2017 wraps up with the possibilities of big data still on the horizon of HR, technology firmly integrated in day to day operations of Talent Acquisition, and candidates in the position of power when it comes to hiring.
We coast into 2018 with unemployment in the US reaching a 17 year low at 4.1 percent. These numbers mean recruiters and talent acquisition leaders have to be especially agile to get the best candidates. TA teams approached this challenge with competitive gusto, taking advantage of time-saving tech as well as leveraging remote and flexible working options to attract top candidates.
- In the Ocean of big data before us, most TA teams have only dipped a toe.
In 2017 we have finally reached a point where most organizations make use of big data with at least the most basic tracking metrics of the quantity of hires, the speed of hire, and type of hire.
Yet, the rich depths of predictive analytics have yet to be plummeted. According to an outmatch survey of 176 professionals in the US only 35 percent of TA teams are using predictive analytics in their hiring process.
95 percent of that same survey acknowledged that they believe predictive analytics would be helpful in their hiring process and plan to take advantage of big data in the coming year to predict hiring needs, boost employee retention and loyalty, and develop an effective hiring blueprint.
- Most effective TA teams invest in technology.
The Hackett Group’s recently released benchmark analysis that finds the most effective HR teams invest the heft of their budget in cloud based tech. These TA organizations function with 30 percent less staff than the average HR organizations while being more effective and spending 25 percent less.
- Remote work options boosts employee retention.
Cafes, coworking spaces or even your couch at home – that’s the new office. 20 to 25 percent of workers already telecommute in some way, says the University of Alabama, and 90 percent of workers have ‘working remotely’ on their wish list. Employers who are dubious of these new fangled flexible work ideas should know The State of Remote Work report for 2017 shows companies who support remote work have a 25 percent lower employer turnover.
- Majority of TA and workers open to the gig economy
The survey of 1000 recruiters shows the TA community ready to embrace the opportunities the Gig economy presents with 78 percent indicating a friendly view towards this new method of work. 23 million Americans now participate as on demand freelancers in companies like AirBnB and Uber.
It’s not just millenials who are amenable to the gig economy. Manpowergroup found 94 percent of workers are open to non-traditional work arrangements, including 80 percent of baby boomers ages 50 to 65.
- One in five jobs sent to third-party agency.
20 percent of all jobs are now being sent to recruiting agencies. Employers opt for this pricier method for essential and time sensitive positions citing the following reasons:
- Tight labor pool 60%
- Competitive industry 55%
- Tight timeline 45%
- Strapped recruiting team 36%
- Confidential role 30%
- Lack of specialty on in-house team 22%
Surprisingly, a little less than 21 percent of companies track ROI from their use of a recruitment agency. However, 60 percent plan to do better with tracking to really learn what they are gaining from specialized agencies.
- Candidates hold the cards when it comes to hiring.
Candidates have had a great year! Low unemployment rate, consistent salary growth for the last five years, and increases in incentive perks – including 61 percent of employers offering relocation compensation and an increase of 2.3 percent from 2016 in telework and remote work options – all means that top talent has a pick of jobs and employers need to get strategic to win over their top applicants.