Technology isn’t the only thing shaking up the recruitment landscape. Demographics and even shifts in political correctness are reshaping how companies attract talents. And this already intricate situation is further made complex with the continuing spread of COVID-19.
Will the hiring benchmarks and best practices be radically transformed even after the coronavirus pandemic has subsided? Or will these changes become permanent? The following recruitment statistics give us a picture of how applicants and recruiters see the hiring process today.
Once you’re done reading the article, you’ll have a clear picture of the latest and likely developments in the industry. You can use the insights beyond hiring, and in retaining the talents long-term and ensure your organization will be handed over to qualified leaders in years to come.
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. Moreover, you should try to use some of the best HR software on the market. The pandemic continues to significantly affect not only recruitment but also recruiters themselves. Along with the changes brought about by the ongoing health crisis, this guide sorts the key statistics in the following critical areas.
Impact of COVID-19
- The coronavirus pandemic has impacted HR tech in two major aspects: the overall decline in employment and the increase in remote work. (Statista, 2021)
- Despite the widespread decline in HR employment, experts predict that by 2022 the trend will go back to pre-pandemic levels. (Statista, 2021)
- In 2019, more than 700,000 Americans work in HR. Over the next six years, this figure will grow by more than 15%. (Statista, 2021)
- The temporary staffing market in the U.S. is expected to decline from $130.7 billion to $107.3 billion in 2020 due to COVID-19. (Staffing Industry Analysts, 2020)
Sources: US Bureau of Labor Statistics (data), Statista (2021)
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.
- 65% of millennials give high regard to organizational culture, which is higher than baby boomers and generation. (Glassdoor, 2020)
- Why do you need to pay attention to this age group? Because they are the largest group that makes up the US workforce. More than a third of employees (35%) are Millennials. (Pew Research, 2018)
- Loyalty is lost to Millennials. 66% of them think of leaving their organization in 2020. This, coupled with the fact that only 4% of HR managers think they know how to manage Millennials. (Glassdoor, 2017)
- 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, 2018)
- 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 the salary, the top priorities of Millennials are security (87%), time off (86%), great people (80%) and flexible working (79%). (Manpower Group, 2016)
- 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, 2017)
- 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 time off. (Manpower Group, 2016)
- In the meantime, 63% of Millennials feel companies are not helping to develop leadership skills. (Glassdoor, 2017)
- 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, 2018)
- From another perspective, though, the Glassdoor study showed that only 7% of HR managers think they have leadership programs for Millennials. This suggests that the Deloitte result may have focused more on general employee improvement, not on leadership training. (Glassdoor, 2017)
- 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, 2016)
- 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, 2017)
- 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. (Manpower Group, 2016)
- A Glassdoor study revealed that reading 7 reviews are all it takes before applicants form an opinion about the company. (Glassdoor, 2017)
- LinkedIn reported that a strong employer branding leads to a 43% drop in recruitment costs. (LinkedIn, 2018)
- This is conversely consistent with the Glassdoor finding that boosting employer branding leads to a quality hire. (Glassdoor, 2017)
- An easy job interview may look appealing to candidates, but a Glassdoor 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 on things that we work harder for. (Glassdoor, 2017)
- Conversely, companies that take the time to develop a strong hiring experience realized 70% improvement in the quality of hires. (Glassdoor, 2017)
- 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, 2019)
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.
- Salaries (67%) and benefits (63%) are the two most important factors people look for when browsing job ads or researching an organization. (Glassdoor, 2020)
- To achieve satisfaction, job seekers also look for constant and clear communication (58%), clear expectations (53%), and feedback about rejection (51%). (Glassdoor, 2020)
- The top benefits that can make job seekers work for a company include having the time off to provide care for and bond with parents (58%), supplemental health insurance (55%), student loan repayment assistance (25%), and access to substance abuse rehabilitation or mental health counseling (22%). (Guardian Life, 2020)
- Overall, 57% of job candidates in the US consider benefits and perks as the top factors to take the job. (Glassdoor, 2017)
- The same study showed that about 80% of employees prefer more benefits over a salary increase. (Glassdoor, 2017)
- This is corroborated by another study that reported 58% of employees who actually took a pay cut for a happier work setup. (Business News Daily, 2019)
- 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. (Business News Daily, 2019)
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
- Around 90% of both men and women prefer to learn about new job opportunities prior to making actual job applications. (LinkedIn, 2019)
- Both women and men, on average, go through more than 40 job openings and spend the same period of time exploring companies prior to applying. (LinkedIn, 2019)
- Compared to men, women are less likely to apply for a job after seeing it 16% of the time. (LinkedIn, 2019)
- Women apply for jobs 20% less compared to men. (LinkedIn, 2019)
- When female candidates appear on LinkedIn search results, recruiters are 13% less likely to click on their profile. (LinkedIn, 2019)
- Female managers are 1.26x more likely seen by employees to support work development versus male managers. (Glassdoor, 2017)
- And that working for a female manager, employees are engaged 6 percentage points more than working for a male manager. (Glassdoor, 2017)
- 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, 2017)
- Likewise, only 15% of men say they’d prefer perks over money versus 34% of women, according to another study. (Business News Daily, 2019)
- The same study showed that 34% of women are more likely to put a value on unlimited paid time off versus 23% of men. (Business News Daily, 2019)
- 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. (Business News Daily, 2019)
- 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. (Business News Daily, 2019)
- Companies believe leadership is critical in talent management with 89% of them considering it a “very important issue.” (Glassdoor, 2017)
- 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, 2017)
- Women performed better than men in 17 of the 19 leadership capabilities. (Harvard Business Review, 2019)
- However, women occupy only 4.9% and 2% CEO seats on Fortune 500 and S&P 500 companies, respectively. (Catalyst, 2020)
Top HR Software
- BambooHR is a top HR software sporting features like a centralized employee database, performance management, and employee portal. It can support your HR processes from employee onboarding to managing career goals.
- Zoho People allows its users to easily track and manage all HR-related processes. This is thanks to its well-designed features such as its attendance management module, real-time collaboration features, HR analytics, and self-service portals.
- Gusto HR is one of the most popular and easy-to-use HR platforms around. It fits its intuitive dashboards with powerful and comprehensive features including benefits administration, managed time-off, anonymous surveys, and tax compliance features.
- SmartRecruiters offers end-to-end HR management features ranging from application management to performance reporting. Other important features include an employee referral portal, candidate sharing, custom interview scorecards, and many more.
- monday.com is a total business solution armed with many automation features useful for HR-related processes. Combine features like a knowledge base creator, collaboration tools, and team management with tons of integrations you can customize. You’d get a platform that is totally customizable to your specific HR needs.
The pandemic has caused major losses in employment last year, particularly in leisure and hospitality. We won’t likely see a rebound this year, considering the magnitude of job loss in 2020.
- For the second quarter of 2020, total global working hours declined by 14%. This is the same as having 400 million workers lose their full-time jobs. (UN/ILO, 2020)
- In mid-March 2020, 300 million unemployment benefits claims have been filed due to COVID-19. (Financier Worldwide, 2020)
- Over 90% of all workers around the world continue to experience workplace lockdowns, with the Americas as the most affected. (UN/ILO, 2020)
- Both North America and South America had experienced the biggest drop in working hours at 18.3%. (UN/ILO, 2020)
- Other regional declines in working hours are 13.9% in Central Asia and Europe, 13.% among Arab countries, and 12.1% among African nations. (UN/ILO , 2020)
- From March 2019 to March 2020, unemployment among workers aged 25 and above increase from 2.8% to 24.4%; those aged 16 to 24 also rose from 8.4% to 24.4% due to the pandemic. (Economic Policy Institute, 2020)
- About a quarter of young workers are employed in leisure and hospitality, where employment declined by 41% between February and May 2020. (Economic Policy Institute, 2020)
- Unemployment jumped by 41% from February 2020 to May 2020 among young laborers in the leisure and hospitality sectors. (Economic Policy Institute, 2020)
Gig Economy Statistics
- Gig workers represent around 1% or 1.6 million of the total American workforce. (Glassdoor, 2020)
- The rate of part-time versus full-time workers is 18.2% in 2017, a steady but accelerating increase from 13.5% in 1968. (US Bureau of Labor Statistics, 2020)
- In another study, companies reported that only 82% of their employees work full-time versus 13% who work part-time. (The Guardian, 2017)
Sources: Manpower Group, PYMNTS, Smallbizlabs, Mavenlink,
HR Tech Statistics
Cloud and SaaS are disrupting the entire business landscape and HR isn’t exempted. Incumbent HR tech companies, or those operating at least for the past 10 years, continue to increase their revenues and market reach. However, startups are gradually gaining their market foothold.
Likewise, 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.
- In 2019, incumbent HR tech companies dominated the market, accumulating a total value of around $45.5 billion. (Statista, 2021)
- Startups are expected to achieve substantial growth in the next five years, enabling the HR tech market to expand by 81% by 2025. (Statista, 2021)
- Predicted to reach $90 billion in the next six years, the HR tech sector will likely grow by almost 2x by 2025. (Statista, 2021)
- 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, 2019)
- Over 30% of companies have cloud-hosted HCM systems as on-premise I.T. systems are continued to be replaced. (Sierra-Cedar, 2019)
- However, much work has to be done, with only 17% of users find their HR system meets their requirements. (Sierra-Cedar, 2019)
- User experience rating for HR software averages at 3.1 out of 5. (Sierra-Cedar, 2019)
- 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. (Josh Bersin, 2020)
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 a company. It is best to integrate whatever we’ll learn from the COVID-19 pandemic into a company’s hiring strategy for the long term. This way, your HR unit will be more than prepared to traverse any labor landscape in the future.
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 for you to adapt to these changes. On that note, just make sure your company is using one of the leading human resource management software solutions today.
- Catalyst (2020, Januray 15). Pyramid: Women in S&P 500 Companies. Retrieved from Catalyst
- Deloitte (2018). 2018 Deloitte Millennial Survey . Retrieved from Deloitte
- Fry, R. (2018). Millennials are the largest generation in the U.S. labor force. Retrieved from Pew Research
- Glassdoor (2017). 50 HR and Recruiting Statistics for 2017. Retrieved from Glassdoor
- Glassdoor (2020). 40+ HR and Recruiting Stats for 2020. Retrieved from Glassdoor
- Gould, E. & Kassa, M. (2020). Young workers hit hard by the COVID-19 economy. Retrieved from Economic Policy Institute
- Grand View Research (2019). HR Software Market Size, Share & Trends Analysis Report By Application, Regional Outlook, Competitive Strategies, And Segment Forecasts, 2019 To 2025. Retrieved from Grand View Research
- Guardian Life (2020). What Employees Want: Benefits that drive engagement and retention. Retrieved from Guardian Life
- Ignatova, M. (2019). New Report: Women Apply to Fewer Jobs Than Men, But Are More Likely to Get Hired. Retrieved from LinkedIn
- Josh Bersin (2020). HR TECHNOLOGY 2020. Retrieved from Josh Bersin
- Manpower Group (2016). Millennial Careers: 2020 Vision. Retrieved from Manpower Group
- Martins, A. (2019). ‘Meaningful Work’ Often More Important Than Pay, Study Suggests. Retrieved from Business News Daily
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- Staffing Industry Analysts (2020). US Staffing Industry Forecast. Retrieved from Staffing Industry Analysts
- Statista (2021). HR Tech. Retrieved from Statista
- The Guardian (2017). The Guardian Workplace Benefits Study. Retrieved from Pardot
- UN/ILO (2020. June 30). Hard times forecast for global job recovery in 2020, warns UN labour agency chief. Retrieved from UN/ILO
- Zenger, J. & Folkman, J. (2019). Research: Women Score Higher Than Men in Most Leadership Skills. Retrieved from Harvard Business Review