Navigating the Recruitment Landscape: Time-to-Hire Trends in a Dynamic Job Market

In the intricate world of talent acquisition, there emerges a distinct narrative – the process of hiring is taking more time than before.

Recent research from renowned human capital consultancy, The Josh Bersin Company, in collaboration with global recruitment powerhouse, AMS,  analysed the data from half a million hires in 2022 and 2023 to reveal that on average, employers are spending 44 days to finalize a hire, with some roles even staying vacant for three months.

‘Time-to-hire is not going to get better the way the job market is looking’- Josh Bersin, HR industry analyst and Founder & CEO of Josh Bersin Co. 

In the industry-specific overview of this report, tech roles across industries proved the most difficult to hire in 2022 and 2023. Global Managing Director of Client Operations at AMS noted that the report highlighted a consistent rise in time-to-hire over the last four years. In fact, predictions indicate that this trend will remain a significant challenge for businesses as the years unfold.

“Today’s time-to-hire is almost 40% higher than in pre-pandemic times, and if you rewind two decades, it’s even more staggering.”- Stephen Bronars, economist at Edgeworth Economics

The magnitude of this change underscores the fact that HR and Talent leaders will need to continue to innovate and transform their strategies for acquiring, developing, and retaining talent.

So how do you solve the Hiring Conundrum? 

• Leveraging AI-Powered Tools:

An avenue for streamlining recruitment involves harnessing the power of artificial intelligence (AI). AI-driven tools are designed to automate time-consuming tasks such as resume screening and candidate matching, enhancing efficiency but also improves the accuracy of candidate selection. 

However, the learning curve and additional training required for implementing AI tools along with ongoing operational costs can be a sobering (and costly) affair. Organizations must carefully weigh the benefits against the investment to determine if this approach aligns with their recruitment goals.

• Job Description Clarity and Utilising Job Boards

The clarity of your job description can impact the quality and quantity of applicants, especially when posting to job boards like Linkedin, Indeed, Glassdoor and Monster. Well-crafted, clear job descriptions can attract more suitable candidates quickly- with the caveat that a description too specific might ward off potentially qualified candidates who possess transferable skills.

Additionally, while job boards provide access to a diverse pool of applicants, sifting through applications can be time-consuming, and costly depending on the level of visibility you desire. To make the most of job boards, organizations should complement this strategy with other recruitment methods to ensure they don’t miss out on top talent.

• Empowering Recruiters and HR Professionals for a smooth recruitment process

Recruitment comes with significant costs, as highlighted by benchmarking data from the Society for Human Resource Management (SHRM)- and can be as much as four times the cost of a position’s salary. With the additional burden of departmental leaders and managers dedicating time to facilitating HR-specific tasks within the hiring process, says Ankit Shah, supervisor of talent development at Columbus State Community College, time is taken away from accomplishing organizational goals and outcomes. Additionally, losing candidates to external competition mid-process has financial repercussions.

Having said this, it is crucial for companies to empower recruiters and HR professionals by providing access to advanced recruiting tools and technologies, offering ongoing professional development, and streamlining internal processes to reduce administrative burdens. Additionally, fostering a culture of collaboration and agility within the recruitment team can enable faster decision-making and responsiveness to external competition, ultimately expediting the recruitment process and reducing costs.

• Outsourcing to Specialized Agencies:

An increasingly popular and comprehensive solution is also realised in Recruitment Outsourcing, where a company employs the help of a recruiting company to fill its positions.

The obvious advantages this brings centres around a wealth of expertise, tools and unequivocal access to premium candidate databases that can all bring down time-to-fill dramatically. Additionally, allowing for internal staff to focus on accomplishing organizational goals and outcomes instead of spending months on filling positions only serves to help the company’s ROI (return on investment), and also helps in mitigating cost dramatically. 

Infact, according to a report onRecruitment Process Outsourcing, the market for these services is anticipated to rise at a considerable rate during the forecast period, between 2023 and 2030.  

However, while recruitment outsourcing presents a spectrum of services, including project-based and total talent management, it’s essential for businesses to assess their specific requirements when contemplating this approach- the structured plans may not align perfectly with the unique needs of every organization.

In conclusion, the dynamics of the recruitment landscape continue to evolve, and time-to-hire trends reflect the challenges that organizations face in acquiring top talent. As the hiring process extends, businesses must adapt to these changes by exploring various strategies, from leveraging AI-powered tools to refining job descriptions. Recruitment outsourcing, with its diverse service offerings, can be a valuable option for many organizations. However, it’s crucial to recognize that not all solutions fit every company’s unique needs, but by staying proactive and agile in their approach to talent acquisition, organizations can position themselves for greater success in a dynamic job market.