25/09/2024
Although the market continues to cool, that's not to say nothing interesting is occurring within the recruiting space. To uncover some of the most intriguing trends, iHire conducted our sixth annual State of Online Recruiting Survey in June 2024, for which we polled over 2,200 U.S. job candidates and employers. While the full report details hundreds of data points, these three findings stood out the most.
1. Recruiters are adopting AI at triple the speed of the previous year
When we asked employers if they were currently using AI in their recruitment processes, 14.7 percent said "yes," with developing job descriptions/postings and composing messages for candidates being the most popular use cases. That 14.7 percent may not seem like a large portion, but when compared with the 4.9 percent of employers who said they were using AI in 2023's State of Online Recruiting Survey, we're looking at a 200 percent increase.
Candidate adoption of AI was also on the upswing. In 2024, 17.3 percent of job seekers said they've used AI tools to write their resume or cover letter in the past year, up from 2.8 percent who said the same in 2023.
There's no escaping the AI boom, so we expect to see adoption continue to grow. However, it's also possible that most employers and candidates are using AI, and they just don't realize it. Resume screening found in applicant tracking systems (ATSs), and job matching technology used by job boards and recruitment platforms are two examples of commonly used AI-powered tools.
2. The talent shortage continues despite a more balanced labor market
Even with a rising unemployment rate (and therefore, deeper candidate pools), employers don't see much reprieve with the talent shortage. In response to our survey, 63.3 percent of hiring professionals said receiving too many unqualified job applicants was one of their most pressing recruiting challenges, and 39.1 percent said the same about attracting too few candidates. Moreover, 63.1 percent of companies anticipate a talent shortage impacting their ability to hire over the next year.
Numerous factors are contributing to the persistent talent shortage, including declining labor participation rates, a widening skills gap, and an increasing number of workers staying put in their current roles (goodbye, Great Resignation). However, a lack of qualified candidates is often partly due to employers' ineffective recruiting practices.
For example, their job ads might be poorly constructed and omit compelling information (like salary, benefits, and company culture details) that could convince top talent to apply for their opening. Or, employers might be turning off qualified candidates by ghosting them--not responding promptly (if at all) to their application or other correspondence. In fact, 54.7 percent of candidates surveyed were frustrated with ghosting, which can cause talent to drop out of the race and leave employers empty handed in their talent search.
It's also possible that some employers are too stringent with their job requirements and their definition of "qualified" can prevent otherwise fully capable candidates, such as those who can learn the right skills on the job, from applying. Notably, 42.8 percent of candidates cited companies' overly specific or unrealistic requirements as a key job search challenge.
With the talent shortage showing no signs of lessening, employers should figure out why they're struggling to attract qualified candidates and devise an appropriate solution before falling behind their competition. Simply revisiting their job requirements, revamping their hiring communication practices, or refining their job ads can go a long way.
3. Job boards aren't dead; they're evolving
Lastly, our survey showed that employers are still leaning heavily on online job boards and recruiting platforms to hire. Nearly 70 percent of respondents said they use these tools for all or most of the hiring, while 34.3 percent of job board users anticipate increasing their usage in the coming year.
The term "job boards" may seem a little outdated since today's job boards are far more than online billboards; they have evolved into all-in-one hiring platforms with sophisticated integrations and AI-powered tools. Job boards have become so complex and specialized that even Google could not quite get its share of the marketplace. The company sunset its Google for Jobs sponsored ad program in February 2024.
If employers continue to use job boards as part of their hiring toolbox, they'll need to take advantage of all their advanced features and functions. These include messaging tools to communicate with candidates (and prevent ghosting), generative AI to craft clear and compelling job descriptions, ATS integrations to automate their job postings, and more.
The future of recruiting
What's next for recruiting in a beige and balanced labor market? Based on our research, it appears that employers' top priority is tackling their talent shortages. Whether that calls for going all-in with AI, leveraging the evolving tools and features of their tried-and-true job boards, or something completely different, organizations that can best attract qualified candidates and retain them as valued employees will be able to compete, no matter what the market has in store.
Original Article: Inc.
Are you an employer or organisation that needs to hire talent in Wales? Contact our digital recruitment specialist Gareth Allison on 02920 628808
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