Companies Adapting to Candidate-Driven Job Market In 2016
January 14, 2016 – Sixty-six percent of employers plan to hire additional staff in 2016, according to the ‘2016 Hiring Outlook: Strategies for Adapting to a Candidate-Driven Market’ report just released by The Execu | Search Group. The study is intended to provide insights into how companies can attract and retain talent and how they can effectively hire and manage their current employees on staff.
The search firm’s study found a disconnect between what employers think job-seekers and employees are looking for and what they really want. Employers ranked salary and benefits higher than advancement opportunities when they were asked what they thought was important to prospective employees. Fifty-one percent of employees said that the opportunity for professional development was their top priority.
There are more options for job-seekers, which means more competition for employers. Fifty-six percent of employees said they interviewed for two or more roles during the interview process for their current position. Changing positions is also more common in today’s workplace; 50 percent of survey respondents said they expected to have six or more employers over the course of their career.
The report also found that companies are increasingly turning to temporary staff to meet talent demands. Twenty-seven percent of hiring managers surveyed plan to increase hiring of temporary, freelance, consulting, or contract employees in 2016.
The report’s findings were taken from a survey of 226 employers/hiring decision makers from companies across a number of sectors, including financial services, healthcare, and non-profit, among others. In addition to the employer survey, the report also incorporated findings from a survey of 591 job seekers and working professionals during their job searches and as they engage in long-term career planning.
“As the job market continues to improve we are hearing from clients that it’s becoming increasingly difficult to both find and retain high-quality employees,” said Edward Fleischman, chairman and CEO of The Execu|Search Group.
“Compounding the problem, we’re seeing a disconnect between what employees want in a job and what employers believe they want. It is our hope that the 2016 Hiring Outlook report will help employers better understand this candidate-driven job market and provide them with the tools to build and sustain a strong workforce.”
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With a market seemingly driven by job seekers, other reports have also found that companies are having difficulties in finding quality talent. ManpowerGroup’s ‘Talent Shortage Survey’ found that 32 percent of U.S. employers reported difficulties filling job vacancies due to talent shortages. Globally, the study found that the percentage of employers experiencing difficulties continues to rise, increasing from 36 percent in 2014 to 38 percent in 2015.
Hiring managers report the most severe talent shortage is in Japan (83 percent). Around two in three employers report difficulty filling jobs in both Peru (68 percent) and Hong Kong (65 percent), while talent shortages are an issue for 61 percent of employers in both Brazil and Romania.
According to the latest ‘Recruiter Nation Survey’ released by Jobvite, 56 percent of recruiters cite the lack of available skilled talent as a key stumbling block in hiring. The report, which polled over 1,400 executive recruiting and human resources professionals, also found that 95 percent of recruiters anticipate equal or increased competition for talent over the next year.
Even so, hiring appears to be on the rise according to other sources as well. CareerBuilder’s annual job forecast says employers remain confident in their hiring plans as they embark on a new year, with 36 percent of employers planning to add full-time, permanent employees in 2016. In addition the study says nearly half of employers (47 percent) plan to hire temporary or contract workers.
The recently released annual hiring survey by DHI Group found that 61 percent of HR managers and corporate recruiters anticipate more hiring in the first half of 2016 as compared to the second half of 2015. In the next six months, 17 percent of companies surveyed plan to hire 30 percent or more professionals, up five percentage points from the prior year.
Manpower’s latest Employment Outlook Survey recorded its strongest outlook heading into the New Year since 2007. Of the nearly 59,000 employers interviewed in 42 countries and territories across the globe, employers anticipate an increase in staffing levels in 39 countries and territories. Hiring prospects strengthen in 23 of 42 countries and territories, says Manpower.
These positive outlooks follow the Labor Department’s most recent employment report, which saw the U.S. add 292,000 jobs in December. For the year, total job growth totaled 2.7 million, the second-best year for hiring since 1999. Much of the same is expected to continue into 2016.
Contributed by Scott A. Scanlon, Editor-in-Chief, Hunt Scanlon Media