Recruitment Statistics Every HR Professional Needs to Know
There's no denying that hiring may be difficult. In this robust economy, finding someone who checks all the boxes is much harder. Employers are fighting for top talent, and you need every advantage you can get. Therefore, we've produced a list of the top recruiting statistics to assist you in developing a successful hiring plan.
1. Shortage of Talent
If you don't employ good people immediately, someone else will gladly take them away from you. Therefore, it is essential to not put off recruiting or overthink hiring decisions. The best talent is generally simple to spot; move quickly if you notice it. Remember that a company is only as good as its workers. Hire the greatest individuals you can find, and your company will achieve incredible results!
Outstanding applicants are only accessible for ten days.
In the United States, talent shortages have reached record highs, with 69% of businesses reporting difficulties filling positions. This has been the highest level in more than a decade.
A global human talent deficit of more than 85 million individuals will exist by 2030. If left unaddressed, a skills deficit in 2030 may result in $8.5 trillion in foregone yearly profits.
Talent shortage extends all the way to the tech world. There were 1.4 million computer science jobs available in 2020, but only 400,000 computer science graduates with the required skills.
If you want to discover top talent, find a recruiting situation that is just right. The hiring procedure should not be so extensive and difficult that it becomes intimidating to the prospect, but neither should it be a bit too easy as it becomes less exclusive and attractive.
2. A Trend in Changing Jobs
If you're looking to acquire young talent soon, you will be relieved to learn that in 2020, 66% of millennials wanted to change their jobs within a two-year time span.
On the flip side, if your firm presently accommodates a large number of young people, the prospect of more than half of them departing may be a cause of concern.
According to freshly revealed data in the Achievers 2020 Engagement and Retention Report, as many as 64% of employees may leave their employment.
Contrary to the belief of 89% of employers, only 12% of employees actually quit for greater money.
The primary factors employees are looking for or considering quitting their employer are compensation (52%), career advancement (43%), and lack of recognition (19%).
Interestingly, as an HR representative, you have a lot of influence on whether or not these figures remain valid in your own company. You have the capacity to impact working conditions and foster an environment wherein workers won't want to leave.
To attract excellent applicants, emphasize career growth possibilities in your employee value offer and once they've joined your team, make sure to acknowledge their efforts! Employee involvement and high-quality wellness initiatives are also highly valued by youthful employees.
3. Benefits and Perks
While it is critical to hire excellent prospects as soon as possible, it is not the only aspect to consider while obtaining their services. If you make a low-ball offer right away, expect them not to make it to your court.
The majority of employees value competitive remuneration plans above everything else, and your firm should be able to provide that as the money invested in attracting and maintaining the finest personnel will pay off in the long term.
Benefits and perks are a key consideration for 60% of people when deciding whether or not to take a job opportunity.
Most prospects are attracted by competitive perks (48%), a comfortable commute (47%), and reasonably high pay (46%).
The most-wanted benefits are health insurance (40%), vacation/paid time off (37%), performance bonus (35%), paid sick days (32%), 401(k) plan/retirement plan and/or pension (31%), flexible schedule/work from home (30%). Office perks/free lunch/casual dress (19%).
Competitive remuneration packages are the most appealing aspect of a job, according to 52% of questioned candidates.
Job postings that included an income range received 75% more views than those that did not.
When it comes to work flexibility, 54% of recruiting managers believe it improves employee retention, and 51% think it attracts new applicants.
When investigating a firm or looking at job advertising, 67% of job searchers look for salary information. However, only 27% of companies make their salary ranges public. 75% of these companies who don't publish pay information do so because they don't want to provoke salary disputes.
The two major reasons why job searchers find the search difficult are a lack of information regarding salary and perks (50%) and changes in interview schedules (50%).
When considering whether or not to take a job, women are 22% more likely than males to search for work flexibility.
Top candidates may be highly open to the idea of changing jobs. Benefits are preferred by 82% of women and 76% of men with children over a pay raise.
Money is a key component in a job for 92% of Millennials. Security (87%), time off (86%), excellent people (80%), and flexible working hours (79%) are among Millennials' top considerations.
A total of 69% of men and 51%of women said they would negotiate a wage with an employer.
Employees say they would not apply to work for a business with a wage disparity, according to 58%.
Table tennis and beer taps in the office will almost certainly not help you recruit excellent prospects. Provide significant employee perks and work arrangements that are flexible. A well-designed salary and benefits package may not only attract top talent to your organization but also persuade your high performers to continue for the long term.
4. Employer Branding
The way your company conveys its presence as a business is referred to as employer branding. This might involve displaying your company's goals, beliefs, and culture to existing and future workers.
Furthermore, when it comes to cold emails, only if the email is exceptionally well-written or comes from a well-known firm will it actually be well-received. If you received a cold email from Google, for instance, you'd be inclined to interact with it. Thus, proving why it is critical to building your employer brand, regardless if this is done through social networking sites or word of mouth.
Before applying for jobs, 75% of applicants will review the company's reputation.
64% of applicants said they evaluate a firm online after seeing a job opportunity, and 37% said they would move on to another job posting if they couldn’t find information about the company.
Even if they were unemployed, 75% of Americans would refuse to work for a firm with a negative image.
Even if the salary bump was higher, 50% of applicants said they would not work for a firm with a negative image.
If given a position with a firm with a good reputation, 92% of individuals would think about switching employment.
A good employer brand lowers attrition by 28% and lowers the cost per hire by 50%.
Businesses with a great employer brand attract 50% more quality candidates and recruit up to two times faster.
If candidates have already engaged with and encountered your brand, they are twice as likely to receive cold emails.
If an organization actively maintains its brand, 69% of job searchers are more inclined to apply.
62% of candidates utilize social media outlets to assess a company's employer brand.
Employer brand has a substantial influence on hiring, according to 72% of recruitment professionals throughout the world.
The corporate website (69%), online professional networks (61%), and social media (47%) are the top three methods small to mid-sized firms aim to use to expand their employer brand.
Employer branding, according to 39% of recruitment executives, will be a long-term trend to pay attention to in the years ahead.
Applicants will browse six company reviews on average before forming a judgment about the firm.
Before applying for a job, 79% of job seekers will think over the company's mission statement.
Before deciding to apply, 39% of women and 33% of men believe the company's brand to be essential.
Working for a firm that values transparency is essential to 96% of job searchers.
Employer brand is really important as employee turnover is costly. It is critical to do everything possible to limit it. From hiring to onboarding, the entire process must be smooth. This is so that people are enthusiastic about working for your firm straight away.
If you plan on sending cold emails, customize each email, and don't be scared to inject some personality. Automated communications are less engaging than speaking with real humans. You may also write a personal Linkedin message, which humanizes the approach even further by allowing them to see your profile and give a picture to the name.
5. Job Listings
The way you advertise your job is also crucial to how you attract incoming talent into your firm. If you don't list your jobs a certain way, you may be losing out on some great candidates.
A firm that featured job advertisements with visual components (pictures or videos) would be more appealing to 51% of respondents than one that didn't.
Job postings that included a range on the salary received 75% more clicks than those that did not.
If you want your job advertisements to stand out, you must set them apart from those of your rivals. Include a wage and make it visually appealing.
6. Candidate Experience
It matters to have a good hiring experience. At every stage of the process, it's critical to make applicants feel comfortable and appreciated. When this happens, the individual will already hold your firm in high esteem, motivating them to go above and beyond to help you succeed.
Furthermore, you'll lose them if it takes too long. This is a significant opportunity lost, and you risk losing excellent applicants as a result of your inefficient approach. A good example is Google. They discovered that after putting in the effort to improve the hiring process, the interview procedure had all these phases, so they reduced it to four. Thus, now getting applicants much more quickly.
In the two to three (or more) months following their application, 52% of applicants receive no communication.
Employers continually providing status updates to applicants is cited by an overwhelming 81% of candidates as the single most important factor that would substantially enhance their entire candidate experience.
90% of recruitment emails are not personalized
If a candidate has previously had a great candidate experience, they are 80% more susceptible to reapplying even if they do not acquire an offer letter.
A terrible applicant experience is likely to lead 63% of job searchers to reject a job offer.
Job applicants who had a poor experience informed others about it, either online or in-person, 72% of the time.
According to 27%, a bad candidate experience would lead them to deliberately discourage others from applying.
81% of job seekers will tell their friends, family, and peers about their excellent candidate experience.
A poor candidate experience, according to 64% of job candidates, would make them less willing to buy products and services from that company.
60% of applicants have dropped out due to an excessively lengthy application procedure.
15% of prospects that had a favorable recruiting experience put in the extra effort.
You may lose not just outstanding applicants but also clients and money if you have a terrible candidate experience.
Don't go overboard with the procedure. Nothing will ever be perfect, and you won't know if it's a good fit until you test things out. While companies recognize the significance of taking the time to get to know someone and requiring all possible applicants to go through many phases in the interview process before making a selection, there is the drawback that elite talent goes rapidly off the market. Frequently, businesses will overcomplicate the process and make it take longer than it should.
You should be timely, just as you want applicants to be on time. Show up or call exactly as planned. Also, avoid scheduling any part of the interview over the weekend, even if it's a phone interview. You want to demonstrate that the company is committed to having a work-life balance.
7. Social Media Recruitment
Recruiting and marketing are intertwined. To attract excellent people, you don't have to be a worldwide brand like Apple. To attract excellent people, you don't have to be a worldwide brand like Apple, Google, or Amazon. However, you must appear to be accomplished and effective. Potential workers will see your firm as such if it has a strong brand.
79% of job searchers believe they are likely to use social media in their job hunt, with 86% of which are younger candidates.
A social networking site was used by 73 percent of millennials to find their previous job.
49% of professionals use social media to monitor firms in order to keep informed about their jobs.
In comparison to job boards, job advertising, employee recommendations, recruitment agencies, and recruiting events, job hunters consider social and professional networks to be the most effective job search option.
"Recruiting is becoming more like marketing," according to 46% of recruiters.
Any firm that wants to succeed in discovering and enticing world-class talent will need to have a social media recruitment strategy. Send relevant material (blog articles, corporate announcements, etc.) to those who are interested. HR may collaborate with marketing departments to improve the process.
8. Passive Candidates
A passive job seeker is someone who is presently working and is interested in learning about new employment prospects but is not prepared to submit their resume for a different role.
This implies you're missing out on a large percentage of the talent pool if the only candidates you're looking into for available positions are active job searchers.
As an HR, you must be engaged and spend time in places where eligible people congregate, such as industry forums. You may also communicate with potential workers directly on platforms like LinkedIn.
Over 75% of professionals are not active candidates.
15% of the workforce are considered "tiptoers," meaning that they aren't applying for jobs but are considering making a move.
Passive candidates should not be ignored. Many businesses make the error of overlooking passive applicants. You're passing on a huge pool of talent who could be ready to collaborate with you if the deal was appropriate. All candidates, regardless if they are active or passive, must be seen as potential leads or prospects.
Hiring is not a one-time event. Creating and maintaining your employer brand is a continuous activity that involves many individuals from several departments.
9. Unfilled Positions
Your HR department should make filling open positions a high priority. When job openings go unfilled, money is lost, team productivity suffers as employees attempt to complete duties for which they are not qualified, and corporate morale suffers.
Invest in a good hiring program and look after your present staff. Building and maintaining a great team requires certain best practices.
The typical firm spends $500 per day on each vacancy.
New hiring takes an average of 27 business days to complete.
The average cost of hiring a person is $4,000.
The cost of unfilled positions is a major issue for 60% of businesses.
Consider the income lost as a result of missed opportunities, people being asked to accomplish more with less, resulting in mistakes made by employees who are given too much to manage, and so on.
But don't be too eager to hire just about anyone as it costs a lot of money to have a bad hire too. Make the most of your money. Although your applicant may have relevant expertise and appear to be a good fit on paper, their beliefs and personality should align with the company's culture too.
10. Employee Referrals
Employee referral systems are crucial because they make it easier for firms to find excellent personnel. No one knows better than your present staff what it takes to thrive at your firm.
That is, after all, what they do every day.
You can save hiring time and expenses, increase employee retention, and boost team morale by considering employee referrals seriously.
Employee recommendations are the main source of excellent hiring for 48% of firms.
It takes 55% less time to recruit a candidate who has been referred to you.
Hiring through referrals generates 25% more profit than hires from other avenues.
Referrals are the number one best source for above-average prospects, according to 88% of employers.
You're missing out on a big opportunity if your employee referral program doesn't result in at least 30% of new recruits.
Consider having an employee referral program that incentivizes current employees to refer potential candidates who could be a great fit for the company.
11. Recruitment Software
There are several software alternatives on the market, such as recruitment marketing software, to guarantee that your firm attracts top personnel. Keep the figures in mind if your firm isn't employing software in its recruitment procedure.
Recruitment software is used by almost 98% of Fortune 500 firms.
Investing in new recruitment technology, according to 68% of recruiters, is the greatest method to increase recruiting performance over the next five years.
Using recruiting software has a beneficial influence on the employment process, according to 94% of recruiters and hiring experts.
According to 78% of companies that utilize an applicant tracking system (ATS), technology makes discovering exceptional talent simpler than ever before.
The HR software sector is expected to expand to more than $10 billion in value by 2022, thanks to cloud technologies and the SaaS subscription model.
Applicant tracking software is not used by 50% of businesses.
Recruitment software is the future, and it is highly important to invest in it now to save a lot of time and money presently and in the future.
Wrapping Up With Lanteria
Recruiting talent is no longer the same as it was a decade earlier. Candidates have varying needs, and there is fierce competition for their services. In today's recruitment process, technology plays a greater role than ever before. This is all visible through current recruitment statistics.
It may be challenging for an HR professional to develop a recruiting strategy that incorporates an eye-catching corporate image, a strong business culture, a quick hiring process, and other factors. You may be certain that the people you choose are the best for your company's needs if you use these facts to show how your company searches for potential workers.
If you're searching for tools to help you discover, hire, and manage staff, Lanteria provides a number of award-winning features; we can help you operate your HR department successfully, from onboarding to employee engagement.