Looking for top talent? You have two options: post the job opening (online or in print) and wait for the applications to pour in from the wide world, or tap into your existing contacts or networks to find a suitable candidate without advertising.

Many companies opt for the latter: “the hidden job market”. This refers to jobs not publicly advertised but filled through word-of-mouth, networking, or internal referrals. Some estimates say that 70% of jobs in the hidden job market never go public.

But why do companies turn to the hidden job market in place of (or in addition to) traditional job postings? And how does this affect the quality, diversity, and fairness of the hiring process?

Here’s the thing: this concept can be a double-edged sword. Although it is a powerful tool to fill jobs quickly and efficiently, it offers up a range of challenges.

Why use the hidden job market?

·        It saves time and money

Advertising and posting jobs can be expensive and time-consuming. You must pay for the platforms, write compelling job descriptions, screen and filter through hundreds of applications, and conduct first, second, and third interviews. But the hidden job market lets you focus on finding top talent that’s already interested, qualified, and recommended.

·        It yields higher quality candidates

Candidates are more likely to fit the role and company culture well. They may have relevant skills, experience, and achievements that CVs or online profiles can’t fully capture. Additionally, they may already have a positive impression of your company, especially if they’re referred by someone they know and trust.

·        Discretion and confidentiality

Ever needed to fill a sensitive or confidential position, replace a key employee or create an entirely new role – that you’re reluctant to announce publicly? Using the hidden job market can help you to avoid unwanted attention, speculation, or backlash from competitors, customers, or current employees.

Why avoid the hidden job market?

·        It limits the candidate pool

By not advertising or posting jobs publicly, you risk missing out on talented candidates who aren’t aware of the opportunities or don’t have access to the networks connecting them to you. This may lead to a smaller and less diverse candidate pool.

·        Legal and ethical issues

The hidden job market may expose you to potential legal or ethical issues, like discrimination, favoritism, nepotism, or conflict of interest. Always ensure you follow fair and transparent hiring practices that don’t violate any laws or regulations protecting equal opportunity and diversity.

·        It restricts employer brand exposure

If you rely too much on the hidden job market, you may lose the chance to showcase your employer brand and value proposition to a broader audience.

What’s our advice?

When in doubt, stick to best practices. Here are some tips to consider:

1.   Mix it up

Don’t put all your eggs in one basket. Use various methods to find and attract talent, including advertising on relevant platforms, attending events, hosting webinars, and creating content. This way, you can reach a larger and more diverse candidate pool and increase your chances of finding the best fit.

2.   Leverage relationships

The hidden job market is based on trust and referrals. Tap into your network to find and attract candidates who aren’t actively looking for jobs or may not see public postings. Offer incentives or bonuses for employees who refer candidates or partner with reputable recruiting firms [TM1] with access to the ideal talent pools.

3.   Connect broadly

Connect with potential candidates through social media, online forums, and industry events, and share information about your company culture, values, and goals. Remember to follow up with your contacts, to build trust and foster proactivity.

Treasure trove or trap?

Sure, the hidden job market can be a lifesaver if you want to find and fill jobs quickly without the hassle of advertising, but remember that relying solely on one recruitment method won’t nab you the golden nugget.

Use the hidden job market sparingly to complement other sources, and ensure your hiring process is fair, transparent, and compliant with relevant laws and regulations.

Most importantly, monitor and evaluate the outcome of your hiring methods so you can make adjustments if and where needed.

Or let us handle it all for you – using both traditional and hidden-job-market methods. Contact Network Recruitment for the best recruitment strategy for your business.