Using Business Intelligence in the Talent Marketplace - Updated
- 1. 1 Using Supply & Demand in the Talent Marketplace Introduction About 20% of jobs are difficult to fill, based on data from WANTED Analytics™, a CEB Company. On top of the current challenges in recruiting, ERE’s State of Recruiting Survey shows that about 35% of Recruiters expect hiring difficulty to increase in 2015. The length of time it takes to fill a job and the cost- per-hire will also increase. If you’re recruiting for technical, manufacturing, skilled trades, healthcare, transportation, and engineering jobs, you already know recruiting is likely to be difficult. Add specialized skills, like evolving technology, and filling open seats becomes even more challenging. This white paper describes how HR professionals use hiring demand and talent supply data to make strategic business decisions and address their workforce problems.
- 2. Using Supply & Demand in the Talent Marketplace 2 Copyright Notice: All data, tables or reports attached are protected under U.S., Canadian and international copyright laws and treaties: Copyright © 2015 WANTED Analytics, a CEB Company. Various trademarks and tradenames referenced herein are the property of their respective owners. It is strictly forbidden for any party other than the holder of the copyright, or its affiliates, to: reproduce this work in copies; display this copyrighted work publicly; prepare derivative works based upon this work; distribute copies of this work to the public by sale or other transfer of ownership; distribute copies of this work to the public by rental, lease, or lending. Disclaimer: WANTED Analytics has made and will make reasonable efforts to ensure that its data and analysis are complete and accurate. However, WANTED Analytics does not warrant their completeness or accuracy and does not warrant that the Subscriber's use of the Services will be uninterrupted or error free, or that the results obtained will be useful or will satisfy the Subscribers requirements. WANTED Analytics makes no other warranties or representations of any kind, either express or implied, including but not limited to, warranties of design, merchantability or fitness for a particular purpose, non‐ infringement, or arising from a course of dealing, usage or trade practice.
- 3. Using Supply & Demand in the Talent Marketplace 3 Unfilled Jobs and Finding the Right Candidate As the talent crunch continues and the skills gap widens, it’s becoming increasingly challenging to find the perfect candidate with the right mix of abilities. This causes positions to go unfilled for lengthy periods of time, which results in decreased productivity and lost revenue. Additionally, it has become common for workers to “job hop” every two to three years causing employers to fill jobs more frequently. There are about four million job openings available in the US and employers compete heavily to find the best qualified talent for each position. How will you beat your competition?
- 4. Using Supply & Demand in the Talent Marketplace 4 Knowing the Talent and Supply Market on Day 1 When your company needs to fill or add certain positions, determining the overall candidate supply and talent demand for that job will help you form your hiring strategy from day one. Hiring demand and talent supply data demonstrate the level of competition you are likely to face and how many people meet your requirements, giving an overall view of how hard-to-fill a job is may be. As the employer, this information can help you determine whether you should implement training and fill the position from within, or where you should look for qualified candidates.
- 5. Using Supply & Demand in the Talent Marketplace 5 Knowing the Talent and Supply Market on Day 1 For instance, if you recruit for Web Developers with Java skills in the Chicago metro area, you face intense competition for talent. In this area, there are over five million people employed, with about 2,400 working as Web Developers. In addition, only 37.5% of all Web Developers have the required experience with Java.
- 6. Using Supply & Demand in the Talent Marketplace 6 Knowing the Talent and Supply Market on Day 1 The WANTED Analytics Hiring Scale scores jobs from 1 to 99, with 99 indicating hardest-to-fill. The Hiring Scale scores Web Developers at a 93 on average across the US, indicating very challenging recruiting conditions nationally. Conditions are slightly more difficult in the Chicago metro area. Locally, there are 900 candidates currently in the workforce in web development jobs, yet there are 589 jobs from 296 employers. You can see the supply and demand mismatch employers will experience. Employers need to develop innovative ways to find potential candidates.
- 7. Using Supply & Demand in the Talent Marketplace 7 Finding Candidates for Your Open Job Since the talent market for Java Web Developers in Chicago looks competitive, employers can consider recruiting in areas with lower Hiring Scale scores to reduce hiring difficulty. Montgomery, AL has less difficult recruiting conditions. There are fewer employers searching for Web Developers in this area and Montgomery currently scores a 60 on our Hiring Scale, indicating moderate difficulty. However, despite less competition in this metro area, conditions are still likely to be challenging and employers shouldn’t expect it to be “easy” sourcing here. There are other options to increase your candidate supply for hard-to-fill positions.
- 8. Using Supply & Demand in the Talent Marketplace 8 Finding Candidates for Your Open Job If you are recruiting for a specific title, don’t limit your search by seeking only candidates with that title. Potential candidates often use the official title given at their company, which can vary by organizations even though they perform the same competencies you require. If you just search for one title, like “Web Developer”, in your ATS or in resumes, you may miss potential candidates with other titles that meet your requirements. WANTED Analytics analyzes job ads and groups together common titles for the same occupation, making it easier to determine which alternatives you should look for. For example, below are the most commonly advertised titles for Web Developers with Java skills. You can include these in your search to build your talent pipeline.
- 9. Using Supply & Demand in the Talent Marketplace 9 Finding Candidates for Your Open Job Another way to find more candidates is by looking at employers who have hired in the past for positions that match your requirements. These companies are likely to currently have strong candidates currently there that meet your qualifications. You can use social media, professional profiles, or your resume databanks to identify potential passive candidates. Below are companies that have hired the most Web Developers with Java experience in the past four years.
- 10. Using Supply & Demand in the Talent Marketplace 10 Finding Candidates for Your Open Job Knowing that a particular job is hard-to-fill and that there aren’t enough candidates to meet demand, employers may want to consider developing recruiting and training programs at post- secondary schools. WANTED Analytics Graduate Data reveals which colleges and universities have the largest graduating classes for particular fields of study. You can work with these institutions on internship programs at these schools, recruit on campus, or provide current employees with skill development and fill jobs from within your organization. Graduate data reveals that 23,682 candidates entered the workforce last year with the coursework required for Web Developer jobs and a similar number will be graduating this year. University of Phoenix had the largest graduating class in this field of study.
- 11. Using Supply & Demand in the Talent Marketplace 11 Assessing Your Competition In addition to helping you identify supply, demand, recruiting difficulty, and potential candidates, Recruiters should also assess the competition. About 4,028 employers are competing for Web Developers with Java skills in the US. 32% of those job listings advertise positions in NY, the city with the most demand. Recruiters filling positions in this location are currently competing with J.P. Morgan Chase, CITI, and Amazon.com among others.
- 12. Using Supply & Demand in the Talent Marketplace 12 Assessing Your Competition By looking more closely at your top competition you can determine how many new jobs they’ve added and if they’re ramping up recruiting efforts or winding down. When viewing J.P. Morgan Chase’s Employer Details, the trend line indicates that they’ve added 1,556 new Web Developer with Java skills job ads and their recent recruiting efforts have downward momentum.
- 13. Using Supply & Demand in the Talent Marketplace 13 Assessing Your Competition WANTED Analytics groups employers most advertised occupations, locations, job boards, skills, and certifications. This information can help form your overall workforce management strategy. For instance, we show that, in addition to Web Developers, J.P. Morgan Chase is also recruiting business and financial operations, management, office and administrative, computer and math, and sales occupations. If you are also filling these positions, use their hiring activity to form your hiring strategy. You may want to advertise your jobs on different websites, run a more aggressive campaign, source candidates from locations with a larger candidate supply or better recruiting conditions, and offer higher salaries than they or your market advertises. If you’re not recruiting for these jobs right now, but might in the future, consider when they post their ads. Schedule your recruiting during different intervals so you aren’t directly competing with them at the same time. In regards to Web Developers with Java skills, J.P. Morgan Chase advertises these jobs in NY (NY), Columbus (OH), and Philadelphia (PA).
- 14. Using Supply & Demand in the Talent Marketplace 14 Assessing Your Competition One of the competitive assessments you should be doing is related to salary. WANTED Analytics aggregates salaries listed in similar job ads and shows the average advertised salary for the position. This value is used by employers to attract talent; it is not necessarily the compensation that is agreed upon between employer and employee. The Market Salary provides an idea of what local and national competitors are advertising to attract talent. This will inform you if you are over or underpaying your employees. The median salary in the NY metro is $12,450 higher than the national average. This data will also help when relocating a candidate or attracting talent from another market.
- 15. Using Supply & Demand in the Talent Marketplace 15 Conclusion In this whitepaper, we have demonstrated how to use supply and demand in the talent marketplace to help form your hiring strategy and make informed business decisions. This business intelligence will help you understand your competition, where candidates exist, and how to develop sourcing tactics for hard- to-fill positions. ABOUT WANTED Analytics™ In November 2015, WANTED Analytics became a CEB company. CEB (NYSE: CEB) is a best practice insight and technology company that partners with its customers to develop innovative solutions that unlock their potential and help them grow. When fully integrated, the WANTED Analytics and CEB Talent Strategy & Analytics offerings will help businesses leverage talent intelligence for more impactful recruiting and workforce planning. WANTED Analytics™ combines real-time, global business intelligence with years of hiring demand and talent supply data to help make better strategic business decisions. WANTED Analytics is also the exclusive data provider for The Conference Board’s Help Wanted OnLine Data Series®, the monthly economic indicator of Hiring Demand in the United States. WANTED Analytics began collecting detailed Hiring Demand data in October 2002, and currently maintains a database of more than one billion unique job listings.