Challenges facing the recruiting/staffing industry include attracting the right candidates, building a strong employer brand, lack of qualified candidates, targeting passive candidates, inefficient talent sourcing, providing memorable candidate experience, hiring for diversity and inclusion, eliminating bias, choosing the right candidate, and ensuring data security.
1) Attracting the Right Candidates
- Attracting the right candidates for the job has been reported to be one of the major challenges faced in the recruiting industry.
- According to a report by Glassdoor, "76% of hiring managers admit attracting the right job candidates is their greatest challenge".
2) Building a Strong Employer Brand
- Employer brand is a factor considered by job seekers when applying for a job.
- According to a Linkedin report, "75% of job seekers consider an employer’s brand before even applying for a job".
- The majority (75%) of individuals (even those employed) "would not take a job with a company that had a bad reputation".
3) Lack of Qualified Candidates
- According to a study by the National Federation of Independent Business, a lack of qualified candidates is a major challenge facing the recruiting industry.
- The report indicates that 87% of HR professionals have reported a lack of qualified candidates.
4) Targeting Passive Candidates
- Targeting candidates who are not actively searching for a job is a challenge to the recruiting industry because recruiters have to reach out to them.
- According to a Linkedin report, "70% of the global workforce is made up of passive talent" who are not actively searching for a job.
5) Inefficient Talent Sourcing
- It is difficult for recruiters to find quality candidates to employ. Human resource professionals use a lot of their time to find resumes and contacts.
- Lack of powerful sourcing technology and reliance on manual sourcing is a challenge to the recruiting industry.
6) Providing Memorable Candidate Experience
- According to Talentlyft, recruiters lose top candidates due to poor candidate experience. Poor candidate experience also harms the company's reputation.
- According to the CareerArc’s Candidate Experience Study, approximately "60% of job seekers have had a poor candidate experience" and as a result, 63% of them reject job offers.
7) Hiring for Diversity and Inclusion
- A diverse workforce impacts both job seekers and human resource professionals. The recruiting industry faces the challenge of finding and attracting a diverse workforce.
- Glassdoor reports that 67% of job seekers consider a diverse workforce as "important when considering job offers".
8) Eliminating Bias
- Unconscious Bias plays a role in recruiting and can lead to inaccurate judgments, unfair, and overlooked talent.
- According to the National Bureau of Economic Research report, "resumes with white-sounding names receive 50% more calls for interviews than identical resumes with black-sounding names".
9) Choosing the Right Candidate
- About 74% of employers have hired "the wrong person for a position". This is according to Career Builder research.
- A bad hire can cause a significant loss in productivity, employee morale, and revenue to a company. This can also cost a company about $50,000.
- This can be caused by misleading resumes. According to Criteria Pre-Employment Testing’s research, "78% of resumes contain misleading statements, while 46% contain actual lies".