• Main
• Blog
• eShop
• Discussions
• Job Resume!

Home » HR Processes » Recruitment and Selection » External Recruitment » Job Market Analysis

Job Market Analysis

Correct job market analysis is very important for the efficient external recruitment and the future of the organization. The job market analysis should be conducted regularly at least once a year for all the organization locations and it has to be done in the case of selecting a new location of the organization.

The job market analysis always starts with the definition of internal needs of the organization and with the prediction of its targets in the near and longer future. The organization has to make the estimate of the workforce needed and the future trends in the organization, which helps to make the gap analysis in skills and competencies.

The job market analysis follows the main areas:

• inhabitants in the area
• universities in the area
• main industries
• competitors
• job interviews results

The first issue to be analyzed is the number and structure of the inhabitants in the area. The HRM Function does not need to pay for a special analysis, all the information is usually available from the public sources. The organization has to make sure, the area is able to deliver expected number of employees and in the structure, the organization needs. The area does not include just the near surrounding, the organization has to make the analysis of the people traveling to their job every day.

The universities are another important factor in the job market analysis. The universities provide a lot of information about their students and they are able to help with the delivery of new workforce. The HRM Function has to make the analysis of the sources available, the majors of the graduates and their interest. The universities are able to cooperate with the organization to find the best jobs for their graduates.

The main industries and trends have to be analyzed. The industry in troubles can be the best source of talented and skilled workforce. The HRM Function has to cooperate with Marketing and Finance to identify the best sources in the area and to be prepared for the search of the best employees from the other industries in the area.

The competitors are not competing just with the products and services. They are competing on the job market as well and the analysis used by the organization can help to gain a competitive advantage. The best prepared organization can be the first to attract the best employees and it brings a huge competitive advantage at the end.

The results of the job interviews should be analyzed closely. The job candidates who refused the offer should be analyzed to find the gaps in the external recruitment process to make steps to improve the whole situation. The job candidate can provide the organization with helpful information and the HRM should value their immediate feedback.