Why we need to observe recruiting trends?
As a strategic recruiter, when you think of the future in recruiting, the first thing you want to get your head around is “do I know what is changing?do I know at what pace is it changing? How can I prepare myself for this change and where do I start?”
The goal of the blog is exactly that – to answer some of the questions you have for the future of recruiting and, to help talent leaders like you to get a 360 degree view of important recruiting metrics and trends right from recruiting market to recruiting technology.
This blog should help you drive your recruiting strategy and get yourself ready for what’s coming your way in rest of 2019 and 2020. In addition to that, the blog aims at providing you insights on what could significantly impact your recruiting process.
We know you don’t want to be left behind; in fact you want to lead the change. You have struck the right cord by getting to this blog.
So, lets start this journey with an inquisitive mind!
There are plenty of surveys happen every year, globally that reveals lots of known, unknown facts and figures on how the recruiting space is trending. However, it’s too much to comprehend and come out with actionable list of things.
We have made an attempt here to concise the information available from multiple reports and provide you the key insights that matter the most.
The two key elements of the recruitment industry that govern the changes are –
- How the job market is trending as an external influence, and
- How the trends in recruiting are impacting internally
Job Market Trends
Lets start with Market Trends as they govern most of our recruiting actions. A good way to look at the market trends in key industries or sectors.
- Banking, financial services and insurance (BFSI)
The sector looks to have been impacted by about 25 percent with rising adoption of automation to increase efficiency. There is an increase in adoption of Robotic Process Automation to increase productivity in day-to-day processes.
However, there is an increase in demand for cyber security specialists, AI specialists, block chain architects, risk analysts, process modelers, data specialists and digital officers.
There is huge opportunity for IT outsourcing as well as back office support units because of the trend of setting up Global in-house centers (GICs) by many of the biggest banks in the world These GICs are more like knowledge centers delivering high-end work in risk assessment, analytics, digital to name a few.
Around 25% of existing jobs in BFSI space are expected to face existential threat by 2022
- Startups and e-commerce
Startup hiring is projected to be increasing by about 20 – 25% in 2019. The sector looks positive than last few years. The investors are largely investing in businesses they see long term sustainability and businesses that are differentiated.
Demand for niche skills is increasing around AI, Machine Learning, IoT, AoT (Analysis of Things), Data Specialists and Analytics.
Growing trend of increase of 20-25% in jobs in startups sector will continue for next few years
The Engineering sector is growing at a fast pace through investments garnered in the infrastructure and industrial production area. The sector has also been seeing interest from global players enjoying a competitive advantage from a cost, innovation and technology standpoint.
There is a shift seen amongst the student community towards pursuing traditional engineering subjects like mechanical, electrical, civil, instrumentation and automobile engineering, with many opting out of IT. However, a lot of sectors in the Engineering and Manufacturing have been impacted by the onslaught of automation that has made thousands of jobs especially on the shop floor redundant.
For large construction projects, the labour-intensive model is gradually giving way to technology driven approach – from planning, budgeting to execution which is creating new roles. Further, as the global auto industry embarks on ambitious plans on the Electric Vehicles front, MNC players are outsourcing R&D functions to India GICs of auto companies, due to cost arbitrage and availability of the right talents .
The infrastructure market will reach to $ 6.6 billion by 2025 that will create significant amount of jobs
- IT (Information Technology)
NASSCOM has projected a growth rate of 7-9 per cent for the IT / BPO industry in 2018-19 as compared to 7.8 per cent in 2017-18. It has also projected a double-digit growth in the domestic IT industry in India, which is expected to grow by 10-12 per cent.
For the IT services companies, the growing trend of IoT is driving the demand for data analytics. The IT industry in the recent year or two has also seen some churn with the industry embracing automation that impacted several roles across hierarchy. With client demands being dynamic, reskilling of employees are a priority for many IT services companies.
By 2020, the internet users in India is expected to grow to 730 million which will create opportunities for technology based startups
- ITES (Information Technology Enabled Services)
The recent focus in this sector is towards building technology platforms and capabilities in niche areas. However, automation has already brought in significant changes in this sector. The market is emerging as a BPM hub with a growing demand.
Conclusion – The sectors are responding to global demands, which are impacting the job market. Information Technology sectors seems to be getting impacting the most in both positive and negative ways. Positive because its gearing up to acquire new skills such as AI, data analytics, etc. while negative impact is because of automation for certain career levels and for those individuals restricting themselves to a set of technologies and not willing to get cross trained.
Hiring Process trends
Technology is driving the hiring process significantly, which is again an impact of the demographics of the job market, competition to acquire the best talent (because everyone wants the best from the available pool of talent), and improved efficiency expected by business to optimise costs, in other words improved Return on Investments.
Improved candidate experience matters, but what role is technology playing here?
The ever-growing hiring demand put tremendous pressure on the recruiting teams as significant time goes in sourcing most sought after candidates. As a result, the candidate experience is getting less attention, which is an important aspect of the hiring process. Talent teams are looking for opportunities to optimising their sourcing process – so they can spend more time in improving candidate experience.
Hubspot survey indicates about one third of recruiters time goes into sourcing candidate profiles for a single positions, that is why more than 70% of recruiters surveyed suggested that they were looking for automated sourcing tools.
Another human factor is – recruitment is in a way selling roles to potential candidate. And the way it happens in a typical sales process, anything that provides positive experience has higher chance of getting sold, candidate experience is not an exception. If candidates are not finding the job application process convenient, easy and friendly, they will turn away from recruiters. For example communication through out the interview process with updates on the stages of recruitment is making a big difference.
The trends indicate greater use of artificial intelligence to improve candidate experience. It could be the chat bots that respond to the candidate queries reducing time and human effort in communication, or, it could be algorithms that suggest possibility of winning over the candidate for a particular position based on your historical recruitment data and corresponding outcome.
Data driving improvement in candidate outreach and engagement
There are trends indicating the talent teams are welcoming more and more use of data in their functions, however, there is an opportunity for recruiters to refine or improve their interaction with candidates. An example could be to use data to understand what the key aspects are for a candidate while assessing a role and how that could be provided in a much compelling way.
There is a growing trend of using data at each stage of recruitment as a funnel so that strategies could be devised to improve the conversion rate. This is generally linked with tools like email marketing, which has been reported as the most influential way to engage potential candidates. The data further tells details like click through rate, level of engagement through visits to the website, reply to emails and contact over phone by candidates.
Diversity, Inclusion and Transparency
Recruitment surveys indicate more enterprise organizations are looking at diversity and inclusion as greater initiatives over others. The trends also reveal that potential candidates consider unbiased hiring process as highly valuable.
The case studies reported by Entelo in their report gives emphasis on fostering a culture that welcomes different perspectives and working styles. For example, teams are encouraged to take the lead and discuss ideas, rather than take instructions to execute particular actions.
The case studies demonstrate that a workplace where their voice is heard is more inclusive, and the organisations through that demonstrate value in transparency by brining together various skill levels and perspectives.
The trends in recruiting play an important part in strategising actions to respond to the changes seen and anticipated. The job market plays an important role in how the industry is responding to the demands. At the same time the demographics, types of industries depict what kind of recruitment strategies need implementing to respond to market changes.
The job market shows dynamism and recruiting teams need to keep a close look at what is happening pertaining to a particular sector the teams work in, for example information technology as a sector. The key reason is the job market is more dynamic and more influenced by external factors. Data plays a significant role in coming out with right strategy and actions to attract, convert and retain right talent.
The hiring process trends are more governed by the internal tools, systems, practices implemented by recruiting teams. Technology is transforming the way recruiting happens. Recruiters feel a positive change with technology playing key role in automating mundane tasks and allowing them to focus more on human factors and work on what matters which is quicker turn around in closing positions for the business.
Being a group of technologists working in the area of recruiting technology we, at MyNextHire are always keen to see how we can leverage technology to make recruiting world better. Appreciate your thoughts and feedback on what other trends you are experiencing and how they are impacting you.