The numbers are in for 2023, and now it's time to look forward to which recruitment strategies we should apply in 2024.
In this benchmark review we highlight 3 important recruitment benchmark reports and there outcomes.
- 2023 Hiring Benchmark Report (data by Criteria Group)
- 2023 Trends in Recruiter Productivity Report (data by Ashby)
- 2023 Recruiting Outreach Benchmarks Report (data by Gem)
1. 2023 Hiring Benchmark Report (data by Criteria Group)
The first report that we can learn from is the Criteria Research 2023 Benchmark Report. The report covers key insights from over 450 hiring professionals, predominantly from the United States, Australia, and Canada, spanning a wide range of industries and company sizes.
It covers the following areas:
- Talent Shortage and Skills Gap
- Remote Work Advantage
- Employee Turnover and Internal Mobility
- AI in HR
- Talent Shortage and Skills Gap
- Hiring Strategies
- Future Outlook and Priorities
Talent Shortage and Skills Gap
Understanding the challenge
- Key Insight: 73% of hiring professionals believe there's a talent shortage, and 70% struggle to find candidates with the right skills. This issue is particularly acute in the Manufacturing and Healthcare industries.
Steps to address
- Reevaluate Job Requirements: Scrutinize the necessity of each job requirement. Are all listed skills essential, or can some be learned on the job?
- Upskill Current Employees: Invest in training programs to bridge the skills gap within your existing workforce.
- Look for Transferable Skills: When hiring, prioritize candidates with skills that can be adapted to multiple roles.
- Improve Onboarding and Training: Develop comprehensive onboarding and training programs to help new hires acquire necessary skills quickly.
- Explore AI Solutions: Consider using AI in recruitment to identify candidates with potential that might be overlooked through traditional methods.
Remote Work Advantage
Leveraging remote work
- Key Insight: Remote companies have advantages in attracting talent. 80% of in-person workplaces struggle with skill shortages, compared to 57% of remote workplaces.
Steps to implement
- Adopt a Remote or Hybrid Model: If feasible, transition to a remote or hybrid work model to access a wider talent pool.
- Enhance Remote Work Infrastructure: Invest in technology and policies that support effective remote working.
- Remote Work Training: Provide training to managers and staff on how to work effectively in a remote environment.
Employee Turnover and Internal Mobility
- Key Insight: 45% of hiring professionals see turnover as a major issue. Healthcare and Manufacturing have higher turnover rates, especially among in-person workplaces.
Steps to reduce turnover
- Internal Mobility Programs: Implement programs that allow employees to move within the organization, thus enhancing job satisfaction and retention.
- Regular Feedback and Engagement: Engage with employees regularly to understand their career aspirations and job satisfaction levels.
- Competitive Compensation and Benefits: Ensure your compensation packages are competitive within your industry.
AI in HR
- Key Insight: Only 12% of hiring professionals currently use AI in recruitment. The adoption is higher in larger companies and certain industries like Technology and Finance.
Steps for AI integration
- Evaluate AI Tools: Assess various AI tools for their potential in improving hiring efficiency and accuracy.
- Pilot Programs: Start with pilot programs in specific areas of recruitment to gauge effectiveness.
- Training and Transparency: Train HR teams on AI usage and maintain transparency about its role in the hiring process.
- Key Insight: Job boards are the most used source for talent. Interviews, especially in-person, and pre-employment assessments are key selection methods.
Steps to optimize hiring
- Optimize Job Descriptions: Use AI tools to develop effective job descriptions.
- Diversify Hiring Channels: Expand beyond job boards to include social media, employee referrals, and professional networks.
- Structured Interviews: Implement structured interviews to objectively assess candidates.
Future Outlook and Priorities
Preparing for 2024
- Key Insight: Top priorities include reducing turnover, upskilling employees, and improving hiring efficiency. There's a general sense of optimism for growth in 2024.
Steps for future readiness
- Focus on Employee Development: Place a strong emphasis on training and development programs.
- Process Optimization: Continuously seek ways to make hiring processes more efficient.
- Embrace Flexibility and Innovation: Be open to new methods of working and hiring to adapt to changing circumstances.
2. 2023 Trends in Recruiter Productivity Report(data by Ashby)
The 2023 Trends in Recruiter Productivity Report focuses on analyzing trends in recruiter productivity and hiring practices, highlighting a decrease in overall hiring and hires per recruiter, while noting significant increases in application volumes, interview hours, and the intensity of the candidate evaluation process.outline a step-by-step guide to address the trends in recruiter productivity metrics, focusing on different stages of the recruitment process and the implications of these trends.
It covers the following areas:
- Understanding Recruiter Productivity Metrics
- Addressing Top of Funnel Changes
- Enhancing Candidate Evaluation
- Analyzing Candidate Experience
Understanding Recruiter Productivity Metrics
Recognizing the complexity
- Key Insight: Overall hiring and the rate of hires per recruiter have decreased since 2019, with the rate dropping from 7 hires per recruiter per quarter in Q2-2021 to around 4.5 hires in Q1 2023. However, other metrics like the number of applications and interviews have increased, indicating a shift towards more intensive candidate evaluation.
Addressing Top of Funnel Changes
Adapting to increased application volumes
- Evaluate Application Screening Processes: With applications per hire increasing by ~120%, review and potentially automate initial screening processes to manage volume effectively.
- Optimize Job Descriptions: Clearly define roles and qualifications to attract suitable applicants and reduce unqualified applications.
Managing increased inbound applications
- Improve Candidate Communication: Ensure timely and clear communication with candidates due to the high volume of inbound applications, which have tripled between 2021 and 2023.
- Leverage Technology for Efficiency: Utilize ATS and CRM tools to handle the increased application volume efficiently.
Enhancing Candidate Evaluation
Adjusting interview strategies
- Optimize Interview Processes: With an increase of 40-60% in interview hours, streamline interview processes to ensure time efficiency without compromising on candidate assessment quality.
- Structured Interviews for Consistency: Implement structured interviews to maintain consistency and fairness in the evaluation process.
Balancing technical vs business role evaluations
- Customize Evaluation Criteria: Tech roles require more interview hours compared to business roles. Tailor the interview and evaluation processes accordingly.
- Invest in Specialized Interview Training: Provide interviewers with specific training for evaluating candidates in different functions.
Analyzing Candidate Experience
Maintaining candidate experience
- Ensure Consistent Candidate Engagement: Despite increased interviewer hours, maintain a consistent and positive candidate experience. The average interview hours per candidate remained around 3.5 hours from Q1 2022 to Q1 2023.
- Monitor Interviewer Workload: Keep track of the total number of interview hours to avoid interviewer burnout.
Summarizing and Reconciling Trends
Understanding the broader implications
- Recognize Increased Selectivity: With the overall hiring volume trending down, teams are becoming more selective, leading to a higher focus on finding the right candidates.
- Adapt to Shifting Trends: While time to fill roles has decreased slightly (from 104 to 76 days in tech roles and from 82 to 65 days in business roles), it’s essential to adapt recruitment strategies to the evolving hiring landscape.
3. Outreach benchmarks (data by Gem)
Gem's 2023 Recruiting Benchmarks Report provides a comprehensive overview of the current trends and statistics in the recruitment industry with a clear focus on proactive recruitment (outreach to passive candidates).
It covers the following areas:
- Market Shifts: Preference for Larger Companies
- Email Engagement: The Challenge of Maintaining Interest
- Sourcing Top Talent: Higher Success but Longer Timelines
- Recruitment Disparities: Inequity in Outreach
- Email Outreach Statistics by Role and Industry
Market Shifts: Preference for Larger Companies
- In 2021, small companies, especially tech startups, had the highest offer acceptance rates due to their flexibility and financial incentives.
- By 2023, this trend shifted in favor of larger companies, driven by broader economic uncertainties and candidates seeking stability.
Email Engagement: The Challenge of Maintaining Interest
- There is an 81% open rate for three-stage email sequences in recruitment outreach.
- However, there's a notable decline in reply rates, indicating a need for more personalized and engaging content to foster meaningful interactions.
Sourcing Top Talent: Higher Success but Longer Timelines
- Sourced candidates are 4-5 times more likely to be hired compared to other candidates.
- Challenges include longer hiring times and a 7% lower offer acceptance rate, highlighting the need for strategic approaches in talent sourcing, especially concerning Diversity, Equity, and Inclusion (DE&I) objectives.
Recruitment Disparities: Inequity in Outreach
- There are significant disparities in outreach efforts across gender and racial lines.
- Men receive more attention across industries, and Asian talent receives 1.2x more outreach than White, 4.7x more than Hispanic/Latinx, and 5x more than Black/African American candidates, reflecting clear inequity in recruitment practices.
Email Outreach Statistics by Role and Industry
- Email open rates vary by company size and role, with roles like Engineering Manager, Data Science, and Product seeing high rates (above 80%).
- Email reply rates also vary with roles in Engineering, Product, and Business Development among others, showing varying levels of engagement (ranging from 15% to 30%).
- Industries like Life Sciences, Manufacturing, and Professional Services show different levels of engagement, with open rates around 84%-86%, reply rates between 22%-33%, and interested rates from 7%-17%.
These reports reflect the evolving landscape of recruitment, highlighting the importance of understanding candidate preferences and market trends, adapting outreach strategies, and addressing disparities in recruitment practices. The data underscores the necessity for recruiters to stay informed and agile in their approaches to attract and retain top talent effectively.