New Hiring Report Explains Why Recruiters Struggle to Find Qualified Talent

This article was originally published here

July 18, 2016
By DHI Group, Inc.

America’s Employers Plan More Hiring as Time to Fill Lengthens and Concerns About Economic Landscape Grow

Hiring managers in the U.S. are prepared to hire more professionals in the year ahead, but the current recruitment environment won’t make the job easy. Nearly two-thirds (62%) of hiring managers intend to hire more professionals in the next six months, according to the semi-annual hiring survey by DHI Group (DHX), the leading provider of data, insights and careers for specialized professional communities.

While more hiring is anticipated, the time to fill a position is taking longer than ever as recruiters across a variety of industries—and in healthcare and technology in particular—struggle to find qualified talent.

The DHI-DFH Mean Job Vacancy Duration Measure, DHI’s proprietary index, reached an all-time high of 29.3 working days in April (latest data available), demonstrating jobs are staying open longer than any time since tracking began in 2001. These highly-elevated vacancy spells are even more pronounced in healthcare, while positions remained open more than 49 days on average in April, the longest of any industry, and seven days more than financial services positions which are the second longest to fill.

“Hiring managers broadly, and those in technology and healthcare specifically, find it increasingly difficult to find candidates with the right combination of skills to fill positions,” said Michael Durney, President and CEO of DHI Group, Inc. “The recent vote by citizens in the U.K. will likely have an impact on U.S. hiring decisions in the near term and future, further lengthening the time to fill roles as global employers navigate this new landscape.”

There are a combination of factors contributing to the challenging recruiting environment. Nearly a third (31%) of those who recruit for a variety of professionals and 46 percent focused on healthcare said they are waiting for the perfect match to fill a role. This is not the case in technology where telecommuting is more prevalent and only 18 percent of tech-focused recruiters wait it out. More hiring managers (53%) broaden their search geographically to find the best talent.

Broaden the search to a wider geographic region beyond local talent
Consider or recommend to clients temporary help on a trial basis with the option for permanent placement
Relax skill or degree requirements for the position
Nothing, keep the position open until the perfect fit is found

*May add to more than 100% due to rounding

Further adding to the slowing hiring process, a record 69 percent of hiring managers recruiting for their own needs say voluntary turnover has not increased at their companies in 2016 compared to last year. This flattening or decline in employees leaving creates a roadblock for other companies recruiting skilled professionals and further intensifies the stress associated with too few employees to fill necessary open roles.

Pipelining Professionals
Employers hiring across industries intend to hire 20 percent or more professionals in the second half of the year. To get there, sourcing is becoming a higher priority with 79 percent of hiring managers and recruiters saying building a bench of talent is important. It’s equally important to technology (76%) and healthcare (76%) recruiters.

“Services which catch candidates in the pre-apply phase are important for the sourcing-minded recruiter,” said Mr. Durney. “No HR team can act quickly to fill a role if they’re starting their search from scratch each time a position opens up. That’s why services like getTalent work. Sourcing, preparing a pipeline of candidates so they’re familiar with the company early and being knowledgeable on salary trends is key. As jobs stay open longer, savvy recruiters and HR departments will source for candidates year-round, regardless of when a position is available. This makes it easier to hit the ground running when an employee jumps ship or a growing business demands the addition of new roles.”

Salaries on the Rise
Further adding to the competitive recruitment market, candidates are asking for higher pay than years past. A majority (60%) of hiring managers across industries and those recruiting tech pros say candidates are asking for more money as compared to six months ago. In healthcare, where demand for professionals is outpacing available candidates, this rises to 66 percent.

As a result, 57 percent of overall recruiters, 61 percent of healthcare and 56 percent of those focused on tech, anticipate salaries for new employees being higher than last year.

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