The detailed and partially quoted explanation of the Hidden Job Market appearing below is courtesy of Career Perfect.

The hidden or unadvertised job market consists of those jobs that are not advertised publicly. Many estimates place up to 80% of the total job market among these. Moreover, many excellent career opportunities fall in the hidden job market. Today, much of the traditionally advertised job market is moving to online advertising and job sites, and we suspect some of the hidden job market is moving online as well; however, a significant portion of the total still likely remains in the hidden job market.

Hidden Job Market strategies are appropriate to include in some instances as part of an overall job-finding program:

• If you are seeking a position in an emerging technology or industry where requirements and objectives are yet to be defined, the hidden job market represents an ideal opportunity to create a position around your qualifications. Similarly, if you have a unique combination of skills that do not fit a traditional or common type of position, having the opportunity to create a position around your skills may warrant the additional effort spent penetrating the hidden job market.
• Secondly, if you are in a job category where there are few openings and/or an abundance of qualified candidates, it makes sense to tap into the hidden job market where more positions exist and fewer candidates are competing for them; this includes mid-level managers and senior executives as well as professional and technical fields with few openings.

Before proceeding, it would be advantageous to understand why the hidden job market exists. Additionally, it may be helpful to understand the various strategies — along with tradeoffs — that have been used to penetrate the hidden job market over the years.

Of the various hidden job market strategies, recommendations for implementing the most effective strategies follow. If you tend to be more outgoing and are comfortable with contacting new people, you can spend more time with networking, and better yet, the targeted networking described in this section. On the other hand, if you would prefer a root canal to contacting new people, you may want to put more time into the quantitative marketing described in this section, in addition to online and traditional job-finding strategies.

Networking

Traditional Networking involves developing a list of your personal and professional contacts, informing them that you are conducting a job search, and asking your contacts to point you in the direction of anyone they know who may be able to help. Typically you would start with a letter or e-mail for all but the closest contacts to prepare them and allow some thought to your situation, and then follow up with a more personal call or meeting. Start your list with professional contacts closest to your field, especially those in professional and trade associations, and then broaden it to include other professional, civic, fraternal, and personal contacts. Be sure to let them "off the hook" with regard to knowing about any specific job openings.

Networking is most effective if you have been in the habit of cultivating a network of career-related contacts. If you are already a member of professional and trade organizations related to your field, these are good places to network. If you are not currently a member, now is a good time to join. Keep in mind, however, that these professional and trade organizations are often used by new members specifically for the purpose of networking in a job search, so be tactful and don't expect instant help, but do join and get started. Another new form of networking is online, where a spirit of cooperation exists as part of the culture.

Note: While networking is appropriate in online forums that are specifically designed for career and employment networking, be careful in forums that are new or that you don't understand. Read the forum FAQs (Frequently Asked Questions) first to see what discussions are, and are not, appropriate and read through the discussions to get a feel for what is appropriate; this is especially true for Usenet Newsgroups, but the same caution should apply to any Web discussion forum or Online Service discussion forum (AOL, etc.).

The Key to Effective Networking:

The key to effective networking is to let all of your contacts — and those contacts to whom you are subsequently referred — off the hook with regard to knowing about a specific job opening (in writing and verbally). You are only hoping for further contacts who may not necessarily know of a job opening, but who may be able to "point you in the direction" of someone who also may or may not know of a job opening. People are far more open to helping and referring when they realize you are not expecting them or their referrals to know of a specific job opening at the time.

It is wise to send a thank-you card, note, or e-mail to those contacts who have referred you to others. You can take this a step further and update your contacts with a note or e-mail when you obtain a position. With this process you are developing a professional network that may serve you now and in the future.

Quantitative Marketing

Quantitative marketing focuses on mailing, e-mailing, or faxing quantities of personalized letters and resumes to decision makers. This strategy is different from the less effective traditional strategy of mass mailing letters and resumes to generic recipients like "Human Resources Department" or "Hiring Manager," which we do not recommend. Take a straightforward approach with regard to the fact that you are looking for a job.

Keys to Quantitative Marketing:

To identify target companies you will use the Company Databases section on our site. Names of key department heads are also sometimes available on the Internet; if not, they are published in various print directories, often from the same source as their online counterparts (ask the reference librarian at your local library). Unfortunately, print directories can quickly become out of date, so it is best to call the company in advance and confirm the name and title of the recipient.

After identifying the head of the department in which you would want to work, personalize and send your cover letter and resume to this person. It helps to personalize your cover letter with other information, such as what you have learned through your research about company products, markets, and news or press releases. While most correspondence will be routed to human resources, thus missing the Incubation Stage of the Job Life Cycle (see why the hidden job market exists), some correspondence will get through. Even those that are routed to Human Resources may stand out more due to their personalized nature. It is best to personalize the letter to the human resource professional responsible for recruiting for your particular occupation in that company.

Follow up after each mailing with a telephone call to the recipient — even if you just leave a message on voice mail. Indicate you are very interested in an opportunity in your field with this company when available, that you recently submitted your resume, and you wanted to confirm that it had been received. Although somewhat less effective, you could follow up with a letter or e-mail. The combination of a personalized letter and follow up is what helps you to stand out from other candidates. Do not expect a response back unless there turns out to be a current need for someone with your skills. The idea is to end up in a decision maker's file for any upcoming openings.

Targeted Networking

Targeted networking is a hidden job market strategy that can enhance or replace the outdated Referral Interviewing and Informational Interviewing strategies with a straightforward strategy for contacting key decision makers in targeted industries and organizations. It is more difficult today with complex voice mail systems to reach decision makers, however it is still possible.

The purpose of targeted networking is to network with specific companies of interest and key decision makers in the department for which you would want to work. The goal is to present yourself as a candidate for any upcoming openings (in the Incubation Stage of the Job Life Cycle), current openings, or to obtain a referral to other key decision makers — within this company or at other companies. It is important to let the decision maker "off the hook" with regard to knowing about any specific job openings.

Keys to Targeted Networking:

Use the strategies under Quantitative Marketing above to identify target companies and key department heads. You have the option of sending a personalized letter and resume to the department head before calling, or to jump in and call first.

Although you will want to put it in your own words, the following is an example presentation for your telephone contact:

Introduction:

"Good morning Mr. Jones. My name is Pat Smith. I am an experienced electrical engineer with an in-depth knowledge of widget applications. Have I caught you at a good time? ..." [Unless you hear a definite no, follow immediately with a brief professional profile]

Create interest with a brief professional profile:

"... I have most recently been involved with developing a more efficient widget system for multimedia applications, and have a solid background in both systems engineering and circuit design ..."

Clarify purpose — forward conversation:

"...The reason I am calling is that I am looking for a new challenge and, having researched your company, I felt we might have some areas for discussion, or at least you might be able to point me in the right direction. Are these the kinds of skills you look for in an electrical engineer?"

If the decision maker knows of an upcoming or current opening, typically questions will be asked regarding your background. If there does not seem to be a current interest, you will want to obtain a referral to another decision maker who may or may not have a current opening. Of course, a secondary objective is to remain in this decision maker's personal file for future openings.

To obtain a referral you might say something like:

"Mr. Jones [or use first name if appropriate], whom else might you know — who may or may not necessarily have an opening — but who might be able to point me in the right direction? ... [If so] May I use your name?"

It is a good idea to send a thank-you card, note, or e-mail to those contacts who have referred you to others. You can take this a step further and update your contacts with a note or e-mail when you obtain a position. With this process you are building a professional network targeted toward industries and organizations of interest. This network can serve you now and in the future.

 

 

The hidden job market exists

Job life cycles have four stages. Most managers naturally prefer those resources close at hand, providing opportunities to fill a job prior to advertising. Therefore many jobs never reach the advertising stage. To better understand why the hidden job market exists, it is helpful to understand the stages of the life cycle of a job, from inception to being filled.

Stage 1, Incubation (Only in the mind of the hiring decision maker; unadvertised)

A job starts out as an idea in the mind of a decision maker; this is someone in the organization who has the authority, responsibility, and typically from whose budget the salary for a job opening will ultimately come. We refer to this first stage as the Incubation Stage since this job does not start out as a job at all, but rather as a perceived need or problem to be solved in the organization. If someone were to apply at this time in the traditional manner, he or she would usually be told that no job opening exists.

When a problem or need is perceived in the organization, the decision maker typically thinks about and discusses possible solutions with colleagues within the organization. As this process progresses and the need for a position becomes more clear, the decision maker will turn to those he knows and resources close at hand, including his network of contacts, asking persons in his network whom they know who may be able to solve this problem or fill this need. This decision maker typically has a personal network of contacts consisting of colleagues within the organization and relationships through professional associations, club memberships, and various civic, community, alumni, church, or fraternal affiliations. A significant percentage of positions are filled through this informal process in the Incubation Stage.

Human Resources is usually unaware of this informal job opening at this early Incubation Stage, and may not be brought into the loop until a candidate has been identified through the decision maker's network.

Stage 2, Pre Ad Recruiting (In Human Resources; unadvertised)

If the position is not filled, the next step is a formal one. Human Resources establishes an employment requisition, and through a dialogue with the decision maker, creates a candidate specification. This will typically be a somewhat rigid set of requirements for the amount and type of experience, education, and other qualities, against which Human Resources will screen candidates. The first place for Human Resources to look is typically internally, including other divisions, posting the opening in internal e-mails, intranets, newsletters, and other in-house communications, and among resumes already on file. Although this is traditionally an unadvertised stage, with the growth of online recruiting, many openings will be posted on company Websites or advertised on job sites.

In this capacity, Human Resources performs a screening function for the decision maker. Only resumes of candidates that are a close or exact match for the candidate specification will be passed on to the decision maker. To illustrate, if the candidate specification requires education and experience consisting of A, B, C, and D, and your background consists of A, B, H, M, Q and Z; you will most likely be screened out, even though you may be able to do the job. Typically, only the decision maker has the flexibility to change the job requirements and/or responsibilities for the right candidate.

Stage 3, Advertised Recruiting (In Human Resources; advertised)

If the position is not yet filled, it will finally be advertised. Traditionally, a smaller percentage of available positions are estimated to trickle down to this advertised stage. This could include posting on job sites and local daily help wanted ads, or the job could be advertised in a regional or national publication such as a trade journal.

Stage 4, Post Ad Processing (In Human Resources; unadvertised)

After a sufficient number of responses are generated from an advertised position, advertising often stops, although the position may still be open. It typically takes some time to process and screen the volume of resumes generated from an ad before interviewing starts.

 

NOTE: Add Why the HJM exists text