the hiring report - Hudson [PDF]

THE HIRING REPORT the state of hiring in australia 2015

THE TOP 9 What Australians really want in a new role in 2015 THE NEW KING Why cultural fit is now the No 1 priority of senior executives A CHANGING WORLD How smart businesses are changing the way they hire — and winning

T he hiring report 2 015

who’s in the market? A crossroads in history. A turning point in thought. A moment to seize. Hiring in Australia has never been more challenging, nor more interesting. The diversification of media, the rise of digital and the evolution of networks mean the war for talent is now a complex web and a smart player’s game. Is more digital the inevitable path? Or is a more strategic solution required? Surveying 3,228 Australian professionals and hiring managers, Hudson set out to find out — starting by mapping the overall talent market. IN 2015, THE AUSTRALIAN WORKFORCE IS OPEN TO cHANGE. Three quarters or 76 per cent of the workforce are open to being approached by recruiters, almost eight in 10 (79 per cent) have an up-to-date CV and over six in 10 (63 per cent) have an up-todate LinkedIn profile, according to our research. From one perspective this signals a natural propensity to be curious: what

other opportunities are out there and how are others being remunerated, rewarded and motivated? It’s human nature for individuals to be curious about new opportunities and to wonder whether the grass is perhaps greener on the other side. Yet what starts as curiosity could lead to a more serious issue for employers: retention. If three in four Australian professionals are open to hearing about

3 in 4 open to talking

76% of Australian professionals are open to being approached by a recruiter or employer about job opportunities. This goes for senior executives too, 75% of whom are open to being approached.

new job opportunities, how confident are employers of their people’s loyalty? Organisations and team managers who want to avoid staff turnover and retain top talent in 2015 need to ensure they offer a strong employee value proposition. The war for talent is far from over and organisations that don’t make their people feel important, that don’t help them stay engaged, grow their skills and unlock their potential, will lose them.

6 i n 10 have b e e n approach e d More than 6 in 10 (62%) Australian professionals have been approached in the last six months.

m e n mor e OPEN TO APPROACHES Of those open to being approached about new roles 55% are men, 45% women.

2

who’s mr popular?

The people who get head-hunted the most:

56% are male

47%

are Generation X

43%

work for an organisation of 1,000+ staff

85%

are comfortable with their online footprint

who’s ready to consider new opportunities?

most up-to-date age on linkedin: generation X

most up-to-date gender on linkedin: Men

79% of Australian professionals have an up-to-date CV 63% have an up-to-date LinkedIn profile

The percentages of generations with an up-to-date LinkedIn profile Gen X: 66%, Gen Y: 64% Baby Boomers: 56%

The percentage of men who are up to date on LinkedIn: 67% The percentage of women who are up to date on LinkedIn: 58%

HIRING MANAGERS REALISE THEY NEED TO TAP INTO THIS MASSIVE — but passive — talent pool to get the right hires. Nine in 10 Australian hiring managers feel they need to look beyond active job seekers to find the right candidate. They know that the best talent may not be in the group applying for jobs. They know they are instead out there, somewhere.

What’s more, many people may be open to moving but roles are becoming increasingly specialised (you don’t just want an accountant, for example, but a business partner with stakeholder management skills). So while the pool of talent is large, how do you go about finding that one person? For a hiring manager, this is today’s ultimate hiring conundrum: the perfect

talent fit is out there and likely interested, but how to go about not only finding them but actually bringing them into the fold? The answer lies in the age-old sales truth that in order to win a person over, you must first know what they want. Before you seek talent, you must first know who that talent is and then how to attract them.

3


what job seekers want In 2015, any successful hiring process should begin with mapping the ideal candidate an employer wants: their roles and responsibilities and therefore skills and experience, aptitude and traits. From here, the focus must switch to what that ideal candidate wants. FOR THE FIRST TIME IN YEARS, WORK LIFE BALANCE HAS TAKEN precedence as the top priority of job seekers in 2015. This is highly significant. Asked what they looked for in a new role, the top response from Australian professionals, at 70 per cent, was “work life balance, including flexible

that over the last few years salaries have not increased substantially but instead stayed largely at a CPI level, excluding roles in high demand due to either growth in the digital and data economy or economic growth spanning particular industries, such as construction or ICT.

arrangements”. Higher salary came in second, at 67 per cent, with cultural fit third at 64 per cent. The fact that job seekers are now placing work life balance above salary — and above career progression and benefits — certainly is a cultural shift. Hudson data across Australia shows

The top 9 things australian professionals look for in a new role 1

Work life balance (incl. flexible arrangements)

2

higher salary

3

cultural fit with organisation and/or team

4

career progression/training opportunities

5

better benefits

6

A company whose values are closer to mine

7

strong manager

8

better brand

9

better job title

70% 67% 64% 58%

46%

13%

Generation X Work life balance: 72% Higher salary: 68% Cultural fit: 65%

Cultural fit tops wish list for senior executives. The top 3 priorities of senior executives when seeking a new role, according to our data:

70 66 56 %

Cultural fit

4

Generation Y Higher salary: 84% Career progression: 78% Work life balance: 70%

Baby Boomers Work life balance: 68% Cultural fit: 62% Higher salary: 46%

36% 30%

14%

who wants what?

This data does not add up to 100% as respondents were asked to give more than one response.

%

Work life balance

%

Higher salary

Are professionals prioritising work life balance today because they assume they cannot attain much of a pay rise? And will their priorities revert to money once salary rises return, or is this a permanent shift? Regardless, work life balance is now on the table as a serious discussion point for what Australians want, and organisations must define what that looks like for specific roles, plus consider tailoring for certain talent. OF ALMOST EQUAL INTEREST IS THE STORY OF CULTURAL FIT. That this once arbitrary concept is now seen by many Australian professionals as more important than career progression we see as a turning point. An important turning point. Cultural fit means different things to different people — team fit, ethics fit, team behaviour,

organisational values — but at its heart, it’s about belonging. At Hudson we define it as an organisation and team with behaviours, values and motivations that complement and echo the individual’s own; a pseudo family, in other words, that reflects, protects and supports the individual. That cultural fit is so far up the hierarchical value chain of Australian professionals — and top of the wish list for senior executives — says that fitting in, feeling good and feeling at home are essentially what Australians want in 2015. For hiring managers, it’s never been more important therefore to not only understand what individual candidates want and value but to define and hone an organisation’s own cultural offering, its own employer brand.

Gender & work life balance No longer the domain of the working mum or student, work life balance is firmly on the agenda in 2015 — for both genders. While media coverage might have us believe it is largely women who value work life balance, particularly around flexible arrangements for family, our data says otherwise. The make-up of respondents who said work life balance was their top priority when looking for a new role:

51% Women

49% Men

does brand matter? Rise of the employer brand

92 8

%

of Australian professionals say a company’s brand is important to them in deciding whether or not to apply for a role. say a company’s brand doesn’t matter when deciding whether or not to apply for a role.

%

Employer branding has emerged as a critical factor in attracting not only clients and customers, but quality talent. Companies risk losing out if they are not able to position their brand and clearly articulate the benefits they offer to potential employees.

Work life balance is now key to all Australian professionals. But everyone is naturally different. Hiring managers need to understand candidates and craft benefit packages tailored to their wants. Mark Steyn, Chief Executive Officer, Asia Pacific 5


how to connect with talent Digital may have forever altered the market but the new best practice in hiring is far from a digital-only approach. Instead, our data reveals that Australian hiring managers are relying on a more complex, multi-pronged and people-focused approach to finding and connecting with talent. Australian hiring managers have voted: online job boards are their most effective sourcing strategy for talent in 2015, according to our survey. Yet look closer at the results and a more complex picture emerges. Asked to name their most effective sourcing strategy, Australian hiring managers chose online job boards at 42 per cent. In number two position were

recruitment specialists, at 34 per cent, followed by personal networks (31 per cent), referral schemes (27 per cent) and headhunting (20 per cent). What is significant here is the variety in these top five responses: while technology solutions are key, so too are external solutions and people networks. Australian hiring managers are using a variety of techniques and channels to source top

AUSTRALIAN HIRING MANAGERS TELL: JOB BOARDS STILL RULE Australian hiring managers on their most effective sourcing strategies

Other social media 3%

Own company’s database 13%

WHAT THIS SUGGESTS IS HIRING MANAGERS CANNOT AFFORD TO take a vanilla approach to hiring. Instead they must take a tailored approach that navigates the plethora of channels now available. According to additional research from Hudson, 28 per cent of

AND MORE CHANGE IS COMING: 28% of hiring managers say job boards are less effective than 2 years ago.

LinkedIn 15%

Is social the solution? not on its own: Only 3% of hiring managers say ‘other social media’ is very effective when sourcing talent.

Online job boards 42%

Recruitment specialists 34%

talent, and an increasingly more complex and strategic sourcing plan.

SO WHAT IS THE RIGHT MIX?

Advertising/Print media Online

Print media, e.g. newspapers 7%

6

Internal referral schemes 27%

Headhunting 20%

My personal network 31%

advertising LinkedIn job board Microsites Social media YouTube

Associations/Groups LinkedIn recruiter Networking Open web sourcing Referrals Conferences & events

SEO Blogs

hiring managers say job boards are less effective than they were two years ago. And it is not social media that is necessarily filling the gap or providing an easy answer on where best to source talent: only three per cent of hiring managers said that ‘other social media’ (excluding LinkedIn) was very effective when sourcing talent. What this signals to us is that while job boards are number one in effectiveness at the moment, that effectiveness is seen as diminishing and its replacement is not as simple as more digital, more social. INSTEAD, IN 2015 AND ONWARDS WE WILL SEE a new norm evolve: multipronged and complex sourcing strategies that may

be the result of several years’ foundational work. That foundation may be a mix of contacts nurtured over years, networks developed and expanded, new groups found and daily social media and personal contacts harvested. Hiring managers who engage a mix of strategy, people knowledge and networks will ultimately be those who win the talent war. And the key here is ‘mix’; for one job the sourcing strategy will be a multiple channel campaign, for another a recruiter’s market connections will result in a candidate being sourced on the spot. Farewell one size fits all; in 2015 a multi-pronged, people-focused approach will be the key to connecting with great talent.

Finding top talent is becoming increasingly challenging. You have to know where the best candidates work and play, and how to connect with them. Sourcing strategies need to be targeted and multifaceted — it’s part science, part networks, part art. Dean Davidson, Executive General Manager, Recruitment Australia

on the rise Search Engine Optimisation (SEO): The nature of writing job ads has changed forever

78

%

12 10 never do

%

%

of hiring managers always or sometimes use keywords in job ads

don’t understand what SEO is

Mobile: Australian job seekers starting to dial it in The percentage of

13 in

1 in 3 Australian professionals SAY it’s very important that they can apply for jobs over their mobile phone. And age impacts this — the younger you are, the more you want mobile accessibility.

generations who say being able to apply for roles over their phone is very important:

35 28 24 Generation Y

Generation X

%

% %

Baby Boomers

7


SCREENING, Tests & INTERVIEWS Across Australia, screening is evolving. What we are now seeing is a gradual evolution in how the Australian business sector views and assesses a person’s aptitude and fit for a role, team and organisation. TRADITIONAL SCREENING methods remain strong in Australia, with cover letters and face-to-face interviews still highly valued: eight in 10 hiring managers (84 per cent) say cover letters are important and just two per cent describe face-to-face interviews as ‘not important‘. Yet the data shows signs of change. One in three (30 per cent) say they would be open to non face-to-face interviews in certain circumstances and cover letters are valued more by older people than the young. What’s more, 40 per cent of Australian professionals

CVs AND COVER LETTERS CVs Not everyone is tailoring Less than half of professionals (45%) tailor their CV for every job application. COVER LETTERS The verdict: Cover letters still matter — today 8 in 10 hiring managers (84%) say cover letters are either very or somewhat important in the job application process. But note: cover letters are on the wane with younger generations The percentage of generations that say cover letters are ‘very important’ in the job application process: Boomers: 48% Generation X: 37% Generation Y: 34%

8

THE SOCIAL FACTOR

82

%

of Australian professionals are comfortable with future employers seeing their online footprint. That’s a good thing. As who wants to risk a coin toss? Almost 1 in 2 hiring managers (47%) look to social media when evaluating a candidate.

say they are seeing more psychometric testing compared to two years ago. As organisations recognise the benefits that great talent offers, so the focus is on ensuring they have quality candidates in place. More rigorous screening measures are therefore increasingly being used; the best businesses know it’s not just about filling a job today, it’s about building talent bench strength that will stay and perform. How do you know you have the best candidate for not just the job, but the business? You test for what drives them, what motivates them, what will make them happy and what will help them succeed.

Interviews Most likely number of interview rounds for Australian professionals: 2 2 interviews: 42% 1 interview: 38% 3+ interviews: 19% Non face-to-face interviews: a new option 30% would be open to non face-to-face job interviewing in certain circumstances. But face-to-face interviews still rule Only 2% say face-to-face interviewing is ‘not important’.

Test scores

Psychometric testing is on the rise 2015 IS A TIPPING POINT IN PSYCHOMETRIC TESTING IN Australia. Already highly valued in Europe and the Americas, our findings suggest it is coming of age locally. What our findings also reveal is that senior executives value it more than others, which should be a wake-up call to all. Most senior executives have been through an assessment process themselves and understand the value it can add. Test results help you understand yourself: who you are, what drives you and where your opportunities lie. How do you play to your strengths? Work on your gaps? Develop a career strategy? Psychometric testing reveals these things and more; it’s the ultimate guide on getting ahead. It’s also the ultimate guide for team managers. Knowing the psychological profiles of their team enables them to lead better, playing to strengths and managing with motivations in mind. Psychometric testing ensures hiring managers select candidates based not only on their skills and experience, but also on their cultural fit and potential for growth — and given the rise of cultural fit in today’s workplace agenda, this has never been more important.

Identifying the connections between competencies and personal qualities allows companies to select those candidates who are likely to both perform better and stay longer. The ‘fit’ factor, often difficult to ascertain through interviewing alone, can prove to be a major component when it comes to selecting and retaining the best people.

Understanding what motivates people is one of the most critical levers to organisational success. Simon Moylan, Executive General Manager, Talent Management, Asia Pacific

Psychometric testing on the rise: 40% of professionals say they are seeing signs of psychometric testing use increasing compared to two years ago.

40

54

%

Senior executives value it more than the norm: 54% of senior executives say psychometric testing has merit as part of the hiring process.

% 9


15 WAYS TO HIRE IN 2015 Hiring has changed. To get the best talent today you need to look beyond active job seekers, beyond standard advertising practices, beyond yesterday’s screening techniques. To define, find and source great talent who will help your organisation succeed, in 2015 you need to think smarter.

5

PROFILE the person, not just the role Mapping the role description, skills and experience required remain vital in hiring. But to truly find great talent who will not only stay but excel, smart businesses are profiling the kind of person they want: the psychometric attributes and motivational drivers that match the job description and will complement the team and organisation.

2

Know what your target wants The better you know your target market, the better chance you have of creating, and selling, an offering that will appeal.

CANDIDATES: STAY PROFESSIONAL ON SOCIAL One in two hiring managers (47%) told us they check social media in their hiring process. To give themselves a fair chance, candidates must ensure their digital footprint is clean and professional. 10

SHOW THEM MORE THAN money Money matters, we all know that. But Australians have voted in 2015: as a group, work life balance trumps money. Employers must have the right salary bracket in place, but they should also realise that for candidates money is a balancing act with other factors.

7

Define YOUR role value proposition What are the three key selling points of the role? Is it a learning opportunity, a chance to lead, a certain path to skill development? A strong and clear candidate value proposition equals a strong likelihood of sourcing best fit candidates.

target niche skills and pain points Roles have never been more specialised, so you need to understand the niche skills required to address your industry’s pain points — know, for example, where to find marketers with analytics expertise and ICT talent with strong people skills. Create a sourcing strategy In 2015 candidates are everywhere, but not necessarily in one place regularly or for a long time. To find them, successful hiring means building a sourcing map: defining the best places to find your candidates, and then carrying out a sourcing strategy.

11

BRAND OR BLAND? The EVP era arriveS Only 8% of Australian professionals say a company’s brand doesn’t matter to them when applying for a role. EVP — the employee value proposition — has arrived in 2015 and hiring managers need to ensure their EVP is strong enough to attract the best candidates.

Embrace the job ad rule of four Use our IDEA principle in your job ads: ● Stimulate Interest ● Create Desire ● Generate Enthusiasm ● Compel the reader to Action

9

Recognise that sourcing is now deep … Today’s sourcing channels include (take a breath): blogs, SEO, conferences, events, referrals, networking, associations, LinkedIn, YouTube, media, online advertising, job boards, personal networks and databases — for a start. Today, great talent is scattered and can remain elusive so sourcing strategies may need to go wide and deep.

… Yet personal networks are MORE IMPORTANT than ever The top five most effective sourcing strategies in our survey included just one purely technical platform — online job boards. The rest were all people-based. As our world becomes more digital and socially connected, so we reach more to our personal networks, to the bonds that connect us and in which we trust.

UNDERSTAND SEO 78% of hiring managers now always or sometimes use keywords in their job ads. TO COMPETE, YOU MUST TOO. SEO is not just a technology initiative, it’s about writing high quality, compelling and search-friendly ads.

13

Consider psychometric testing 40% of Australian professionals say they are seeing this increasing. Psychometric testing benefits the role: it increases longevity and results. It benefits the team: fit the right personality and improve team dynamics. And it benefits the organisation: hire for motivational and cultural fit and you get innovation, creativity, perseverance — the keys to organisational success.

GET ON BOARD WITH WORK LIFE BALANCE & CULTURAL FIT Australian professionals nominate work life balance as their top priority in a new role in 2015, with cultural fit their number three priority. Most of us want to work hard, make our mark and achieve in our jobs — but increasingly we want to do so with balance in our life, and with like-minded peers in an environment where we feel valued. As work encroaches on our personal life with extra hours at night and on weekends answering emails, we start to wonder, ‘What’s it all for?’ A common purpose, shared beliefs and united vision can make the difference between a disengaged employee who works to live, and a passionate one who loves to work.

THE COMPETITION FOR PASSIVES? GAME ON Nine in 10 Australian hiring managers now feel they need to look beyond active job seekers to find the right candidate when hiring. Your competitors are scouring for the best. If you want to win the talent war, you need to engage the passive market. 11


Methodology For this report we canvassed the views of 3,228 professionals and hiring managers across Australia. We asked them their views on all aspects of hiring, from what they think of cover letters and how confident they are with their own social media presence to whether they use psychometric testing in their recruitment practices. From these results we collated this report, a combination of the survey findings and our own knowledge, learnings and insights into best practice hiring in 2015.

about hudson

Hudson is a global talent solutions company with expertise in specialised recruitment, recruitment process outsourcing (RPO), talent management and contracting. We help our clients and candidates succeed by leveraging our expertise, deep industry knowledge and proprietary assessment techniques. Through relationships with millions of professionals in 22 countries, we match talent with opportunities by assessing, recruiting, developing and engaging the best and brightest people for our clients.