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RECRUITER ENGAGEMENT PLATFORM
HARD TO HIRE:2018 THIRD-PARTY RECRUITING & THE STATE OF TALENT ACQUISITION SURVEY
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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
3
5
4
9
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16
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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?
INTRODUCTION
/ 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.
/ 5 /
71%
90%Feel the current
hiring market is more challenging now than
in the past!
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?
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.
73% of In-House Recruiters/Sourcers ci ted the ‘His tor ically low unemployment rate ’ as a top challenge with 72% of HR Leaders and 67% of Talent Acquisit ion Leaders following close behind.
A C L O S E R
L O O K
U.S. Unemployment Rate
Retiring Baby Boomers
Skills Gap Needed for Open Roles
Lack of Graduates for Critical Industries
Other
22% 22%
WHY DO YOU THINK THIS IS?
69%
31%
/ 6 /
THE REALITIES OF TODAY’S HIRING LANDSCAPE
TOP CHALLENGE
INTERNALRECRUITERS
TALENT ACQUISITION LEADS
68%
67%
25%
17%
22%
12%
SHORTAGE OF SKILLED LABOR
COMPETITIVE INDUSTRY
EXECUTIVE/SENIOR/PROFESSIONAL FUNCTION
INTERNAL RECRUITERS ARE OVERWHELMED
OUTSIDE SCOPE OF INTERNAL RECRUITER’S EXPERTISE
OTHER
79%
65%67%
of respondents
found that hiring in
competitive industries
caused much of their
challenges.
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?
Hiring in today’s employment market is daunting.
There are many possible causes, so we asked:
/ 7 /
FINANCE
51%45%
44% OPERATIONS
IT & ENGINEERING
*20% Specifed “Other”
51%
5%
22%
21%
14%
41%
Third-party recruiting is growing
as a viable option when hiring for
hard-to-fill roles. These are the top
three job categories employers are
going out to search for:
CREATIVE & DESIGN
CUSTOMER SERVICE/SUPPORT
ENGINEERING/INFORMATION TECHNOLOGY
FINANCE
HEALTHCARE
MANUFACTURING
OPERATIONS
PHARMACEUTICALS/BIOTECH
PROFESSIONAL/SPECIALIZED
RESEARCH & DEVELOPMENT
RETAIL/CONSUMER GOODS
SALES/BUSINESS DEVELOPMENT
24%
42%
45%
44%
19%
19%
WHAT ARE THE JOB CATEGORIES THAT YOU OR YOUR TEAM PRIMARILY RECRUIT FOR?
THE REALITIES OF TODAY’S HIRING LANDSCAPE
The top 3 job categories in the BountyJobs Marketplace
in 2017 were Research & Development, Sales & Marketing
and Information Technology.
A C L O S E R L O O K
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.
40% This
competitive
employment market demands
a high level of expertise.
49% A
historically
low unemployment rate
means your next candidates
are already employed.BRAN
DIN
G &
RECR
UITM
ENT
PASS
IVE
CAN
DIDA
TES
THIRD-PARTY
SEARCH OFFICE
OPEN HO
USES
36% Many organizations are
opening their doors to give
potential candidates a glimpse into life as a
member of their team.
51% Social media platforms
can be used for
candidate outreach for specific roles,
but also as a way to showcase the
company’s culture.
61% Improving branding
and recruitment
strategies go a long way in navigating
this hiring landscape.
SOCI
AL M
EDIA
WHAT’S A HIRING MANAGER OR RECRUITER TO DO?
BRANCH OUT! These 5 recruiting methods are the
most considered in a tight employment market:
*9% Specifed “Other”
WHAT RECRUITING METHODS MIGHT YOU CONSIDER NOW THAT YOU WOULDN’T HAVE IN A LESS CHALLENGING MARKET?
JOB FAIRS
27%
ATTEND/NETWORK AT MEETUPS
34%
ON-CAMPUS RECRUITING EVENTS
34%
OFFICE OPEN HOUSES
36%
THIRD-PARTY SEARCH
40%
PASSIVE CANDIDATES AS SOURCE
49%
SOCIAL MEDIA
51%
IMPROVE BRANDING & RECRUITMENT STRATEGIES
61%
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.A
CL
OS
ER
L
OO
K
80% A massive
percentage
have used a third-party
recruiter before.
85% Talent Acquisition
Leads were the
group leveraging third-party
recruiters the most.
55% Over half
of overall
respondents currently
use third-party
recruiting.
82%
Of Hiring
Managers had used third-party
recruiting in the past.
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PERSONAL PROFESSIONAL NETWORK71%
PAID SOCIAL MEDIA ADS (INCLUDING LINKEDIN)70%
AD PLACEMENT (OTHER THAN SOCIAL MEDIA)52%
OTHER14%
THIRD-PARTY SEARCH55%
JOB BOARD83%
WHAT RECRUITING METHODS ARE YOU OR YOUR TEAM CURRENTLY USING?
HAVE YOU EVER USED A THIRD-PARTY
RECRUITER? 80%
20%YES
NO
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.
A C L O S E R
L O O K
When looking at potential options to navigate this topsy-turvy
hiring landscape, third-party recruiting
came out ahead.
WHAT’S A HIRING MANAGER OR RECRUITER TO DO?
/ 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:
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%.
40% cited ‘quick
submission of
quality candidates’
35% found they
experienced a
faster time-to-fill
37% stated they
valued the
‘high value of expertise in their
area of hire’
A
CL
OS
ER
L
OO
K
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WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH?
WHEN OTHER AVENUES HAVE FAILED
ALONG WITH OTHER OPTIONS (IN PARALLEL)
WHEN PRESSED FOR TIME
ALWAYS FOR CERTAIN ROLES
OTHER
35%
22%
21%
11%
11%
WHEN IN THE PROCESS
DO YOU USE THIRD-PARTY
SEARCH?OTHER
WHAT, IF ANY, TACTICS DO YOU TRY FIRST BEFORE YOU GO TO THIRD-PARTY SEARCH?
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
15% 19% 48% 68% 70% 72%
JOBBOARD
84%
SOME WAIT 30-90 DAYS BEFORE GOING OUT
TO SEARCH
84%TRY A
JOB BOARD FIRST
72%POST OUT TO
THEIR PERSONAL PROFESSIONAL
NETWORK
35%UTILIZE THIS INVESTMENT
AFTER TRYING OUT THEIR USUAL
GO-TOS
WHEN IS THE RIGHT TIME?
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%.
A
CL
OS
ER
L
OO
K
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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?
YES
NO
DEPENDS ON THE ROLE
NOT SURE
NOT APPLICABLE
OTHER
7%
39%
35%
9%
8%
2%
ARE YOU OR YOUR
ORGANIZATION MORE
WILLING TO PAY PREMIUM
(ABOVE MARKET) THIRD-PARTY
RECRUITER FEES DUE TO THE
COMPETITIVE HIRING MARKET?
39%
35%
7%
≈
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.
#yougetwhatyoupayforA
CL
OS
ER
L
OO
K
/ 13 /
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.
““
““
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:
/ 14 /
WHAT, IF ANYTHING, HAS HINDERED YOU FROM USING THIRD-PARTY RECRUITERS?
FEES ARE TOO EXPENSIVE
WE HAVE A RECRUITER ON STAFF - HOW WOULD I JUSTIFY SPEND?
WORRIED ABOUT RECRUITER INTEGRITY
OTHER CHANNELS SUPPLY QUALITY CANDIDATES FOR MY ROLES
69%
41%
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
11%
7%
5%
14%
WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH?
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.
Respondents questioned the quality of
candidates that would be submitted.
Respondents concerned that the
recruiter may not describe the role
effectively to potential candidates.
56%
53%
56% 69%
41%
29%
26%
The top reason was potentially expensive fees.
Having a recruiter on staff already
was the overall second reason, but only
impacted 7% of Hiring Managers.
Worries about recruiter integrity came in
next, and impacted each respondent
group similarly, between 27%-30%.
Haven’t had the need followed at 26%. HR Leads and
Talent Acquisition Leads were highest at 30% and 25%.
THESE TOP TWO CONCERNS
DIRECTLY CONTRADICT
THE BENEFITS.
Concerns when considering working
with a third-party recruiter?
Until now, what has kept respondents
from using third-party recruiters?
A
CL
OS
ER
L
OO
K
/ 15 /
AGENCY RESPONDENTS MENTIONED THESE AS SOME PITFALLS TO WATCH OUT FOR:
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:
HOW CONFIDENT ARE YOU IN YOUR KNOWLEDGE OF THIRD-PARTY RECRUITING TO ACCOMPLISH THE FOLLOWING?
49%
55%
62%
48% Select best search type
Negotiate the best fee
Inspect a contract
Find a recruiter
RESPONDENTS FELT VERY CONFIDENT IN THEIR KNOWLEDGE OF THIRD-PARTY RECRUITING WHEN CONSIDERING THESE COMPONENTS:
Job reqs seem to have unrealistic
requirements and companies lack
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.
“ Employers don’t take the time to
talk to me or to the candidates.
Too much effort is made doing
anything but talking to people.
When you hire a person,
you do not hire a resume.
“
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%
VERY CONFIDENT
SOMEWHATCONFIDENT
NOTCONFIDENT
*Contingent, Retained
/ 16 /
ANNUAL SPEND ON THIRD-PARTY
SEARCH
I Don’t Know.
We Don’t Track It.
We Track
It!
30%
28%
42%
A LOOK AHEAD: THIRD-PARTY SEARCH – WHERE DO I GO FROM HERE?
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.
When asked about the cost
of third-party search to their
business’ bottom line,
the amount of spend from
respondents ran the gamut!
/ 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.
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. Speed of Hire & Retention/Attrition
Hiring Managers: Speed of Hire and Cost of Hire
HOW ABOUT THE TOP KPIS THAT HELP
TRACK ROI ON TALENT ACQUISITION AS A WHOLE?
AcceptanceRate
61%
73%
64%
59%
56%
54%
50% 35%
32%Talent Acquisition
Leads: Speed of Hire
Inside Recruiter & Sourcer: Retention
HR Leads: Retention
Cost of Hire
Diversity
Time toFill
/ 18 /
WHAT, IF ANY, TACTICS DO YOU TRY FIRST BEFORE YOU GO TO THIRD-PARTY SEARCH?
Diversity: 32%
Not one Hiring Manager selected
Diversity as a KPI to track and only
25% of HR Leads did so.
TOP 3 FOR AGENCIES?#1 MIRRORS THAT FOR EMPLOYERS:
¬ Speed of Hire: 63% ¬ Time to Fill: 62% ¬ Acceptance Rate: 58%
THE LOWEST ACROSS THE BOARD?
WHAT, IF ANY, KPIS DO YOU
OWN THAT HELP YOU
TRACK ROI ON TALENT
ACQUISITION AS A WHOLE?
59%
59%
56%
54%
35%
32%
10%
8%
6%
SPEED OF HIRE
RETENTION AND ATTRITION
TIME TO FILL
COST OF HIRE
ACCEPTANCE RATE
DIVERSITY
NOT APPLICABLE
WE DON’T TRACK ANYTHING
OTHER
A LOOK AHEAD: DATA ANALYTICS, THE BACKBONE OF SUCCESSFUL RECRUITING STRATEGIES
/ 19 /
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.
ARE THESE KPIS MEASURED WHEN USING A THIRD-
PARTY RECRUITER? ’
I’m not sure
We don’t use third-party recruiters
Other2%
14%
19%
50%
14%Yes
No, we don’t track
anything
50%
14%
19%
A LOOK AHEAD: DATA ANALYTICS, THE BACKBONE OF SUCCESSFUL RECRUITING STRATEGIESDigging 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?
/ 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 third-party 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.
/ 21 /
Company SizeDistribution
50 - 999
1,000 - 4,999
+5,0001- 49
12%
18%
21%
EMPLOYER ROLES
LEAD TALENT ACQUISITION ACTIVITIES FOR MY COMPANY
IN-HOUSE RECRUITER/SOURCER
LEAD HUMAN RESOURCES ACTIVITIES FOR MY COMPANY
HIRING MANAGER FOR A NON-HR DEPARTMENT
33%
25%
22%
9%
AGENCY ROLES
I OWN A RECRUITMENT AGENCY THAT EMPLOYS PEOPLE OTHER THAN MYSELF
I AM AN INDEPENDENT RECRUITER WORKING FOR MYSELF
I WORK FOR A RECRUITMENT AGENCY AS A RECRUITER
43%
37%
21%
EMPLOYER&
AGENCY
TALENT ACQUISITION PROFESSIONALS ≈50046%
DEMOGRAPHICS
/ 22 /
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
25
MANUFACTURING
INFORMATION TECHNOLOGY
FINANCIAL SERVICES
HEALTHCARE
RETAIL/CONSUMER GOODS
TOP INDUSTRIES
18%
17%
16%
15%
14%
JOB INDUSTRIES+DEMOGRAPHICS
10,000+ HIGHLY SPECIALIZED RECRUITERS
$1.6B IN PLACEMENT FEES
750,000 CANDIDATES SUBMITTED
B
GET IN TOUCHOur 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?
Email our Sr. Content Marketing Manager,
Erin Geiger, at [email protected]
Learn more about BountyJobs:
bountyjobs.com @bountyjobs @bountyjobs@bountyjobs
WORLD’S LEADING RECRUITER ENGAGEMENT PLATFORM
1114 Lost Creek Blvd, Ste. 420 Austin, Texas 78746