When business leaders think about competition, they typically focus on industry competitors. These are companies offering similar products or services in the same market. They often drive strategic decisions and influence how a business positions itself. But when it comes to hiring, the most significant competition may come from an unexpected place.
In many cases, the real hiring competition comes from companies outside your industry. These employers may have very different business models, but they are looking to hire the same types of skilled workers. For example, production workers are often recruited by companies in healthcare, automotive, consumer goods, and electronics.
If you limit your focus to candidates with direct industry experience, you may be overlooking a broader and potentially stronger talent pool.
Why Ignoring Cross-Industry Hiring Competitors Can Hurt
Focusing only on hiring from within your industry can create several challenges:
- A smaller talent pool. Sticking to your industry shrinks the number of qualified candidates you can access. Broadening your reach increases your chances of finding the right fit.
- Delays in hiring. Unfilled positions can result in lost productivity and revenue. Expanding your hiring strategy can help you fill roles faster.
- Risk of losing employees. If other companies in your region offer better compensation, benefits, or career paths, you could lose staff to them without even realizing why.
- Missed innovation. Hiring from only one industry limits the diversity of experience and ideas on your team. Candidates from different sectors bring fresh perspectives and problem-solving approaches.
How to Stay Competitive in a Broader Hiring Market
To improve hiring results, companies need to look beyond their usual boundaries and adopt a more flexible, skills-first mindset. Here are some practical steps to take:
- Analyze your local labor market
Look at who else is hiring for the same roles in your area, even if they are in different industries. Study local trends, pay benchmarks, and availability of talent to better understand the competitive landscape. - Benchmark against all types of employers
Candidates often compare job offers across industries. If you’re hiring for administrative, warehouse, or customer service roles, you should compare your offerings to companies in fields like hospitality, retail, and logistics. This will help you stay competitive where it counts. - Use internal data to guide hiring
Review the backgrounds of your top employees. Identifying which industries they came from can help you expand your view of what a strong candidate looks like. This data can shape a more effective and inclusive recruiting strategy. - Prioritize skills over industry experience
Skills like adaptability, communication, and critical thinking apply across many industries. Instead of requiring direct industry experience, consider hiring candidates who have the right abilities and can be trained. This approach opens up your candidate pool significantly.
Failing to recognize who your real hiring competitors are can slow down recruitment, reduce retention, and make it harder to grow your team. The most successful organizations are the ones that recognize they are competing not just with companies in their field, but with any business hiring for similar skills.
The better question to ask isn’t “Who are our competitors in the industry?” but “Who else is trying to hire the same people we are?” The answer to that question can make all the difference in building a strong, resilient workforce.