U.S. Businesses Wasted $9.36 Billion on Failed Recruitment in 2012
The numbers are in from CareerBuilder‘s annual summit in Chicago, and last year the recruitment industry ballooned to achieve its highest gross sales ever ($117 billion), which is big news indeed.
Conversely, client satisfaction in the staffing sector declined by 8%, which marks the 4th consecutive year of disgruntled hiring managers checking the “meh” box on whatever survey they filled out to produce that statistic.
So what’s happening, then?
The recruitment industry has never been more profitable, and yet there’s a remarkably dissatisfied consumer base? That sounds more like the airline industry!
As you can imagine, there are a couple parts to this answer. For one, it’s widely held that talent is thin. Really thin. Especially in industries requiring specialized skill sets, like IT and healthcare. There simply isn’t enough supply to go around.
Here are a few more numbers from the Chicago summit which address this mindset:
- 3 out of 5 hiring managers say there is a skills gap in their industry.
- 2 in 5 US businesses currently have open positions due to a lack of qualified candidates.
- 90% of hiring managers believe the talent shortage will stay the same or get worse in the next 12 months.
The other reason for employer dissatisfaction is that more and more U.S. businesses are bringing recruitment in-house, and so the need for traditional, third-party agencies has declined because companies can do it themselves (or most of it, at least).
Furthermore, U.S. businesses who stick it out with their old-school recruiter are 50% more likely NOT to view them as a partner.
So what’s our take here at Webrecruit?
Well, to the first point, it’s not so much that actual talent numbers are thin, which they can be depending on where you’re hiring, but that the client’s perceptionof talent and talent quality has dropped, generally speaking.
There are always going to be purple squirrels and tough roles in every industry, but depending on a company’s ability – or that of their staffing firm – to cast the largest net possible when sourcing (i.e. going beyond their Rolodex to navigate and leverage online platforms effectively), the perception of talent strength is ALWAYS going to be low if the pipeline isn’t there.
Put another way, you won’t know why you’re losing until you’re playing – and winning – with a full deck.
The other point concerns the growing percentage of U.S. businesses who view outside staffing firms as more of a nuisance than a partner.
That tideshift is occurring because most staffing firms still aim to handle the entire recruitment process for their clients, when in fact the move to bring recruitment in-house illustrates that many U.S. businesses no longer require that level of partnership.
At Webrecruit, it was our belief from the very start that a company’s hiring manager was best suited to vet, interview, and hire a candidate. That’s why we focused soley on building the best sourcing, screening, and talent delivery engine in the world…
… because there are only so many hours in every day. And sourcing effectively is a pain point to which anyone can relate – whether you’re a hiring manager OR an internal recruiter.
Furthermore, our commitment to candidate transparency – that is, connecting the employer and the candidate early in the hiring process – means that a client will never have to rely on a third party to sell its brand for them.
So while the results from Chicago may have been alarming to some, here at Webrecruit the data only reinforced industry trends, which is exactly what you’d expect good data to do!
*Source: CareerBuilder/Inavero 2013 “Opportunities in Staffing Research.” Webrecruit is a proud member of CareerBuilder’s Talent Network