CareerBuilder and the Human Capital Institute have partnered to uncover common misconceptions around both job seeker behavior and the ways in which employers attract and hire top performers. This report brings to light six of today’s most widely held recruiting myths — and reveals what top employers are really doing to achieve optimal hiring results.
- 1. 2013 CareerBuilder 2013 CareerBuilderCommon Recruiting Mythsand Misconceptions Debunked
2. 2013 CareerBuilderIntroductionMethodologyWhy the Study?Myth 1: BIG DATA IS JUST A BUZZWORD. IT HAS NO VALUE TO US IN HR.Myth 2: UNEMPLOYMENT IS HIGH, SO I CAN GET AWAY WITH OFFERINGLOWER COMPENSATION.Myth 3: JOB BOARDS ARE DEAD.Myth 4: SOCIAL MEDIA DOESNT PROVIDE ANY VALUE FOR HR.Myth 5: EMPLOYERS DONT NEED A MOBILE STRATEGY.Myth 6: EMPLOYMENT BRANDING IS A NICE-TO-HAVE, NOT A NEED-TO-HAVE.Recommendations & Conclusion 1 CONTENTS 3. 2013 CareerBuilderAs we emerge from the Great Recession, American businesses are gearing up for growth.Corporate earnings and confidence have rebounded, and organizations are stepping up theirhiring activities. Demand for qualified candidates has increased and for many highly skilledpositions, it exceeds supply.A New Era in Talent ManagementAt the same time, job seekers are taking a more sophisticated approach to their search processes,shopping for new employers much like they would shop for a houses or cars. As HRprofessionals put more science and technology behind what they do, theyre also establishing newstandards and best practices for identifying and engaging this new breed of prospectivecandidates.Is your organization ready to compete in this new era of talent management, or are youbeing held back by outdated or erroneous beliefs about what it takes to hire the right people?The Myths That PersistCareerBuilder recently partnered with the Human Capital Institute to uncover commonmisconceptions around both job seeker behavior and the ways in which employers attract and hiretop performers. This report brings to light six of todays most widely held recruiting myths andreveals what top employers are really doing to achieve optimal hiring results. 2 INTRODUCTION 4. 2013 CareerBuilderHCI and CareerBuilder conducted the following research throughout January and February 2013.HCI administered a 44-item survey to 358 senior human resources professionals nationwide andconducted follow-up interviews with those who elected to participate. The results form the basis ofthis research and are summarized in this report.To supplement these primary research methods, HCI reviewed and gathered information froma variety of secondary sources, including white papers, articles, books, interviews,case studies and other surveys. 3 RESEARCH METHODOLOGY 5. 2013 CareerBuilderUp until recently, HR professionals have had to rely on largely subjective and anecdotal meansof assessing talent and measuring results.Our research found that some of the most commonly held beliefs among hiring professionalsare based, not in truth, but rather on assumptions. Our research uncovered the following mythssurrounding recruitment: Big data is just a buzzword. It has no value to us in HR. Unemployment is high, so I can get away with lower compensation. Job boards are dead. Social media doesnt provide any ROI for HR. Most employers dont need a mobile recruiting strategy. Employer branding is a nice-to have, not a need-to-have. 4 WHY STUDY? 6. 2013 CareerBuilderKEY FINDINGS:Common Recruiting Myths and Misconceptions Debunked 5 7. 2013 CareerBuilderBIG DATA IS JUST A BUZZWORD. ITHAS NO VALUE TO US IN HR.Myth #1 8. 2013 CareerBuilderCompanies are loaded with employee, HR, and performance dataIf we can apply scienceto improving the selection, management, and alignment of people, the returns can betremendous. - Josh Bersin, HR expert, Forbes.com contributorA Mere 4% of Companies Use Big Data Tools 7 MYTH 1:BIG DATA IS JUST A BUZZ WORD1%4%4%16%16%21%47%71%Use standard recruiting metrics(e.g., cost per hire, time to fill):Use internal human capital data on currentemployees (e.g., employee performance,engagement, retention):Use external data (e.g., social media data,labor supply & demand, researchingcompeting organizations):Use internal data beyond the human capitalfunctions (e.g., finance, sales, IT):We do not use any data or analysis:We use big data tools to collect and analyzea wide variety of data from a wide varietyof sources:Do not know:Other: 9. 2013 CareerBuilderThe Big Deal About Big DataBig data refers to the ability to look for relationships in large sets of data. While standard recruitingmetrics continue to play an important role in measuring operational efficacy, big data lets you seetrends and analyze characteristics of your most successful employees, so you can understandwhat drives performance and make more objective, fact-based recruiting and hiring decisions.Enhanced Data Users Are Almost Twice as Likely To Be ExtremelySatisfied with Recent Hires vs. Standard Data Users(Figure 6).Extremely Satisfied Hiring Managers by Recruiting 8 FACTS AND RECOMMENDATIONS6%11%20%Non-Data UserStandard Data UsersEnhanced Data Users 10. 2013 CareerBuilder7000 Days To HireProblem: Job Title MismatchRecently, when a client complained that it was taking nearly two years to hire a load anddynamics engineer, our data analysts discovered that a large part of the problem was inthe job title itself. The candidates with the required skill sets simply did not use the termload and dynamics engineer in their job searches; therefore, the clients jobadvertisements were not showing up in search results and remained invisible tocandidates. When asked the reason for advertising for a load and dynamics engineer,the client simply replied, Thats the way weve always done it, proving that intuitiondoesnt outweigh data.Luckily, data was able to show them a better way.Supply & Demand Portal data from CareerBuilder revealed who the clients competitorswere, what titles they were using, and the most commonly used job titles forthe position. The results opened up the clients eyes and enabled them to adjusttheir recruiting strategy and expedite the time it took to bring in candidatesand hire them. As a result, they cut their time to hire in half, simply bychanging the job title. 9 SHORTENING TIME TO HIRE: A CASESTUDY 11. 2013 CareerBuilderGet Data-fied!What if you could get fast, easy answers to the following questions: What positions are the hardestto fill? Which areas have the most talent available? Who am I competing with for candidates?What are the common demographics of my ideal talent? What is truly competitive compensationfor the positions Im trying to fill?Having this data enables you to make more confident, fact-based recruiting and hiring decisionsand drastically reduce your cost-per-hire and turnover costs. 10 FACTS AND RECOMMENDATIONSTake a look at the above screen shots from a sample Supply & Demand report. If youre in a toughrecruiting market like Washington or Utah, for example, data can point you to nearby markets suchas Colorado Springs, where its easier to acquire talent.Companies that consistently hire great people by identifying and evaluating them basedon data rather than intuition create the strongest teams. 12. 2013 CareerBuilderUNEMPLOYMENT IS HIGH, SO I CANGET AWAY WITH OFFERING LOWERCOMPENSATION.Myth #2 13. 2013 CareerBuilder 12 MYTH 2: WHEN UNEMPLOYMENT ISHIGH, SALARY ISNT A DEAL-BREAKERIf everybody lowballs and steadfastly refuses to payexisting prices as part of an effort to improve their financialstanding, then everybody will suffer.- Daniel Gross, Business Editor, Newsweek 14. 2013 CareerBuilderShow Them the MoneyBased on the research from this study, 56 percent of employers say the main reason candidatesturn down offers is because compensation isnt competitive. Whats more, according toCareerBuilders recent hiring forecast, 47 percent of employers say they plan to offer higherstarting salaries in 2013 up from 32 percent last year. Additionally, 62 percent of employersexpect to increase compensation for existing employees.Check Out the CompetitionIts important to have a benchmark of what competitors are offering. Make it a priorityto continuously check the compensation data and understand what the going rate is for thepositions you are trying to fill. This way, youll know if what youre offeringis truly competitive or if its too low (and consequently the reason youre likely losing out on a lotof the most in-demand candidates). 13 FACTS AND RECOMMENDATIONS 15. 2013 CareerBuilderJOB BOARDS? ARENT THEY DEAD?Myth #3 16. 2013 CareerBuilderWe use job boards to elicit responses fromjob seekers, establish our employmentbrand and build a pipeline of talent for bothcurrent and future openings.- Kathleen Rosati, Assistant Vice President of HumanResources, The Philadelphia Contributionship 15 MYTH #3 JOB BOARDS ARE DEAD. 17. 2013 CareerBuilder1%2%2%3%3%3%6%10%12%16%19%23%Job Boards Are the No. 1 Source of Hire for Companies of All SizesOne Fourth of New Hires Made in 2012 Came From Job Boards 16 FACTS AND RECOMMENDATIONSJob boards (e.g., CareerBuilder, Monster, etc)Employee referralsCompany career siteDirectly initiated by recruiterSocial media (e.g., Facebook, LinkedIn, YouTube, Twitter)Temp/Contract-to-hirePrint advertising (e.g., newspapers, magazines)OtherInterns converted to employeesCareer fairsRe-hires (Boomerangs)Mobile technology (e.g., mobile optimized sites, mobile apps, SMStext)Figure 11: 2012Source of HireQ3A: In 2012, what percentage of your organizations total external hires can you attributeto the following sources:Figure 10: Ranking of Source of Hire by Employer SizeSmallEmployersMid-sizedEmployersLargeEmployersJob Boards Job Boards Job Boards (tie)EmployeeReferralsCompanyCareer SitesCompanyCareer Sites (tie)CompanyCareer SitesEmployeeReferralsEmployeeReferrals 18. 2013 CareerBuilder 17 FACTS AND RECOMMENDATIONSGo Where the Candidates AreDespite the buzz around alternate sources of hire, job boards remained the most commonly usedsource of hire in 2012, as well as the source that most frequently resulted in hiring managersatisfaction. With 67 percent of candidates searching job boards (according to the 2012 CandidateBehavior Study), companies t