How do you know your company is maximizing its recruiting ROI? This question can be evaluated just like any other business initiative can be: data.
Like it or not, analytics tell the truth. And by learning from other companies’ analytics in addition to your own, your team will be able to maintain the strengths in your recruitment process, while pinpointing areas that need improvement. Here’s a list of 10 recruitment statistics to help you do just that.
1. The online recruitment market in the US is expected to grow by $3.52 billion from 2020-2024.” [Source: Research and Markets]
So far in 2020, the number of office leases is decreasing, Zoom calls keep increasing, and business leaders are learning that many of their employees can be just as -- if not more -- productive at home than at the office. Following not too far behind is the realization that recruiting can be done from home, too.
This year alone, 86% of organizations have made the switch from in-person to fully virtual interviews. That number will continue to climb as companies in most industries pursue nothing less than complete digital transformation.
2. By 2030, there will be a global human talent shortage of more than 85 million people; roughly equivalent to the population of Germany. Left unchecked, in 2030 that talent shortage could result in about $8.5 trillion in unrealized annual revenues. [Source: Korn Ferry]
As Baby Boomers make their mass exit from the workforce over the next decade or so, and the talent pool shrinks as a result, recruiting will become even more challenging than it is today. The companies that come out on top will be the ones who learn to adapt quickly to new, innovative hiring and recruiting practices, while creating exceptional candidate experiences that draw top talent with ease.
3. 84% of companies are using social media for recruiting purposes.[Source: SHRM]
The younger generations that make up our current workforce (Millennials and Gen Z) are utilizing different tools than their parents did to both find jobs and apply for them. In addition to using social media to learn more about a company they’re interested in, candidates are also using platforms such as LinkedIn, Facebook and Twitter to build their personal brand in hopes they’ll be the one who is found.
4. The #1 way people discover a new job is through a referral.[Source: LinkedIn Business]
Referrals have long been thought of as the best way to find new hires. As they say, “Birds of a feather flock together.” If your team is made up of smart, hard-working people, chances are their friends and family members share some of the same qualities. Generally speaking, referrals are easier and less expensive to find, and result in higher quality employees who stay in their job longer.
However, in recent years, many people have voiced concerns about the impact employee referrals have on a company’s diversity. Well, we think you can have it both ways. Here are some tips for increasing diversity through your employee referral program.
5. The top channels people use to look for new jobs are online job boards (60%), social professional networks (56%), and word of mouth (50%). [Source: LinkedIn Business]
Most recruiters are privy to the fact that online job boards and social networking sites are critical to recruiting new talent in 2020. Word of mouth, on the other hand, is a resource many companies neglect, despite 50% of job seekers who list it as their preferred method. Leveraging word of mouth in recruiting starts with valuing the employees you already have by providing recognition, fair pay and benefits, and clear and constructive feedback.
6. Talent is 4x more likely to consider your company for a future opportunity when you offer them constructive feedback. [Source: LinkedIn Business]
Speaking of feedback, don’t save it all for the ones already within your ranks.
It might feel odd providing someone with feedback when they’re not even part of your organization yet; however, according to LinkedIn Business, it can be a major draw for top talent.
High performers value feedback because it helps them grow and improve, and furthers their career in the long run. By starting the feedback process before Day 1, candidates get a peek at the growth opportunities they can look forward to when they join your team.
7. Lack of information about pay and benefits (50%) and interview schedule changes (50%) are the two biggest causes of frustration during the interview process according to job seekers, followed closely by untimely responses (47%) and lack of information about job responsibilities (46%). [Source: PR Newswire]
For a short list of what not to do during the recruitment process, just reread the recruitment statistic above. Lack of information about pay and benefits, interview schedule changes, untimely responses, and lack of information about job responsibilities can all be traced back to one thing: poor communication.
Your team should offer as much information about an open position as possible, while ensuring a fair and structured interview process. If you’re looking to enhance the hiring process for your company, explore the HireVue platform.
8. 89% of job seekers believe it’s important for an employer to have a clear mission and purpose — one that’s easy to find on a job posting.[Source: Glassdoor]
It’s easy to quickly whisk a candidate through the interview process and straight to onboarding. However, taking the time to convey your company’s mission and purpose to potential employees is beneficial to both the company and the candidate.
Knowing a company’s mission instantly increases employee engagement. Employees are likely to feel inspired by the impact they can have on the world, as well as connected to others working toward the same goal. Rather than the dreaded feeling of complacency, employees look forward to meaning, purpose, and clarity.
9. Eighty-two percent of the time, organizations fail to choose the applicant with the right talent for a manager role. [Source: Gallup]
How can organizations that have been recruiting for years fail when it comes time to choosing the right managerial talent? It happens all the time, as illustrated through the hiring stat above.
Overall, this comes down to one fatal flaw in the system: experience is overvalued. When looking for someone to fill manager roles, many recruiters choose the person with 10 years of experience over the person with five. However, many studies reveal that experience is actually not an indicator of success. There are plenty of talented individuals who might excel in the role, but who simply don’t have the background a recruiter is looking for, whether for socioeconomic reasons, bias in the hiring process, or other factors.
10. As many as 29% of recruiters say one of the reasons they made a bad hire was because they struggled to find a qualified candidate. [Source: Harver]
Statistics #1 and #8 cover this issue on the surface, but what are some other reasons your company might be struggling to find top-quality candidates?
It’s possible your recruiting process is simply outdated. Today, many companies are leveraging technology to filter through the dozens - or even hundreds - of applications that may come through for a single open role, so that recruiters can focus on creating better hiring practices, updating job descriptions that are attractive to today’s job seekers, and nurturing a positive candidate experience.
If your recruitment process has room to improve, it’s not too late. It needs to be fast, while reflecting your organization’s unique values and needs--especially during 2020.
Read more about the crucial importance of providing a solid candidate experience in our eBook!