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A few years ago, I did some research into the Hidden Job Market, a phrase that I had heard more times than I could count but had put little thought into.
Why the little thought? For three reasons: First, I found traditional job search practices, along with some networking, were more than sufficient in helping my clients land new roles.
Second, the evidence for this hidden network of unposted jobs, with estimates as high as 80%, was always a little murky. And since my clients were doing well anyway, what was the point of researching it?
Third, despite the lack of evidence, with so many others referencing it, I took their word for it. They must know something I don't. There must be a hidden job market that I simply don't have access to. Right?
However, to support my clients as best as I could, I dove into this nebulous topic to see what was true and what information/data I could unearth. And from my findings, which have continuously evolved, it is safe to say the phrase "hidden job market" at the very least needs to be rephrased if not downplayed extensively.
This blog post will serve as a chance for me to discuss the HJM after years of procrastination.
What is the Hidden Job Market?
The hidden job market is a term used to describe jobs that aren't advertised or posted. There are estimates that suggest up to 80% of all jobs are hidden. Not only is this daunting for the average job seeker, but it also creates an acute sense of anxiety that if you're not hearing from employers, you haven't tapped into this esoteric job market. It also instills the message that your resume, LinkedIn, network, networking efforts, and job search tools don't matter.
But the truth is not only is this 80% statistic not accurate or reflective of the modern job market, it is outlandish to even conceive of. Imagine how unnecessary recruiters, career pages, or the job search functions of LinkedIn, Indeed, Glassdoor, etc. would be if this was the case. Then multiply that by how cumbersome the hiring process would be, how labor shortages could ever be resolved, and how could employers ever expand their workforce by relying on this method?
Additionally, and I won't dive into this topic too much, but consider employee diversity or the legal ramifications if employers were only hand-picking individuals in a secretive way? I feel this would create a very biased hiring process, don't you think? Maybe even illegal if 80% of their workforce was sourced in such a fashion.
Do jobs go unposted? Of course, but they represent a small portion of jobs. Here are a few examples:
CEO + Executive Roles: Executive search firms work extensively with unposted roles as C-level and executive positions are often not made public as this can affect company optics, stock price, employee morale, etc. Additionally, as professionals who work in these roles can be scarce, it may not be realistic to post the role to begin with, as the new hire will need to be highly specialized. However, in either case, this is a small portion of roles. And despite this, many C and executive level roles are still posted, regardless. As of writing this, I just had a client interview for a c-level role at a Fortune 500 company that we applied for on, guess what, LinkedIn.
Internal Postings: Still posted, just not publicly. Sorry, this is not a hidden market.
Someone is Being Let Go: Imagine you're scrolling through LinkedIn looking for new roles and you see your company is hiring for your role. How motivated are you going to be to go into work and perform? Worse than that, what if the person being let go was vindictive? When companies are looking to fill a role for an incumbent who is about to be let go, they keep it quiet.
Created Roles: If you are a superstar performer, an industry-recognized professional, highly specialized, or just very sought after, it is possible employers will "create" roles to facilitate your entrance into their company. This often grows into something more established, but when a top prospect is available, employers want to act. A client of mine spoke at an industry seminar and an employer approached them with this same sort of pitch, and he eventually built out their sales team, but not before being on the payroll with an undefined role. However, this is rare and, to be brutally honest, only impacts individuals who probably aren't looking for a role or would require little help to land a new one, even if they were.
Start-ups: Expanding or small companies often do not have a well-defined organizational structure, human resources, or even well-defined roles. Sometimes they reach out to an ideal candidate when they are growing to help fill a void in the company. And this is not always publicly announced.
However, as with the other categories, this would represent a small portion of roles. And despite this, many start-ups still post jobs, no matter how poorly defined the responsibilities are.
Small Businesses: Small businesses are often hiring friends, family members, customers, consultants, and the like. In these cases, they are not posting a role, not using a formal HR process, or outsourcing the task to a recruiting firm or an HR consultant.
Nepotism: The practice among those with power or influence of favoring relatives, friends, or associates, especially by giving them jobs. It happens. We all know it does.
But many of these aren't even representative of a hidden job market. Even if they were, their combined totals would encompass less than 10% of all roles. So, what gives?
The 80% "Fact"
This data was extremely challenging to find, and most of the articles that quoted it never had a source. Every LinkedIn pundit who referred to this stat or a comparable one would quote those same articles, making me wonder, time and time again, where the hell did this number come from?
Until I found an article on liveabout.com where this was stated:
"Eighty percent of job openings are never advertised," says Richard Bolles, author of "What Color Is Your Parachute?" in a 1980 interview with The New York Times. "Instead, you have to search for a job through contacts."
Bolles' statistic seems to be based on research from Mark Granovetter, a Harvard sociologist who wrote a 1974 book called "Getting a Job: A Study of Contacts and Careers." In it, Granovetter reported that more than 55% of all workers' successful job searches resulted from informal contacts, not traditional job searches. In an earlier research study, "The Strength of Weak Ties," Granovetter found that of the job seekers who used a connection, 27.8% heard of the job from someone they saw rarely, and 55.6% heard about it from someone they saw occasionally.
I was able to get a digital copy of A Study of Contracts and Careers, and I believe they are referring, in part, to this data:
The most important point is, this book was written in 1974, most recently updated in 1994, and quoted by a career professional in 1980. Do you think it should not carry the weight that it does today? Especially considering how much the job market has changed? No.
The problem is that because it has been quoted so many times; it has, for many, including myself at one point, become an immutable fact.
But it does not serve the best interests of job seekers.
The Hidden Market and Networking
Well, before you get too animated. I think I should clarify my thoughts on the topic. The hidden job market is exaggerated, not non-existent. (As demonstrated through my examples).
The problem with referencing the HJM as the most viable means of landing a new role is simply inaccurate. The vast majority of roles are posted. Do exceptions exist? Of course. But for the average job seeker, this will not matter.
However, when I have told people this, I always get asked:
"If nearly all roles are posted, why network? Why not just apply to open roles?"
In truth, applying to open roles you find on LinkedIn, company websites, or job boards is a viable strategy, and I have had countless clients' land interviews and roles this way. The answer to why network is referrals. Referred candidates are more likely to receive interviews, but this is not the HJM.
In some instances, I think people are conflating a Hidden Job Market with getting a referral and these are not even close to the same as I will discuss further.
That said, two studies I have identified suggest referrals can represent up to 35.1% of hires. The one I just linked is from 2015, so a bit dated. (Apologies for not conducting are own study, we are small business not YouGov).
The other is by SilkRoad. You can download it here.
But this is how SilkRoad describes it:
The 1,200 participating companies in this study ranged in size from as few as 100 employees to mid-market companies to large employers.
Combined, the data allowed us to gain insights into:
• Nearly 13,000,000 applications
• More than 600,000 interviews
• More than 300,000 hires
The applicant tracking data from the SilkRoad ATS for this report came from more than 12,000 anonymous sources, and no company names or numbers were used.
Employee referrals have long stood out as a highly effective method of securing a job. As you will see from the study, referrals accounted for 22% of all hires. However, you can still easily get a job without a referral. The digital transformation of the job market has expanded opportunities for job seekers and employers. This study, despite it also being a bit dated now, shows job search engines like Indeed, accounting for a 32% interview rate and a 19% hire rate.
It is still completely viable to get a role via cold application (seeing a role on a job board and applying for it). I suspect that the % associated with each job board has changed since this study was released, but I don't think the overarching theme has.
The importance of leveraging multiple job search strategies cannot be overstated. Each channel has its strengths, with some, like employee referrals, accelerating the hiring process and others, like job search engines and career sites, providing broad visibility and accessibility.
However, it's pretty striking when viewing companies' source of hire how quickly that 80% hidden job market figure disintegrates.
Should the Hidden Job Market be Called the Referral Market?
No.
The idea that you can get a job from a referral is common knowledge. Nearly every online application form has an option where you can indicate if you were referred by a current employee.
These ideas, while having some overlap, are vastly different. A referral is for a role that exists or one that will exist and one where you will have to go through a formal HR process to be hired for. These are almost always posted somewhere, whether internally (intranet), externally on a job board, by a recruiter, or elsewhere. And there will probably be many internal or external candidates applying for the role as well.
For example, if you know the hiring manager, they may advocate for you, but you're still going to be moving through a formal human resources process.
I've also heard career coaches refer to building a relationship with a recruiter, employee, hiring manager, or leader at a particular company as the Hidden Job Market. Essentially, when a role is posted or when they hear of an opportunity, they reach out to you, and you apply. Sure, it is possible you get a head start, and this is a strategy I agree with. But it doesn't mean that role is or will ever be hidden from the broader public.
The hidden job market in a digital world makes zero sense. Think about it, companies usually hire for four primary reasons:
Headcount: (They need to replace someone)
Growth/Forecasted Growth: (They are expanding)
Innovation/Leadership: (Fresh perspective, new product, solving problems, entering a new market, etc.)
Skill Gap: (New technology/tool but no one can use it. Wait, you need an attorney for that? What's an AZ license? etc.)
In each of these cases, despite my very primitive explanation, time is of the essence. How could employers be relying on a hidden recruiting process that only a select few have access to to fill these gaps? How could that ever be effective when things like headcount require immediate attention?
Have you ever been short staffed on a team? How pissed would you be if your hiring managers were harvesting candidates off the dark web instead of using LinkedIn? Or only accepting referrals? Exactly.
The primary issue with calling the HJM a referral market is that it's not what people mean. A referral is a clearly defined process that can be calculated, traced, and reported. When there is a discussion about the HJM, it's unclear.
A Bit on Networking and Referrals
Great, referrals are awesome! How do I get some? Do I just do cold outreach to people on LinkedIn until they agree to give me one? No.
I don't want to get too sidetracked from the topic of this blog post, but asking strangers for a referral for a role is insane. It would be like me asking you to write me a review of my business after never working with me. Would you do that? (If you said yes, DM me right now).
But if you were in a hiring position and you received a cold LinkedIn message asking for a referral? You'd almost, without question, say no. Because saying yes and having them turn out to be an awful employee could seriously damage your professional reputation.
The issue with a lot of the advice provided about networking is that it is transactional. Essentially, you are trying to receive or get something from the other person, often by offering little or nothing. It's making connections with people with the objective of advancing your career, employment goals, or candidacy.
And while I'm not completely dismissing transactional networking, as it can be a crucial tool to landing a new role, there are other ways to network as well.
Side note: Reaching out to a recruiter, hiring manager, or executive search firm when you are qualified for a role and have applied or intend to apply for it, is not transactional. Although recruiters' inboxes are often full of messages from hopeful job seekers.
Let's talk about a more authentic and human approach to networking. Establishing a network based on authenticity and relationships creates a genuine desire from your network to help you land a new role. But the idea is to stop thinking about the destination and focus on the journey.
Instead of viewing each interaction you have with someone as a means to an end, get motivated to offer value without the expectation of reciprocation. Social media is a fantastic tool to do this. But also, instead of just thinking of how to boost your employability via professionally related posts, comments, and engagement, remember to be authentic. Show interest in learning about other's career journeys, personal life, and ambitions. Take the time to help them with their career, business, or personal goals without ulterior motives.
And truthfully, forming relationships or connections without an inherent expectation is liberating. It allows you to approach these interactions authentically and without judgement, so if they end up being beneficial in your job search, great, and if they don't? Still great. It also prevents either side from being disappointed or harboring resentment if the end doesn't justify the means.
This is the idea of building community. Not asking strangers for referrals. If you do the former, the latter will come. When you think of how you can help others instead of yourself, you not only create a healthier relationship with your audience, but you also eliminate your own pressure. This is the key! Build community.
Is this all easier said than done? Yes. But it is a good practice, and something I have no problem admitting, I need to work on. However, the residual results in terms of community growth, better relationships, and an ongoing commitment to putting others first are completely worth it.
Okay, let's get back to the HJM.
Why is the Concept of the Hidden Job Market so Pervasive?
People lie, or they are ignorant.
With the liars. I can't even count how many of my competitors or professionals in the career coaching/advising space perpetuate this myth. They falsely tell people they have access to the HJM to get business. But it's all bullshit. And you know how I know? Because none of them can prove it.
When asked to prove it, they refer to things like networking or knowing the hiring manager. And to be clear, having connections with executive recruiters or search firms (like I and many others do), does not mean I have access to a hidden market.
There is NO HJM, excluding the handful of examples I listed earlier. And as I mentioned, and will reiterate into infinity, these count for a minuscule number of positions.
Listen: COMPANIES HIRE PEOPLE WHEN THEY NEED THEM.
No one can will a job into existence for you. No one can force a company to hire for a role in your area. No one can get you hired for a role if the company isn't hiring for it. And no one can interview for you.
Can you be added to the waiting list? Maybe. Can you be considered for future opportunities? Maybe. But as I mentioned, companies hire people when they need them not as a favor to a LinkedIn influencer.
The fundamental issue with a job search is most people want to get hired fast, immediately. But companies hire slowly and when they need to. You could want a job as an enterprise sales executive at Google. But guess what, if they aren't hiring for that role, no referral, no resume, no executive search firm, no "secret" job market, is going to get you one.
As for the ignorant, many people hear a stat and repeat. Many years ago, I too thought there was a hidden job market. After you hear something so many times, you think it is true. Like how bulls get angry when they see the color red.
Because the HJM myth gets repeated again, and again, and again. It persists, and I spend a great deal of time explaining to prospects, clients, and job searchers why this isn't the case.
Something I hope this blog post can help with.
What Now?
Regardless of everything I said, you were hoping I had access to the HJM, weren't you?
I don't. I'm sorry.
But that doesn't mean you can't take your job search into your own hands and create a pipeline of opportunities.
These are a few core things that I do for my reverse recruiting clients and that I recommend to everyone I work with.
Update all your career documents, LinkedIn, Resume, Cover Letter. If you are applying for roles in Sales and Marketing have a resume for each, not a generalized one.
Search and apply to roles you're mostly qualified for if not completely qualified for.
Network. Both proactively and reactively. Let your circle know you are interested in new positions. If recruiters have reached out to you in the past for decent roles, follow up with them, etc.
Connect with recruiters in your industry.
Seek executive search firms that hire in your space or recruiters/headhunters that do. The amount of times my clients have landed opportunities this was is unparalleled. There are thousands of search firms in North America and they are all sourcing for candidates.
Join talent networks at desired companies. Although the interview rate will be low with this, you can get ideal roles sent to you when they open.
If you want more details about what each of these entails, reach out to me or Brad. But what I tell my clients and what every career coach should tell them is there is nothing I do professionally that you couldn't learn with enough time and practice. Yes, LinkedIn sales navigator and Boolean search strings are confusing, but you can do it. My pitch is, I do it for you, to a very high degree of ability. (Shameless plug).
But, the idea that a career coach, reverse recruiter, or anyone for that matter, has a hidden ace up their sleeve that you can get you a perfect job if you spend enough money is absurd.
The End
Well, there you have it. The Hidden Job Market is more myth than reality. Sure, it's got some truth sprinkled in, execs get headhunted, startups hire talent on the fly, and sometimes, it's all about who you know. But let's not make the exception the rule. Most jobs are out there clearly advertised, posted on job boards and blasted across LinkedIn.
If 80% of jobs were truly hidden, recruiters would be redundant, and job sites would be ghost towns, and LinkedIn probably wouldn't exist. Instead, it's a social media platform where networking is king and people spend way too much time on.
But Dan, you said referrals? Yes, referrals are gold, but they're part of a bigger, very visible picture. And require authentic relationships not shortcuts.
So, let's say fuck off to the hidden job market and instead dive into job-seeking strategies that actually work. Update your LinkedIn, chat up your industry buddies, and maybe, just maybe, your next job will find you.
Remember, the job search is grueling, time consuming, and never as immediate as we like. But it is not as much of a mystery as some would like us to believe.
Some sources: