Dive Brief:
-
A new research report found the combo of increased competition for talent and a lack of required skills forced employers to boost recruiting spending by 7% in 2014.
-
At the same time, the research found a rise in the use of professional networking sites, which owned 12 percent of recruiting budgets on average in 2014, up from 4% in 2011.
-
At the same time, agencies and third-party recruiters, which owned 38% of the market in 2011, saw that share shrink to 18% on average in 2014.
Dive Insight:
According to Bersin by Deloitte study, the 7% spending boost was partly driven by an increase to nearly $4,000 in the cost-per-hire metric in 2014. And that’s also one possible reason why they are moving to less costly networks and social platforms over agencies.
Karen O'Leonard, vice president, Benchmarking & Analytics Research, Bersin by Deloitte, Deloitte Consulting LLP, said that as the economy continues to rebound and the job market becomes more transparent, organizations recognize that spending money strategically on recruitment, employment branding, sourcing and the entire candidate experience is critically important.
Finally, the research touts company job portals as the top driver of talent sources, with job boards and internal candidates next in line. Interestingly, the researched showed that today 10% of open positions are filled via professional networking sites, the same as in 2011.
"Job candidates now routinely use company websites to assess a firm's strengths and help determine whether they would be a good fit with an organization before even applying for a job," said Robin Erickson, vice president, Talent Acquisition Research, Bersin by Deloitte, Deloitte Consulting LLP. Erickson noted that this trend indicates that while candidates do their job shopping via networking or social media, they usually go right to the source—company websites—to actually apply.
All the more reason why “employment branding and ease of website navigation” are critical for employers looking to land top talent, she added.
