2013 Bullhorn North American Trends Report
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2013 Bullhorn North American Trends Report

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In December of 2012, Bullhorn conducted its annual trends survey of North American recruiting agency ...

In December of 2012, Bullhorn conducted its annual trends survey of North American recruiting agency
professionals, seeking to assess the state of the staffing industry from the vantage point of business performance,
recruiter compensation, recruiting technologies, and measurement best practices. In addition to the 2013 North
American Staffing and Recruiting Trends Report, the 2013 EMEA Staffing and Recruitment Trends Report and
the 2013 APAC Staffing and Recruitment Trends Report are also available on the Bullhorn website.

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2013 Bullhorn North American Trends Report 2013 Bullhorn North American Trends Report Document Transcript

  • Two St e p s Forward O ne Ste p Back 2 013 North American Staffing and Recruiting Trends Report
  • CONTE NTS 4 OPPORTUNI TIES A ND CH ALLENGES 7 S OCIA L RECRUI TING 10 C L IENT A ND TA L ENT ACQUI SITION 1 1 ME AS URING SUCCESS 1 7 RECRUI TING TECHNO LOGY 1 8 COMPENSATION Introduction In December of 2012, Bullhorn conducted its annual trends survey of North American recruiting agency professionals, seeking to assess the state of the staffing industry from the vantage point of business performance, recruiter compensation, recruiting technologies, and measurement best practices. In addition to the 2013 North American Staffing and Recruiting Trends Report, the 2013 EMEA Staffing and Recruitment Trends Report and the 2013 APAC Staffing and Recruitment Trends Report are also available on the Bullhorn website. 2012 was a positive year for recruiters and candidates alike — a year in which social recruiting became truly ubiquitous and general revenue performance improved — but it was not without setbacks. Management compensation expectations increased, but recruiter compensation expectations significantly decreased. And despite the vast majority of respondents considering mobile access to recruiting technology important to their success, it doesn’t appear that they’re fully leveraging the benefits such access affords them. 2
  • Key Findings • Expected total compensation has • Executive search recruiters had a steadily increased for staffing firm VPs, higher hit rate and average number of directors, and managers over the past applications per job post than recruiters three years, but it has steadily decreased for specializing in direct hire, contract/ recruiters, account managers, and sales consulting, and temporary positions. representatives. • Job boards were ranked least effective • The most important metric for measuring for finding high-quality candidates among agency performance in 2012 was “total methods including social media, referrals, number of placements.” networking, and in-house candidate • 73% of respondents reported that their firms met or exceeded their revenue goals for 2012, compared to 70% in 2011. • More firms used standardized metrics to measure performance outcomes in 2012 than in 2011. • 98% of respondents used social media for recruiting in 2012, versus 94% in 2011. • More recruiters reported success placing candidates they found on Facebook than databases. • 92% expect their firm’s revenue performance will improve in 2013, down from 96% in 2012. • The single greatest opportunity for recruiters in 2013 is “increased access to passive candidates via social media.” • 82% of staffing agency executives plan to add staff to their business in 2013, an increase of almost 3% over 2012. those they found on Twitter. 3
  • Looking Back at 2 012 2012 was a slightly more successful year for the staffing industry — at least as reflected by revenue performance — than 2011 and 2010. Over the past year, 37.5% of respondents exceeded their revenue goals, while 35.6% met them, and 27% fell short. Compare this to 2011, when only 27% exceeded their goals, 43% met them, and 30% fell short of their goals. Despite a narrow increase of 3.1%, a greater number of recruiters performed to expectation or out-performed in 2012 compared with 2011. Firms That Met or Exceeded Revenue Goals 2012 Firm Revenue Performance 27% 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Exceeded Goals Met Goals Did Not Meet Goals 36% 71% 70% 73% 2010 37% 2011 2012 On the heels of the Great Recession, in 2010, 36% of recruiters said their firm exceeded their revenue goals, 35% met them, and 29% fell short. The survey in 2009 found recruiters to be especially bullish about 2010, OPPOR T looking for glimmers of hope after such terrible economic times. Perhaps such positive 2010 performance was merely indicative of how significantly 2009 revenue performance had lowered expectations. UNI T IE S A ND Looking FORWARD TO 2 01 3 Looking forward to 2013, 40.6% of staffing agency owners, managers, directors, C-level executives, board members, and VPs predict that revenue will increase between 11% and 25% over 2012, while 33.7% are more ambitious – anticipating a revenue increase of greater than 25%. This ambition, however, is tempered CH A LL in comparison to last year’s predictions, in which 45% of recruiters felt that 2012 revenue would increase by more than 25%. However, only 29% predicted an increase of more than 25% for 2011. Therefore, while expectations for 2013 are less robust than they were in 2012, they’re certainly a marked improvement over sentiments for 2011. ENGES 4
  • 2013 Revenue Growth Expectations 2% Respondents Expecting Increase in Revenue for Upcoming Year 0% 1% 100% 80% 5% 18% Increase >25% Increase >11% and <25% Increase >0% and <10% Stay the Same Decrease >0% and <10% 34% 41% 31% 44% 34% 36% 41% 2012 2013 60% 36% 40% 20% 0% 2011 Increase >0% and <10% Increase >11% and <25% Increase >25% Additionally, respondents believe that 2013 will be a year of unprecedented headcount growth and international expansion. When agency leaders were asked if they plan to add staff to their business in 2013, a whopping 81.6% said yes. Any hesitation to invest in more recruiting personnel appears to have waned. Similarly, 47.9% of recruiters said their companies would expand into new geographies in 2013 (compared to 44% in 2012). With advances in mobile recruiting and Software-as-a-Service (SaaS) technologies that allow firms to get new branches up and running in a matter of hours, the obstacles for global growth are fewer than ever before. Firm Growth Initiatives for Upcoming Year 100% 80% 60% 82% 79% 75% 58% 40% 44% 48% 20% 0% 2011 Hiring 2012 2013 will be a year of unprecedented headcount growth and international expansion. 2013 Sector and Location Expansion B igg est O p p ort un i t y for Recruiting in 2013: Social Media For the first time since Bullhorn began issuing annual Trends Reports, respondents we polled contended that the single biggest overall opportunity for staffing and recruiting professionals in the upcoming year was 5
  • “increased access to passive candidates via social media.” Finding passive candidates through social media was considered to have greater potential to advance the recruiting industry than introducing more efficient business processes, an increase in flexible roles and workspaces, untapped growth in emerging economies, increased business due to recruiting consolidation, and sourcing candidates from overseas. C hal l en g es: Lack of Skilled Candidates and Unrealistic Client Expectations Recruiting professionals listed their biggest challenge for 2013 as a lack of Biggest Opportunity in 2013 for Staffing and Recruiting Professionals skilled candidates (33%). Additionally, in a separate question, 76.1% of 3% respondents claimed to have a shortage of skilled candidates in their respective recruiting sectors. With more than half of all North American respondents recruiting 6% 4% Increased Access to Passive Candidates via Social Media More Efficient Business Practices and Processes Increase in Flexible Roles and Workplaces 7% 47% 15% Untapped Growth in Emerging Economies Increased Business Due to Recruiting Industry Consolidation for industries including information Sourcing International Candidates 18% technology, this lack and/or shortage of Other “skilled candidates” quandary brings to mind the war for talent (foreshadowed in the 2011 Trends Report, “An Industry on the Upswing”) over software developers Biggest Obstacle in 2013 for Staffing and Recruiting Professionals and programmers, especially in tech hubs such as Boston, Silicon Valley, and New York City. 3% 4% 3% 6% The second most cited major challenge for 2013 was unrealistic client expectations (26.5%). One recruiter contended that the biggest issue was that “candidate compensation 33% 8% Lack of Skilled Candidates Unrealistic Client Expectations Weak Economic Outlook Lack of Innovation in Sourcing Candidates Lack of New Jobs 17% 26% Keeping Up with Supply of Contractors Inefficient Candidate Management Systems Other requirements are not in line with client expectations” – reflective of both 6
  • challenges. Recruiters also expressed worry about a weak economic outlook for 2013, suggesting that the end of the Great Recession hasn’t fully appeased uncertainty over the direction of the economy. Social Recruiting Isn’t New Anymore. It’s the Rule. 98.2% of recruiters we polled – didn’t know how to use it. There using Pinterest. Though more undoubtedly a tech-savvy group is no longer any question that than half of respondents (51.3%) – used social media for recruiting social recruiting works – the only used Facebook and 48.8% used in 2012. roadblock to full social media Twitter, these percentages are adoption in the staffing industry lower than those of 2011, in is that some still require further which 60.2% used Facebook education on how to maximize it. and 51.5% Twitter. In contrast, Social media usage has increased steadily over the past three years. For the 1.8 percent of respondents who didn’t take In fact, 97.3% of recruiters used advantage of social recruiting in LinkedIn for recruiting in 2012. 2012, 29.2% said it was because Newer social networks also they didn’t know how to gained traction, with 19.1% of measure its effectiveness and staffing professionals leveraging 25% claimed it was because they more respondents used Google Plus this year and 3.6% Social Media Utilization by Recruiting Professionals 80% Social Media Channels Utilized by Recruiters in 2012 S 100% LinkedIn in 2012 than in 2011. 100% 92% 94% 98% 80% 60% 60% 40% 40% 20% OCI AL 84% 20% 0% 2010 2011 2012 0% LinkedIn Facebook Twitter Google + Blogging Pinterest Do Not Use Social Media 2012 ING 2011 Other RECRUIT 2009 7
  • Faceboo k M o re E ffe c t i v e for Recruiting than Twitter? Interestingly, when recruiters were asked which Social Media Channels Utilized in Successfully Placing a Candidate social networks produced candidates they were actually able to place, 16.7% selected Facebook 100% while only 12.7% selected Twitter. This isn’t a 80% new trend. In 2011, the same percentage (16.7%) 60% successfully placed candidates from Facebook 40% versus 10.1% with Twitter. This is surprising given that a greater percentage of Bullhorn Reach users have connected their Twitter accounts (29%) 93% 86% 20% 19% 17% 0% LinkedIn Facebook than their Facebook accounts (24%), believing 10% 13% Twitter 2011 that Facebook yields less qualified candidates 7% 7% 2% 4% 1% 5% 9% Google + Blogging Pinterest Other 2012 and should be used only for personal matters. Social Media Channels Recruiters Expect to Utilize More in 2013 Recruiters’ own experience and results from the past two years prove that this is not the case, and indicate that Facebook is a more utilized 100% 82.6% and more effective social recruiting channel than 80% Twitter. This isn’t to argue that Facebook is most 60% effective, of course. 92.9% of respondents stated 40% that LinkedIn produced candidates they were 20% able to place. 37.4% 38.3% 22.0% 20.2% 6.5% 0% LinkedIn Facebook Twitter 3.5% Google + Blogging Pinterest Other Social Recruiting Perception vs. Rea l i t y recruiters more excited to use Twitter than Facebook When asked which social networks they plan on using the data shows that it does indeed have professional more extensively in 2013, 82.6% of recruiters said LinkedIn. Twitter pulled in 38.3% of the vote, while only 37.4% said they’d use Facebook more often in the coming year. But why, given that Facebook was reported as being more widely-used and effective in generating qualified candidates than Twitter, were in 2013? While Facebook is more of a personal tool than a professional one – as opposed to LinkedIn – value. Meanwhile, for the first time, Pinterest made the list for social media channels used by recruiters. However, it still hasn’t proven its relevance for recruiting, with only 6.5% planning to increase their usage of it in 2013. Additionally, Google+ has surpassed blogging in popularity for the coming year. 8
  • Benefits of Social Media Eighty-three percent of recruiters reported that the biggest benefit of using social media for recruiting was finding passive candidates, an increase of 6% over 2011, followed by building brand awareness, developing new client leads, and filling jobs more quickly. In 2011, the fourth biggest benefit was reducing job board spend, which came in fifth for 2012. Interestingly, although finding passive candidates grew in popularity as a social recruiting benefit, almost Biggest Benefits of Social Media Recruiting all other benefits decreased. Given that respondents outlined the 100% 80% 77% greatest opportunity for 2013 as 80% access to passive candidates via 60% 47% 40% 39% 40% 35% social media, it seems that finding 36% 28% 25% 26% 20% 25% 22% passive candidates is of greater 16% 9% focus to recruiters than building 2% 1% 0% Find Passive Candidates Build Brand Develop New Reduce Job Nurture Drive Traffic Communicate Awareness Client Needs Board Cost Client/Candidate to Website Corporate News 2011 brand awareness and even Other developing new client leads in the 2012 current business environment. S ocial N et work i ng: The Key to Obtaining New Clients Social networking has made huge Best Methods for Obtaining New Clients leaps over the past three years, finally achieving recognition as the best way to obtain new clients. Social 100% networking tied for the top spot with 80% attending networking events, ahead 60% of joining professional groups and 40% maintaining an online presence (e.g. 20% website, blog). This is a departure from 2011, where social networking came in third, and 2010, where it 60% 61% 60% 80% 60% 57% 58% 59% 56% 43% 42% 45% 29% 21% 20% 16% 17% 10% 0% Attend Networking Events Social Networking Search Engine Join Professional Maintain an Online Presence Marketing Groups 2011 2012 Other 2013 came in fourth. 9
  • Finding the Right Ta l ent Recruiters rated the effectiveness of various common methods for finding candidates in 2012 on a scale of 1 to 5 (1 being least effective, and 5 being most effective). “Networking with other people, firms, and associations” came out on top with an average of 4.17, “referrals from previous placements” second with 4.08, and “in-house candidate databases” rounded out the top three at 3.84. Meanwhile, 45% of respondents cited “social media” as a highly effective sourcing method, giving it an average rating of 3.48. This is in contrast to 2011, when social media was in last place with a 3.18 rating. In 2012, the method ranked as least effective for finding quality candidates was job boards. Most Effective Method to Source a Candidate Networking Referrals from Previous Placements In-House Candidate Databases Social Media Job Boards 0 0.5 1 1.5 2011 2 2.5 3 3.5 4 4.5 2012 CL IEN T A ND TA L EN T ACQ UISIT Exec uti v e Se a rc h F i r ms Receive Most Applications per Job Post Forty-five percent of recruiters reported that, on average, they received between 1 and 9 applications for each job they posted in 2012, with 26.5% receiving Average Applications Received per Job Post 70% 60% 10-19 applications per job post, 12.7% getting 20-29 50% applications, and a slightly higher percentage receiving 40% 30+ applications (15.8%). While the 1-9 application 30% average seems low, this is across all industries and types of firms. 45.0% 26.5% 20% 12.7% 10% 15.8% 20-29 30+ 0% 1-9 10-19 ION Segmented by industry vertical, Office/Clerical recruiters saw the highest average number of applications per job post at 21, followed closely by Sales at 20. The four industries that reported the lowest average number 10
  • of applications per post were Public Sector, Real Estate, Information Technology, and Healthcare. This is interesting given that Real Estate recruiters claimed the highest hit rate (starts divided by sendouts), covered later in the report. Average Applications Recieved per Job Post by Industry Office / Clerical Sales Industrial Advertising / Creative / Marketing Accounting / Banking / Finance Construction Legal Scientific / Engineering Energy / Mining Public Sector Real Estate Information Technology Healthcare Average Applications Received per Job Post by Firm Type 21 20 20 18 16 14 12 10 8 6 4 2 0 19 18 17 17 17 16 16 13 13 13 13 0 5 10 15 20 17 Executive Search 17 Temporary 15 14 Direct Hire Contract /Consulting 25 Calculating average applications per job post by type of agency, those specializing in executive search and temporary positions fared the best, with an average of 17 candidates. Direct hire and contract firms received fewer candidates, averaging 15 and 14 applications per post respectively. Measuring Succ ess As with previous years, we asked owners, managers, directors, VPs, presidents, board number one metric used by their staffing firms to measure success. The single most important metric was “total number of placements.” “Fill gross margin of placement fee,” “total number of job orders,” and lastly, “time-to-fill.” 50% 40% 37.6% 30% 29.0% 20% 12.2% 10% 10.5% URING S rate” came next, followed by “hit rate,” “average 60% MEAS executives and C-level executives to rank the Most Important Performance Metric for Staffing Firms 6.6% 4.1% 0% Total Number of Placements Fill Rate UCCESS Hit Rate Average Gross Total Time-to-Fill Margin of Number of Placement Fee Job Orders This is a departure from the 2012 report, which saw “hit rate” as the most important metric for 11
  • measuring agency performance, at Most Important Peformance Metric for Staffing Firms by Year 35.3%. This was followed by “total number of placements” (32.3%), “fill 40% rate” (21.5%), and “average gross 35% margin of placement fee” (18.4%). 30% Both this year and last year, however, “total number of job orders” and 25% 20% 15% 10% “time-to-fill” came in second-to- 5% last and last in terms of importance, 0% Total Number of Placements respectively. Interestingly, “total Fill Rate number of placements” was also most 2010 important in 2010, followed by “fill Average Gross Margin of Placement Fee Hit Rate 2011 Total Number of Job Orders Time-to-Fill 2012 rate” and “total number of job orders.” Whether claiming the top spot or not, “total number of placements” is a hugely important metric in determining company performance. Placements Still Dominant Metric for Sal es When asked for the number one metric they used to track their most effective salespeople, agency executives responded with exactly the same order of preference as in 2011. “Number of placements” was number one, Measuring Most Effective Salespeople 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Number of Placements Number of Job Orders Placement Ratios Number of Interviews Set 2010 Number of Contracts 2011 Time-to-Fill Other Difficult to Track 2012 12
  • followed by “number of job orders,” “placement ratios,” “number of interviews set,” “number of contracts,” and “time-to-fill.” A small percentage used other metrics for determining sales effectiveness, including “gross margin produced” and “revenue generated,” while a still smaller number claimed it was “difficult to track.” One respondent listed the most important metric as candidate “attrition rate.” Use of the top five metrics for measuring salesperson effectiveness – “number of placements,” “number of job orders,” “placement ratios,” “number of interviews set,” and “number of contracts” – all increased over both 2011 and 2010. This increasing reliance on performance metrics by staffing firms is an encouraging trend. As the adage goes, “you cannot manage what you cannot measure.” Average Hit Rate Varies Between In d ust r i es submissions (sendouts) times only a slightly higher average hit 100” – was between 21-30%, rate than mid-sized and large with a gradual lead-up and firms, this is due to a combination decline and then an increase of extremely low and high rates around the 51-60% and 60%+ within the category. While some The most commonly reported marks. Who were these outliers small firms were batting 1,000, average hit rate for 2012 – with hit rates of more than 50%? some were batting 100. described as “number of The data shows they all came successful placements (starts) from small staffing firms. Even divided by total number of client though small firms demonstrated Average Hit Rate 25% Average Hit Rate by Firm Type 50% 23.6% 20% 40% 15.7% 15% 13.3% 8.6% 10% 5% 12.7% 13.9% 9.2% 30% 39% 37% Executive Search Temporary 34% 35% Direct Hire Contract/ Consulting 20% 10% 2.8% 0.2% 0% <1% 2-5% 6-10% 11-20% 21-30% 31-40% 41-50% 51-60% >60% 0% 13
  • Segmented by type of firm, the averages were surprisingly consistent, with executive search, temporary, direct hire, and contract firms all reporting hit rates of around 35%. Nonetheless, in both hit rate and applications per job post executive search recruiters came out slightly ahead of their peers. From the standpoint of industry served, Real Estate had the highest average hit rate at 45%. This was followed by Construction at 43%, Industrial at 41%, and Office/Clerical at 40%. Legal had the lowest hit rate of any industry covered, at 24%. Given the widely reported jobs shortage for lawyers, this finding isn’t surprising. Average Hit Rate by Industry Real Estate Construction Industrial Office / Clerical Sales Energy / Mining Accounting / Banking / Finance Healthcare Scientific / Engineering Advertising / Creative / Marketing Information Technology Public Sector Legal 45% Average Hit Rate by Firm Size 43% 41% 50% 40% 39% 40% 39% 30% 36.0% 35.6% Small Mid-Size 37% 32.7% 20% 37% 36% 10% 35% 0% 33% 28% Large 24% 0% 10% 20% 30% 40% 50% 60% As mentioned earlier, respondents from small, mid-sized, and large staffing firms all reported fairly similar average hit rates around the mid-thirties. Nevertheless, large firms did see a slightly lower hit rate percentage than small and mid-sized staffing agencies. Sales: Taking Care of B u s i ness To understand “a day in the life” of salespeople, we asked a series of questions to assess the time they spent out of the office meeting with people, managing accounts, and attracting new clients. Working time spent in outside meetings increased significantly since last year. 72% of sales-focused respondents spent more than ten percent of their time out of the office in meetings in 2012, compared to only 58% who did so in 2011. This is much higher than the average across all respondents (including recruiters), 14
  • in which only 49% spent more than ten percent of their time outside the office, indicating that salespeople may be taking advantage of advances in mobile technology that enable them to be both productive and untethered (discussed in the next section). Additionally, 84% of salespeople spent more than ten percent of their time managing existing accounts, a decline from 87% in 2011. Time Salespeople Spent Out of Office for Meetings 50% 50% 42% 40% 40% 29% 30% 40% 32% 33% 28% 30% 21% 20% 20% 14% 11% 10% 11% 32% 29% 27% 23% 13% 16% 10% 0% 0% <10% 10%-25% 26%-50% 2011 2012 60% 51% 47% 40% 32% 34% 30% 20% 15% 10% 12% 6% 3% 0% <10% 10%-25% 26-50% 2011 >50% <10% 10%-25% 26%-50% 2011 >50% Time Spent Out of Office for Meetings (All Respondents) 50% Time Salespeople Spent Managing Existing Accounts >50% 2012 Working time spent in outside meetings increased significantly since last year. 2012 15
  • Staffing firm executives were asked to identify improvements they had made in the past year to increase business success. Nearly 63% claimed to have “increased focus on strengthening new and existing client relationships.” However, in terms of growing their account rosters, only 10.9% of salespeople reported spending more than half of their time attracting new clients. Time Salespeople Spent Attracting New Clients 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% Salespeople Who Spent at Least Half Their Time Attracting New Clients 30% 25% 22.0% 20% 17.0% 15% 42.0% 11.7% 36.4% 10.9% 2011 2011 10% 25.6% 27.0% 20.7% 25.7% 11.7% 10.9% 5% 0% <10% 10%-30% 2011 31-50% >50% 2009 2010 2012 It is important to note that time spent attracting new clients has fallen in the past several years, with 11.7% of salespeople allotting more than half of their time to it in 2011, 17% doing so in 2010, and 22% in 2009. Greater efficiency gleaned from using social media to attract clients could account for this decrease in time. Among salespeople specifically, “developing new client leads” was the second biggest benefit of social recruiting; it came in third when averaged across all respondents. Overall, in 2012, salespeople spent more time meeting with prospects and clients outside and less time managing existing accounts or attracting new clients. 16
  • Mobile: A Boon for SALE S R oa d Wa r r i o r s Given that the majority of mobile ATS/CRM enthusiasts outside in meetings considered respondents reported (across roles) as a rule spent mobile access important, face-to-face networking considerably more time out of with 85.7% considering it events to be one of the best the office untethered than their “extremely important.” It’s ways to attract new clients, it’s counterparts. While mobile ATS/ unclear whether salespeople no surprise that 83.9% thought CRM functionality has advanced who appreciated mobile mobile access to their ATS/ considerably in the past few technology were able to spend CRM system was important years, it doesn’t appear that more time outside the office (compared to 80% in 2011). recruiters are fully leveraging by virtue of using it, or if busy However, of the respondents the physical freedom such field sales professionals took who considered mobile CRM technology affords them. advantage of mobile solutions “extremely important,” a still sizeable 42.3% spent less than 10 percent of their time out of the office. That’s less than the total average of 51%, but not by much. There’s no indication that by necessity. Nevertheless, there Salespeople, however, are a is a link between salespeople different story. One-hundred appreciating mobile ATS access percent of the staffing and spending more time out of salespeople polled who spent the office. more than half their time Importance of Mobile Access to Recruiting Technology (All Respondents) RECRUI T 49% 53% 31% 31% 11% 11% Extremely Important Somewhat Important Not Important 2012 ECHNO L 2011 9% 6% Neutral ING T 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% OGY 17
  • ATS/CRM No Longer a Luxury, But a Ne c ess i ty On the subject of ATS/CRM technology in 2012, Importance of ATS/CRM Technology to Recruiters 87% of respondents agreed that such systems were important to the success of their business, with 61.9% considering them “extremely important.” This is an increase over the 83.6% of recruiters who considered ATS/CRM systems important in 2011, indicating that as ATS/CRM technology continues to improve and iterate, the role it plays in ensuring staffing agency success 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 62% 62% 22% 25% 14% 10% 3% Extremely Important grows stronger. Somewhat Important 2011 Neutral 3% Not Important 2012 Broken out by company size, it’s recruiters from mid-sized firms who considered ATS/ CRM technology most important to business, followed by those at large firms. While only 85% of respondents at small firms felt ATS/CRM was important, that’s still an improvement over 2011 figures. The opposite is true for respondents from large staffing firms. All respondents from large firms in the 2011 survey reported that ATS/CRM technology was important but only 88% did so in the 2012 survey. Respondents Who Believe ATS/CRM is Important by Firm Size 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 89% 92% 81% 85% Small Mid-Size 2011 100% 88% Large 2012 Show Me the M oney? Respondents perceived their pay as being better in 2012 than 2011, but for 2013 the collective numbers indicate an expected decline. COMPEN SAT Nearly 63% of North American recruiting professionals said their average compensation (salary and bonus) increased in 2012. Almost 25% of respondents said their compensation remained the same as 2011, and 12.8% reported that it decreased. This is a slight improvement over the previous year’s figures, which showed ION 61% of recruiters increasing their 2011 compensation compared to 2010. While more recruiters experienced 18
  • Total Compensation Change Year Over Year 80% 60% 60% with 2011 (12.8% versus 11% respectively), 2012 was a much better year than 2010, when 63% 22% of respondents saw their income decline 56% from 2009 levels. 40% 22% 29% 25% 22% 20% 11% 13% 0% Increased No Change 2010 2011 Decreased 88% 77% 81.3% of recruiting professionals expected their total compensation to increase over 2012 figures. In comparison, 77% of respondents expected a compensation increase for 2012. 2012 A whopping 88% expected an increase for 2011, Total Compensation Expectation Change for Upcoming Year 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% a compensation decrease in 2012 compared likely due to the 22% whose salary declined in 2010. 81% 20% 11% 17% 1% 3% 2% Increased No Change 2011 2012 Decreased 2013 Management Gets a Raise While Rec ruiters Brac e f o r Lowe r Pay To get a better sense of how pay varied between roles, Bullhorn calculated average total expected compensation for 2013 (compared to expectations for 2012 and for 2011) by job level. While board/C-level/ owner/president-level respondents expected their compensation to increase in 2012 and decrease slightly this year, the most remarkable finding is that recruiters/account managers/sales representatives have anticipated continually-reduced compensation over the past three years. VPs, directors, and managers have seen a steady increase, while recruiters and salespeople have seen a steady decrease. 19
  • Expected total compensation in 2013 for board/ C-level/owner/president-level respondents Total Compensation Expectation for Upcoming Year by Role was $189,306. This is lower than last year’s $250,000 expectation ($197,061), but higher than 2011 $200,000 ($175,500). $150,000 The average total compensation expectation for VPs, directors, and managers was $139,314 for 2013. This is higher than the expected $130,298 for 2012 and $127,059 for 2011. Anticipated compensation for recruiters, $100,000 $50,000 $0 Board / C-level / Owner / President for 2011 Vice President / Director / Manager for 2012 Recruiter / Account Manager / Sales Representative for 2013 account managers, and sales reps averaged $104,863 for 2011 on the heels of the Great Recession. The expectation for 2012 was a slightly lower $97,048. However, for this year it decreased dramatically to $82,269. While these figures still position recruiting as a lucrative profession, those working on the front lines are bracing for reduced compensation. Looking at total compensation expectation by firm size, the findings are even more interesting. Recruiters and salespeople across every firm size expected lower pay in 2013 compared with 2012. VPs, directors, and managers across every firm size expected higher pay in 2013 than in 2012. And with the exception of mid-sized firms, board members and C-level executives expected a decrease in 2013 compared to 2012. 2011 data is not included here due to insufficient large-firm sample size. 2 0
  • Compensation Expectation for Upcoming Year by Firm Size and Role SMALL Board / C-level / Owner / President Vice President / Director / Manger Recruiter / Acccount Manager / Sales Representative MID-SIZE Board / C-level / Owner / President Vice President / Director / Manger Recruiter / Acccount Manager / Sales Representative LARGE Board / C-level / Owner / President Vice President / Director / Manger 2012 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 0 Recruiter / Acccount Manager / Sales Representative 2013 Pay Increased for New H ir es Overall, candidates who found new jobs had a good 2012 financially. In evaluating candidate compensation in their respective job sectors over the past year, 46.5% of recruiters said it had increased, 46.2% said it did not change, Average Candidate Compensation Change Year Over Year 7% and only 7.4% felt it had decreased. As the economy continued its gradual recovery, candidate salaries grew healthier. Additionally, 47% 46% Increased Remained the Same Decreased the candidates who did get hired were likely the skilled ones over which clients were competing, thus driving up new hire compensation. 21
  • Conclusion While 2012 represented several steps forward for the staffing industry in terms of recruiting technology advancements and nearly-universal adoption of social media, compensation expectations for recruiters, account managers, and sales representatives dropped significantly. 2012 seemed to introduce new problems just as it solved older ones. Staffing professionals expect 2013 to be a year of considerable growth for their firms – notably from the perspective of revenue, global expansion, and personnel – but new challenges will arise in the coming months. While its effects are yet to be seen, 2013 will be a pivotal year in shaping the future of recruiting. About the North American Staffing and Recruiting Trends Report Of the 1,848 staffing professionals who completed our survey, 84% were from the United States, 8.2% from Canada, 0.4% from the U.S. Virgin Islands, and 0.1% from Puerto Q: What is the total number of salespeople and recruiters in your company? Rico. Anyone who did not work in North America 16% was automatically screened out of the survey. In terms of roles and responsibilities, 59.2% of survey-takers were recruiters, account managers, or sales representatives; 22% were 1-19 20-100 More than 100 25% 59% vice presidents, directors, or managers; 16.3% were board members, C-level executives, owners, or presidents; and 2.5% held miscellaneous agency positions. 22
  • Q: For what type of positions do you primarily recruit or conduct sales (choose all that apply)? 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 77.0% 63.6% 37.2% 26.7% 4.2% Direct Hire (contingent) Executive Search (retained) Contract / Consulting Short-term / Temporary Other Please Specify Please indicate which industry sectors you primarily serve (choose up to 3). Accounting / Banking / Finance Advertising / Creative / Marketing Construction Energy / Mining Healthcare Industrial Information Technology Legal Office / Clerical Public Sector Real Estate Sales Scientific / Engineering Other, Please Specify 29.2% 8.6% 4.2% 9.8% 20.8% 11.9% 50.1% 3.5% 11.4% 2.0% 1.2% 11.6% 18.5% 12.9% 0 20 40 60 80 100 About Bullhorn Bullhorn® creates software and services that help recruiters put the world to work. For over ten years our innovations have powered the recruiting and staffing operations of fast-growing start-ups up through the world’s largest employment brands. Headquartered in Boston, with offices in St. Louis, Vancouver, London and Sydney, Bullhorn’s recruiting CRM and social recruiting products serve more than 10,000 clients representing nearly 200,000 users across 150 countries. For more information: Please visit www.bullhorn.com or call +1(888) GoLive8. 1.888.GoLive8 • sales@bullhorn.com • @bullhorn Bullhorn is a registered trademark of Bullhorn, Inc. All other trademarks contained herein are the property of their respective owners. 23
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