The U.S. Bureau of Labor Statistics reports that 9.3 million hourly jobs will be added to the workforce by 2024. If unemployment rates remain low throughout that period, the competition to hire high-quality candidates will become ﬁercer than it already is. This means enterprise companies will quickly need to adapt to changing workforce behaviors and demographics.
While it’s easy to see the writing on the wall, many companies still struggle with manual data collection, timely communication, meaningful interactions, and intentional onboarding. It’s no wonder that 24% of businesses report that retention and turnover is among their top three challenges. Yet, they continue to operate in old hiring models.
Hourly workers look for three things when applying for a job:
Unfortunately, old hiring models and clunky applicant tracking systems are built with none of these things in mind.
1. Quality of Hire: Candidate quality—someone who performs well on the job and doesn’t churn—is the most challenging target to hit. Identifying speciﬁc qualities of high-performing workers is critical to improving this metric.
2. Complicated, Manual Screening: With 40% of HR managers reporting three or more hours to process a new employee, eliminating manual processes is low-hanging fruit for most companies. Today’s candidates expect the same ease of use they experience with phone apps and mobile friendly websites, not complicated forms and drawn out processes.
3. Disjointed Communications: A lack of communication is costing companies good hires. In today’s mobile-ﬁrst world, there’s no excuse for poor application processes, missed reminders of important dates, or going silent after sending an offer letter.
4. Lack of Visibility Through Data and Analytics: HR has traditionally had little visibility into cost per hire, how to optimize spending on sourcing campaigns, or where potential hires are in the hiring process. Over-reliance on manual processes hamstrings recruiters with outdated candidate information, slow reaction time, and few data sorting capabilities.
5. “Time Poor” Candidates: With some reports saying up to 70% of workers search for new jobs while at work, it’s become critical to show candidates your company is motivated, connected, and engaged. Today’s candidates are looking for positive experiences throughout the hiring process, and that means being respectful of their time.
6. Churn: Lack of transparency in hiring and onboarding is responsible for 50% - 120% of annual churn (varying by industry). New hires most commonly leave because of unmet expectations like lower than expected earnings, or scheduling conﬂicts like bad shift times or too few shifts available. This is a company failure, not a candidate issue.
It costs $3,328 on average, to replace an employee in a typical high-turnover industry. - Center for American Progress, 2018