The Class Of 2021 And A Unique Job Market

Steve Lucas is the chief executive officer at iCIMS, a provider of talent cloud solutions that help job seekers and employers navigate the future of hiring. He is driven by the notion that talent is the x-factor of a company’s success, and that building a winning workforce requires a human-centric digital approach. This mindset has guided him through the first year and a half of his tenure as iCIMS’ CEO, partnering with customers through the most volatile job market in a generation.

I had the opportunity to interview Steve recently. Here are some of the highlights of that interview:

Jill Griffin: In terms of the talent market, what are some of the largest challenges out there right now?

Steve Lucas: That’s a two-part answer – the first being driven by the pandemic and the second by prevalent socioeconomic factors. Right now, perhaps surprisingly, there is a massive gap between the supply and demand in terms of jobs and people to fill them. Last year alone, we lost somewhere around 22 million jobs, but as the rebound continues in earnest, the calculus has flipped. Today, there are more job openings than I’ve ever seen in my career. It’s a challenge from a talent and recruitment perspective, but a good one to have.

The second challenge is how employers react and respond to a newfound urgency surrounding diversity, equity, and inclusion (DEI). It comes up in just about every conversation I have with customers and fellow CEOs. iCIMS recently issued a survey of both HR professionals and upcoming college graduates, and first-time job seekers rated a commitment to DEI among the highest priorities when considering an employer. It’s really top of mind for everyone.

Griffin: Why do you think that is?

Lucas: As a whole, leaders are getting better at acknowledging the fundamental flaws in recruiting that have existed for a long time. The natural inclination many executives have in wanting to improve their DEI efforts may be well-intentioned, but how we actually think about it can have its own set of unconscious biases.

There’s an earnest desire to increase the representation of diverse backgrounds, cultures, perspectives, and skillsets, but leaders are now more willing to think critically about how biases are standing in the way of that goal. Successful hiring strategies hinge on identifying where those biases have an influence and rethinking the process to put candidates first.

Griffin: The Future of Work is top of mind for HR departments. In terms of attracting the next generation of talent, what are they thinking about? What should they be thinking about?

Lucas: The market has never been more competitive, especially when it comes to digitally skilled talent. There are more jobs than there are people to fill them – HR professionals are looking at this year’s college graduates entering the workforce as a key opportunity to help close that gap. But the approach they take is going to determine their level of success.

One of the defining attributes of this cohort is their fluency with video and how it can create connections. HR leaders should consider how to approach these graduates on their turf and appeal to their communication styles. TikTok is a great example – not necessarily as a hiring tool but as a model for what truly effective short-form video can look like. We’ve worked with customers to help build a network of similar short-form videos made by employees to help spotlight company culture and experience. The traditional avenues of hiring just won’t cut it.

Griffin: What advice would you have for college grads that are entering the workforce for the first time?

Lucas: Graduates need to keep in mind that looking for an entry-level job in 2021 is radically different than in 2020. While the market is volatile right now, it is far more promising than last year. Job postings are outpacing 2019 levels, but the number of applicants has dipped to historic lows. This gives graduates a level of negotiating power that their predecessors simply didn’t have. In fact, our research found that what employers expect to pay an entry-level employee is roughly 24 percent higher than what entrants believe they will earn. So, to new graduates, I say know your worth and be ready to negotiate. That can seem uncomfortable because rarely do first-time job seekers have any formal experience in this but don’t be afraid to ask for more.

Something else to consider is aggressively building your network and spotlighting a digital portfolio. The job market is rushing toward a hybrid model where in-person connections and relationships aren’t necessarily a given. It is so important to find ways to introduce yourself and share the amazing work you’ve done – be it a blog, an article, or even a particularly insightful tweet. I don’t see as many portfolios as I’d like, but I suspect that will change in the near future.

Griffin: What should employers be doing more of?

Lucas: I recently saw a stat that most college graduates stay at their first job for less than 18 months. The thinking being: I’ll cut my teeth at this opportunity and move on. But that’s largely a function of how many employers fall short in their talent development and growth strategy. This next generation of talent has so much to offer and provides such critical perspective – why wouldn’t you do everything in your power to create a consistent pipeline of rock stars?

It starts by rethinking perks. Being aggressive in pay brackets is important, but back it up with early career mentorship programs. First-time job seekers respond to community and an authentic investment in their career paths. Second, put DEI front and center. A majority of young applicants won’t even consider an opportunity if that employer doesn’t seem to have a DEI focus. Finally, start getting creative in how you position new opportunities and roles. If we think that we can keep attracting great talent with boring job postings that legal departments largely wrote, we are going to lose.

Griffin: Anything else?

Lucas: We are finally seeing light at the end of the pandemic tunnel with businesses opening, reaching full capacities and ready to return to normal, as nearly 125 million people in the U.S. are fully vaccinated . Yet, job seekers’ behavior is simply not aligned. Certain populations are leaving the workforce, there are more jobs to choose from, some don’t want to return to work, and others are sheltering in jobs with fear of making a switch.

Employers can’t keep doing the same thing and expect a different result. Overcoming these labor shortages require employers to think about hiring differently, including building out dynamic talent networks proactively, versus approaching hiring when there is an open role. People want authentic experiences with employers and want to understand what the company culture is like for a prospective employer, instead of feeling like they are one of many on an email distribution list. Candidates don’t want a static job search experience – especially Gen Z.

We need to get people back to work, and employers need the right leaders and technology to build strong, diverse teams for today and the future.

By Jill Griffin, Contributor