As we enter the last fiscal of this calendar year, we take a look at the recruitment activity in 2017 using the 2017 Recruitment Sentiment Study by MRINetwork. The study is lends great insights on what recruiters, employers and candidates are thinking about and what the present and future of recruitment look like.
What is the study about?
Conducted in June 2017, while partnering with The Martec Group, across 400 worldwide MRINetwork offices, the study sought to “evaluate the current employment landscape, and to project its direction in the months ahead.”
What did the study find?
- While 90% of the recruiters think that the labour market today is candidate-driven because of more offers and opportunities being offered, in contrast over 50% of employers believe that the market is employer-driven.
- Newly created positions and vacancies from resignations or terminations are the primary reasons for job openings in 2017 – the same as last year.
- The top factors that prevent employers from hiring are a lengthy hiring process and dearth of suitable candidates. “Employers report too many unqualified, junk resumes and difficulty finding passive talent.”
- The importance of social media couldn’t have been more paramount: More than 80% of the employers and 90% of the recruiters review social media profiles sometimes or all the time, and over 85% of both think that the content therein is somewhat or extremely important.
- While the importance of a positive social media profile has not ebbed, 22% of the candidates think that an online presence is not very important.
- 51% of the recruiters and 44% of the employers said they do not have a preference over traditional or online degrees, but 48% of the recruiters and 43% of the employers prefer traditional degrees and 13% of the employers prefer online degrees.
- Recruiters, Employers and Candidates all agree that better compensation and advancement opportunities are the top reasons why a candidate looks for a new job – although to varying extent. “Across all respondents, compensation was also one of the primary reasons an offer was rejected.”
Recruiters and employers are jittery over changing dynamics of the workforce, as millennials and Gen X and Y workers demand more work-life balance, and many are concerned about developing programs to develop and retain Baby Boomers. “Over 70 percent of recruiters and employers are somewhat to extremely concerned about replacing Baby Boomers who are reaching retirement.”
- In addition to these concerns, lack of preparation for the changes in workforce composition, changes in company culture, millennials’ lack of experience, talent gaps etc. are some other factors worrying recruiters and employers.
- Immediately attesting to these fears is the fact that 18% of the candidates think the option of working from is ‘extremely important’ and 37% think it ‘somewhat important’. “Therefore, not providing work from home options can put companies at a disadvantage in terms of attracting top talent.”
- Nearly half of employers (54%) and recruiters (51%) say that, on an average, 3 interviews are conducted before an offer is made for a job opening. Candidates, however, report a varied number: 1 interview (7%), 2 interviews (30%), 3 interviews (23%) and 4 interviews (28%). “Recruiters continue to report the majority of job offers are being presented between 3-6 weeks. Employers echo the same trend.”
- On why job offers are rejected, recruiters say that another job offer came along to the candidate (32%) and compensation (25%) are the top two reasons, and employers reported the same factors but compensation came on top with 32% edging out another job offer (21%). 40% of the candidates, however, say that they do not reject job offers at all.
- 51% employers believe that 1-10% of the job offers are rejected, 33% said less than 1% and 10% said 11-25% of their offers were turned down. “Over half of employers say an offer was rejected within 1-4 weeks of the first interview, reinforcing the fact that top candidates have multiple job opportunities at any given time.”
Hiring has continued to witness consistent activity this year as well, signalling that despite prohibitive international economic and political developments, recruiters and employers continue to look for new employees. But the study also shows that recruiters and employers are facing trouble finding them. It also highlights the challenges – present and impending – that are bound to spell trouble for the sector. It fittingly concludes, “Today’s best talent now seek an expedited, responsive, candidate-facing interview process, that clearly outlines how their career would benefit from joining your firm. Companies that want to acquire and keep strong talent on their teams will need to embrace this.”