Pulling the Curtain Back on the "Hidden" Job Market
What it is, why you should care and how to navigate it.
Last week, Sam Altman was fired as CEO of OpenAI. Within days, he had an offer from Microsoft to lead a new advanced research AI division - only to then get rehired by OpenAI amid turmoil and backlash from their team.
(There is a wider discussion on that topic re; AI, Ethics and Profits but that’s for another day, and another newsletter!)
What this does highlight is the existence of a “hidden” job market. Microsoft didn’t list a Head of Advanced AI research role on their careers site (as far as I know), go through rounds of interviews and assess a number of candidates, before finally deciding on Sam Altman.
They instead leveraged existing relationships, a referral network and Altman’s personal brand to make a quick hire (which ultimately didn’t work out).
The Hidden Job Market
Here’s the thing. There is a hidden job market. There are roles that are never posted. Some argue it’s up to 80% of roles (personally I think this number is pretty high) but hidden roles definitely exist. That is for sure.
Some roles aren’t posted for a number of reasons ranging from lack of recruiter or business capacity to confidential searches and opportunistic hires.
Referrals Are Important
Even for roles that are posted, having someone refer you can be a huge advantage.
Most companies aim to give referrals the white glove treatment, screening and interviewing them first, even if 100s of applicants apply before them.
(Note: only if the referred candidate is a match for the job).
There is a whole market out there to help you take advantage of the referral system. From step-by-step guides on convincing others to refer you to websites that help you find people to do this:
Refermaket.com
Teamblind.com
Refer.me
ADPlist.org
Referralhq.io
Before you go throwing your CV into those sites to get referred, there’s something you should know.
Reality Check
From a recruiter perspective, it’s easy to differentiate from the random referrals to the genuine ones. These sites open up the referral network which is good, but unless the referral is genuine - most recruiters will know.
This is why putting some time into cultivating your network consistently over time is important. Not only can you get quality referrals for open roles, but you’ll hear about roles that aren’t posted or are about to be and apply early.
Why Network?
A study carried out by LinkedIn in 2016 highlighted that 80% of people found networking important to building their career.
A 2018 study published in Frontiers in Psychology showed that daily networking was associated with greater job satisfaction and overall career optimism.
According to a 2019 paper about the informational benefits of networking, professionals using LinkedIn had better access to information about new job opportunities.
A more recent 2023 study by Chief found 80% of Women Leaders Use Networking to Drive Career Success. Fact or Fiction of roles aren’t posted.
How Do You Network?
There is lots of talk about networking out there. I’m definitely guilty of it too. However, how to network is glossed over a bit.
Truth time. There isn’t any secret sauce. It’s about trying consistently. Adapting your approach, and trying again if needed.
That said, there are some low-hanging fruit to get you started.
Friends, Family, Classmates:
Pretty straightforward here, start from the ground up. Even if they aren’t in the same industry you’d be surprised how your extended network can develop pretty quickly by adding folks from different industries.
Workmates and Work Alumni:
Another easy win is to add folks you work with on a daily basis on LinkedIn (or other platforms).
You can also extend the invites by searching for folks who used to work at your company (or previous companies you’ve worked with). It’s an easy conversation starter and as people move into other companies you never know how your network will grow.
Outside of the easier adds, you can proactively start engaging a network for your future career aspirations by search out and connecting with people:
from Target Companies:
As mentioned above, the opportunity for referrals will increase, you’ll also start building a network that is likely sharing relevant company news and updates - which will help you prepare for future interviews, even if you don’t know it yet!
in Target Roles:
Similar to adding folks from target companies, connecting with people who are in roles similar to those you are aiming for can be beneficial.
They will likely be on teams who are hiring, are hiring themselves, or are connected to relevant leaders who will be hiring for roles in the future.
who recruit in the Industry:
Finally, connecting with recruiters (especially those focused on your industry) is a great way to find out about roles and/or increases your chances of being reached out to if there are roles that fit your experience.
The irony of this - despite being a recruiter myself I was reluctant to add recruiters for fear of being spammed with messages.
Being on the other side of things now, I can safely say the best recruiters will only message if they have a relevant opportunity.
So your inbox should remain safe even if you connect with a few of us!
Networking won’t magically solve your problems. The more time and energy you put into building a strong one, the better you’ll be set up for long term success.
While you’re building one, you may have the opportunity to help someone else out along the way too!
You got this!