Technology isn’t the only thing shaking up the recruitment landscape. Demographics and even shifts in political correctness are reshaping how companies attract talents. But it isn’t a one-way street. The following recruitment statistics give us a picture of how applicants and recruiters see the hiring process today.
If you want to attract the top talents or the right candidates, your hiring strategy should take into account these latest recruiting market research results. This guide sorts the key statistics in five critical areas. Once you’re done reading the article, you’ll have a clear picture of the latest development in the industry. You can use the insight beyond hiring, and into retaining the talents long-term and ensure your organization will be handed over to qualified leaders in years to come.
Millennials are the largest group you should pay attention to and they come with their set of preferences and idiosyncracies. But it isn’t all about generation when it comes to hiring. Company reputation and the interview experience are also important factors for a successful hiring process.
- Why do you need to pay attention to this age group? Because they are the largest group that make up the U.S. workforce. More than a third of employees (35%) are Millennials. (Pew Research Center )
- Loyalty is lost to Millennials. 66% of them think of leaving their organization by 2020. This, coupled with the fact that only 4% of HR managers think they know how to manage Millennials. (Glassdoor)
- One reason for the Millennial plight may be mismatched priorities. 83% of Millennials and 80% of Gen Z believe business success should go beyond making a profit. On top of diversity, they believe corporations should make a positive impact on society, develop innovative products or services and pursue career development. (Deloitte)
- Another study showed a more complex perspective: 92% of Millennials said money is a major factor in a job. However, it suggests that they also consider companies that can’t provide a six-figure salary if it offers other rewards. On top of salary, the top priorities of Millennials are: security (87%), time off (86%), great people (80%) and flexible working (79%). (Manpower Group)
- In the Glassdoor study, 90% of Millennials say they prefer benefits over a salary increase. At the least, studies have shown money isn’t the only major thing to attract Millennials. (Glassdoor)
- As for time off, “birth of my children” is the top reason for 61% of women Millennials who want to take a break from work. For men, it is relaxation or travel (ha, men!), with 42% of them agreeing to this reason for a time off. (Manpower Group)
- In the meantime, 63% of Millennials feel companies are not helping to develop leadership skills.(Glassdoor)
- However, In the Deloitte study, the leadership development gap appears not to be that wide. 29% of Millennials think their company should improve employee skills vs. 26% who believe their employer is doing it. (Deloitte)
- From another perspective, though, the Glassdoor study showed that only 7% of HR managers think they have leaderhip programs for Millennials. This suggests that the Deloitte result may have focused more on general employee improvement, not on leadership training. (Glassdoor)
- Whether it’s leadership or general skills, 46% of Millennials believe improving their qualifications is the best way to reach the next job level. So much for connections. (Manpower Group)
- Cash may be king but brand reputation matters for both sexes. 39% of women consider the company’s brand as “very important” prior to deciding to apply, while the same is true for 33% of men. (Glassdoor)
- More than half of job seekers abandoned their application upon reading a negative review of the company (55%), while only 45% of employers check their company’s online reputation. (CareerArc)
- A Glassdoor study revealed that reading 7 reviews are all it takes before applicants form an opinion about the company. (Glassdoor)
- LinkedIn reported that a strong employer branding lead to a 43% drop in recruitment costs. (LinkedIn)
- This is conversely consistent with the Glassdoor finding that boosting employer branding leads to quality hire. (Glassdoor)
- An easy job interview may look appealing to candidates, but a Glasdoor study revealed that making it 10% harder results in 2.6% higher satisfaction by the new employee. This isn’t surprising as we tend to put more value to things that we work harder for. (Glassdoor)
- Conversely, companies that take the time to develop a strong hiring experience realized 70% improvement in the quality of hires. (Glassdoor)
- Many companies though are more alike than different when it comes to hiring. They ask the most common job interview questions, such as: “Tell me about yourself;” “What is your greatest strengths?” “What is your greatest weakness?” “Why should we hire you?” and “Why do you want to work here?” (LinkedIn)
Salary & Benefits Statistics
Money is still the top factor for applying for a job, no surprise there. But the picture is more complex. Benefits and work-life balance can also be the deal-breaker, especially for parents with small kids. Overall, striking a balance between pay and benefits can be the golden deal to attract top talents.
- Overall, 57% of job candidates in the U.S. consider benefits and perks as the top factors to take the job. (Glassdoor)
- The same study showed that about 80% of employees prefer more benefits over a salary increase. (Glassdoor)
- This is corroborated by another study that reported 58% of employees who actually took a pay cut for a happier work setup. (Atomik Research)
- Still another study reported that 84% of employees who are highly satisfied with benefits show higher job satisfaction. (Guardian Life)
- In another study, compensation is still the top factor but 58% of the respondents say they’d go for a salary cut to improve their happiness. (Wrike)
- Between men and women with children under 18 though, 82% of the latter prefer benefits over a pay increase than 76% for men. (Glassdoor)
- One benefit that can make an impact on employee happiness is healthcare coverage. Many Americans cannot afford $3,000 worth of medical expenses. (Guardian Life)
Source: Glassdoor 2017 Designed by
Workplace Culture Statistics
Gender is still a sticky issue when it comes to employment. And the ugly head rears itself early on–at the hiring stage. There is a wide gap in the perception of men and women applicants and this bias extends all the way to employment. Gender difference though is not confined to biases. Women seem more conducive to work-life balance than men, who, on the other hand, prefer the importance of their job role and pay.
Women vs. Men
- Men are more ready to apply despite under qualified than women. Men feel they only need to fulfill 60% of the qualifications to get hired, while women feel they should meet 100%. (Hewlett-Packard)
- Another study found that only 12.7% of men say the reason for not applying is, “I didn’t think I could do the job well,” versus 21.6% of women. (Harvard Business Review)
- It appears women take job qualifications more seriously because of a stigma of bias. The reason is still linked to an earlier study, which found men are hired or promoted based on potential, while women on experience. (McKinsey & Company)
- This, despite the fact that female managers are 1.26x more likely seen by employees to support work development versus male managers. (Glassdoor)
- And that working for a female manager, employees are engaged 6 percentage points more than working for a male manager. (Glassdoor)
- You may want to consider gender, too, when developing a compensation package. 60% of women consider work-life balance and personal well-being as “very important” versus 48% of men. (Gallup)
- Likewise, only 15% of men say they’d prefer perks over money versus 34% of women, according to another study. (Wrike)
- The same study showed that 34% of women are more likely to put value on unlimited paid time off versus 23% of men. (Wrike)
- Concerning bonuses for a job well done, women are 94% more likely than men to prefer a gift card. On the other hand, men are 4x more likely to prefer a happy hour than women for a bonus. (Wrike)
- Men, apparently, would only compromise wage if it means taking on a role that they like or make them happy: 74% of men versus 44% of women agree to this statement. (Wrike)
- Companies believe leadership is critical in talent management with 89% of them considering it a “very important issue.” (Glassdoor)
- Nearly half of CEOs (49%) are aligning their talent strategy with the company’s leadership pipeline to attract and retain employees and make the company competitive long-term. (Glassdoor)
- Women performed better than men in 17 of the 19 leadership capabilities. (Harvard Business Review)
- However, women occupy only 4.9% and 2% CEO seats on Fortune 500 and S&P 500 companies, respectively. (Catalyst)
One thing is clear, applicants have more choices today. Conversely, companies have more competition when it comes to attracting talents. This demand for jobs is also driving more foreign workers to the country.
- There are more job opportunities today since the 2009 recession. The ratio of unemployed to available jobs stands at 1.4 to 1 in 2016. (Glassdoor)
- Fewer Americans would like to work abroad, a drop of 7% between 2014 and 2018. The willingness to relocate overseas for work was 64% in 2014 versus 57% last year. (Boston Consulting Group)
- This is in stark contrast to 70% Brazilians and 90% of Indians who are willing to work abroad. (Boston Consulting Group)
- The U.S. tops the list of countries with the most foreign workers at 34%, followed by Germany (26%), Canada (24%), Australia (21%), the U.K. (20%), Spain (14%), France (14%), Switzerland (13%), Italy (11%) and Japan (10%). (Boston Consulting Group)
Gig Economy Statistics
Americans who are open to the idea of freelancing
gig workers who say they would not leave freelance work for a full-time job
full-time executives who would become independent contractors given the opportunity
contingent workers who also have regular or full-time job
US adult workers who will work as independent contractor in the next 5 years
American workforce who derive 40% of their income via the gig economy
US workers who participate in the gig economy
US workers who have an alternate work arrangement as their primary job
Sources: Manpower Group, PYMNTS, Smallbizlabs, Mavenlink, Designed by
HR Tech Statistics
Cloud and SaaS are disrupting the entire business landscape and HR isn’t exempted. More companies are adopting HCM systems and they are going cloud. User experience isn’t perfect though, vendors have a difficult work cut for them.
- Cloud technology and the SaaS subscription model are driving the growth of the HR software industry, predicted to be more than $10-B worth by 2022. (Grand View Research)
- Over 30% of companies have cloud-hosted HCM systems as on-premise I.T. systems are continued to be replaced. (Sierra-Cedar HR Systems Survey)
- However, much work has to be done, with only 17% of users find their HR system meets their requirements. User experience rating for HR software averages at 3.1 out of 5. (Sierra-Cedar HR Systems Survey)
- Another study suggests that the poor rating can be traced not to substandard-designed systems, but to the fluidity of the industry. Vendors need to catch up with the fast-changing business landscape. (HR Technology Market 2019)
Leverage these Recruitment Statistics
Recruitment is more than ever driving businesses to remain competitive. More so in an industry that relies heavily on talent, for example, tech and science. The ability to attract top talents in these industries can make or break the company.
Likewise, the recruitment report findings above tell us that the pace of development isn’t slacking off soon; rather, things will only get more complex. For example, the millennials are the main labor force today, but these Gen Z statistics show us this age group is ready to take the employment market by storm. Is your organization ready?
The important thing is you are now aware of the key recruitment data to keep tabs on. It goes without saying that technology is a critical factor in you adapting to these changes. On that note, just make sure your company is using one of the top HR software solutions today.