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  • 78 Hiring Statistics You Must Read: 2020 Data Analysis & Market Share

78 Hiring Statistics You Must Read: 2020 Data Analysis & Market Share

Category: B2B News

The future of recruitment and hiring may be rosy after all. Candidate hiring continues to evolve. Changes to the process are now focused on making job hunting much easier. Hiring statistics show that new tech will bring about changes in candidate recruitment. New talent acquisition methods will influence the way candidates decide about accepting jobs.

Talent pools are also expected to expand both in quantity and quality. More and more people are seeking higher education, raising workforce quality. This is good for employers for they will have a vast talent pool to dip their hands in. Additionally, entry-level positions are now a notch higher.

We have collated some of the most current hiring report available. This reading will give you a greater knowledge of recruitment and hiring. You should be able to align your business with such developments.

key hiring statistics

1. General Hiring Statistics

Job seeking and hiring have changed in recent years. One of the main drivers of this development is the way companies recruit candidates. Businesses have realized that compensation is an important consideration for candidate job acceptance. Hence, lowering communication skills standards for applicants. Check out the latest recruitment statistics to know more about these developments. Below are general hiring data that will impact hiring in the coming years.
  • 56% of US businesses will offer signing bonuses to new hires from business schools. [1]
  • 50% of the US workforce will be Millennials by 2020. [2]
  • 87% of recruiters say a four-year college degree makes an entry-level candidate competitive. [3]
  • 8 out of 10 recruiters use references to screen candidates. [4]
  • Requirements for excellent conversational skills and enthusiasm have decreased by many 20%. [5]
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Organizations' Top Recruiting Priorities

Organizations' Top Recruiting Priorities
Sourcing candidates directly: 68.1

Sourcing candidates directly

%
Organizations' Top Recruiting Priorities
Building talent pools for the future: 65.7

Building talent pools for the future

%
Organizations' Top Recruiting Priorities
Investing in tools to speed up hiring: 42

Investing in tools to speed up hiring

%
Organizations' Top Recruiting Priorities
Establishing a strong employee drive: 40.2

Establishing a strong employee drive

%
Organizations' Top Recruiting Priorities
Succession planning: 33.9

Succession planning

%

Source: careerbuilder.com 2018

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2. US Job and Labor Markets

The United States job market has significantly slowdown as of August 2019. This is in part with the US-China trade rift and its impact on the nation’s economy. Private and non-farm payrolls have risen, albeit, below forecast figures. The average job gains are down from last year but still manage to keep up with the population increase.  The country’s economic recovery has yet to impact different demographic groups. These groups continue to suffer from high unemployment rates. The divide between African American and White unemployment rates remain significant to date.  The highest job growth occurred in the hospitality, health, and education sectors. The US labor market has also been changing. Changes include the way by which job seekers discover new jobs and talent pool expansion. The following are some statistics that prove this point.
  • 63% of US employers plan to hire full-time workers in 2018. [6]
  • 7.2 million job openings in the US as of July 2019. [7]
  • 6 million – The total number of hires in the US as of July 2019. [7]
  • 72% of employers are having a hard time finding skilled candidates. [8]
  • 74% of recruiters will face hiring competition in 2019. [9]
  • Millennials make up the largest age group in the US workforce. [10]
  • Businesses can expand a talent pool 10 times by recruiting through employee networks. [11]
  • Most people discover new jobs through referrals. [11]
  • Employee referrals are the number one source of quality hires. [11]

millennials in the workforce

3. Challenges Facing Recruiters

Recruitment executives have implemented changes in the way they hire candidates. This is in response to the problems that they face in recruiting employees. Candidate health and decision-making, recruitment time and online application glitches cause these complications. Check out the following statistics that reflect the complications that recruiters offer.
  • 77% of recruiters go back and hire candidates who at first didn’t appear to be fit. [12]
  • 75% of recruiters have experienced candidates changing their mind. [5]
  • 41% of companies say entry-level positions are hardest to fill. [13]
  • 36 working days – The average time it takes a company to hire talent. [14]
  • 89% of talent say they accept a job offer faster when contacted by a recruiter. [11]
  • Talents are 4x more likely to consider a company for a future opportunity when a company offers feedback. [11]
  • 39% of recruiters allocate 1 to 3 business days to candidate training. [14]
  • 59% of candidates have abandoned an online application due to issues or bugs on the website. [15]
  • 89% of hiring executives say bad hires often lack soft skills. [16]

Use of Social Media in Recruiting

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Source: infinitysocialmedia.com, 2018

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4. Mobile Employees Hiring

The mobile workforce is expanding. Geographically challenged employees now work using technologies. These include mobile devices, computers, and the Internet. Freelancers make up a vast majority of this group. The number of freelancers will increase in the coming years. Mobile employee recruitment has become an alternative for many businesses. The following are some of the most recent stats on mobile employee recruitment.
  • 50% – The estimated increase in the number of mobile employees by 2020. [17]
  • 65% of companies communicate the importance of a mobile assignment to an employee’s career. [18]
  • 21% of executives say global mobility is key to attracting and retaining top talent. [19]
  • 41% of companies use mobility strategies in recruiting outside talent. [19]
  • 81% of companies that pursue talent mobilization experience revenue growth or surpass targets. [20]

mobile employees

5. Strategies to Boost Hiring

Organizations have been devising new ways to improve their recruitment processes. These new hiring methods help attract and retain more talent. These hiring methodologies include appealing compensation packages and flexible work deals. Reaping the applicant tracking software benefits can also improve the hiring process. The following are statistics on these hiring innovations. 
  • 67% of SMBs offer flexible work agreements. [21]
  • 80% of Millennials want to work overseas. [17]
  • 68% of companies have increased salary offers for candidates in 2018. [22]
  • 83% of executives say companies are shifting to open-career models. [19]
  • 51% of companies added temporary jobs in 2017. [23]
  • 66% of companies will train and hire candidates who may be lacking in skills but have potential. [23]
  • 55% of companies who constantly recruit say it slashes their time-to-hire. [24]
  • 40% of employers keep their recruitment processes in-house to save on costs. [16]
  • 75% of employers use behavioral interview questions to assess soft skills. [25]
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Top Uses of Data in the Hiring Process

Top Uses of Data in the Hiring Process
To increase retention: 56

To increase retention

%
Top Uses of Data in the Hiring Process
To evaluate skill gaps: 50

To evaluate skill gaps

%
Top Uses of Data in the Hiring Process
To build better offers: 50

To build better offers

%
Top Uses of Data in the Hiring Process
To understand what candidates want: 46

To understand what candidates want

%
Top Uses of Data in the Hiring Process
To do workforce planning: 41

To do workforce planning

%
Top Uses of Data in the Hiring Process
To predict candidate success: 39

To predict candidate success

%
Top Uses of Data in the Hiring Process
To assess talent supply and demand: 38

To assess talent supply and demand

%
Top Uses of Data in the Hiring Process
To compare talent metrics to competitors': 31

To compare talent metrics to competitors'

%
Top Uses of Data in the Hiring Process
To forecast hiring demands: 29

To forecast hiring demands

%

Source: careerbuilder.com, 2018

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Recruitment and Technology

Technology has been playing a role in employee recruitment. Technologies such as social media, video and applicant tracking software help speed up the hiring process. Likewise, candidates have been using tech to discover and apply for jobs. These technologies include recruitment sites and social media. Companies have also been turning to top applicant tracking software tools, resulting in faster hiring.

  • 5 million+ – The number of information technology jobs to be added globally by 2027. [26]
  • 60% of recruiters and hiring executives use video technology. [27]
  • 84% of companies use social media in recruiting. [4]
  • 60% of people look for jobs using social professional networks (56%) and word of mouth (50%). [11]
  • The most effective talent branding tools include company websites (68%), online professional networks and social media. [11]
  • 7 out of 10 people use Google to search for job openings. [15]
  • Only 17% of contingent employees found jobs using mobile apps for on-demand jobs. [28]
  • 50% of employers do not use applicant tracking software.[24]4
  • 78% of companies using an ATS say recruitment tech makes hiring easier than ever. [24]
  • 79% of job seekers say they are likely to use social media in searching for jobs. [6]

Recruitment Communication

Recruiter-candidate communication is a very critical component of the hiring process. Poor communication can fail to close the hiring loop as candidates can become frustrated with the process. Frustration, in turn, could result in candidates refusing to take the job. If you’re experiencing these pain points, you may need the help of top HR software companies to get your affairs in order. In a nutshell, poor communication can make you miss out on top talent.

  • 27% of employers are transparent about salaries and pay ranges. [16]
  • 52% of job hunters say a lack of response from employers is their biggest frustration. [24]
  • 40% of candidate hires say they have experienced between the time they decided to get a job and their first working day. [24]
  • 47% of businesses claim to have a formal communication process that covers post-hire and pre-start periods. [24]
  • 82% of hiring executives see candidate experience as important. [24]
  • 53% of job hunters want recruiters to clearly explain expectations in the job description. [24]
  • 86% of applicants say employers should treat them the way they treat current workers. [24]
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How Job Seekers Communicate with Companies

How Job Seekers Communicate with Companies
Phone : 74

Phone

%
How Job Seekers Communicate with Companies
Email : 73

Email

%
How Job Seekers Communicate with Companies
SMS : 24

SMS

%
How Job Seekers Communicate with Companies
Social media: 16

Social media

%

Source: clutch.co, 2018

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Most Popular Applicant Tracking Software

  1. BambooHR. BambooHR is an award-winning HR software service designed for small and mid-sized businesses keep track of their HR procedures and candidates. Learn more in our BambooHR reviews.
  2. SmartRecruiters. SmartRecruiters is end-to-end hiring management and talent acquisition platform. Discover how it works in our SmartRecruiters reviews.
  3. Workday. Workday is an HR platform that integrates the administrative functions of a business and packages it with real-time analytics. Learn how to maximize its potential to your benefit in our Workday reviews.
  4. Submittable. A submissions management tool that can receive all kinds of submittable media, including job applications. Look at our Submittable reviews to learn more.
  5. Greenhouse. Our Greenhouse reviews details a system that can streamline the hiring process, from prospecting, scheduling, and interviewing.

6. Job Acceptance 

One contributing factor to the slow hiring process is the attitudes of candidates when it comes to job acceptance. These attitudes range from openness to job opportunities, reasons for job changes and receptiveness to external influences. Check out more job acceptance statistics that we have compiled below.

One factor that contributes to the slow hiring process is candidates’ job acceptance. These attitudes include job opportunities reception, reasons for job changes and external influences. Check out more job acceptance statistics that we have compiled below.
  • The most important considerations in accepting new jobs are compensation (49%), professional development (33%) and better work/life balance (29%). [11]
  • Career opportunity is the number 1 reason for changing jobs. [11]
  • 85% of active and passive job hunters are open to new job opportunities. [11]
  • 70% of the global workforce is composed of passive talent. [11]
  • 67% of employed Americans say that job interviews influence their decision to accept a job. [15]
  • 36% of women and 29% of men say flexible work arrangements are critical to consider a job. [16]

job acceptance reasons

7. Diversity in Hiring

Diversity in the workplace has become the new norm, making it imperative to adopt the concept of recruitment and hiring. The concept’s use in recruitment has made its way into companies’ recruitment goals, but this is not to say that pursuing diversity is without its problems, the process could use some improvements. Check out the following stats to know how diversity in recruitment is doing these days.

  • 37.2% of companies say they have diversity hiring goals. [29]
  • 71.5% of businesses say they have a diversity strategy, are making progress or have “arrived.” [29]
  • 38% of recruitment executives say finding diverse candidates to interview is the biggest barrier to improving diversity. [30]
  • 40% of hiring decisions are influenced by unconscious bias. [30]
  • 41% of companies have seen an increase in the percentage of new hires that are minorities and women. [30]
  • 70% of organizations have seen an improved likelihood of hiring African American candidates. [30]

Top Reasons Why Companies Focus on Diversity

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Source: LinkedIn 2018

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8. Candidate Qualifications

Another factor affecting hiring in the US is candidate qualifications. The increase in the number of people pursuing higher learning is seen to improve the qualifications of entry-level candidates. The improved educational background of candidates will give organizations a broader pool of highly-qualified talent. More statistics on candidate qualifications are listed below.

  • 50% of companies have seen an increase in the number of candidates with a master’s degree for entry-level positions. [31]
  • Only 24% of college seniors will graduate with a degree in STEM. [31]
  • 52% of recruiters say they are most interested in candidates with a degree in STEM. [31]

increase of masters degree workers

9. Remote Work and the Gig Economy

With the availability of the Internet, remote work has become a possibility. A lot of jobs and tasks can be accomplished online, allowing employees to work from home. And the idea of working from home has proved appealing to many, especially those who need to be at home at all times. The working model has also caught the eye of freelancers, making it a valuable contributor to the “gig economy.” The following are more statistics on the work from home scheme. 

  • 25% of employers will offer remote work. [6]
  • More than 35% of US workforce are freelancers. [26]

freelancers in the US economy

  • 64% of college seniors say they are likely to get a job in the “gig economy” to supplement their main income. [31]
  • 65% of contingent workers found jobs from referrals. [28]
  • The lack of employee benefits is the biggest setback to the “gig economy.”  [28]
  • 82% of contingent employees ay they have at least one current contract job that is knowledge-based (i.e. writing, professional consulting and photography, etc.) [28]
  • 76% of gig workers find contract work exciting. [28]
  • 96% of software and IT companies allow remote work in some capacity. [16]
  • A 13% increase in productivity has been observed when employees are allowed to work from home. [16]

Source: zenefits.com 2018

How to leverage these trends to your advantage

The hiring process has indeed changed across all types of industries. It is up to business owners to adapt or risk poor performance in the recruitment game. The trends presented here can provide a bird’s eye view of the hiring landscape. Knowing these trends can be very handy for those who are hitting snags in your hiring process. Using technology, communication and relaxing candidate qualifications improve the way you hire talent. Top HR software is the prominent technology to date
 

For those of you who have all the needed things already in place, it may be high time to take the roads less taken. Try to focus on attitudes, offering remote work, diversity, and recruitment strategies. Adhering to these trends will not only put your hiring prices in high gear but also help you retain top talent. But, if you want to further speed up your process, choosing the best applicant tracking software is the way to go.

 


References:

  1. ^Corporate Recruiters Survey Report 2018
  2. ^Millennial Insights for the 2020 Labor Market
  3. ^The Class of 2017 Job Outlook Report
  4. ^Using Social Media for Talent Acquisition
  5. ^2018 Recruiter Nation Study
  6. ^CareerBuilder’s Midyear Job Forecast Shows Tough Hiring Environment for Employers is Paying Off for Job Seekers
  7. ^Job Openings and Labor Turnover – February 2020
  8. ^2018 TALENT SHORTAGE SURVEY
  9. ^11th Annual Recruiter Nation Survey
  10. ^Millennials are the largest generation in the U.S. labor force
  11. ^The Ultimate List of Hiring Statistics
  12. ^Recruiter Nation 2016
  13. ^We Asked 1,000 Employers What Their Outlook Is for 2018
  14. ^Talent Acquisition Benchmarking Report
  15. ^The Candidate Experience Playbook
  16. ^Global Talent Trends 2019
  17. ^Talent Mobility 2020
  18. ^2016 Global Mobility Trends
  19. ^Digital Mobility – Talent 2017 Trends
  20. ^Using Talent Mobility to Bring Out the Best in Employees and Your Organization
  21. ^7 Big Statistics About the State of Flexible Work Arrangements
  22. ^50 recruitment stats HR pros must know in 2017
  23. ^CareerBuilder 2018 Hiring By Numbers
  24. ^Candidate Experience From End-to-End: What’s Your Weakest Link?
  25. ^Majority of Hiring Managers Believe Role of Recruiters Will Change with Rise of Technology
  26. ^The Gig Economy Opens The Door For Employment Opportunities
  27. ^Video Interviewing in 2018: Trends and Insights
  28. ^The Myths & Realities of the U.S. Gig Economy
  29. ^Allegis Group Releases Report on Diversity & Inclusion
  30. ^5 Recruiting Strategies to Increase Workplace Diversity – HireVue eBook
  31. ^The Class of 2018 Job Outlook Report

 

Jenny Chang

By Jenny Chang

Senior writer at FinancesOnline who writes about a wide range of SaaS and B2B products, including trends and issues on e-commerce, accounting and customer service software. She’s also covered a wide range of topics in business, science, and technology for websites in the U.S., Australia and Singapore, keeping tabs on edge tech like 3D printed health monitoring tattoos and SpaceX’s exploration plans.

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