Recruiting statistics. Doesn't sound like the subject of a particularly exciting blog post does it?
Well, we shouldn't be too hasty to dismiss it out of hand. Looking at recruiting statistics helps us Understand how our industry is moving forward, pretty essential for guiding your outlook, strategy and decision-making process.
Here are the HR and recruiting statistics and best practices that you need to know in 2016:
Employer branding matters: the statistics
1. 84 percent of candidates would consider leaving their current company if another company with an excellent reputation offered them a job. (Source)
We all know a strong employer brand is important, but it could matter more than you think... reputation can woo passive candidates:
A great company reputation can even woo passive candidates and turn them into applicants.
2. A weak employer brand can cost you job applicants: About 11 percent of job seekers said they would decline a job offer from an employer with a bad reputation–even if they were unemployed. (Source)
That's crazy right? Getting brand wrong clearly makes a BIG difference.
3. Using your employees pays off - 52% of the content they share is trusted by candidates. (Source)
This makes plenty of sense. Who would you trust: a company's marketing department or your friend that works there?
Of course you're going to trust your friend, human nature dictates that we trust another person far more than a faceless brand.
4. The issue is that only 33% of employers actually encourage employees to use social media to share news and information about their work or employer. (Source)
Clearly, most companies are pretty far from getting all of this right!
It isn't just the employees that matter to candidates though, other stakeholders play a pretty big role.
5. 76% of people see companies that whose C-Suite execs and leadership team use social media to communicate their brand as more trustworthy. (Source)
6. 69% of active job seekers are likely to apply to a job if the employer actively manages its employer brand. (Source)
What exactly does it mean to _actively manage _your employer brand though?
It means responding to reviews on Glassdoor, constantly keeping social profiles up to date, sharing updates on social media and making corporate culture clear through a great careers page.
7. 59% of companies are investing more in their employer brand compared to last year. (Source)
We can finish on a positive note then, many companies are beginning to pay attention to the growing importance of brand.
Building a strong brand employer brand is crucial to companies hoping to attract more high-quality applicants.
Recruitment is now a candidate-led market: the statistics
**7. 90% of recruiters believe that recruiting was candidate-driven in 2015, **up from 54% in 2011. (Source)
It's a candidate's world, you're just living in it.
It appears that this statement has NEVER been more accurate. The way we approach recruiting from the first moment a candidate interacts with our brand all the way through to the offer letter really, really matters.
Are we doing things we've always done or are we treating candidates like customers?
8. 47% of small businesses cannot find qualified applicants for open positions. (Source)
If you can't find the right man (or woman) for the job, then you might not be alone. In fact, nearly 50% of SMBs aren't getting the talent they need.
9. 89% of Glassdoor users are actively looking for jobs or would consider better opportunities. (Source)
10. 51% of employees are considering a new job. (Workforce Panel, Gallup, November 2015)
Two quick-fire stats that show you that candidates (and your employees) aren't necessarily looking for a "job-for-life" anymore. We live in the age of the passive candidate.
Everyone is always open to a new role - great news for your sourcing team, but make sure you keep a wary eye on your own staff and keep everyone happy!
11. The number of American online job seekers has doubled since 2005. (Source)
There are more online job seekers than ever before. After surveying 2,001 U.S. adults, the Pew Research Center discovered that 54 percent of Americans use the internet to research available jobs, and nearly 45 percent apply for jobs online.
In 2005, the number of online job seekers reached only 26 percent of Americans.
2016 Hiring problems: the statistics
13. 52% of hiring decision makers say passive candidate sourcing has been less effective for their company. (Harris Poll for Glassdoor, 2014)
The issue here is that many recruiters rely on the same methods of finding candidates, (cough, LinkedIn), so there's simply too much competition.
Now, there's nothing wrong with the world's biggest professional network, but if everyone uses the same tools they're likely to surface the same candidates! (Here are a few nifty LinkedIn alternatives).
**14. The 2 key obstacles to growing headcount are a shortage of candidates and lengthy hiring practices. **(Source)
It isn't just the difficulty in connecting with candidates that's causing recruiters problems, lengthy hiring processes are making hitting headcount tricky.
Hiring slowly can cause your organisation serious issues. Lengthy application processes and slow feedback cycles take their toll on candidate experience and employer brand.
15. 47% of declined offers in 2015 were due to candidates accepting other jobs, up 10% from first half of the year. (Source)
Don't forget that most candidates you speak to will also be talking to other companies. Take too long and their likely to be poached!
**16. $4000 average amount that US companies spend to fill an open position. **(Source)
Finding and hiring the right candidate is expensive, but you probably knew that already!
The hidden costs of having unfilled positions though are more significant. There's the cost of the time your team spend searching and interviewing, the lost productivity from having the role open, the ramp up time needed by the new hire, the list goes on.
When you break this data down for the US on an annual basis, the numbers look pretty scary...
**17. Average of 52 days to fill an open position, **up from 48 in 2011. (Source)Last but not least, time to fill.This is one of the most quoted hiring statistics and for good reason, the longer a position is open the bigger the impact on the business.
The average time to fill is only up 8% from 2011 and varies wildly with the role in question, however it's still a metric that we should all be tracking and not a trend that we should be comfortable with.