2017 was an exciting year for the world of talent acquisition especially in the areas of candidate experience, diversity, and removing unconscious bias from the workplace. We also saw new advances in technology including; AI, predictive analytics, machine learning and writing, personalized marketing, and automation.
As we say goodbye to 2017, there are more than 6 million open jobs in the United States. The labor market is healthy heading into 2018, but average wages remain flat for many.
The U.S. economy experienced a landmark year in 2017, despite hurricanes, fires, and political changes.
- 9 million new jobs were added.
- Stock markets reached a record high.
- The unemployment rate plummeted to a 17-year low.
In 2018, hiring volume is predicted to increase with 61% of recruiters expecting to hire more people. With the booming tech economy and unemployment at a 17-year old low, what’s in store for Talent Acquisition in 2018?
Get ready for a hiring boom!
2018 Top Trends:
Diversity and Inclusivity
We will see a continued focus on workplace diversity in 2018 including removing unconscious bias from the hiring process and attracting more diverse candidates.
Diversity will continue to play a prominent role in 2018 as companies strive to create more inclusive cultures. Many organizations are investing in technology to improve diversity hiring processes including software that helps identify the exclusionary language in job descriptions and AI to screen resumes and reduce unconscious bias.
Some states are adopting regulations that promote equal pay in the workforce and limiting what questions employers can ask candidates about current or past salary information. These laws are already in effect In California and New York.
The best employers will create a more diverse workforce not because it is a trend, but because they recognize the value of being inclusive.
Data and Analytics
In 2018 employers will look to expedite hiring processes, minimize the skills gap, and avoid expensive hiring mistakes. Recruiting / HR will continue to assume a more prominent role in business strategy with the use of data and robust analytics tools.
Most experts agree that predictive analytics is the most significant recruiting trend to drive productivity and profitability in 2018. Although many of the solutions available today are technology-based, some rely on human intelligence as much as artificial intelligence.
Imagine if you could predict a candidates’ performance and on-the-job success. You can; by collecting interview feedback and new hire performance data, you can refine the profile of a successful employee, and identify top performers in advance.
Sourcing quality candidates remains a top priority with the focus on quality over quantity, which means implementing tools to improve candidate matching and recruiter efficiency.
On average, talent acquisition professionals spend about 13 hours a week sourcing candidates for a single role, and approximately 1 in 4 (27%) respondents report spending 20 hours or more sourcing for just one role. Source: Entelo 2018 Recruiting Trends Report
SocialTalent’s latest Global Recruiting Survey found the average recruiter sourced 225 candidates for a single hire, an overall conversion rate of 0.4%. Top performing recruiters, on the other hand, were 150% more efficient. They sourced 91 candidates on average for one hire for an overall conversion rate of 1.0%.
Artificial Intelligence & Automation Tools
Artificial intelligence (AI) and automation are poised to impact nearly every facet of the workforce.
According to Entelo’s 2018 Recruiting Trends Report; 62% of companies plan to spend on AI-powered recruiting software. 86% plan to spend on intelligent sourcing software, 30% plan to spend on chatbots and 26% will spend on digitized interviews.
Automation holds tremendous potential. Specifically, to help talent teams better connect with people and spend more time on the human elements of recruiting like engaging with candidates, building relationships, selling an opportunity and company as an excellent career choice, negotiating, influencing, and making an emotional connection with candidates.
Recruiters who learn how to harness the power of AI technology will increase their productivity and success rates while improving the overall candidate experience.
Recruiting is becoming a digital experience as candidates come to expect convenience and mobile contact in the hiring process.
2018 will be the year of the candidate as the consumer and just like consumers, candidates want real-time information about their job application status or next steps in the process.
According to CareerBuilder, Candidate Experience from End-to-End, 2017, nearly four in five candidates (78 percent) said the overall candidate experience they receive is an indicator of how a company values its people.
Negative experiences can leave a lasting impression on candidates, and they are far less likely to apply for a position with your company in the future.
Increased hiring volume means increased requisition load for most recruiters, understanding how to leverage tools and technology will be crucial for Talent Acquisition (TA) teams.
Technology is advancing at an unprecedented rate in the areas of cognitive, artificial intelligence, and social collaboration. These technological innovations are reshaping the workforce. With new developments in natural language processing, we can text with a chatbot and get answers to questions in real-time or leverage AI-powered assistants to schedule meetings or retrieve the information we need on request.
Technology is also enabling better interaction between recruiters and candidates by automating elements of talent acquisition. Recruiters won’t be replaced but, instead, empowered to focus on the areas they’re most passionate about like building meaningful relationships and helping people find their next great career opportunity.
- Healthcare changes are likely in the new year, expect to see more competitive benefits packages offered by employers to attract and retain employees.
- Workplace well-being trends are on the rise to ensure employees are healthier and happier in the New Year.
- Employee experience; companies are faced with creating environments that make people want to come to work in 2018.
- Texting candidates will become mainstream in recruitment just like InMail’s are today.
- We will see increased competition in the recruitment market; Facebook and Google are making a play in the recruiting advertising space. Facebook added a jobs tab (plus pay-per-click ads to reach the right audiences), and Google recently launched a search engine specifically for recruiting.
- Organizational dynamics will continue to change as the need to accommodate new working styles and more distributed networks of talent increase.
- More companies will offer the option to work from home to help retain talented people and boost overall job satisfaction.
- The Gig Economy will continue to impact how we work; companies will hire more contractors and consultants to address the talent shortage.
WHAT WILL MATTER MOST?
- HR and recruiting will have better tools available to measure quality-of-hire, predict on the job success factors, and show business impact in dollars. Recruiters must be able to interpret insights from data and turn these insights into actionable outcomes and results.
- Selling is the most crucial skill for recruiters.
- Recruiting embraces marketing with new approaches to stand out and increase engagement.
- Strategic recruiting and consulting skills are more necessary than ever before.
- Recruiters must be technology experts, embrace what’s new, and find new ways to leverage all the innovation in recruitment technology.
- Recruiting teams will need to think more strategically about how to find and attract in-demand talent personas, using data to determine where the supply of talent is higher than the demand.
- Ongoing development of diversity and purpose initiatives to differentiate from competitors and boost engagement.
- Learning and development will be a top priority for HR in 2018, expect to see more digital training offered across a range of mobile platforms to ensure employees are adaptable to changes in their role.
WHAT CAN RECRUITERS DO TO STAY AHEAD OF TRENDS?
- It is vital to continue training and developing new skills to stay ahead of the curve. This coming year will bring an abundance of new technologies, automation, and robots, but technology can only do so much and can’t replace a great recruiter with good business sense, sales skills, and a well-nurtured network.
- Improve the hiring manager experience; Create partnerships with open communication and transparency, collaborate, set expectations for time to fill positions (based on data), provide more frequent update reports and drive an efficient process.
- Focus on delivering value to hiring managers, executives, and candidates. Set the bar high, go above and beyond, think outside the box and look for new ways to innovate.
- Building and continuously refining candidate engagement strategies should be a top priority. The ability to consistently identify and engage talent remains a competitive differentiator in recruiting effectiveness.
- People who rely on sending InMail’s and attempt to blast candidates with impersonal messages through outdated, communication channels, without prior relationships or knowledge of what they are recruiting for, shouldn’t be surprised by poor results.
- Passive candidates receive an abundance of email from recruiters, so being authentic and sincere is imperative for success. Taking the time to understand, reach, and attract talent is no longer optional, it’s required.
THE FUTURE LOOKS BRIGHT!
Recruiters don’t directly bring in revenue or create disruptive new products, yet the recruiting function is a vital enabler of every company’s success.
Regardless of how good a product is, every company needs a stellar team to design, build, improve, market, sell, service, and support it. Without great people to execute the vision, a company can’t innovate or deliver value to its stakeholders and customers.
Talent is a competitive advantage, people build cultures and define progress. Recruiters are company ambassadors, out on the front-line, selling the employment brand and employee value proposition. They attract the best people and build positive brand awareness (In most cases).
Click here to read the full brief: 2018 Recruiting Trends