How 71% of HR Leaders Miss Key Candidates Due To Inefficient Processes
Discover how recruitment leaders are responding to the changing business environment and what key trends may affect hiring this year.
The HR profession is going through a roller coaster due to several factors driving the business environment. As such, the job of recruitment leaders has become more challenging. So, how are they responding to this situation? And what key trends may affect recruitment this year? Findem and KarmaCheck conducted a study to find the answers.
The HR profession is currently going through one of the most disruptive periods in the last few years. On the one hand, trends like the Great Resignation, quiet quitting, and quiet firing affect the industry. On the other, the industry is facing a severe talent shortage. And then, there are several positive and negative forces, such as the pandemic, inflation, and economic uncertainties driving recruitment decisions. The job of HR and recruitment leaders has undoubtedly become more complex and challenging while expectations from them continue to mount.
So, how are HR and recruitment leaders responding to the rollercoaster ride? And what key trends are affecting recruitment this year? Findem and KarmaCheck recently conducted a study to find the answers. Here are a few key insights.
Recruitment Leaders Are Using Dashboards
Today’s leaders from different functions rely more on data and analytics for decision-making. It is the same with recruitment leaders. The survey showed that all respondents used at least some recruitment metrics. So, how are the metrics tracked and measured, and were the goals met?
About 56% use dashboards within specialized recruitment or HR tech software, while 39% use external dashboards, such as Tableau. Further, while 95% of respondents use some form of technology to track hiring and recruitment metrics, only 39% use specialized software.
When it comes to the metrics against which leaders are setting goals, controlling costs associated with hiring is the biggest concern, with the average cost per hire being the most common metric. For recruiters in the tech industry, time ranked higher than cost as a priority.
Recruitment metrics against which leaders are most frequently setting goals
Source: State of Hiring and Recruiting Survey
Which goals did employers and recruitment leaders not meet last year? About 90% of respondents did not meet at least one goal last year. About 51% said that the average costs of hiring are too high, while 47% said the same about the time to fill.
There are several barriers to meeting their goals, such as the candidate pool not being the right fit and staffing shortages. About 56% blamed technology or process challenges, such as a mismatch between technology and needs or inefficient hiring processes, as the main reason for not achieving goals.
See more: Hiring and Recruitment Trends to Watch in 2023
Many Leaders Are Measuring Diversity Goals
A big change in HR and recruiting is the emphasis on diversity, with 90% of employers having at least one goal. And despite the challenges of tracking diversity through the hiring process, it is a top priority for many leaders. So, for which diversity categories have employers set goals concerning recruiting?
The age of hires was the most common characteristic to track (60%). About 53% also focus on gender, and 51% focus on race-related diversity. About 41% pay attention to people with disabilities, while 26% pay attention to people with criminal records.
Leaders Are Tracking Candidate Funnel Metrics
The candidate funnels look at each stage of the recruiting process to identify inefficiencies and improvement opportunities. The funnel starts with the pool of potential candidates and tracks the size and quality of final hires.
The study found that all respondents track at least one metric. That said, there are hardly any leading metrics, as employers measure about five metrics with almost equal focus.
Most common candidate funnel metrics employers track
Source: State of Hiring and Recruiting Survey
The study also found that the response rates were above 50% for just 31% of companies, which means there is room for improvement in targeting or outreach for many companies.
A barrier to hiring talent is background checks. While 95% of employers use background checks before hiring a person, the process can also get in the way of hiring talent. About 40% of respondents faced background check problems as a common reason people receiving an offer don’t get hired.
HR Teams Are Missing Key Hires
A key theme emerging from the study for this year is that 71% of recruiting leaders are missing key candidate hire owing to inefficient processes. A few common problems reported include interview scheduling issues (53%), slow screening and evaluation (42%), and inefficient communications (34%), among others.
The study found that HR leaders value technology to improve efficiencies and increase scale within hiring. Technology is also seen as crucial to improving alignment and coordination within internal HR and recruitment teams. That said, regarding the importance of technology in recruiting, 57% cited increasing candidate volume, while 47% cited increasing awareness of open roles.
Importance of technology in hiring and recruiting
Source: State of Hiring and Recruiting Survey
Leaders Continue To Invest in Technologies
The study found that 86% of recruitment leaders plan to purchase more technology this year. Regarding the types of technology companies plan to purchase, 38% planned to invest in applicant tracking systems, 34% planned to invest in candidate sourcing tools, 29% intended to invest in outreach and engagement tools, and 8% planned to invest in analytics and measurement tools.
Leaders Are Expanding Hiring Efforts Amid Economic Uncertainties
The current economic climate is impacting HR teams and is compelling some to change a few practices. Hiring seems to be speeding up for many companies even though about 25% report pulling back. The survey revealed that, for the most part, companies are still expanding hiring efforts. Further, 62% of companies have added to their recruiting teams in the last year, while only 24% have lost team members. About 52% also said they were recruiting more people in the current economic landscape, while only 28% pulled back recruiting efforts.
Regardless, both these groups see the value of proactively nurturing potential candidates. Almost 91% overall said their team proactively nurtures future candidates.
The survey also analyzed how the economic landscape is challenging recruiting teams. The data showed that 62% are placing more scrutiny on potential candidates, and 54% are under more pressure to recruit higher-quality candidates. About 47% also said economic conditions had slowed their recruiting process overall.
See more: 5 Strategies to Combat Inflation, Improve Recruiting and Retention
AI Is Being Widely Adopted Amid Concerns
The study found that AI is dominant in recruiting. Yet, concerns exist about how it should be used. About 81% of HR leaders said they now use AI-powered tools to help with recruiting. Even among those who are not, 53% said they would buy AI tools this year.
For leaders using AI, what are the top use cases in recruitment? About 62% use it to screen candidates for relevant experience, 58% for background checks, and 57% to source candidates for specific roles. About 56% also use it to automate routine tasks, and 23% use it to reduce bias in candidate sourcing.
AI-enabled tools have also helped leaders in several ways. About 65% felt more efficient when sourcing candidates, while 65% felt it expanded the team’s reach without adding to it. Above 62% also felt it improved hiring speed.
All that said, there is a consensus that talent leaders would like more direction around AI’s use. About 83% agreed there should be regulation on when and how AI is used to support recruiting.
Conclusion
The state of hiring this year is dynamic. Each quarter brings new conditions, challenges, and opportunities. The study also shows that recruitment leaders have reached a crisis point, be it missing key candidate hiring due to inefficient processes or experiencing burnout. Organizations not addressing these problems will continue to suffer talent drain, miss their goals, and will have to play catchup when conditions improve. Fortunately, many are embracing new processes and technologies to make recruiting more effective and responsive.
While improving the tech stack is good, HR is ultimately about people. Tools that automate manual tasks and provide better insights, as well as give people more time to do what they do best, are the best way to prepare for the road ahead.
As a recruitment leader, how are you navigating the changing business environment? Share with us on Facebook, Twitter, and LinkedIn.
Image source: Shutterstock
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