Download - 2014 north americantrendsreport
2014A Numbers Game
North American Staffing and Recruiting Trends Report
2
Contents
3 Introduction & Key Findings
4 Revenue and Growth •RevenueExpectations •ActualRevenue •Headcount •BranchExpansion
6 Agency Health •RevenuefromRepeatClientBusiness •RelianceonLargeClients
7 Performance Benchmarks •MostImportantMetrics •TotalNumberofPlacementsGrowth •AverageFillRate •AverageHitRate •AverageTime-to-Fill •AverageSubmissionsPerHire •AverageApplicationsPerJobPosting •PercentageofPlacementsfromATS •FeePerPermPlacement
14 Compensation •CompensationPerformance •RealCompensation
16 Trends •GreatestOpportunityandBiggestThreat •SkillsShortage
17 Insights •CandidateSourcingStrategies •ATSImportancetoFirmSuccess •GreatestQualityofaSuccessfulRecruiter
20 Demographics
Growth: •77%ofrespondentsmetorexceededtheirrevenuegoalsin2013,morethan2012,2011,or2010.
•75%offirmsplantogrowheadcountin2014,comparedto82%in2013.
•Growthininvestmentisslowing:only23%ofrespondents’firmsplantolaunchnewofficesin2014,comparedto48%lastyear.Firmsthatconsiderrecruitingtechnologyimportantaremorethantwiceaslikelytoopennewbranchlocations in2014.
Metrics: •Forthethirdyearinarow,totalnumberofplacementswasthemostimportantmetricforrecruitingagencies.
•Theaveragefillrateacrossallrespondentswas46%.
•Averagehitrateincreasedforrespondents,from33%in2012to40%in2013.
•Theaveragetime-to-fillin2013was6daysfortemp,8daysforcontract,and32daysforperm.
•Respondentsmade49%oftheirtotalplacementsusingcandidatesfromtheirinternaldatabases.
Candidates: •71%ofrespondentsadmittohavingashortageofskilledcandidatesintheirrespectivesectorsfor2014versus76%for2013.
•Thebestsourceofqualifiedcandidatesfor2013wasexistingcandidatesfromrespondents’applicanttrackingsystems,followedbyreferralsandsocialmedia.
Key Findings
Introduction
In December of 2013, Bullhorn conducted its fourth annual Staffing and Recruiting Trends survey of 1,337 agency recruiting professionals.Comprisedofperformancebenchmarks,metrics,andrevenueandcompensationfigures,thisreportanalyzesindustryinsightsbyfirmsize,recruitmenttype,industry,rolerecruited,androleofrespondent.Itisacompendiumofusefulstatisticsdesignedtohelprecruitingprofessionalsdeterminewheretheystandinrelationtotheirpeers.
Forthepurposesoftheanalysesinthisreport,wesegmentedstaffingandrecruitingagenciesintofoursizes,basedontheirnumberofsalespeopleandrecruiters:1-10(small),11-25(lower-midsize), 26-74(upper-midsize),and75+(large).
2013wasbyalmostallaccountsaverygoodyearforthestaffingandrecruitingindustry.Overallrevenue,aswellastotalnumberofplacements–themostimportantmetricforfirmsacrosstheboard–increasedoverthepastyear.However,therearesignsofaslowdownfor2014.Agenciesaremoreconservativeabouttheirgrowthplans,andsomefirmsareoverlyreliantonasinglelargeclientforrevenue.Meanwhile,contractandtempfirmsaregainingmomentumfor2014,asthepopularityofrecruitingtechnologyunderscoresaneedforspeedandperformance.
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4
Revenue and Growth
Revenue Expectations: 77%ofrespondentsmetorexceededtheirrevenuegoalsin2013,morethan2012,2011,or2010. Intermsofrevenueexpectationsforthecomingyear,recruitingprofessionalsareoptimistic.88% expectsomesortofincreaseandonly3%anticipateadecline;92%ofrespondents expectedtoincreaserevenuefor2013. Largefirmsaremostbullishongrowthingeneral.
Actual Revenue: Weaskedrespondentstodisclosetheirfirms’actualrevenuesfor2013.Weexpressedthesefiguresasrevenueperrecruiter/salespersonbyfirmsizeandrecruitmenttype.
Firms That Met Or Exceeded Revenue Goals
2010 71%
2011
2012
2013
70%
73%
77%
60% 70% 80%
Byrecruitmenttype,largetemporaryfirmsandlargecontractfirmshadthehighestrevenueperrecruiter/salesperson($604,000and$549,000,respectively).RPOfirmsingeneralwereonthelowerend;smallRPOfirmshadrevenueperrecruiter/salespersonof$171,000.
Revenue Per Recruiter/Salesperson By Firm Size and Recruitment Type
Contract
Temporary
Permanent
Executive Search- Retained
$0 $300,000 $700,000
Executive Search - Contingent
RPO*
1-1011-2526-7475+
N/A 75+
*Note: Due to limited sample size we did not calculate large RPO firm revenue.
Revenue Per Recruiter/Salesperson By Firm Size
1-10 $266,000
11-25
26-74
75+
$339,000
$336,000
$528,000
$0 $300,000 $600,000
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Headcount: Hiringplansfor2014arehealthy,withonly2%ofrespondentsdisclosingthattheirfirmsplantoreduceheadcount,and75%planningtogrowit.However,thisislessaggressivethanlastyear, when82%plannedtoaddstaff.
2014 Headcount Plan By Recruitment Type
Contract
Temporary
Permanent
ExecutiveSearch -Retained
0% 50%
ExecutiveSearch -Contingent
RPO
Add EmployeesReduce EmployeesKeep Employee Count the Same
100%
86% 13%1%
77% 22%2%
68% 29%2%
69% 31%0%
63% 37%1%
64% 33%3%
Branch Expansion: Weaskedrespondentsiftheirfirmsplannedtoexpandintonewbranchorofficelocationsin2014.Giventhepositivenewsaboutrevenuegrowth,weexpectedaggressiveexpansionplans.Thiswas farfromthecase.
Only23%ofrespondents’firmsplantolaunchnewofficesin2014.49%havenointentionofdoingso,and28%areunsure.For2013,morethandoublethenumberofrespondents’firmsplannedtoexpand.And2013wasn’tanisolatedcase.Whilethepercentageoffirmsmeetingorexceedingrevenuegoalsisgrowing,theirinvestmentinheadcountandphysicalexpansionisshrinking.
Interestingly, firms that consider recruiting technology important are more than twice as likely to open new branch locations in 2014. Amongthoserespondentswhoconsiderrecruitingtechnologysuchasapplicanttrackingsystemstobeimportanttosuccess,26%plantoexpandbranchlocationsin2014.Forthosewhoareneutralorconsiderrecruitingtechnologyunimportant, only12%plantoexpandbranchlocations.
Byprimaryrecruitmenttype,contingentexecutivesearchfirmsaremostconservativeintermsofheadcountplans,whereascontractandtempfirmsareprimedforheadcountgrowth.Interestingly,RPOfirms’growthplansarecomparativelymodest.GiventhetremendousgrowthRPOhas seeninthepastseveralyearsthisfinding wassurprising.
Firms Planning Branch Expansion
2011 56%
2012
2013
2014
39%
48%
23%
0% 70%30%
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Agency Health
Revenue from Repeat Client Business:Firmsthatgenerateahighpercentageoftheirrevenuefromrepeatclientbusinessdemonstratethevalueofnurturingstrongcustomerrelationshipsanddeliveringsustainableresults.Itappearsasthoughstaffingandrecruitingfirmsunderstandtheimportanceofcustomerrelationshipsandkeymetrics(aswe’llseelater): 72% of respondents generate 50% or more of their revenue from repeat client business.
Resultswererelativelysimilaracrossrecruitmenttypes,rangingfrom57%ofrevenuefromrepeatbusinessforpermfirmsto64%fortempfirms.
% of Firms That Can Stay in Business if Largest Client Was Lost
1-10 93%
11-25
26-74
75+
95%
100%
98%
Firm
Size
70% 85% 100%
Reliance on Large Clients: Whilerevenuefromrepeatclientbusinessisasignofstrongagencyhealth,relyingtooheavilyonasingleclientcanberisky.Thenextquestionweaskedinthesurvey–“what percentage of your total revenue does your largest client represent?” –aimedtodeterminethenumberoffirmshedgingtheirbetsonadangerousproposition.
Bysize,thefindingswerefairlytame,withonedefiniteexception.48%ofupper-midsizerespondentsget70%ormoreoftheirrevenuefromtheirlargestclient.
Wealsoaskedrespondentsiftheycouldstayinbusinessiftheylosttheirlargestclient.Only6%ofrespondentsadmitthatthey’dcloseifthiswerethecase.However, 22% of respondents reported that 50% or more of their revenue comes from their largest client.
Percentage of Revenue from Repeat Client Business
Perc
enta
ge o
f Res
pond
ents
Percentage of Revenue
25%
20%
15%
10%
5%
0%
5%
0-10%
8%
5%
11-20%
8%
21-30%
9%
31-40%
13%
41-50%
8%
51-60%
9%
61-70%
22%
71-80%
16%
81-90%
6%
91-100%
Whileseveralrespondentsatsmall,lower-midsize,andlargefirmsfeltatriskofshuttingdowniftheylosttheirlargestclient,norespondentsfromupper-midsizefirms(26-74)feltvulnerable.Upper-midsize firms are most reliant on a single client, but are the least afraid of going under if they lose that client.
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Performance Benchmarks
Forthe2014StaffingandRecruitingTrendsReport,wecollectedperformancebenchmarkdatafromthemorethan1,300recruitingprofessionalswhotookoursurvey.Usethedatainthissectiontoseehowyoucomparedtoyourpeersin2013.
Most Important Metrics: Weaskedrespondentstoranktheirkeymetricsinorderofmostimportant(#1)toleastimportant(#6).Tokeepmeasurementconsistentwithpreviousyears,wechartedthepercentageofrespondentswhoconsideredeachofthesixmetricswemeasuredasMOSTimportantinthegraphbelow.
Forthethirdyearinarow,totalnumberofplacementswasmostimportant.Interestingly,thismetric hasincreasedinimportanceeveryyear.Hitrate(definedasstartsdividedbysendouts),ontheotherhand,hasdeclinedheavilyyear-over-year.Andtime-to-fillhasbecomeincreasinglyimportant,thoughit’sstillatthebottomofthelist.
Whilefillratewasthesecondmostimportantmetricoverall,thiswasinfluencedbysmallfirms. Forlower-midsize,upper-midsize,andlargefirms,averagegrossmarginofplacementfeewas actuallythesecondmostimportantmetricin2013.
TotalnumberofplacementswasthetopmetricforallrecruitmenttypesexceptforRPOfirms, whichconsideredtotalnumberofplacementsandtime-to-filltobothbemostimportant.
HowSuccessfulWereFirmsin2013?
Most Important Key Performance Metric
201344%
2012
2011
0% 50%25%
Total Number of PlacementsFill RateAverage Gross Margin of Placement FeeTotal Number of Job OrdersHit RateTime-to-Fill
38%
31%
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Total Number of Placements Growth: Giventhattotalnumberofplacementswasagainthetopmetricforrecruitingfirms,weaskedwhetherrespondents’totalnumberofplacementsgrewoverthepastyear.
71%ofrespondentssaidtheirtotalplacementsgrew,20%saidtheydidn’t,and9%wereunsure.
Byrolerecruited,financeandaccounting,legal,andsalesprovedtobehotfunctionalareas.
% of Firms Exhibiting Total Placement Growth in 2013 — By Role Recruited
Finance &Accounting
LegalSales
Clinical/ScientificIT/Technical
Professional/SpecialtyHealthcare-GeneralEngineering/DesignHealthcare-Locum
TenensOffice/Clerical/Admin
All/GeneralistHealthcare-Per Diem
NurseLight Industrial
Healthcare-Travel NurseMarketing/Creative
0% 50% 100%
78%
76%
76%
74%
73%
73%
70%
70%
67%
65%67%
55%
55%
50%
50%
Average Fill Rate in 2013: The average fill rate across all respondents was 46%. Forthisreport,wedefinedfillrateasthetotalnumberofjobordersfilleddividedbythenumberofjobordersreceived,multipliedby100.
Respondentsfillingjobsfortheshippingindustryhadthehighestfillrate(67%),whilethoseinentertainmenthadthelowest(36%).
Forprimaryrecruitmenttype,retainedexecutivesearchfirmshadthehighestaveragefillrate.Contingentexecutivesearchfirmshadthelowestfillrateandcontractwasclosebehind.Thissuggeststhatifcontingentjobsaren’tfilledquickly,theymightnotendupfilledatall.
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Average Fill Rate By Recruitment Type
Contract
Temporary
Permanent
ExecutiveSearch -Retained
0%
ExecutiveSearch -Contingent
RPO
70%
41%
59%
44%
66%
39%
55%
30%
Average Hit Rate in 2013: Average hit rate increased for respondents from 33% in 2012 to 40% in 2013. Wedefinedhitrateasthenumberofsuccessfulplacements(starts)dividedbythetotalnumberofclientsubmissions(sendouts),multipliedby100.
Hitratevariedconsiderablybetweenindustries,withpackaging/warehouse/transporthavingthehighesthitrateandtherestaurant/hospitalityindustryhavingthelowest.
Average Fill Rate By Industry
ShippingPackaging/Transport/Warehouse
IndustrialConstruction
TransportationManufacturing
Consumer ProductsRetail
Business ServicesTelecommunications
Marketing/PR/Media/AdvertisingAutomotive
Energy/ChemicalPharma/Biotech/Medical Equipment
Restaurant/HospitalityHealthcareTechnology
Finance/InsuranceUtilities
GovernmentEntertainment
0% 40% 80%
67%
60%
55%
51%
51%
50%
48%
48%
47%
47%
47%
46%
46%
44%
43%
42%
41%
40%
40%
39%
36%
Average Hit Rate By Industry
Packaging/Transport/WarehouseShipping
TransportationIndustrial
ConstructionManufacturing
AutomotiveEnergy/Chemical
TelecommunicationsBusiness Services
RetailMarketing/PR/Media/Advertising
Pharma/Biotech/Medical EquipmentHealthcareTechnology
UtilitiesFinance/Insurance
GovernmentEntertainment
Consumer ProductsRestaurant/Hospitality
0% 30% 60%
50%
50%
50%
46%
44%
43%
42%
42%
41%
39%
38%
38%
38%
38%
37%
36%
36%
35%
34%
34%
31%
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Similartothefillratepattern,contingentexecutivesearchandcontractfirmshadthelowestaveragehitratebyrecruitmenttype.
Average Time-to-Fill in 2013: Forthereport,wedefinedtime-to-fillasthenumberofdaysorhoursrequiredtofillanewjobopening.Despitethefactthattime-to-fillwasdeemedtheleastimportantmetricofthesixweevaluated,analyzingityieldedsomevaluablefindings,mainly–whattypesofrespondentsandfirmsareobsessedwithspeed?Theansweris,aswe’veseenthroughoutthereport,tempandcontractfirms.
Broken out by recruitment type, the average time-to-fill in 2013 was 6 days for temporary, 8 days for contract, and 32 days for permanent.
Becausetime-to-fillvarieddrasticallybetweenrecruitingtypes,wesplitouttheindustryviewbycontract,temporary,andpermanentrecruitment.Interestingly,time-to-fillatcontractrecruitingfirmswaslowestfortheentertainmentandautoindustries(2days),butasmentionedearlier,entertainmentalsohadthelowestoverallfillrate(36%).What’sthepointoffillingjobsquicklyifyoudon’talsofillthemajority ofthem?
Average Time-to-Fill by Recruitment Type
ContractTemporary
PermanentExecutiveSearch -RetainedExecutiveSearch -Contingent
6
37
68
Days
832
Average Hit Rate By Recruitment Type
Contract
Temporary
Permanent
ExecutiveSearch -Retained
0%
ExecutiveSearch -Contingent
RPO
60%
37%
47%
39%
48%
37%
51%
30%
11
Average Time-to-Fill By Industry — Contract
AutomotiveEntertainment
Marketing/PR/Media/AdvertisingPackaging/Transport/Warehouse
TelecommunicationsConstruction
ManufacturingIndustrial
HealthcareShipping
TechnologyPharma/Biotech/Medical Equipment
Finance/InsuranceTransportation
GovernmentRetail
UtilitiesConsumer Products
Business ServicesEnergy/Chemical
Restaurant/HospitalityDays
22
556
889910111111111111
1313131617
Average Time-to-Fill By Industry — Temporary
4
3
0.9
0.1Restaurant/HospitalityConstruction
Packaging/Transport/WarehouseShipping
Energy/ChemicalUtilities
HealthcareBusiness Services
TelecommunicationsMarketing/PR/Media/Advertising
Finance/InsuranceEntertainmentTransportation
GovernmentPharma/Biotech/Medical Equipment
RetailManufacturing
Consumer ProductsIndustrial
TechnologyAutomotive
Days
0.2
23
4
5
67
81011111212
15
5
1530
Average Time-to-Fill By Industry — Permanent
12TransportationEntertainment
Packaging/Transport/WarehouseBusiness ServicesFinance/Insurance
AutomotiveUtilities
ManufacturingTelecommunications
TechnologyGovernment
Pharma/Biotech/Medical EquipmentConstruction
Retail
Industrial
Restaurant/Hospitality
Consumer Products
Marketing/PR/Media/Advertising
Energy/Chemical
Healthcare
Shipping
Days
2121222325262727272829303131313434
N/A (limited sample size)
3639
For 50% of respondents overall, average time-to-fill improved in 2013; it worsened for only 13%. Weaskedrespondentswhosetime-to-fillworsenedtoexplainwhythishappened.ThemostcommonreasonsincludedstrictercorporateHRprocessesfromclients,alackofqualifiedcandidates(alsothebiggestoverallchallengefor2014),andalackofurgencyfromclients.
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Average Number of Submissions Per Hire: On average, respondents needed to submit 6 candidates to the client for every hire.
Theaveragenumberofcandidatesubmissionstotheclientforeveryonehirevariedbytypeofrecruitment,withfirmsspecializinginpermanentplacementrequiring7submittedcandidatesforeveryhirecomparedtojust4candidatesfortempagencies.
Byrolerecruited,mosthealthcarerolesrequiredthehighestaveragenumberofsubmissionsperhire,with11fortravelnurses,10forperdiemnurses,and6forgeneralhealthcarepositions.Theexceptionwaslocumtenenshealthcarepositions,whichrequiredthefewestsubmissions(4),asdidlegal.
Average Number of Applications Per Job Posting:Respondents received an average of 28 applications per job posting. Contractfirmsreceivedmuchfewerapplications–17–versusanaverageof49fortempfirms.Tempfirms’highnumberofapplicationscontrastedwiththeirlowsubmissionsperhire,indicatingthatwhilequantity ofcandidatesisn’taproblem,qualitymaybe.
Submissions Per Hire By Recruitment Type
Contract
Temporary
Permanent
ExecutiveSearch -Retained
0
ExecutiveSearch -Contingent
RPO
8
5
4
7
6
4
5
4
Overall 6
Applications Per Job By Recruitment Type
Contract
Temporary
Permanent
ExecutiveSearch -Retained
0
ExecutiveSearch -Contingent
RPO
60
18
49
35
47
17
42
Overall 28
30
13
Perdiemnursingjobsreceivedthemostapplicationsperposting,followedbyoffice/clerical/adminjobs.Interestingly,office/clericalpositions,despitedrawingahighnumberofapplications,haveaskillsshortageproblemwhichwe’lldiscusslater.
Percentage of Firms’ Placements Made from Candidates in ATS:Overall,respondentsmade49%oftheirtotalplacementsusingcandidatesfromtheirapplicanttrackingdatabases.
Contractfirmsmadethehighestpercentageofplacementsusingexistingcandidatesfromtheirdatabases,whereasretainedexecutivesearchfirmsweremorelikelytoturntonewcandidates.Wealsoknowthatcontractfirmsthatdealwithahigh-volumebusinessaremorelikelytouseVMS,wherespeediscritical,andconsider“existingcandidatesfromtheATS”tobetheirmosteffectivehigh-qualitysourcingmethod(discussedlater).
Alow-volume,long-leadbusinesslikeretainedexecutivesearchwouldrelylessonexistingcandidateswhomaynotbeanexactfitforaseniorpositionandmoreonrelationship-centricsourcingstrategieslikesocialmedia,thenumberonecandidatesourcingstrategyforretainedexecsearchfirms.
Fee Per Perm Placement:Weaskedrespondentsatfirmsspecializingprimarilyinpermanentplacementtodisclosetheirfirm’saveragefeeperplacementin2013.Theaveragefeeperpermanentplacementwas$16,602.
Applications Per Job Post By Role Recruited
Healthcare-Per Diem NurseOffice/Clerical/Admin
All/GeneralistMarketing/Creative
Finance & AccountingHealthcare-Travel Nurse
SalesProfessional/Specialty
LegalLight Industrial
Healthcare-GeneralEngineering/Design
Clinical/ScientificIT/Technical
Healthcare-Locum Tenens
0 60
50
30
4741
393736
33323231
2423
1918
6
Average % of Placements Made From Existing Candidates — By Recruitment Type
Contract
Temporary
Permanent
ExecutiveSearch -Retained
0%
ExecutiveSearch -Contingent
RPO
60%
55%
51%
46%
45%
47%
51%
30%
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Compensation
Compensation Performance:Respondentsareoptimisticabouttheirtotalcompensationforthisyear(definedassalaryplusbonus),withmoreexpectinganincrease(84%)in2014thanfor2013(81%)or2012(77%).
Intermsofrealizedcompensationoverall,2013wasslightlylesslucrativethan2012.61%ofrespondentssawayear-over-yearcompensationincreasein2013,versus63%whosawonein2012.
Real Compensation in 2013:Nowlet’stalkactualnumbers.CEOsunsurprisinglymadethemostmoneyin2013($154,000),butsalespeopleandaccountmanagersmademuchmorethanrecruiters($92,000versus$74,000).
Actual Compensation Performance Compared to Previous Year
Increase Decrease Stay the Same
2010
24%
22%
54% 2011
29%
11%
60% 2012
13%
25%
63% 2013
25%
14%
61%
Average Compensation By Role
CEO/Owner/Managing DirectorSales VP
VP of OperationsRecruiting Manager
Salesperson/Account ManagerHR
IT Manager/CTO/CIORecruiter
Social Media/Marketing Manager
$0 $90,000 $180,000
$154,000$145,000
$123,000$109,000
$92,000$81,000
$75,000$74,000
$73,000
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Wealsobrokeoutcompensationbyfirmsizeandthreeroles.SmallfirmCEOsmadeanaverageof$149,000,whereasCEOsoflower-midsizefirmstoppedthechartswithaveragecompensationof$215,000.AndwhileCEOsatlargefirmsmadethesecond-highestamountamongtheirpeers,recruitersatlargefirmsmadetheleast—withaveragecompensationof$62,000.
Analyzingcompensationbyrecruitmenttype,it’sclearthatretainedexecutivesearchiswherethemoneyis.CEOsforfirmsspecializinginretainedexecutivesearchpulledinacomparativelymassive$230,000inaveragecompensation.
Average Compensation By Firm Size
CEO/Owner/Partner
Recruiter
Salesperson/Account Manager
$0 $250,000
1-1011-2526-7475+
$149,000
$100,000
$215,000$190,000$200,000
$78,000$79,000
$63,000$62,000
$83,000$97,000$92,000
$119,000
Average Compensation By Recruitment Type
CEO/Owner/Partner
Recruiter
Salesperson/Account Manager
$0 $250,000
ContractTemporaryPermanentExecutive Search - RetainedExecutive Search - Contingent
$146,000
$100,000
$159,000$139,000
$230,000$149,000
$71,000$53,000
$77,000$84,000$96,000
$95,000$74,000
$93,000$95,000$105,000
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Trends for 2014
We examined several key trends for 2014 based on our 2013 findings.
Greatest Opportunity and Biggest Threat:In2014,accordingtowrite-inresponses,thegreatestopportunityforrecruitingfirmsissocialmedia.In2013,thegreatestopportunityforrecruitingfirmswastheverysimilar“accesstopassivecandidatesviasocialmedia.”“Mobilerecruiting”isadistantsecondfor2014,followedby “BigData.”
For2014,basedonopen-endedresponses,thegreatestobstacleorthreattosuccessisalackofqualifiedcandidates.Thisiscloselyfollowedbyeconomicconcernsandincreasedcompetition.In2013thegreatestchallengewas“alackofskilledcandidates,”followedby“unrealisticclientexpectations.”
Percentage of Respondents with Shortage of Skilled Candidates — By Industry
TransportationUtilities
Pharma/Biotech/Medical EquipmentEntertainment
Energy/ChemicalIndustrial
TechnologyHealthcare
TelecommunicationsAutomotive
ManufacturingFinance/Insurance
ConstructionGovernment
Restaurant/HospitalityBusiness Services
RetailMarketing/PR/Media/AdvertisingPackaging/Transport/Warehouse
Consumer ProductsShipping
0% 50% 100%
84%
78%
77%
76%
73%
73%
72%
72%
71%
71%
70%
70%
70%
70%
68%
64%
64%
64%
61%
61%
54%
Skills Shortage:Thegoodnewsisthattheskillsshortage,whilebeingthebiggestchallengetwoyearsrunning,isslightlylesspervasivethisyear.71%ofrespondentsadmittohavingashortageofskilledcandidatesintheirrespectivesectorsfor2014versus76%for2013.
Byindustry,thefindingsaresomewhatpeculiar.Technology–whichinpreviousyearshadacriticalshortageofqualifiedtalent–isrunninginthemiddleofthepackthisyear.Transportation(84%),pharma/biotech(77%),andutilities(78%)allsawhigherreportedshortagesthantechnology(72%).
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Insights
What Makes a Successful Recruiting Firm?Forthisyear’sreportwesoughttolearnmoreaboutsomeoftheelementsofrecruitersuccess,startingwithbestpracticesforsourcingcandidates.
Candidate Sourcing Strategies:Weaskedrespondentstoranktheirmostsuccessfulcandidatesourcingstrategiesfor2013frombest(1)toworst(7).Themostsuccessfulsourceofqualifiedcandidatesfor2013wasexistingcandidatesfromrespondents’ownapplicanttrackingsystems(3.3),followedbyreferralsfromprevioussuccessfulplacements(3.4)andsocialmedia(3.5).
Jobboards–oftendiscussedanddebatedintherecruitingmedia–wereinthemiddlewitharankof3.6.Aggregatorsites(4.6),re-hires(4.8), andcoldcalling(4.8)didpoorly.
Segmentedbyfirmsize,thefindingsvarysignificantly.Forlargefirms,themostsuccessfulsourceofqualifiedcandidateswasjobboards,followedbyreferrals.Theleastsuccessfulsourcewascoldcalling.
Meanwhile,lower-midsizefirmsfaredbestusingexistingcandidatesfromtheirATS,followedbyreferralsandjobboards,butdidpoorlywithcoldcalling.Upper-midsizefirmsweremostsuccessfulwithexistingcandidatesfromtheirATSaswell,andalsosawstrongresultswithjobboardsandreferrals,butdidterriblywithre-hires.
Average Rank of Candidate Sourcing Strategies
Existing Candidates from ATSReferrals
Social MediaJob Boards
Aggregator SitesRe-hires
Cold Calling
1 7
3.3
Best Worst
3.43.53.6
4.64.84.8
Average Rank of Candidate Sourcing Strategies By Firm Size
1-1011-2526-7475+
Job Boards
Referrals from Placements
Existing Candidates from ATS
Social Media
Aggregator Sites
Re-hires
Cold Calling
3.1
1 7Best Worst
3.33.6
3.8
3.33.43.5
3.4
3.43.23.1
3.4
3.73.4
3.83.4
4.74.74.8
4.5
4.85.1
4.44.8
5.05.04.94.8
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Socialmediawasthemostsuccessfulsourceofqualitycandidatesforpermanentstaffingfirms–amajorevolutionsinceour2011TrendsReportfoundsocialmediatobetheleastsuccessfulsourcingmethod.Butforcontractfirms,wherespeedyplacementsarecrucial,existingcandidatesfromapplicanttrackingsystemswerethebestsourceofqualitycandidates.Fortempfirms,referralsfrompreviousplacementsprovedtobethebestsource.
Retainedandcontingentexecutivesearchfirms,notshowninthegraph,hadcommonresults.Forretainedexecsearch,thenumberonesourcingstrategy–likeperm–wassocialmedia(2.4ranking).Referralswereadistantsecond(3.3),andre-hiresweretheleasteffective(5.4).Forcontingentexecutivesearch,thetopcandidatesourcingstrategywasalsosocialmedia(3.0),followedcloselybyreferrals(3.0). Lastwas,again,re-hires(5.4).
How Important Is Recruiting Technology to Agency Success? Applicanttrackingsystems(ATS)arenolongeraluxury–they’reanintegralpartofagencysuccess.89%ofrespondentsconsiderrecruitingtechnologysuchasapplicanttrackingsystemstobeimportantorveryimportanttotheirfirms’successfor2014, ahigherpercentagethan2013or2012.
Firmsacrossallsizesconsiderrecruitingtechnologyimportanttosuccess,butsmallfirmareonthelowerendofthefindings,at86%,versus93%forlower-midsizefirms,94%forupper-midsizefirms,and93%forlargefirms.75%ofrespondentsfromlargefirmsconsideredrecruitingtechnologyveryimportant.
Byrecruitmenttype,thefindingsareverydifferent.Itappearsthattheshortertheplacementcycle,themorerespondentsconsiderrecruitingtechnologyimportanttosuccess.Forahigh-volumeplacementsbusinesslikeRPO,contractstaffing,andtempstaffing,recruitingtechnologysuchasapplicanttrackingsystemsiscrucial.A whopping 86% of RPO respondents think recruiting technology is not just important, but very important.Foralonger-leadorlower-volumebusinesslikeexecutivesearch,recruitingtechnologyisperceivedaslessimportant.In other words, the firms that rely most on recruiting technology have a need for speed and automation.
Respondents Who Consider Recruiting Technology Important or Very Important to Firm Success
2011
84%
2012
87%
2013
89%
Average Rank of Candidate Sourcing Strategies By Primary Recruitment Type
ContractTemporaryPermanent
Social Media
Referrals from Placements
Existing Candidates from ATS
Job Boards
Aggregator Sites
Cold Calling
Re-hires
1 7Best Worst
3.24.3
3.9
3.43.3
3.6
3.43.4
3.0
3.83.3
3.1
4.44.1
4.8
4.55.6
5.4
5.34.0
4.2
19
Respondents Who Consider Recruiting Technology Important or Very Important to Firm Success
— By Recruitment Type
Contract
Temporary
Permanent
ExecutiveSearch -Retained
0%
ExecutiveSearch -Contingent
RPO
100%
92%
92%
86%
86%
79%
96%
50%
The Greatest Quality of a Successful Recruiter:Wewantedtoconcludethe2014TrendsReportonaqualitativenote.We’vepresentednumerousbenchmarksthatdemonstratewhatsuccesslookslikeforrecruitingfirms.Butwhatmakesasuccessfulrecruiter?Whatcharactertraitsseparatesomeonewho’sjustinitforpersonalgainfromarealprofessionalwhocaresaboutpeople–amasterofappreciatinghumanpotential?Whatisthesinglegreatestqualityofasuccessfulrecruiter?
Weaskedrespondentstowriteintheirideas,andthemostdominantanswerwas“persistence.”Thiswasfollowedby“the ability to listen”and,supportingtheimportanceofholdingonagainstallodds,“tenacity.”Onehighlyoptimisticindividualwrote“good looks.” Greatest Quality of a Recruiter
PersistenceAbility to Listen
TenacityAbility to Follow Up
CommunicationSourcing
NetworkingRelationship Building
PerseveranceDrive
Determination
0 80 160
141
51
50
48
48 37
31
31
28
26
23
DemographicsAbouttheTrendsReport
In December of 2013, Bullhorn conducted its annual trends survey of 1,337 North American recruiting agency professionals. Below is a breakdown of respondents by:
Firm Size (total number of salespeople and recruiters)
•1-10:58% •11-25:17% •26-74:13% •75+:12%
Primary Type of Recruitment
•Permanentand/orRPO:41% •Temporary:12% •Contract:33% •ExecutiveSearch-Contingentand/orExecutiveSearch-Retained:13%
Geographic Locations
•UnitedStates:91% •Canada:9%
Bullhorn®createssoftwareandservicesthathelprecruitersputtheworldtowork.Foroverfourteenyearsourinnovationshavepoweredtherecruitingandstaffingoperationsoffast-growingstart-upsupthroughtheworld’slargestemploymentbrands.HeadquarteredinBoston,withofficesinSt.Louis,Vancouver,LondonandSydney,Bullhorn’srecruitingCRM,backoffice,andsocialrecruitingproductsservemorethan10,000clientsrepresentingnearly300,000usersacross150countries. For more information: Please visit www.bullhorn.com or call +1(888) GoLive8.
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