Depending on what’s going on around the world—the political scenario, natural disasters, the migration of people from one country to another and even global warming—the demand and supply for the type of expertise you’re looking for might change. And pretty much everything to do with the hiring process is dependent on demand and supply.
The Rules of Demand and Supply
When the demand is high and the supply is low, the commodity in question becomes very expensive. When the demand is low and the supply is high, the commodity becomes cheaper. Although these economic rules were set up to understand the market when it comes to commodities, they can also be applied to human beings. When someone knows that their skills are in demand, they’re going to ask for more in terms of compensation and vice versa.
How Do Demand and Supply Affect Recruiters?
As a company trying to hire someone, it’s in your best interests when the demand is low and the supply is high. This means that you won’t have to pay that employee too much in order to attract them to your company. Of course, it’s still a good idea to make sure that everyone gets what they deserve and aren’t left in the lurch. But you won’t have to go above and beyond to find someone to fill a certain position.
On the other hand, if demand is high and supply is low e.g., if there are only a few candidates with the necessary skills and many companies competing to recruit them, then you’ll need to go all out to attract that candidate to your company.
Factors Affecting Demand and Supply
What are the factors affecting demand and supply? If you keep track of these, then you’ll be able to find the right candidate at a time when demand is low and supply is high rather than vice versa. Here are a few things to keep in mind:
- Political Scenario: If the political scenario in a certain country is not good, then people are often interested in looking for jobs outside that country. There might be many qualified people in that country but they may not want to stay there because they’re afraid of civil unrest, regime changes etc. In cases like these, it might be easier for you, as a company, to recruit someone from that country.
- Natural Disasters: Most of the time, people want to flee the sites of natural disasters. This is because a natural disaster destroys the infrastructure of a city or country and jobs become less secure. Recovering from a natural disaster can also take years. So someone who’s very qualified and wants to move ahead careerwise might choose to leave the country and go abroad to work. In such cases as well, the company recruiting that person is at an advantage.
- Migration: Sometimes, when there is too much civil unrest in one country, people start fleeing that country and moving elsewhere. They may choose to move to a country that’s close by or they might move to the opposite end of the world, if they receive a better job offer there. Still, this puts the company recruiting them at an advantage because these people are already looking to move.
- Global Warming: Can global warming really affect employment trends around the world? There are people who don’t even believe that it’s occurring. But let’s assume, for a moment, that global warming is happening. This means that a number of natural disasters that are currently happening in the world are a result of global warming. Some agricultural regions aren’t getting enough rainfall and there are famines in other regions. All this means that people might want to leave those places and go where global warming has not yet started having an effect.
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