More than anything else, employers are looking at technology to help them solve their bigger talent challenges. At least, that’s what new research by Lighthouse Research & Advisory discovered.
Lighthouse’s study, “Hiring is more critical than ever: How employers and candidates are evolving in the current market,” was based on a survey of 1,054 employers with headcount ranging from under 250 employees to over 10,000, plus 1,000 candidates and workers.
Using new hiring technology to solve the challenges of the tight talent market is the number one action employers are taking right now, Lighthouse said. Some 90% of employers plan to purchase talent acquisition technology to add value for candidates, hiring managers and recruiters. “In the last 12 months, eight in 10 employers said that hiring has risen to the level of a business challenge, not just an HR or talent priority,” Lighthouse said.
Nine of 10 companies are actively shopping for some type of talent acquisition technology, the report said. Talent acquisition technology for recruitment marketing, video interviewing and diversity hiring rank top of their technology wish list.
“This is due to a continuation of the scarcity of talent in the marketplace (there are more jobs available than candidates to fill them, and that’s even if we had a way to magically/instantly make every available candidate suitable for one of the open jobs),” the advisory firm said.
In order of prominence, other actions employers are taking to address the tight talent market include adjusting their compensation rates and improving their recruiting and hiring processes to be more candidate-friendly.
Over the last year, 75% of employers said compensation has been a sticking point in their hiring activities. The report also noted that the most innovative companies are using emerging sources of compensation data in order to stay on top of the competitive market.
“Data from one of our clients that prioritizes employee retention found that as an indicator of turnover, compensation in the form of internal equity (how I’m paid relative to my peers internally) makes more of an impact than external equity (how I’m paid relative to the market) when it comes to office or white collar workers,” the report said.
What the Hiring Process Looks Like
Lighthouse also observed that employers have had to adjust their expectations as a result of talent scarcity. More than 50% said they now hire the best they can find with the fewest skill gaps. That’s followed by about 38% who said they hire the very best candidates that exist, regardless of cost. Additionally, 12% of employers admitted they hire whoever fits their pay scale, with plans to train them after hiring.
For candidates. the most important factor they consider during the hiring process is whether they know the starting hourly rate for their target position.
“When it comes to it, the most important thing for workers is to know the starting pay for the job they are applying for,” Lighthouse said. “Within the US, there have been legislative actions to require employers to include pay data on job posting.”
By Solomon O.
Solomon is a staff writer for RecruitingDaily & The HCMTechnologyReport.
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