Sourcing, Quality-of-Hire Top Talent Priorities in 2015

Competition, compensation biggest recruiting challenges

By Roy Maurer Jan 7, 2015
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Sourcing highly skilled talent and improving quality of hire are the highest priorities for recruiting leaders worldwide, according to LinkedIn’s latest recruitment trends report.

The world’s largest professional network surveyed 4,125 talent decision-makers in 31 countries to understand where the HR industry is headed and what it will take to be successful in 2015.

The 2015 Global Recruiting Trends report outlined that for the first time since 2011, 63 percent of respondents expect hiring volumes to rise, and 46 percent anticipate an increase in hiring budgets.

While sourcing and improving quality-of-hire were found to be the highest priorities overall, small and large companies differ. Small companies, defined as organizations with 500 or fewer employees, are more likely than larger firms to prioritize recruiting skilled talent (49 percent to 43 percent) and improving quality-of-hire (37 percent to 31 percent). Large companies are more likely to prioritize diversity recruiting than smaller firms (15 percent to 9 percent).

About 45 percent of respondents reported that the biggest obstacles to landing talent in 2015 will be competition and compensation. The war for talent is expected to be especially heated in Southeast Asia, with 58 percent citing competition as a major challenge. Fifty-six percent of respondents in Canada and 53 percent in the United States cited competition as the biggest obstacle to attracting the best talent.

Social Sourcing, Passive Recruiting Growing

The report found that social media professional networks are the fastest growing source of quality hires globally. Thirty-eight percent of respondents expect to source talent from professional networks on social media, an increase of 73 percent since 2011. Online job boards are still the top source for recruiting for key positions (42 percent). And job boards produce the highest quantity of hires (74 percent), followed by a company’s website (64 percent), internal hires (62 percent) and social media networks (59 percent).

Small businesses are more reliant than larger companies on Internet job boards (47 percent to 39 percent) and less reliant than large companies on internal hires (23 percent to 34 percent).

Social media network recruiting is especially evident in the Netherlands (76 percent), the U.S. (70 percent) and Brazil (69 percent). The United Kingdom and India lead on the usage of third-party staffing firms, both at 51 percent. Indian companies were the most reliant on online job boards at 79 percent.

Social media networks are also becoming preferred channels for promoting talent brand, according to the report. Online professional networks (61 percent) and general social media (47 percent) are the fastest growing channels for promoting talent brand, led by a company’s website (75 percent). Three-quarters of respondents said talent brand has a significant impact on their ability to hire top talent. Regions with companies that both prioritize and have a proactive strategy for talent brand include Australia, India, the Middle East and North Africa, South Africa, Southeast Asia, and the U.S.

Companies in the U.S. and China are most aggressively recruiting passive candidates, according to the report. China is the most aggressive in passive recruiting at 83 percent, followed by the U.S. at 72 percent. The global average is 61 percent. There was no significant difference found between the extent to which large (62 percent) and small (60 percent) companies recruit passive talent. “Globally, 75 percent of professionals are open to new opportunities yet only 61 percent of companies recruit passive candidates. When companies only focus on the 25 percent—active candidates who apply to jobs—they miss out on fishing in the deeper end of the pool, the 75 percent who are open to considering a career change,” the report said.

Quality-of-Hire Most Valuable Metric

Respondents chose quality-of-hire (44 percent) as the most valuable metric for measuring recruiting performance, followed by time-to-fill (25 percent) and hiring manager satisfaction (18 percent). Small businesses value quality-of-hire more than larger firms (51 percent to 38 percent), whereas large companies value time-to-fill more than small businesses do (31 percent to 18 percent).

New hire performance evaluation (52 percent), retention (51 percent) and hiring manager satisfaction (40 percent) are the most common ways organizations measure quality-of-hire, according to the report.

Mobile Revolution

Mobile recruiting will continue to be a big theme in 2015, with both candidates and companies increasing their mobile recruiting behaviors. Thirty-eight percent of candidates learn about job opportunities from mobile devices and 28 percent apply for positions via mobile. About one-third of companies have mobile-optimized their job postings (30 percent) and their careers Web page (34 percent).

Roy Maurer is an online editor/manager for SHRM.

Follow him @SHRMRoy

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