War for Talent Heats Up
Companies are struggling to find qualified talent, and the talent acquisition process has grown more lengthy and costly, due to a tight labor market with low unemployment. Recent surveys of hiring managers and staffing firm employees from CareerBuilder, Inavero and the American Staffing Association identified major obstacles facing hiring managers and staffing firms, as well as a glimpse at the future, given the rapid rate of technological innovation.
The majority of millennial hiring managers (59 percent) strongly agree that technology will reduce recruiters' roles in talent acquisition over the next five years, while hiring managers across all generations are keen to leverage the data staffing firms can provide, including salary data and industry hiring trends. In the current market, hiring managers' primary reasons for working with staffing firms include the desire to shorten the hiring process (42 percent) and access to candidates with specialized skills (41 percent), yet 40 percent of companies maintain recruitment processes in-house to save money.
Hiring managers and staffing industry leaders alike agree technology will impact the industry; 67 percent of hiring managers believe it is very or extremely important their staffing firms use up-to-date technology, and 32 percent of staffing industry leaders plan to invest in new technology this year. Most hiring managers also think that staffing firms can be helpful in addressing top problems faced during the recruitment process; specifically, 81 percent believe that staffing firms can help eliminate issues due to technology limitations.
"More than 70 percent of leaders agree the staffing industry will be transformed by technology and automation over the next five years, yet only one in five feel that innovation is a major threat to their firms," said Eric Gregg, CEO of Inavero. "In today's historically tight labor market, lack of access to quality candidates is a major threat, and recruiters are spending more than half of their time searching for, screening, and reaching out to new candidates, rather than building relationships with current candidates. In fact, almost half (43 percent) believe they only know current candidates somewhat or not well."
The surveys were commissioned by CareerBuilder, Inavero and ASA and were conducted in August 2018. Participants included 859 hiring managers and 681 internal staffing or recruiting firm employees.
Additional key findings include:
- Companies partner with staffing firms to improve and streamline hiring processes, and most are not exclusively partnered with one firm.
- Staffing firms must be up-to-date on the technology they use.
- Hiring managers are made aware of new staffing firms through a variety of different sources including the firm's reputation within their industry (12 percent), proactive recommendations (12 percent), and through experience hiring with the firm at a previous job (12 percent).
- Most staffing firm leaders have seen revenue increases over the past year (66 percent).
For more information and to see the full results, visit http://go.inavero.com/2018-staffing-buyer-study-careerbuilder-inavero.