2018 will be the year of reckoning for recruiters. Low unemployment coupled with increased awareness amongst candidates about the employer brand has made hiring a tough job for recruiters. So either they need to up their game or lose talented candidates.
According to a recent CareerBuilder survey, companies across the globe are looking to revamp their hiring efforts to fill both the temporary and full-time positions in the year 2018. The same survey found that 44% of businesses are looking to hire full-time employees and 51% are planning to hire temporary employees. But roughly half of all the hiring managers surveyed i.e.; 45% quoted that they are unable to fill the much-needed positions due to the dearth of qualified talent.
To succeed in this candidate oriented job market, it is important for recruiters to come up with a different hiring strategy. One way to do that is by adapting their current hiring strategy based on latest trends.
In this blog we will discuss some of the current recruitment challenges, find out the latest hiring trends, understand what experts have to say about recruitment in 2018 and finally offer some tips on taking your recruitment to the next level. And we will pepper the way with dollops of data from various researches and surveys conducted across the globe.
Current Recruitment Challenges
In the year 2018, recruiters will look to revamp their hiring efforts in order to fill both temporary and full-time positions. But low unemployment coupled with increased awareness amongst candidates about the employer brand will make recruitment a very candidate driven market. Recruiters will then have to be better prepared to deal with these formidable challenges:
Talent Shortage will become one of the biggest hurdles faced by recruiters in 2018. Finding top quality talent will remain the key recruitment goal.
- 42% of employers are worried they won’t be able to find the talent they need.
- Approximately three quarters (72.8%) are struggling to find relevant candidates.
- 86% of the most qualified candidates for your open positions are already employed and not actively seeking a new job.
- 40 percent of employees surveyed said they plan on changing jobs in 2018.
Candidate driven recruitment market
Today, candidates have far more power during the job search and are hopping jobs more than ever before. Hence, candidate experience during all the hiring stages will become quite a significant factor that can make or break your recruiting goals in the year 2018.
- 86% of recruiters and 62% of employers feel the labor market is candidate-driven.
- 20.8% recruiters are finding it difficult to deal with candidate demands.
- 73% of candidates are passive job seekers.
- Top candidates stay available for 10 days only before getting hired.
Negative employer branding
In the competitive hiring environment of 2018, a negative employer branding can sabotage your hiring efforts and make it all the more difficult for you to hire talented candidates.
55% of job seekers abandon applications after reading negative reviews online, and only 45% employers ever monitor or address those reviews.
When making a decision on where to apply for a job, 84% of job seekers say reputation of a company as an employer is important.
Over 14% of candidates stated that the most important marketing material influencing their decision to apply was company’s values, more than awards like Best Places to Work Lists (12.7%) or corporate social responsibility (13.8%).
50% of candidates say they wouldn’t work for a company with a bad reputation – even for a pay increase.
Latest Recruitment Trends
As per Global Recruiting Trends Report by LinkedIn, the top 4 hiring trends that will have a major impact on the hiring process in the year 2018 include: diversity, new interviewing tools, data and artificial intelligence. We have provided key statistical insights pertaining to these trends, which, if practiced in the right way, will go a long way in transforming your recruitment process.
1. Practice diversity while recruiting candidates
Diversity in terms of gender and ethnicity will be crucial for organizations in the year 2018. Companies need to provide the same opportunities to everyone including candidates with disabilities and veterans.
Top Reasons companies focus on diversity include:
2. Adopt new interviewing tools and processes
Traditional interviews are not the most effective ways to access candidates. In the year 2018, with the help of new interviewing tools and platforms, it would be possible for recruiters to assess a candidate’s overall skills and capabilities in much lesser time.
Where traditional interviews fail:
Most useful interviewing innovations:
3. Increased use of data to make strategic hiring decisions
With huge abundance of data available in today’s digital world, it is possible to predict hiring outcomes and not just track them. This data usage is only going to become more critical in the year 2018.
Top uses of data in acquiring new talent:
4. Use of artificial intelligence (AI) and automation
Artificial Intelligence, like everything else, are also heavily influencing interviewing and assessment of candidates, not only resulting in better recruitment automation but also making the hiring process more error free. However there are certain areas that can never be replaced by AI, at least not in the foreseeable future.
Skills that AI is least likely to replace:
- Building relationship with candidates
- Seeing candidate potential beyond credentials
- Judging “culture add” or “culture fit”
- Gauging candidate’s interpersonal skills
- Convincing candidates to accept offers
Where AI can be most useful in the year 2018:
What experts say about the latest recruitment trends?
From leveraging the power of AI, machine learning and video assessment to increase of remote working, here’s what recruitment experts are excited about in 2018.
“AI and machine learning will continue to grow and proliferate.” – Dylan Redmond, SocialTalent
- In the year 2018, expect the arrival of new improved HR tools and software.
- With the help of algorithmic sourcing, it will become possible to predict when passive and active candidates are ready for a new job based on their online activities.
- Text analysis algorithms will assist recruiters to pick out skills and professional experience of a candidate faster than before.
“But, the hiring decisions will still be made by humans.” – Oleg Vishnepolsky, Global CTO at DailyMail Online and Metro.Co.Uk
- Do not expect recruiters to be replaced by machines or software anytime soon. But expect automated tools to assist recruiters to arrive at the hiring decision.
- The onus of assessing the soft skills of the candidates will be solely on recruiters.
- There would still be a need for external recruiters, but with the requirement of additional skill sets.
- Quantitative data analysis, big data processing, AI and machine learning management are the new skills to be learned by recruiters.
“Video assessment of candidates will rapidly expand. – Josh Bersin, Deloitte
- Expect video assessment of candidates to work 6 times faster than telephone interviews in the year 2018.
- It would make the hiring process cost-effective and thus improve the overall hiring process.
- In the future, expect recruiters to get the same productive value from five video assessment questions as a traditional 200-question test.
- Video assessment in the future would become an effective medium for recruiters to judge soft skills of the candidate and evaluate whether they are best fit for the culture of the organization.
“People analytics tools will become a “must-have” for HR teams and recruiters.” – Josh Bersin, Deloitte
- Recruiters would be using analytics in the year 2018 to make the best hiring decisions.
- Recruiters will become AI providers instead of just data analytics providers which would help them to deliver pattern-recognition, algorithm refinement, machine learning and natural language processing.
- Recruiters will use organizational network analysis to capture data from emails, feedback activities, and other sources to understand workflow patterns, roles and more.
“More companies will create and promote wellness policies. – 3rd Eye Advisory
- Currently there are only 40% of companies who are promoting their policies on wellness. But, in the year 2018, this number will grow.
- New HR technology platforms and tools will emerge for self-assessments, coaching programs, biometrics, and end-to-end healthcare solutions.
“Remote working will continue to rise.” – Josh Millet, CEO of Criteria Corp.
- This year, employees will use VPN systems to access work systems from any computer.
- Video conferencing and collaboration tools will become a norm which will accommodate remote working.
- Expect recruiters to recruit from anywhere in the world in this year.
Top recruiting priorities of organizations
According to a white paper published by CV Library titled “What does 2018 have in store for recruitment?”, when organizations were asked about their top recruitment priorities in 2018, they cited the following:
The question of top sourcing channels elicited the following response:
Tips for recruiters to hire talented candidates using innovative hiring methods
2018 is the year of game changers in the recruitment space. Global sourcing of candidates will become one of the huge trends that will continue to provide a competitive advantage to the recruiters. Ultimately the key to hiring the right talent in the new year would fall on utilizing technology in the best possible manner to hire the best talent.
1. Explore Talent Relationship Management (TRM) to accelerate quality hires
TRM is going to hit a home run this year as far recruitment firms are concerned. With the help of proactive sourcing and modern Applicant Tracking Systems, recruiters would be able to get a higher candidate conversion rate.
- Mercer has found that 79% of organisations are focusing their efforts toward building and promoting their own talent from within, and nearly half (48%) are increasing their recruitment from the external labour pool.
- PageUp has been using TRM and sourcing since a long time. They now make over three times as many offers and the offer acceptance rate has been 93% compared to the market average of 89%.
2. Use social recruiting strategies
More and more companies will adopt a social recruiting strategy to find talents, advertise jobs and communicate with potential candidates about company culture in the year 2018. There would be an increase in the investment in social media strategies and social listening tools.
3. Adopt a mobile-enabled application process
With each passing year, mobile devices are increasingly becoming more entrenched in our everyday life. In 2018, expect more and more organizations to adopt a mobile-enabled application process to meet the candidate expectations.
- According to Glassdoor, 89% of job seekers say their mobile device is an important tool for job searching and 45% use it to search for jobs at least once a day.
- According to a research conducted by PageUp, only 29% of Australia’s, 30% of Hong Kong’s largest companies, and 32% of the largest universities in the US have fully mobile-optimized career sites. Numbers were even lower in Southeast Asia (10%). We expect this number to grow in 2018.
- PageUp research reveals 16% of submitted applications come via a mobile device.