead of going to Uni. I never really liked education that much but wasn’t looking at recruitment before I found an apprentice recruiter job here in St. Albans. When I first started I didn’t have a clue what recruitment was! What do you love most about your job? The best thing about recruitment is the opportunity it gave me at such a young age to make a life changing amount of money and manage a team. What’s your top job to fill? One of my long-term clients, who are one of the biggest charities in the UK, are looking for a new Director of Change to build a brand new 5-year strategy. Who’s your role model – in life or in recruitment? I don’t really have a role model as such. I look up to my dad because he did well for himself. I also work closely with Dale, one of the founders of Understanding Recruitment, so he’s someone I look up to and he’s taught me everything I know about recruitment now. What’s your favourite meal? It has to be when my mum makes chicken fajitas. It’s a bit too much washing up to do when I’m by myself! What’s been your most memorable experience with a candidate? Because I work in a specialist market, I sometimes work with candidates for years. One of them kept narrowly missing out on roles for about 2 years. Just when he thought he wouldn’t get a new role, he got the job and he was probably one of the happiest people to ever get a job. I was really happy for him because we had a really good relationship and it was a step up in his career. What would be your theme tune? Guns N’ Roses – Sweet child of mine What is your top tip for candidates? If you think you’re a good fit for the job, follow up with the recruiter with a phone call and make sure to mention the right type of stuff on your CV. Tailoring your CV to each position is really important.

Your company’s culture is a huge part of your employer brand and can make or break it. It’s one of the many aspects that can attract, engage and secure top talent. It’s no wonder then that a growing number of candidates ask about culture during the interview stage, seeking transparency, flexibility and authenticity. The Shift With money now being less of a driver, especially for graduates, the focus has shifted to a sense of belonging, purpose and development within the workplace. Job descriptions can no longer just be a long list of what you expect from the candidate but must also give them an insight into what you can do for them. With an average of only 20% of candidates actively seeking new roles, building your brand’s magnetism is more important than ever in the battle for talent. Creating a culture based on your values leads to buy in from like-minded people and higher retention rates. With people spending more time at work than with their families, the ultimate goal for candidates is to find an environment that they can thrive in rather than just survive in. Getting It Right Culture is the backbone of your company but there is no cheat sheet for quick success. Culture has to be built on purpose. It’s not just about providing a pool table; some drinks and flicking the fun switch on. Your culture needs to be ingrained in everything you do from the top down. Your leader’s actions and decisions reinforce the culture of the company on a daily basis. It also affects how people interact with each other internally and how they treat your customers. Ask yourself what your company stands for. What do you expect from your employees and what motivates them to come to work every day? Building a people centric culture will ultimately lead to business performance and productivity but you need to take care of your people first. During the interview process it’s a good idea for your candidates to meet with multiple people in the organisation to help paint a better picture of your culture for the candidate, as well as making sure the candidate is a right fit for you. And remember, candidates will have a pretty good understanding of what you’re about before even meeting you, through their own research from news articles, word of mouth and social media. What About Millennials? According to Forbes, 90% of Millennials stated that culture is important to them and that it makes them more invested in a company. With 51% of Millennials open to the possibility of another job, culture has the power to attract and retain these future leaders. With this generation, it’s all about authenticity and they’re likely to spot if you’re pretending to be something you’re not. Being transparent is the way forward. In addition to the benefits you offer, highlight your development programmes and how you give your employees the opportunity to grow and hone their skills. Show people the reality of your business with behind the scenes content that lets them have a unique insight into what it’s really like working for you. According to recent figures from The Global Recruiter, employee stories are 20% more immersive than careers sites, bringing more employees into the recruitment process. 95% of participants said the content was highly relevant and 77% said their impression of the company improved with 98% of participants saying they would apply for the job. Differentiating Yourself When your ideal candidate is torn between your offer, as well as another company’s offer, what you stand for can really make a difference. If both offer packages are similar, a common situation for quality candidates, the distinguishing factor is what you’re all about, and how well it is being represented and communicated to your candidate could be the deciding factor. This is even more important if your salary package is not market competitive. Your culture could be the deciding factor why quality candidates might reject the higher salary package over yours. It’s all about identifying if the company will suit the candidates´ working styles, behaviours and values. That is one of the reasons, why many candidates are choosing smaller FinTech start-ups over the security of large IT companies. What’s in it For You? Culture can have a huge impact on the level of connection an employee feels with the company so making sure candidates are a good fit from a cultural standpoint is also beneficial to your company. Value-based recruiting is crucial to protecting your culture as you grow your business and hiring someone based on their skill set alone is bound to backfire, costing you twice that person’s salary to replace them when things don’t work out. Striking The Right Balance Attracting top talent is a hefty time investment but leaders should spend just as much time building the culture that keeps them. While your company’s culture plays a big part, candidates in the tech sector are also concerned about the type of work they’ll be doing, what niche knowledge they’ll be applying and exactly how they’ll be managed. The best approach to finding the right talent is to consider softer skills as well as technical skills evaluating cultural fit, values, beliefs and outlook as well as potential and technical skill.

What was your first job? I worked in Watford Market when I was 15 as a “washer upper” on the weekends and after school. I loved it and it was great to start earning my own money! How did you get into recruitment? I was working in a sales role at a jeweller and that’s when I realised I loved to sell and work to targets. I was looking to move away from retail and a friend suggested I should look into recruitment, so I did and here I am 5 years later! What do you love most about your job? I really enjoy interviewing people and finding out all about them and what makes them who they are. It’s also great to see the people I have helped recruit come into the company and become successful recruiters. What’s your top job to fill? We have so many at the moment, so it’s hard to say! All our teams are expanding and with our international expansion it’s a very busy time for me. I’m really keen to get some more graduates on board to join all our other new graduate recruits! Who’s your role model – in life or in recruitment? It would have to be my Mum. To see how hard she’s worked and the position she’s worked up to, considering she only started her career at 30 as a part time Admin Assistant, I just think is incredible. She has really instilled in me that hard work pays off. What’s your favourite meal? I really enjoy a brunch with lots of bubbles but if that’s not available you can’t beat a lamb roast with all the trimmings! What’s been your most memorable experience with a candidate? I once had to apologise and stop an interview because the girl had a spider in her hair and it was crawling down onto her face. When she shook her hair to try and get it out, it wouldn’t, so I had to help her (I also hate spiders) but we got it out and managed to finish the interview, so it was fine in the end! What would be your theme tune? Destiny’s Child – independent woman… no explanation needed What is your top tip for candidates? Make sure you research the business, turn up on time and dress appropriately!