- The competitive job market has made hiring longer and costlier, according to a Kronos study. Kronos and The Human Capital Institute interviewed 234 HR leaders for the study, and found that more than half plan to revise their talent acquisition strategies in the next two years as a result.
- The number of vacant hourly and salaried positions has increased during the last two years, the study said, and 36% of respondents said they take longer to fill. Longer time-to-hire is driving up cost-per-hire for both types of positions, and 73% of respondents have increased starting pay for salaried positions, while half have raised starting pay for hourly positions during the last two years.
- The study, which divided organizations into "high-performing" (HPO) and "other" categories, found the most important talent acquisition strategies included an alignment with business priorities (56%), a strong internal talent pipeline (48%) and the availability of specific skills (48%) for HPO organizations. Branding and recruitment marketing is another top focus for HPOs, compared to less than half of "other" companies, and HPOs tend to invest more in the candidate experience and recruiter effectiveness.
It's not surprising that recruiting is becoming a longer and costlier process, given the talent shortage, which a Gartner study defines as an emerging risk for organizations. Employers are struggling to find workers that specialize in critical business functions, including privacy regulation and cloud computing. And as this study shows, a longer time-to-hire leads to an even costlier recruiting effort — affirming the idea that employers must try to hire quickly without sacrificing talent quality.
Employers can take cues from the HPOs in the Kronos study to revise their own talent acquisition strategies. Forward-thinking HR leaders understand the need for hiring and all other HR functions to align with their organizations' goals. In fact, strategies that are developed to support those goals are more likely to deliver the desired results.
Developing a strong talent pipeline is also a chief concern among HPOs. Creating these pools of candidates can shorten recruiting time, which, in turn, can lower overall hiring costs. Employers are looking beyond their usual talent sources to build pipelines, which might include strong candidates that weren't hired before; former employees; the formerly incarcerated; customers and others. Additionally, recruiting tech that allows recruiters to engage quickly and personably with applicants can go a long way in improving the candidate experience.
Employment experts recommend that branding be part of every hiring strategy. Creating and promoting a positive brand can be a magnet for job hunters, and taking time to make the candidate experience engaging can improve the chances of making a good hire.