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Introduction
As 2016 nears, a fresh set of recruiting trends, developments, and technologies are quickly coming into view. Shifts in recruiting methods, changes in candidate expectations, and altered hiring techniques will likely transform the landscape of HR and recruiting in relatively significant ways in the coming year. An aggressive emphasis on branding, maximization of data and “the cloud,” assessment changes, and a heightened focus on the candidate pipeline and quality of hire are being predicted as top trend shifts. In this whitepaper, we will take a look at the most significant projections for recruiting, talent acquisition, and HR in 2016 and what organizations and
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In a recruiting culture that relies heavily on resume keywords, industry specialization, and clear-cut attributes, the practice of cross-industry hiring seems extraneous to many. A recruiter or hiring manager who wishes to hire a salesperson, for instance, uses automatic search tools to find sales experience on a resume; employers looking to hire managers might use the same search tool to look for resumes with “management experience” listed.
At first glance, this seems to make sense.
However, successful hiring is never as simple as it seems. The hiring manager looking for a salesperson might be faced with a dilemma: some candidates have sales experience listed on their resumes, but nothing special stands out about these specific individuals. On the other hand, some candidates without sales experience might have an otherwise impressive resume. Perhaps they have worked in human services, but not in sales in particular. What is
a hiring manager to do?
Although it may initially seem counterintuitive, there is a case to be made for cross-industry hiring. Recruiters and hiring managers are beginning to take into consideration this trend in 2016 by considering the following
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Experience in a Different Setting
Individuals who have worked in various other fields often gain experience that translates directly to the job in question. For example, a statistician might have gained detail-oriented skills and analytic reasoning that can effectively translate to the corporate world. Individuals with experience outside the industry at hand tend to be well rounded and adaptable when compared to those who have always worked in a particular field.
Diversity
Although cross-industry hiring has not to do with traditional definitions of diversity, it doesrepresent a type of
cultural diversity. In the same way that different backgrounds and ethnicities might bring value to a company through various viewpoints and experiences, a candidate with different field expertise adds to the equation.
Market Appeal
When an individual has experience in another field, he/she has often gained experience with various groups of people. This gives the individual the ability to appeal to various markets, thereby bringing value to a company wishing to expand its clientele.
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Willingness to Adapt
Candidates who are willing to take on a role new to them have the willingness to adapt to new situations. These individuals are generally more teachable than those who have been in the same industry and have experienced very few changes over time.
Years of Experience is NOT Always Better
While experience in a particular field might seem to give someone an advantage over inexperienced candidates, this is not always the case. For example, an individual might have worked as a recruiter for fifteen years - but was he good at it? In essence, experience does not always equate to ability.
While it is certainly true that individuals with industry experience are often easier to train, this is not always the
most effectivehire. Rather than eliminating valuable candidates for their lack of experience, employers can
benefit from considering the entire talent pool across industries. Sometimes the most valued additions to a company are the individuals one would least expect.
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As studies consistently show the ways in which diversity increases a company’s bottom line, various industries more employers are viewing it as top priority. As of 2015, industries such as education, hospitality, and government have placed
particular emphasis on diversity hiring. Big-name companies such as Twitter – who fell into the spotlight for a previous lack thereof – are entering 2016 with new
diversity objectives; Twitter plans to reach the 35% mark for women in the company,
as well the 11%mark for racial minorities in the company.
As diversity initiatives are being put in place across the nation - while racial minorities continue to increase in percentage within the U.S. population - 2016 is likely to see an increase in diversification across industries.
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As today’s business climate pushes for greater diversity in the workplace, recruiters and hiring managers are beginning to focus their efforts in new, creative ways. Diverse hiring results in various benefits, including new viewpoints and problem-solving skills, appealing to a more diverse market, and even greater revenue. Many organizations, however, still oversimplify the idea of diversity. For many, quotas on race and gender are
considered enough. Often, such organizations fail to see the true benefits of diversity, what it includes, and why each type is important in itself.
The New Year is a good time to consider some of the less visible types of diversity, such as life experience and education, in order to represent people from all walks of life and truly be inclusive.
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Consider these valuable types of both visible andinternal diversity to consider in the hiring process:
Cultural Background
While individuals of various ethnicities are not inherently different in the ways that they think, they often
represent meaningful aspects of various cultures. For example, Hispanic Americans emphasize family, the greater good, and hard work, which is valuable to the workplace. Similarly, African Americans tend to emphasize family, loyalty, and inner strength. Diversity embodies each of these cultures in meaningful ways, adopting the positive aspects of each.
Life Experience
Life experiences shape the way that individuals view the world, society, and each other. Individuals often
approach problems and handle conflicts based on what has and hasn’t worked in the past, thus adding valuable insight to a workplace team.
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Industry
The industry in which a person is most experienced will often influence the ways in which he/she handles organizational structure, customers, co-workers, creativity, etc. For example, an individual who has worked in retail for many years might approach customers differently than a health care worker.
Education
Simply put, education influences the way people think. The type of school one goes to, the size of that school, their chosen degree, and experiences with certain professors and peers might help to formulate a particular worldview which differs from that of another student.
As organizations begin to enact diversity programs that depend on inclusive attitudes and respect for individual differences, it is imperative that various types of diversity are addressed. Such inclusion can transform the workplace culture, team problem-solving abilities, and even an organization’s bottom line by incorporating multiple perspectives and ideas. All types of diversity must be considered in order to achieve a workplace that represents people from all walks of life in an unbiased manner.
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Each year, a new group of college students receives their cap and gown, accept their diploma, and immerses themselves in the current job market with high hopes and optimism. They are ready to go, filled with enthusiasm, and eager to prove themselves. Often this translates into high productivity and hard work. On the other hand, many organizations are wary of hiring fresh, new faces. College graduates require extra training, extra patience, and more direction. They may lack traditional workplace skills and have trouble relating to older employees. Often this generation is accused of “having a sense of entitlement.”
Whether college graduates are preferred by varying employers, they are consistently entering the candidate pool. Because many companies will eventually be hiring this new generation of graduates, learning the basics about such a population can be useful to every organization.
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As the worldview of “Millennials” shifts, employers and recruiters are placing a heightened emphasis on focusing on the potential positives of hiring new talent:
They Want to Prove Themselves
Because college graduates are new to the field, they often bring the energy, excitement, and focus that it takes to prove oneself. If they plan to stay in a current field for the duration of their career, graduates especially desire to make a positive impression on the employer, make themselves proud, and succeed in the field.
They are Eager to Learn
Recent college graduates are coming from an academic environment that emphasizes knowledge, education, and success. Therefore, in order to get through college, graduates must have motivation and ability to learn new things. This often carries over into employment and produces enthusiastic employees.
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They Bring Fresh Perspective
College graduates bring new ideas to the field. They often view problems differently than their older counterparts due to generational differences and educational shifts, thereby allowing them to solve problems differently. In addition, they add value to an organization that is otherwise stagnant due to their excitement and energy.
They Are Tech Savvy
Some resent the ways in which college graduates (and young individuals in general) use technology “every second of the day.” Because they grew up in the age of smart phones and advanced technology, however, they have the ability to adapt to and suggest new technologies in the corporate world. The frequent use of technology also translates into the ability to multi-task and take on many projects at once.
Rather than assuming that all college graduates present either no value to a company or utmost value to a company, employers must weigh the pros and cons of each individual candidate. This can be determined by a thorough recruiting process that weighs the candidate’s necessary attributes – skills, culture, competency, and attitude. Regardless, businesses will have to begin working with today’s graduates within the near future, making it imperative that they get to know the style, mindset, and values of today’s young generation.
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Repairing the
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You find the candidates. You fill your talent pipeline. When the time comes to make the hire, everything falls through. What went wrong? This phenomenon, known as the failing of the “talent funnel” describes the
heightening disconnect between finding talent and making actual hires. Often, recruiters find pools of talented candidates, yet very few of these candidates are interested when positions open. Such a disjointed practice wastes the time of both candidate and recruiter, further complicating an already difficult task.
As the New Year approaches, recruiters, hiring managers and employers are looking to solutions to this growing issue. Although the explanations for this phenomenon vary, following are some of the most practical
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Lack of Engagement
Too often, recruiters will make initial contact with a candidate and then fail to keep in touch. When the recruiter does finally contact the candidate again, it appears that recruiter only communicates when times are desperate. This will deter a candidate from trusting the recruiter, respecting the motives of the recruiter, or further
communicating with the recruiter, leading to candidate drop-off.
Grueling Hiring Process
In some instances, the candidate actually shows interest in the open position. However, the application process, interview process, and other hiring procedures might be so lengthy and tedious that the candidate begins to lose interest.
Lack of Communication
Similar to the issue of social engagement, lack of communication duringthe hiring process is a great deterrent for
candidates. Lack of information about interviews, results, or hiring manger impressions leave the candidate feeling unappreciated and disrespected. Furthermore, it complicates the hiring process, which causes the candidate to simply give up on the position.
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Frequent Offers
When a recruiter presents too many offers to a candidate – especially poor offers – the candidate begins to lose trust in the recruiter’s judgment. Because recruiting requires a sense of confidence, this is a sure way to lose the candidate’s interest. In essence, the recruiter’s reputation speaks for itself.
When it comes to maintaining relationships with candidates in the talent pipeline, frequent communication, transparency, and simplicity are some of the most helpful tactics. Candidates want to feel respected, appreciated, and informed, therefore tending to lose interest when these needs are not met. Only when these issues are met can a recruiter effectively close the gap between pipelining and hiring, a goal many recruiters and hiring
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As recruiting and hiring techniques become more advanced over time, organizations are beginning to use and store data in complex ways. As of 2015, studies found that over 70% of recruiters claimed that “data analytics is somewhat or very important in the hiring process.” In 2016, its usage is predicted to increase. While data storage continues its shift to “the cloud,” the importance and prevalence of data analytics is increasing. This is likely to increase into 2016, as businesses are beginning to use such data for marketing techniques and candidate
research. When stored in “the cloud,” mass amounts of data can now be analyzed with higher speed, producing quicker results.
Recruiters should make it a top priority for 2016 to understand the storing of data and its effect on hiring, whether this relates to ATS/CRM systems, candidate pipelines, or placement metrics.
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Candidate
Assessment
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Enhanced Candidate Assessments
While the common method of assessing a candidate includes a quick glance at their resume then passing it along or tossing it (sometimes referred to as ‘Throw & Stick Recruiting’), modern companies are now taking a more thorough approach to the hiring process into 2016. Personality tests, sample assignments, behavioral based interview questions, and video interviews are gaining traction among those wishing to make more informed hiring decisions.
Basic skill is no longer satisfactory for job seekers; qualities such as enthusiasm, industry knowledge, conversation skills, punctuality, appearance, and professionalisms are now considered by the majority of recruiters. This is sure to increase in 2016 and into the following years.
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Social Media Assessments
Unsurprisingly, the habit of assessing candidates based on their social media usage is increasing. While industry experts have been noting the increased reliance on internet profiles for the past few years, 2016 is likely to see
even more of an increase. As of 2015, only 4%of recruiters did NOT use some form of social media to look for
and assess candidates. Such a persistent trend is due to the abundance of information that is shared on a
candidate’s online presence. Recruiters now consider more than skills: 74%of recruiters claim to notice the
length of someone’s average tenure online, and 57% notice the length of tenure with a current employer.
Mutual connections, commitment to professional organizations, and examples of written or design work on individual profiles also contribute to a recruiter’s consideration of a candidate. In 2016, the trend of social assessment is sure to increase in parallel with social media usage internationally.
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As the economy continues to recover from the recession, candidates are speaking up when it comes to pay and benefits. The idea of customized benefits comes from the notion that individuals do not always prioritize the same traditional wants and needs. For example, a single mother might prioritize schedule flexibility, while a family supporting many children might emphasize health care benefits. Customized benefits tailor to these priorities and are becoming more commonplace into 2016. Recruiters may benefit from noting that today’s
candidates most desire health care/dental, 401k, casual dress code, working from home, and gym/wellness perks. It is likely that these candidate priorities will take the lead as 2016’s most desired benefits.
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As today’s work culture continues to shift from decades past, individuals’ longevity at any given company has shorted substantially. The days of being a workhorse at the same company for thirty years seem to be retiring with the Baby Boomer generation, as today’s candidates have been “job-hopping” consistently. This year, 30% of
employees worked at a particular organization for 1-3 years, and 29%stayed for 4-6 years. Only 14%of all
employees stayed at an organization for ten or more years (Jobvite).
It is highly probable that this percentage will decrease in 2016 and beyond. As far as entering a new
organization, referrals remain a significant source of hires. According to a 2015 study by Jobvite,
recruiters’ reliance on referrals increased from 60%
to 78% in 2015. More than 40%of recruiters plan to
“invest more in referrals” in 2016. This increase will correspond with the trend of short tenure, possibly creating a larger number of referrals overall.
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In order to determine what makes a quality candidate, ERE suggests taking a new approach in 2016: grouping all
candidates into two categories - above average and below average. By doing so, managers can determine what the top performers have in common versus the lower performers through statistical analysis.
This trend is part of the larger movement that emphasizes quantification of performance data. In today’s competitive market, organizations don’t have the time or resources for poor hires and lack of performance that results from limited metrics and analysis.
More sophisticated methods of probable performance measurement are on the rise, allowing employers to realize what works and what doesn’t for future hires.
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Recruiters are paying more attention to recent analyses that show the damaging effects slow hiring can have on the hiring process. Especially when dealing with high-quality/senior-level candidates, other offers will likely be on the table. Because such candidates are highly qualified, they will likely be attracted to the quickest and most logical offers first, pointing to a need to streamline the hiring process and shorten time to fill. Many of today’s candidates believe that slow hiring is a reflection of the organization itself. In some cases, these candidates might spread negative commentary on the organization as a whole.
This trend is closely related to the candidate experience, pointing to an overall need to focus on the candidate experience into 2016.
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Takeaways
While there is no guarantee that one particular trend will characterize the year ahead, 2015 has provided
tendencies and data that provide a clear forecast of the recruiting landscape in 2016. Such findings have given the impression that trends in technology, assessments, benefits, diversity, tenure, and referrals will affect the ways in which recruiters find the best hires in 2016. For recruiters and HR experts wishing to remain relevant, update their methods, and educate their teams, the trends of next year must be considered as soon as possible.
Understanding and practicing such changes will allow hiring managers, HR experts, and recruiters to truly remain successful in such a rapidly changing business climate.
With preparation, such teams can continue to attract the most qualified, culturally fit, and well-rounded candidates.
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References
1. Rossheim, John. "Big Data and Recruiting: A Match Made in the Cloud | Monster.com." Monster Hiring Resource Center. N.p., n.d. Web. 22 Oct. 2015.
2. "The Jobvite Recruiter Nation Survey 2015." (2015): n. pag. Jobvite.com. Web. 22 Oct. 2015.
3. Dredge, Stuart. "Twitter Publishes Targets for a 'more Diverse' Workforce in 2016." Theguardian.com. The Guardian, n.d. Web. 22 Oct. 2015.
4. Miller, Stephen. " Benefit Trends to Watch in 2016-and Beyond Employers Are Challenged to Control Health Costs While Providing More Personalized Benefits." Benefit Trends to Watch in 2016-and Beyond. VSP, n.d. Web. 22 Oct. 2015.
