Unless you live in a cave, you are fully aware of the challenges staffing firms face when it comes to finding, hiring, and retaining contingent employees as well as internal staff associates. There is a multitude of reasons for these headwinds, including a sharp increase in demand for talent, a significant number of workers shifting to freelance and independent contractor roles, and the sudden shrinking of the workforce that has come to be known as the ”Great Resignation.” Finally, given the imbalance of supply and demand, candidates have become much more discriminating about the roles and companies that they choose to consider working for.
A recent study conducted by GoodTime, a provider of a unique communication and interview software platform, details the challenges of hiring in what they call the “Distance Economy.” The focus of the report is on what companies are doing (or not doing) to accomplish their hiring goals. Some of their key findings:
- 50% of hiring goals were not met in 2021
- 60% surveyed said the time-to-hire increased in the past 12 months
- 46% surveyed said the number one hiring goal in 2022 is to create genuine relationships with candidates
- 36% said they consider improving candidate relationships a priority but struggle to execute
- 31% said they made DEI a measurable priority in the past 12 months
Companies struggle to fill open positions
It’s tough sledding out there for HR and talent leaders. In 2021, companies fell short of their hiring goals by 50% and felt the burn, evidenced in part by the number one reported hiring challenge – retaining talent. While many employees left for better opportunities, companies scrambled to backfill these roles. To add insult to injury, 60% of the companies reporting in this survey indicated that it is taking much longer to fill open roles than in pre-pandemic years.
The talent acquisition priority
Long gone are the days of nap rooms, ping pong tables, and other “perks” that in the past served to attract top talent. The companies responding to this survey said that creating meaningful candidate experiences and relationships is now more important than ever. Some of the best practices being carried out by these companies include flexibility in scheduling interviews and an increased emphasis on discussing the company’s mission, vision, and values.
Retention, retention, retention
While you might assume that companies with an onsite workforce have the most trouble retaining talent, the study indicates that 63% of fully remote companies said that “retaining top talent” was their most important objective. And further, 34% of fully or mostly remote companies reported a lack of qualified candidates, but only 22% of fully or mostly in-office companies reported the same challenge.
Diversity, equity, and inclusion are a focus
As DEI becomes increasingly more important, this report indicates that there is still much work to be done. Only 31% of hiring companies made DEI a measurable priority in the past 12 months, and 38% of companies plan on making it so over the next 12 months. Even though this is an increase of 70 basis points, it clearly shows that DEI is at or near the bottom of the list.
What it all means
Closing the gap in hiring must move beyond a one-sided candidate experience into a meaningful two-way candidate relationship. Always remember that candidates are people too and will react positively to being treated that way. The results of this study overwhelmingly point to the fact that companies need to place their emphasis on creating and cultivating candidate relationships and less on free lunches and weight rooms. The shift is more about who the company is and less about what perks the company can offer. Address that challenge and you will dramatically increase the flow of new talent and the retention of those already on board.