Every Recruiter’s Best Friend

10 KEY TRENDS

RECRUITERS NEED FOR

20202020

Your Recruiting Resolution: Stop Posting and Praying.

Be Proactive.

DATADATA FOR THE NEW DECADE

Business priorities are always changing according to what customers want and need. But there’s one thing businesses are always going to need - people to run it.

Many hiring teams have been well aware of this year’s century-low unemployment rate, hoping the new decade would dampen the issue. But little has changed.

We are in dire need, now more than ever, to address shortcomings in our current recruitment strategies. This can’t be done by just spending money on intelligent tools to simplify the hiring process. It’s done when companies are able to effectively monitor recruitment performance and make improvements based on measurable indicators.

We’re in a data-driven era where every move is calculated to maximize output. In this eBook, we present 10 key trends recruiters need to be aware of in 2020. With these statistics, recruiters and hiring teams can maneuver an employment market set to focus on AI technology, talent shortages, overcoming the recession and improving employer branding.

THE #1 INTERNAL CONCERN FOR

CEOS IN 2020 IS ATTRACTING AND

RETAINING THE RIGHT TALENT

Organizations aren’t just competing for talent, they’re competing for talent who best fit into specific job functions for the purpose of expanding business innovations. In 2019, enterprises increased the implementation of AI technologies by 270% to cater products and services for a digitally-motivated consumer market. Brand new tech skills like quantum computing and AWS Big Data are in demand - and executives fear those roles will remain unfilled.

At the end of November 2019, the US saw 7 million open jobs but only 5.8 million unemployed people. On top of that, 1 million technical roles were left unfilled. As the talent pool shrinks in an increasingly competitive and technology-driven market, executives can’t afford to worry about creating new business models just yet. Instead, a more pressing concern is having enough workers with the necessary skills to beat disruptive technologies in the first place.

1

THE PACE OF JOB GAINS HAS DROPPED

FROM 223,000 A MONTH IN 2018 TO 167,000 A MONTH

IN 20192

Another factor pressuring executives is the fear of an oncoming recession. Although unemployment rates are low and the demand and prices for housing are continuously increasing, there are still red flags signalling an economic slowdown. The US is seeing a decline in payrolls and hours worked, the trade war with China is feared to wipe out many manufacturing jobs and the inverted yield curve proves that investors aren’t confident in the economy.

Companies are caught in a tight spot. To make way for the mass production of the Model 3 Sedan, Tesla cut 3000 jobs. Verizon is also focusing funds on implementing 5G technology, and decided to cut 10,400 people moving into 2019. Businesses are driving down costs down while being picky about the incoming talent they need for new go-to-market strategies.

2

MILLENIALS ARE 3 TIMES MORE

LIKELY TO SAY THAT THEY’VE

CHANGED JOBS IN THE PAST YEAR3

In the last decade, more companies have switched to software-based internal processes.The digital skills gap is widening, and more than half of recruiters say that the skills shortage in their organization has worsened in the past two years. Millennials as a generation have the digital competency to fill in these gaps, but there is a disconnect between young hires and their employers which have led to negative assumptions.

Millennials should not just be looked as a job-hopping generation. They represent a cultural shift in workplace expectations that companies and hiring teams need to take into consideration. Most of these young talents say that they want to learn and grow in their role, they want their organizations to have a sense of purpose and they prioritize having high-quality management4. If recruiters, HR leaders and organizations build a candidate and employee experience that engages millennials effectively, attracting and retaining this generation would be less of a problem.

3

IN THE LAST 12 MONTHS, 9% IN TECH

CHANGED JOBS BUT

ONLY 1% IN HEALTHCARE DID

The demand for healthcare and IT/Tech roles will continue to soar in the new decade. More than half of 2020’s most popular jobs were forecasted to be re-lated to engineering, development, behavioral therapy and physical therapy. Using Hiretual’s Market Insights, we found that an average of 9% of emerging technical roles including Data Scientists, Full-Stack Engineers and Robotics Engineers switched jobs over from the end of 2018 to the end of 2019. Most of these candidates stay at a company for 2 to 4 years in the San Francisco Bay Area, New York, Boston and Washington D.C. area.

In those same locations, only an average of 1% of Behavioral Health Technicians, Physical Therapists and Physician Assistants changed jobs. More than 42% of healthcare candidates stayed at a company for at least 4 years.

4

Find out how you can get this data with Hiretual

78% OF EMPLOYED PROFESSIOALS SAY

THEY WOULD BE OPEN TO JOB-

HOPPING IF THE RIGHT POSITION COMES ALONG6

It’s human nature for people to always look for something bigger and better. With more jobs than job seekers, candidates today have the upper hand in making employment decisions that give them a holistically better quality of life.

With AI, hiring teams can conduct a thorough (and speedy) predictive analysis process to determine what an ideal candidate persona would look like and what the persona would want from a role and a company. Recruiters can identify patterns that answer critical questions far beyond just matching job skills - What companies do these candidates usually come from? How long do em- ployees usually stay at a company for this particular role? What sourcing channels can I target for my candidate search?

5

43% OF EMPLOYERS

COULDN’T RECRUIT TOP CANDIDATES

BEFORE THEIR COMPETITION7

With so many recruiters fishing for candidates from the same talent pool, one of the top recruiting focuses for 2020 is strengthening employer branding. Compensation is becoming less of a deciding factor guiding candidate choices. Hiring teams need to amp up recruitment marketing efforts with the goal of bringing out the story behind a company’s vision and goals. Most candidates start out as customers who are already familiar with a particular brand. Recruiters can leverage that initial connection with customers to build excitement beyond a transactional relationship. Potential candidates want to feel a personal connection or alignment of values with the company they intend to work for. Having an understanding of your competitor’s recruitment marketing strategies and their overall employee and candidate experience will help you get the upper hand.

6

77% OF WORKING ADULTS WOULD LOOK

AT A COMPANY’S CULTURE BEFORE

APPLYING FOR A ROLE THERE8

2020 marks the beginning of a decade where organizations are going to have to look at the workforce differently - as more than just a vehicle to get a job done, but as integral individuals who fit into a larger societal narrative. With 2019’s most sought-after skill-sets involving specialized technical knowledge and analytical capabilities, we’re seeing more industries focus on acquiring more knowledge-based workers.

7

According to LinkedIn9:

1. Cloud Computing2. Artificial Intelligence3. Analytical Reasoning4. People Management5. UX Design

Attracting and retaining these talents require employers to set the building blocks of a core workplace culture, keeping employees motivated, inspired and engaged with their work. Perks like health and wellness programs, flexibility to work from home, and coaching initiatives are some of the more common ways employers have been nurturing and developing their talents to continuously contribute new ideas and innovations. Hiring teams need to tailor their outreach strategies in a way that highlights the cultural selling point of a company.

69% THOSE WITH A NEGATIVE

CANDIDATE EXPERIENCE

WOULDN’T APPLY FOR A COMPANY

AGAIN10

The candidate experience is often used as a benchmark for job seekers to gauge an organization’s culture. Are applications being reviewed in a timely manner? Is there transparency and smooth communication between different stages of the hiring process? Are interviewers mindful and profes-sional? If the answers to any of these questions is no, then a candidate is going to be less likely to accept an offer or consider a company for future opportunities.

8

90% OF EMAILS WITH HIGH

OPEN RATES HAVE SUBJECT LINES BELOW 7

WORDS11

Furthermore, response rates increase by up to 16% when subject lines include job titles. That one second candidates spend glancing at your email in their inbox can make or break your relationship with them. What’s the first thing they see? The subject line. If your subject line sounds too much like a sales pitch, or if it comes as boring or spam-like, your attempt at bridging a conversation ends up unopened along with thousands of other emails, or it ends up right in the trash.

Your subject line should convey both personalization and value to your email recipient. Add a name, job title, keep the tone conversational but serious and most importantly, keep it concise. Subject lines need to be short enough so they don’t get cut off when viewed on different screens, and so you don’t lose a candidate’s attention halfway through the sentence. On top of that, 93% of emails with high response rates use more “you/your statements” compared to “I/my” statements.

9

86% OF HR LEADERS SAY

THEIR INDUSTRY NEEDS TO BE MORE

TECH-SAVVYBut 57% of hiring teams say companies won’t invest in recruitment technology12. When business goals change and pick up pace, so must their hiring needs. The dilemma hitting the end of this decade is this: HR teams are not evolving digitally to keep up with transforming business demands. It’s critical for hiring teams to build a business case for these resources. By

leveraging the ROI from emerging technologies like AI-driven data

aggregation, organizations can see just how important recruitment technology is for a 2020 talent strategy.

With the unemployment rate at a drastic dip, passive candidates can now be easily targeted, screened, and engaged with using recruitment technology for simple automation and

augmented intelligence. With AI and Machine Learning

algorithms, hiring teams can now analyze hard skills, soft skills, compensation expectations and even the behavioral patterns that drive a candidate to open an email,

interact with a recruiter and choose a job.

10

THE BIG PICTURE VIEWFor many of us, 2020 has always felt like a lifetime away. We associate it with a futuristic utopia filled with flying cars and humans in silver suits.

But in reality, 2020 will be the start of a decade where we focus on the people who help make the futuristic products. As businesses grow and the need for talent expands along with it, a data-driven age will help us make quicker and better choices for the benefit of job seekers and recruiters.

As we’ve covered in this eBook, the changes in 2020 will push hiring teams to leverage data in their processes, whether it is looking at candidate or employer behavior.

Recruiting will continue to bridge humans with an opportunity to do more meaningful work in the workplace. It’s time for hiring teams to make more intelligent decisions for the future, leveraging behaviors that must be left in the past.

It’s a new decade for data, and a new and improved phase of talent acquisition.

REFERENCES1. The Conference Board. (2019, January 17) In 2019, CEOs are Most Concerned About Talent and

Recession. C-Suite Challenge 2019TM .

2. Reuters. (2019, December 5) U.S. Trade Deficit Shrinks Sharply; Labor Market Tight. The New York

Times.

3. Adkins, A. (2019) Millennials: The Job-Hopping Generation. Gallup.

4. Robison, J. (2019, October 28) Why Millennials Are Job Hopping. Gallup

5. Hiretual tool. Market Insights feature.

6. Career Builder. (2019, July 23) Survey from CareerBuilder Reveals Half of Employees Feel They Have

“Just a Job” Amid Heightened Career Expectations.

7. Society for Human Resource Management (SHRM). (2019, February 5) The Skills Gap 2019.

8. Glassdoor. (2019, July 10.) Glassdoor Mission & Culture Survey Supplement.

9. Lewis, G. (2019, January 3) The Most In-Demand Hard and Soft Skills of 2019. LinkedIn.

10. Talentegy. (2019, May 21) 2019 Candidate Experience Report: Perceptions & Behaviors.

11. Talentegy. (2019, May 21) 2019 Candidate Experience Report: Perceptions & Behaviors.

12. Fuhl, J. (2019, December 9) 7 Ways HR’s Changing. Sage People.