[April 08, 2019] |
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Recruiting Reality Check: Kronos Study Finds Talent Acquisition Taking Longer, Costing More
With unemployment hovering at its lowest level in more than a decade, a
new study from Kronos
Incorporated finds more than half (53 percent) of organizations are
planning to make major changes to their talent acquisition strategy
within the next two years in response to increases in time-to-hire and
cost-to-hire created by the competitive job market.
The study, "How
High-performing Organizations Compete for Talent: Evolving Strategies
for Attracting and Hiring a Complex Workforce," was conducted by
Kronos (News - Alert) and The Human Capital Institute (HCI). Human resources (HR)
leaders at 234 organizations were interviewed to better understand what
they are doing differently to recruit the hourly and salaried talent
needed to be competitive today and in the future. The study utilizes the
HCI high-performing organization index1 to categorize
organizations into two groups: high-performing organizations (HPOs) and
all other organizations.
News Facts
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Talent void: Recruiting in 2019 is more challenging by every key
metric
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According to the study, approximately half of all organizations
say the number of open hourly (48 percent) and salaried (53
percent) positions has increased over the last two years.
-
It takes longer to fill those roles, too, as 36 percent of
organizations report time-to-hire from original job posting to
accepted offer for hourly positions has increased, and 38 percent
of organizations report time-to-hire for salaried positions has
increased.
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Extended time-to-hire is also driving up cost-per-hire, which has
increased at nearly half of all organizations for both hourly (48
percent) and salaried (47 percent) positions.
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Nearly three-quarters (73 percent) of organizations have increased
starting pay for salaried roles, while half (50 percent) have
increased starting pay for hourly roles over the past two years.
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Strategic vs. tactical: High-performing organizations look inward
for recruiting success
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At HPOs, the most important talent acquisition strategy
considerations include alignment with business priorities (56
percent), strength of internal talent pipeline (48 percent), and
availability of specific skills (48 percent).
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For all other organizations, availability of specific skills is
the top consideration according to nearly three-quarters of HR
leaders (70 percent), followed by meeting the needs of the hiring
manager (58 percent), and building an external talent pipeline (39
percent).
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More than one-fifth (21 percent) of HPOs utilize workforce data
from human capital management suites, human resources information
systems, or recruiting solutions to make hiring decisions compared
to just 5 percent of all other organizations.
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Growing gap: Not all organizations are investing in talent
acquisition at similar rates
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Better employer brand/recruitment marketing is the top focus for
nearly two-thirds (59 percent) of HPOs compared to just 40 percent
of other organizations.
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HPOs also plan to invest in talent acquisition technology more
aggressively than other organizations (59 percent vs. 37 percent).
Additional budget will be put toward an enhanced candidate
experience at 55 percent of HPOs (compared to 37 percent of other
organizations), while more than half (51 percent) of HPOs will
focus on improving recruiter effectiveness compared to just 27
percent of other organizations.
Supporting Quotes
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Stacey Kervin, SHRM-CP, senior manager, HCM Practice Group, Kronos
"Low
unemployment, higher rates of turnover, and increasing time-to-hire
and cost-per-hire continue to put added pressure on HR and recruiting
professionals. Organizations must take a proactive approach to talent
acquisition. By offering an engaging candidate experience -
strategically leveraging technology to meet the needs of the
candidate, HR, and the hiring manager - organizations will be better
positioned to identify internal high performers and more easily find,
attract, and hire external talent."
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Jenna N. Filipkowski, Ph.D., head of research, Human Capital
Institute
"As the world evolves, so too must the ways that
organizations attract, recruit, and retain top talent. High-performing
organizations use technology to collect and analyze information,
optimize processes, ease recruiter workloads, and customize
communication to personalize the candidate experience. This approach
allows them to focus on developing internal talent pipelines, hire for
potential instead of skill, and create a high-performing team
regardless of the job market."
Supporting Resources
About Kronos Incorporated Kronos is a leading provider of
workforce management and human capital management cloud solutions.
Kronos industry-centric workforce applications are purpose-built for
businesses, healthcare providers, educational institutions, and
government agencies of all sizes. Tens of thousands of organizations -
including half of the Fortune 1000® - and more than 40
million people in over 100 countries use Kronos every day. Visit www.kronos.com.
Kronos: Workforce Innovation That Works.
Footnote 1: The High-performing Organization (HPO) index is an index
developed by HCI measuring 14 organizational outcomes to evaluate the
relative strength and weakness of respondents' organizations. These
include seven talent outcomes (investments in training, internal
mobility, employee engagement, diversity and inclusion, quality of hire,
retention, and leadership bench strength) and seven critical business
dimensions (customer satisfaction, regulatory compliance, talent
attraction, innovation, profitability, growth/market share, and
productivity). These inventories are composed of items with five-point
rating scales. Scores from these items are aggregated to create a
composite score that reflects the overall strength of each organization
in terms of its performance. For this survey, the top 31 percent of the
scores on this inventory are considered high-performing organizations.
High-performing Organizations are diversely represented across industry
and number of employees.
© 2019 Kronos Incorporated. All rights reserved. Kronos and the Kronos
logo are registered trademarks and Workforce Innovation That Works is a
trademark of Kronos Incorporated or a related company. See a complete
list of Kronos
trademarks. All other trademarks, if any, are property of their
respective owners.
View source version on businesswire.com: https://www.businesswire.com/news/home/20190408005477/en/
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