According to the U.S Bureau of Labor StatisticsOpens a new window , there were about 10.7 million job openings in the U.S. in June this year, which seems like a good time to be a job seeker. Yet, with statistics from the same body showing unemployment rates dipping to pre-pandemic levels, companies face talent shortages as they struggle to hire and retain quality talent. In fact, statistics show that millions of people quit their jobs in the first half of the year.
Simultaneously, inflation is at a multi-decade high, and concerns about an oncoming recession are putting both companies and job seekers on edge. With all these factors in play, recruiters and job seekers need answers to questions like how dire the talent shortage is, how employers and candidates can best find each other, and what trends will impact hiring in the coming year.
iHire recently conducted a study to answer some of the questions.
Most Employers Are Still Hiring
The study found that about 89.9% of employers are still hiring. This is unsurprising given that there are still millions of job openings, according to the Bureau of Labor StatisticsOpens a new window . Further, 70.6% of companies increased their hiring volume in the last 12 months.
So, as employers continue to hire, how much are online job boards or online recruiting platforms used? According to the study, the year-on-year (YoY) data showed that employers relied heavily on these platforms. About 48.7% said they used these platforms for most of their hiring, while 22.4% used them for all their hiring. Further, 60.2% of all the respondents said they had increased their reliance on job boards in the last year.
Besides online job boards/recruiting platforms, most employers use other recruiting resources, such as referrals from their employees (75.5%), social media (60.5%), and company websites (55.1%).Â
Other recruiting resources employers rely on
Ongoing Talent Shortage Is the Top Concern
Employers face several challenges when recruiting online. Among them, the top challenges revolved around the current talent shortage. About 68% said they received too few applicants, and 64.5% said most applicants they received were unqualified. Another study by Russell Reynolds also showed that the lack of skilled talent is a top concern for employers. Further, 52.1% said getting ghosted by applicants was a huge problem.
Top challenges recruiters face
Employers Are Including Salary and Benefits in Job Postings
One of the elements job candidates look for in a job posting is salary and benefits. According to a study by Monster, 52% of graduates wanted to see a salary component in job postings. And candidates have been asking for this element to be included for a long time. So, have employers finally paid heed?
According to the study, when it comes to including some aspects in job postings, 57.4% of companies said they always include the salary range in their postings. Besides salary, 70.2% of respondents said they included benefits, and 57.2% said they included the contact information of the recruiter/hiring manager. About 43% also said they included company culture details, and 29.7% said they included DE&I information or EOE (equal opportunity employment) statements.
Employers Anticipate Talent Shortage for the Foreseeable Future
Looking forward over the coming year, employers expect the following trends to impact recruiting efforts:
- About 82% expect a talent shortage. They also believe a lack of qualified candidates will continue to test them.
- About 43% expect difficulties retaining employees.
- About 39.9% are worried about economic uncertainty.
Employed People Are the Most Looking for Jobs
When it comes to job seekers, who is the one seeking jobs? Is it an unemployed person or someone looking to change? The study found that 57.3% of job seekers were employed. And this was up from 48.5% in 2021, which may indicate that the Great Resignation is continuing. About 29.1% of job seekers were unemployed. Interestingly, 7.5% were retired and looking for a job, a Y-o-Y increase of 2.9%, indicating more people are coming out of retirement.Â
There are several reasons why people are looking for a job. General unhappiness in their current role was the top reason (23.2%). About 20.3% wanted remote work, while 19.3% were unsatisfied with their salaries.Â
Reasons applicants are looking for jobs
People Rely on Job Boards to Apply for Jobs
Irrespective of why people are looking for jobs, about 66.3% said they would go to an industry-specific or a general job board first if they had to find work immediately. That said, they don’t rely only on job boards. About 61.1% also relied on a potential employer’s website, and 47.2% relied on networking. About 45.8% also relied on social media, while 36.4% relied on staffing firms and recruiters. People also relied on other sources, such as job fairs, alumni networks, and classifieds.
Finding Jobs in Their Desired Location Is a Major Challenge for Job Seekers
While employers and recruiters face certain challenges, job seekers face other challenges when applying for jobs. The top challenges were finding jobs in their desired location (45%), being ghosted by employers (44.8%), and finding jobs that met their needs (43.4%). Finding jobs they are qualified for (31.8%) and finding remote work (22.9%) were a few other challenges.
Top challenges job applicants face
Candidates Want To See Salaries in Job Postings
A few elements make candidates more likely to apply for job postings. About 68% of respondents wanted to see the salary range for an advertised position as the cost of living continues to increase. Besides the salary range, candidates also want employers to mention when they plan to reach out to schedule interviews (47.9%) and reduce the time taken to complete the application (40.9%). About 26% of candidates wanted cover letters to be optional.
Most Job Seekers Worry About Economic Uncertainty
The following are the top trends job seekers think will affect their job search:
- About 43.5% worry about economic uncertainty, while 33.9% of employers do so.
- About 40.9% are concerned about getting ghosted by employers.
- About 38.5% believe employers have overly specific or unrealistic requirements.
- About 18.8% are worried that employers require in-office work while they expect remote work.
The following are the key takeaways from the study and a few possible solutions:
- Companies face chronic talent shortage: As this and a few other studies show, finding qualified candidates has been a top challenge for employers. Added to that is the availability of too few applicants for certain positions. Given that a significant number of applicants feel that recruiters are rigid in their expectations, a possible solution is to hire candidates with fewer skills and train them on the job.
- The Great Resignation continues: As found from this study and predicted by other studies, the Big Quit may be here to stay for some time. A solution is to take various measures to improve employee engagement and experience, leading to better retention.
- Economic uncertainty is raising its head: With increasing inflation and possible recession, both employees and employers cite economic uncertainties as a concern in the hiring process. This may be one of the reasons more candidates want to see the salary range in a job posting. Employers can continue mentioning the salary range while mentioning additional benefits in their postings. Further, employers should also be transparent with candidates when addressing their concerns related to economic uncertainties.
- Job boards are here to stay: With both employers and employees relying on job boards, these are not going away anytime soon. That said, people are also relying on other sources for job applications. Employers should consider having their postings, pay and benefits, and work culture information on these channels to attract candidates.
By taking the steps mentioned above, employers and candidates can navigate the uncertain job market with relative ease.