RECRUITER ENGAGEMENT PLATFORM HARD TO HIRE: 2018 THIRD-PARTY RECRUITING & THE STATE OF TALENT ACQUISITION SURVEY

Transcription

1 RECRUITER ENGAGEMENT PLATFORM HARD TO HIRE: 2018 THIRD-PARTY RECRUITING & THE STATE OF TALENT ACQUISITION SURVEY

2 WHAT S IN THIS REPORT? Introduction About this Survey The Realities of Today s Hiring Landscape So What s a Hiring Manager or Recruiter to Do? When and Why to Use Third-Party Search A Look Ahead: Third-Party Search Where Do I Go From Here? A Look Ahead: Data Analytics The Backbone of Successful Recruiting Strategies Demographics About BountyJobs / 2 /

3 INTRODUCTION Today the hiring landscape is more challenging than at any other point in modern history. Whether it be third-party search, the latest in technology solutions, or social media one thing holds true: RECRUITING AS WE VE KNOWN IT IS EVOLVING. So we ask, how are you navigating the twists and turns in talent acquisition while still keeping ahead of your competition? /3/

4 ABOUT THIS SURVEY This report is based on a nationwide survey of more than 500 Human Resources, Talent Acquisition, Hiring Manager, and Recruitment professionals. They come from companies of all sizes in a wide variety of industries and specializations. The survey focused on exploring the unique relationship between companies seeking to fill roles and third-party recruitment agencies sourcing talent on their behalf. The goal was to identify common experiences from teams collaborating across the country, as well as strategies adopted in this quickly changing and competitive employment market. Learn about the commonly shared challenges teams face as well as tools they are employing to thrive in talent acquisition today. / 4 /

5 THE REALITIES OF TODAY S HIRING LANDSCAPE It s no secret that talent acquisition is going through some growing pains. Headlines scream about jobs growth, salary growth, low unemployment rate, the list goes on and on. But we wanted to hear the status straight from Talent Acquisition pros in the field: IS IT REALLY HARDER TO HIRE TODAY? 90% Feel the current hiring market is more challenging now than in the past! HERE S WHAT WE FOUND AS SOME OF THE POSSIBLE CAUSES: Of the answer choices given, the historically low unemployment rate was chosen at a high volume at 69%. There are less people out there looking for a job, and it s harder than ever to lure those passive candidates away from their current role. It s hard to find these ideal candidates in this hiring market. The skills gap, baby boomers retiring, and the dearth of graduates for critical industries also ranked as hiring concerns. WHY DO YOU THINK THIS IS? 69 % 71 % U.S. Unemployment Rate Retiring Baby Boomers 31 % 22 % 22 % Skills Gap Needed for Open Roles Lack of Graduates for Critical Industries Other A C L O S E R L O O K 73% of In-House Recruiters/Sourcers cited the Historically low unemployment rate as a top challenge with 72% of HR Leaders and 67% of Talent Acquisition Leaders following close behind. / 5 /

6 THE REALITIES OF TODAY S HIRING LANDSCAPE Hiring in today s employment market is daunting. There are many possible causes, so we asked: IN YOUR EXPERIENCE, WHAT MAKES A POSITION HARD-TO-FILL? Given any one open position, what factors do you run into as obstacles to filling that role? 67 % of respondents found that hiring in competitive industries caused much of their challenges. TOP CHALLENGE 79 % 65 % 68 % SHORTAGE OF SKILLED LABOR 67 % COMPETITIVE INDUSTRY 25 % EXECUTIVE/SENIOR/PROFESSIONAL FUNCTION 22 % INTERNAL RECRUITERS ARE OVERWHELMED 17 % OUTSIDE SCOPE OF INTERNAL RECRUITER S EXPERTISE TALENT ACQUISITION LEADS INTERNAL RECRUITERS 12 % OTHER / 6 /

7 THE REALITIES OF TODAY S HIRING LANDSCAPE / 7 / FINANCE WHAT ARE THE JOB CATEGORIES THAT YOU OR YOUR TEAM PRIMARILY RECRUIT FOR? Third-party recruiting is growing as a viable option when hiring for hard-to-fill roles. These are the top 44 % OPERATIONS CREATIVE & DESIGN CUSTOMER SERVICE/SUPPORT 24 % 42 % three job categories employers are going out to search for: IT & ENGINEERING 45 % 51 % ENGINEERING/INFORMATION TECHNOLOGY FINANCE HEALTHCARE 19 % MANUFACTURING 19 % 45 % 44 % OPERATIONS 51 % PHARMACEUTICALS/BIOTECH 5 % A C L O S E R L O O K The top 3 job categories in the BountyJobs Marketplace in 2017 were Research & Development, Sales & Marketing and Information Technology. PROFESSIONAL/SPECIALIZED RESEARCH & DEVELOPMENT RETAIL/CONSUMER GOODS SALES/BUSINESS DEVELOPMENT 22 % 21 % 14 % 41 % *20% Specifed Other

8 WHAT S A HIRING MANAGER OR RECRUITER TO DO? BRANCH OUT! These 5 recruiting methods are the most considered in a tight employment market:. BRANDING & RECRUITMENT 61 % Improving branding and recruitment strategies go a long way in navigating this hiring landscape. SOCIAL MEDIA 51 % Social media platforms can be used for candidate outreach for specific roles, but also as a way to showcase the company s culture. PASSIVE CANDIDATES 49 % A historically low unemployment rate means your next candidates are already employed. A C L O S E R L O O K While Talent Acquisition Leads were more apt to reach out to passive candidates as a sourcing option at 57%, 50% of Hiring Managers opted for third-party search. THIRD-PARTY SEARCH 27 % JOB FAIRS 40 % This competitive employment market demands a high level of expertise. 34 % OFFICE OPEN HOUSES 36 % Many organizations are opening their doors to give potential candidates a glimpse into life as a member of their team. WHAT RECRUITING METHODS MIGHT YOU CONSIDER NOW THAT YOU ATTEND/ NETWORK AT MEETUPS WOULDN T HAVE IN A LESS CHALLENGING MARKET? 34 % ON-CAMPUS RECRUITING EVENTS 36 % OFFICE OPEN HOUSES 40 % THIRD-PARTY SEARCH 49 % PASSIVE CANDIDATES AS SOURCE 51 % SOCIAL MEDIA 61 % *9% Specifed Other IMPROVE BRANDING & RECRUITMENT STRATEGIES / 8 /

9 WHAT S A HIRING MANAGER OR RECRUITER TO DO? When looking at potential options to navigate this topsy-turvy hiring landscape, third-party recruiting came out ahead. 85 Talent Acquisition % Leads were the group leveraging third-party recruiters the most. WHAT RECRUITING METHODS ARE YOU OR YOUR TEAM CURRENTLY USING? 83 % 71 % 70 % JOB BOARD PERSONAL PROFESSIONAL NETWORK PAID SOCIAL MEDIA ADS (INCLUDING LINKEDIN) 55 % THIRD-PARTY SEARCH 55 Over half % of overall respondents currently use third-party recruiting. 82 % Of Hiring Managers had used third-party recruiting in the past. 52 % 14 % OTHER HAVE YOU AD PLACEMENT (OTHER THAN SOCIAL MEDIA) NO 20 % YES EVER USED A 80 % A massive percentage have used a third-party THIRD-PARTY RECRUITER? 80 % recruiter before. A C L O S E R L O O K The high percentages of currently using and have used third-party search in the past lend themselves to the idea that third-party search is becoming increasingly seen as a solid option in recruiting your ideal candidate. / 9 /

10 WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH? With all of the other options in recruiting mentioned in this report, why would you use third-party search? Some top benefits seen by those respondents that worked with this sourcing option before: 40 quality candidates % cited quick submission of 37 % stated they valued the high value of expertise in their area of hire 35 faster time-to-fill found they % experienced a A C L O S E R L O O K Hiring Managers were split at 50% over enjoying quick submission of candidates as well as the high level of expertise in their chosen industry that they get from third-party recruiters. HR Leads and Internal Recruiters/ Sourcers both clamored for faster time-to-fill at 59% and 41% respectively. Talent Acquisition Leads were all about the quick submission of quality candidates at 47%. / 10 /

11 WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH? WHEN IS THE RIGHT TIME? A CLOSER LOOK / 11 / 100% of responding Inside Recruiters/ Sourcers try posting to Job Boards first. Utilizing social media for paid ads as well as free posts is popular among HR and Talent Acquisition Leads as well as Internal Recruiters/Sourcers at 70% or above but are utilized on the lower end for HR Managers at just 36%. SOME WAIT DAYS BEFORE GOING OUT TO SEARCH 35 % UTILIZE THIS INVESTMENT AFTER TRYING OUT THEIR USUAL GO-TOS 72 % POST OUT TO THEIR PERSONAL PROFESSIONAL NETWORK 84 % TRY A JOB BOARD FIRST WHEN IN THE PROCESS WHEN OTHER AVENUES HAVE FAILED ALONG WITH OTHER OPTIONS (IN PARALLEL) 22 % 35 % WHAT, IF ANY, TACTICS DO YOU TRY FIRST BEFORE YOU GO TO THIRD-PARTY SEARCH? DO YOU USE THIRD-PARTY SEARCH? WHEN PRESSED FOR TIME ALWAYS FOR CERTAIN ROLES OTHER 11 % 11 % 21 % 15 % 19 % 48 % 68 % 70 % 72 % OTHER NONE - GO STRAIGHT TO THIRD-PARTY SEARCH PLACE AN AD (OTHER THAN SOCIAL MEDIA) FREE SOCIAL MEDIA POST PAID SOCIAL MEDIA ADS (INCLUDING LINKEDIN) POST OUT TO PERSONAL PROFESSIONAL NETWORK 84 % JOB BOARD

12 WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH? Third-party search might be a major part of the talent acquisition strategies of many... but would you invest more money in premium fees to secure your ideal candidate? A C L O S E R L O O K / 12 / Leveraging the expertise of a third-party recruiter who has an extensive digital rolodex full of potential candidates for your critical roles could be the slight edge needed to speed past your competitors. Many organizations aren t aware what the appropriate fee is and drop out of the race completely before doing their due diligence. #yougetwhatyoupayfor 39 % 35 % 7 % 7% YES 39% NO 35% DEPENDS ON THE ROLE 9% NOT SURE 8% NOT APPLICABLE 2% OTHER ARE YOU OR YOUR ORGANIZATION MORE WILLING TO PAY PREMIUM (ABOVE MARKET) THIRD-PARTY RECRUITER FEES DUE TO THE COMPETITIVE HIRING MARKET?

13 WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH? THIRD-PARTY RECRUITERS! Why should an employer choose to work with you? Some reasons straight from third-party recruiter respondents: I can produce more fills than 3 individual recruiters combined. My network is vast and solid. I love what I do. Taking the time to get to know the motivation and professional reasons for making a change and making sure it fits within the client s need and timing. It needs to be a win for all parties involved. Always do my best to fulfill employers requests for a particular position and make sure the candidate submitted meets all their requirements. This is what we do all day. The amount of time it takes to fill a job can often be utilized by HR to focus on other, more important initiatives. / 13 /

14 WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH? Concerns when considering working Until now, what has kept respondents with a third-party recruiter? Respondents questioned the quality of from using third-party recruiters? 56 % 69 % The top reason was potentially expensive fees. candidates that would be submitted. Having a recruiter on staff already THESE TOP TWO CONCERNS DIRECTLY CONTRADICT THE BENEFITS. was the overall second reason, but only impacted 7% of Hiring Managers. Worries about recruiter integrity came in 41 % next, and impacted each respondent 53 % Respondents concerned that the recruiter may not describe the role effectively to potential candidates. group similarly, between 27%-30%. Haven t had the need followed at 26%. HR Leads and 29 % 26 % Talent Acquisition Leads were highest at 30% and 25%. WHAT, IF ANYTHING, HAS HINDERED YOU FROM USING THIRD-PARTY RECRUITERS? FEES ARE TOO EXPENSIVE 69 % WE HAVE A RECRUITER ON STAFF - HOW WOULD I JUSTIFY SPEND? 41 % WORRIED ABOUT RECRUITER INTEGRITY OTHER CHANNELS SUPPLY QUALITY CANDIDATES FOR MY ROLES 29 % 26 % I VE NEVER BEEN HINDERED FROM USING A THIRD-PARTY RECRUITER OTHER NOT SURE WHERE/HOW TO FIND THE RECRUITER I NEED AM UNFAMILIAR WITH THE APPROPRIATE FEE TO SET FOR MY JOB 5 % 7 % 11 % 14 % A C L O S E R L O O K This tells us that a bit more education is needed around third-party recruiting. Fees are negotiable for most budgets but you need to factor in the time saved and the increase in productivity when leveraging third-party recruiters they handle sourcing so you can focus on other high priority responsibilities. / 14 /

15 WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH? Employers! Here are a couple of things to keep in mind when working with third-party recruiters to get more out of your investment: RESPONDENTS FELT VERY CONFIDENT IN THEIR KNOWLEDGE OF THIRD-PARTY RECRUITING WHEN CONSIDERING THESE COMPONENTS: AGENCY RESPONDENTS MENTIONED THESE AS SOME PITFALLS TO WATCH OUT FOR: Job reqs seem to have unrealistic Employers requirements and companies lack don t take the time to talk to me or to the candidates. flexibility for quality applicants who may require a little time to get up to speed in some secondary technical skills they are lacking and will learn in a short time. Too much effort is made doing anything but talking to people. When you hire a person, you do not hire a resume. HOW CONFIDENT ARE YOU IN YOUR KNOWLEDGE OF THIRD-PARTY RECRUITING TO ACCOMPLISH THE FOLLOWING? 48 % Select best search type 49 % Negotiate the best fee 55 % Inspect a contract 62 % Find a recruiter FIND A RECRUITER 62% 32% 6% INSPECT A CONTRACT 55% 34% 11% NEGOTIATE THE BEST FEE 49% 37% 15% SELECT BEST SEARCH TYPE * 48% 42% 10% *Contingent, Retained VERY CONFIDENT SOMEWHAT CONFIDENT NOT CONFIDENT / 15 /

16 A LOOK AHEAD: THIRD-PARTY SEARCH WHERE DO I GO FROM HERE? / 16 / Third-party search could be the answer for your organization. Now how to find sources when looking for a recruiter? THE MOST COMMON ANSWER WAS REFERRALS. ANNUAL SPEND ON THIRD-PARTY SEARCH When asked about the cost of third-party search to their business bottom line, the amount of spend from 30 % We Track It! I Don t Know. respondents ran the gamut! We Don t Track It. 42 % 28 %

17 A LOOK AHEAD: DATA ANALYTICS, THE BACKBONE OF SUCCESSFUL RECRUITING STRATEGIES As you move forward in 2018 and throughout 2019, it s a good idea to take a closer look behind the curtain. Hiring Managers: Speed of Hire and Cost of Hire 50 % 35 % Acceptance Rate WHAT DOES YOUR DATA TELL YOU? This section gives you a better idea of what your fellow colleagues are tracking and leaning on most when making data-driven decisions. 54 % Cost of Hire 64 % 59 % Inside Recruiter & Sourcer: Retention 56 % Time to Fill 61 % HR Leads: Retention Speed of Hire & Retention/Attrition / 17 / 73 % Talent Acquisition Leads: Speed of Hire 32 % Diversity HOW ABOUT THE TOP KPIS THAT HELP TRACK ROI ON TALENT ACQUISITION AS A WHOLE?

18 A LOOK AHEAD: DATA ANALYTICS, THE BACKBONE OF SUCCESSFUL RECRUITING STRATEGIES 59 % SPEED OF HIRE WHAT, IF ANY, KPIS DO YOU OWN THAT HELP YOU TRACK ROI ON TALENT ACQUISITION AS A WHOLE? 59 % RETENTION AND ATTRITION 56 % TIME TO FILL 54 % COST OF HIRE 35 % ACCEPTANCE RATE 32 % DIVERSITY 10 % NOT APPLICABLE WHAT, IF ANY, TACTICS DO YOU TRY FIRST BEFORE TOP 3 FOR AGENCIES? YOU GO TO THIRD-PARTY SEARCH? #1 MIRRORS THAT FOR EMPLOYERS: Speed of Hire: 63% Time to Fill: 62% Acceptance Rate: 58% THE LOWEST ACROSS THE BOARD? Diversity: 32% Not one Hiring Manager selected Diversity as a KPI to track and only 25% of HR Leads did so. 8 % WE DON T TRACK ANYTHING / 18 / 6 % OTHER

19 A LOOK AHEAD: DATA ANALYTICS, THE BACKBONE OF SUCCESSFUL RECRUITING STRATEGIES Digging a bit deeper, in addition to identifying metrics that are valuable within your talent acquisition team overall, we asked: Are these KPIs measured when using a third-party recruiter? 14 % We don t use third-party recruiters 2 % Other ARE THESE KPIS MEASURED WHEN USING A THIRD- PARTY RECRUITER? 50 % 14 % 19% 14 % I m not sure Yes No, we don t track anything 19 % 50 % 50% of respondents say yes: this rings true most for Hiring Managers at 63%, and the least for Inside Recruiters/Sourcers at 38%. 19% responded that We don t track anything. HR Leads were the highest percentage here at 33%. 14% are not sure. The lowest percentages of these were HR Lead at 0% and Talent Acquisition Lead at 8% - kudos to these groups for being informed either way. / 19 /

20 A LOOK AHEAD: DATA ANALYTICS, THE BACKBONE OF SUCCESSFUL RECRUITING STRATEGIES SAY WHAT? OVER HALF of respondents say their organization doesn t or they re not sure if they routinely evaluate the performance of their pool of thirdparty recruiters! How do you know if your ROI is effective if you re not tracking it? We ll tell you YOU DON T! The 44% that DO track, list these as the top 3 metrics: quality of candidates, retention, number of placements. / 20 /

21 DEMOGRAPHICS EMPLOYER ROLES 33 % LEAD TALENT ACQUISITION ACTIVITIES FOR MY COMPANY 25 % IN-HOUSE RECRUITER/SOURCER 22 % LEAD HUMAN RESOURCES ACTIVITIES FOR MY COMPANY Company Size Distribution 9 % HIRING MANAGER FOR A NON-HR DEPARTMENT 18 % +5, % 1-49 AGENCY ROLES 43 % 37 % I OWN A RECRUITMENT AGENCY THAT EMPLOYS PEOPLE OTHER THAN MYSELF I AM AN INDEPENDENT RECRUITER WORKING FOR MYSELF 21 % I WORK FOR A RECRUITMENT AGENCY AS A RECRUITER 21 % 1,000-4, % TALENT ACQUISITION PROFESSIONALS EMPLOYER & AGENCY 500 / 21 /

22 DEMOGRAPHICS + 25 JOB INDUSTRIES TOP INDUSTRIES 18 % MANUFACTURING 17 % INFORMATION TECHNOLOGY 16 % FINANCIAL SERVICES 15 % HEALTHCARE 14 % RETAIL/CONSUMER GOODS REGIONS TALENT IS SOURCED FROM United States, Canada, European Union and United Kingdom Mexico/Central America/The Caribbean, India, Japan and Asia Pacific South America, China, Middle East, Africa and New Zealand / 22 /

23 B 10,000+ HIGHLY SPECIALIZED RECRUITERS $1.6B IN PLACEMENT FEES 750,000 CANDIDATES SUBMITTED GET IN TOUCH Our web-based platform consolidates third-party search activities into one convenient location; giving talent acquisition leaders the tools to track, manage, and evaluate their search spend. The result: better hires, faster. BountyJobs is headquartered in Austin, TX and is backed by Greylock Partners, Accel Partners, and RPM Ventures. Have questions or a topic you d like us to cover? our Sr. Content Marketing Manager, Erin Geiger, at blog@bountyjobs.com Learn more about BountyJobs: WORLD S LEADING RECRUITER ENGAGEMENT PLATFORM 1114 Lost Creek Blvd, Ste. 420 Austin, Texas @bountyjobs