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Recruitment Report Ro

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Trends in recruitment on the Romanian market

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Recruitment Report Ro

  1. 1. How efficient is your recruitment? TalentSpotting carried out in Jan - Feb 2016 a research on recruitment practices and trends on the Romanian market, designed to help companies increase the efficiency of their recruitment departments. Recruitment in Romania - Practices and Trends 2016
  2. 2. Executive Summary All the companies identified as best in class for recruitment satisfaction and for recruitment channels efficiency measure their candidates’ team and culture fit and their results orientation. Interestingly enough, the majority of companies appreciate flexibility more than previous job experience. In what concerns recruitment departments KPIs, the majority of the companies measure closing time for the vacancies, while over half of them consider mainly the quality of their hires. Business from IT / Telecom, Call-center / BPO, Commerce / Retail measure closing time, while Banking / Financial Services / Insurance, Professional Services and Health companies consider mainly the quality of hire. Manager satisfaction is important for organizations from Automotive, Advertising, Media, IT / Telecom, BFSI, Media and Professional services. Identifying quality candidates remains a challenge for most of the companies, regardless of the industry, alongside unreasonable salary expectations, talent competition and the need to reach a large enough pool of candidates for each position. Businesses are searching most often for specialists, with an annual average of 50 hires, while delays are reported by 1 in 10 companies, at all seniority levels. Recruitment agencies report the biggest delays on the market, and their average delay rate amouts to 8% for all positions, with top hiring lags for managers. Companies expect recruitment to become more and more difficult and most of them regard social networks as the future of recruitment, next to referrals. These two recruitment channels are intensely used by the organizations identified as best in class in what concerns recruitment satisfaction and the efficient use of recruitment channels. When it comes to professional profiles that are difficult to find, most issues arise when recruiting IT software experts, who are hard to recruit according to 60% of the respondents. These are followed by IT hardware professionals, technical engineers and sales professionals. Most of the respondent companies assess their capacity of identifying quality candidates as good and very good. In addition, they are satisfied with their use of social and professional networks in recruitment and with their ability to reach marginal candidates through their own channels. However, less than half of the respondent organisations are content with their overall recruitment results. Approximately 65% of the companies scored below their average industries scores in terms of recruitment satisfaction. The power of social recruitment The collected data also reveals that there are no significant differences in the recruitment challenges based on company industry. It seems that we are all dealing with the same predicaments when faced with attracting the best talent for our organizations.
  3. 3. Contents Recruitment Channels................................................................................................................ 1 Recruitment Challenges.............................................................................................................2 Recruitment Departments and Vacancies............................................................................3 Average Closing Time................................................................................................................. 4 Difficult to Fill Positions.............................................................................................................4 Delays in Recruitment................................................................................................................ 5 Time Consuming Factors .......................................................................................................... 6 Company Expectations..............................................................................................................7 Evaluating Recruitment............................................................................................................. 8 Recruitment Satisfaction .........................................................................................................12 Recruitment Satisfaction Scores ...........................................................................................13 Recruitment Rating Scores......................................................................................................14 Recruitment Trends...................................................................................................................15 Best in Class Companies..........................................................................................................16 Industry Focus - IT&C ...............................................................................................................21 Respondent Companies ......................................................................................................... 23 The power of social recruitment
  4. 4. Recruitment Channels Over 40% of the respondent companies are using their own recruitment team. Social and professional networks (28%) and internal referrals (22%) are among the most used recruitment channels. 27.55 % Social networks 21.70% Referrals 8.56 % Events 40% Internal recruitment teams Top recruitment channels In addition, 9% of the companies rely mainly on events in recruitment. 1 The power of social recruitment ? Did you know that referrals are the #1 source in hiring volume?
  5. 5. Identifying quality candidates Unreasonable salary expectations from candidates Talent competition Identifying a large enough pool of candidates for each profile Recruitment challenges When invited to acknowledge their recruitment challenges, most companies report difficulties in identifying quality candidates (62%). Unrealistic salary expectations make recruitment more difficult for 39% of the respondents, while 32% of them see the biggest challenge in the competition for talent. Identifying a large enough pool of candidates for each position, next to candidate attraction and engagement in the recruitment process are also serious challenges for employers. Biggest recruitment challenges 1 2 3 4 61.96% 27.61%31.90%38.65% 2 The power of social recruitment ? Did you know that referrals are the #1 source for new hire quality?
  6. 6. Recruitment departments and vacancies Most of the respondent companies have specialists vacancies, with an annual average of 50 hires. Blue collar and sales vacancies follow, with 24 and 20 hire averages per year. 50 24 20 Specialists hired / year Blue collar hired / year Sales hired / year The average number of recruiters amounts to 3 in 80% of the companies, while 6% of the organisations do not have recruitment departments. 79.14% 8.59% 6.13% 3 Average number of recruiters 3 recruiters 8 recruiters No recruiters Average number of recruited positions / year The power of social recruitment
  7. 7. Average closing time The average closing time for top management positions amounts to 3.4 months, and 2.7 months for middle management positions. The average closing time is 2.4 months for specialist positions, and 1.3 months for entry level ones. Specialist Entry level 2.40 months 1.33 months Top management Middle management 3.42 months 2.72 months Difficult to Fill Positions The collected data shows that companies encounter the biggest difficulties in recruiting IT software (60%) experts, independent of the industry of the company. IT hardware (21%) professionals, technical experts and engineers (20%) come next, followed by sales professionals (18%), accountants (11%) and customer support experts (10%). IT Software IT Hardware Engineering - Technical Sales 58.28% 20.86% 19.02% 17.79% 4 Specialists Entry level Profiles with dificulties in recruitment The power of social recruitment
  8. 8. Delays in recruitment Companies report delays at all seniority levels. However, specialist (10%) and manager (5%) positions are filled with the largest delays. Thus, 35% of the respondent companies declare recruitment delays for over 15% of their specialist positions. Similarly, 10% of the companies report delays in filling more than 15% of their management positions. 0 2,75% 5,5% 8,25% 11% Board members Directors Managers Specialists Administrative Internship/Graduates Blue collar Other Industry Recruitment Agencies Agriculture/Food IT / Telecom Commerce / Retail Professional services BFSI* Automotive Call-center / BPO Advertising / Marketing % of all recruited positions 7.97% 6.11% 3.68% 2.92% 2.77% 2.42% 2.29% 2.05% 1.88% Top delays for Managers Specialists Specialists Other positions Graduates / Interns Specialists Workers Other positions Specialists 5 Delays in recruitment by seniority Recruitment agencies report the biggest delays on the market, with an average delay rate of 8% for all positions and top hiring lags for managers. Businesses in Agriculture follow with a 6% delay rate and IT / Telecom companies, with a 4% annual delay average for all their positions. In both cases, the biggest delays are declared for specialist positions. *Business, Financial Services and Insurance The power of social recruitment ? Did you know that referrals are the #1 fastest time to fill?
  9. 9. Time Consuming Factors Almost 74% of the companies spend most of their recruitment time trying to identify suitable candidates. At the same time, 32% of employers invest a lot of time in identifying a large enough pool of candidates for each profile. Low show-up rates for interviews are also time consuming for 23% of the respondent organisations. 73.62% 30.67% 23.31% 11.66% 10.43% 1.84% Identifying suitable candidates Identifying a large enough number of candidates Low show-up rates Candidate communication Sending candidate feedback & status updates Other (lack of quality candidates) 6 Most time consuming The power of social recruitment
  10. 10. Companies from industries like Transportation, Health, Agribusiness, Automotive, BFSI, IT and Professional Services invest between 50% and 100% of their recruitment time in identifying suitable candidates. Transportation / Logistics / Import - Export Media / Internet Medical / Health Recruitment Agencies Agriculture / Agribusiness / Food Automotive BFSI IT / Telecom Commerce / Retail Professional services Advertising / Marketing / PR Call-center / BPO 0% 25 50 75 100% Time spent to identify suitable candidates vs. industry Identifying a large number of candidates takes also a lot of the recruitment time of Transportation companies, followed by those from Media and Health industries. Media / Internet Medical / Health Recruitment Agencies Agriculture / Agribusiness / Food Automotive BFSI 0% 12,5 25 50 60% Transportation / Logistics / Import - Export 7 Time spent to identify a large number of candidates for each position vs. industry The power of social recruitment
  11. 11. Company expectations Candidates’ team and culture fit - or congruence between the norms and values of the person and those of the organization - is valued by 60% of the companies, alongside results orientation (59%). The ability to work under stress and to deal with continuous change is regarded as important by 43% of the companies. Flexibility is also appreciated - to a higher extent than previous job experience. 59.51% Team and culture fit 58.90% Results orientation 42.94% Ability to work under stress and deal with continuous change 29.45% Flexibility 26.99% Previous job experience 16.56% Creativity 1.84% Other* * initiative, curiosity and technical skills, the desire to develop within the organisation and advanced knowledge of foreign languages 8 The power of social recruitment
  12. 12. Media / Internet Medical / Health Agencies Professional services Automotive Commerce / Retail BFSI* Call-center / BPO Agriculture / Agribusiness / Food IT / Telecom Advertising / Marketing / PR 0 25 50 75 100 Results orientation vs. industry Team and culture fit is another essential performance criteria for these companies. In fact, it is more appreciated than previous experience by all the companies, regardless of industry. Transportation / Logistics / Import - Export Medical / Health Automotive Commerce / Retail Agriculture / Agribusiness / Food BFSI Call-center / BPO IT / Telecom Advertising / Marketing / PR Professional services Recruitment agencies Media / Internet Team and culture fit vs. previous job experience 0% 66.67% 33.33% 11.11% 55.56% 22.22% 10% 40% 25% 16.67% 33.33% 100% 66.67% 66.67% 66.67% 66.67% 60% 60% 58.33% 50% 41.67% 33.33% 42.86% 0% 9 Results orientation is a fundamental performance criteria according to a series of companies from different industries. All the respondents from Transportation, Media and Health use it, alongside the majority of the respondents from Automotive, Commerce, Call-center and IT / Telecom. The power of social recruitment *Business, Financial Services and Insurance Team and culture fit Previous job experience
  13. 13. Evaluating recruitment Closing time for the vacancies is a KPI for 68% of the respondent organizations when evaluating the efficiency of their recruitment departments. In turn, quality of hire is taken into account by 58% of the companies; it is a top KPI for respondends from Media, Transportation, BFSI, Health and Professional services. Manager satisfaction - measured after 3 or more months from hire start - is an important KPI for 45% of the respondents. Most of them represent industries like Automotive, Advertising, Media, IT / Telecom, BFSI and Professional services. Manager satisfaction Closing time for the vacancies Quality of hire Costs Performance rating Churn / Attrition / Turnover Others* 0% 17,5% 35% 52,5% 70% * Number of interviews per profile; the evolution within the organization; internal recruitment 10 Recruitment departments KPIs The power of social recruitment
  14. 14. Costs are an important KPI for 17% of the participating companies - specifically for organisations from Agribusiness and BFSI. 11 Manager satisfaction Closing time for the vacancies Quality of hire Costs Performance ratings Churn 0 % 25 % 50 % 75 % 100 % Manager satisfaction Closing time for the vacancies Quality of hire Performance ratings Churn 0 % 17,5 % 35 % 52,5 % 70 % Manager satisfaction Closing time for the vacancies Quality of hire Performance ratings Churn 0 % 15 % 30 % 45 % 60 % Agriculture / Agribusiness / Food IT / Telecom Call-center / BPO Manager satisfaction Closing time for the vacancies Quality of hire Performance ratings Churn 0 % 15 % 30 % 45 % 60 % Commerce / Retail Manager satisfaction Closing time for the vacancies Quality of hire Costs Performance ratings 0 % 20 % 40 % 60 % 80 % BFSI The power of social recruitment
  15. 15. Almost 47% of the companies are satisfied and very satisfied with their recruitment results, while 12% are little or not satisfied at all. 46.63% Satisfied and very satisfied 12.27% Little or not satisfied at all In turn, referral programs are assessed as weak by 27% of the respondents, who are also dissatisfied with their candidate attraction and engagement in the recruitment process (16%). Most of the respondents assess their capacity of identifying quality candidates (90%) as good and very good, next to recruitment through social and professional networks (88%) and their ability to reach marginal candidates through their own channels (83%). Good and very good Identifying quality candidates Social and professional network recruitment Reaching quality candidate through company owned channels 89.57% 88.34% 83.44% Weak Reaching quality candidate through company owned channels Candidate attraction and engagement in the recruitment process Referral programs efficiency 26.99% 15.95% 14.11% 12 Recruitment Satisfaction The power of social recruitment
  16. 16. Average Recruitment Satisfaction Scores Recruitment Satisfaction Scores Respondent companies were invited to evaluate their level of satisfaction in what concerns recruitment using a 1 to 5 scale. Average recruitment satisfaction scores (ARSS) calculated per industry indicate that companies from Automotive, Transportation, Advertising, Professional services and BFSI, IT / Telecom - among others - are some the most satisfied in terms of recruitment. Automotive Transportation / Logistics Recruitment agencies Advertising / Marketing / PR Professional services BFSI IT / Telecom Agriculture / Agribusiness / Food Commerce / Retail Medical / Health Media / Internet Call-center / BPO Constructions Pharma 0,0 1,0 2,0 3,0 4,0 43,56% 49,69% Companies above industry ARSS Companies below industry ARSS 13 43,56% The power of social recruitment
  17. 17. Recruitment Rating Scores Respondent companies also rated the efficiency of their recruitment channels using a 1 to 3 scale. Collaboration with recruitment agencies Identifying marginal candidates through your own channels Referral programs efficiency Identifying quality candidates Candidate attraction and engagement in the recruitment process Candidate communication Social and professional network recruitment Job sites recruitment Mass recruitment events participation Targeted events Average Recruitment Rating Scores (ARRS) calculated per industry show that companies from industries like Automotive, BFSI and Call Center assess their recruitment as efficient and top efficient. 0 0,65 1,3 1,95 2,6 Electronics Oil & gas Media / Internet Automotive Tourism / Hospitality BFSI Call-center / BPO Professional services Energy Environment protection Medical/Health Commerce/Retail IT / Telecom Agriculture/Agribusiness/Food Recruitment Agencies Education / Training Constructions Pharma Sports/beauty Advertising / Marketing / PR Transportation / Logistics Textiles Library Other While average recruitment satisfaction scores suggest that almost half of the participant companies are satisfied with their recruitment, average recruitment rating scores show that the majority are discontented with the efficiency of their recruitment channels. Thus, 64.42% of the respondent companies scored above their industries averages, while 29.45% obtained scores above their market results. 64,42% Companies above industry ARSS Companies below industry ARSS 14 29,45% The power of social recruitment
  18. 18. Recruitment trends Most of the companies anticipate that recruitment will become more and more difficult (72%) and expect social and professional networks (74%) to become the trend in recruitment. Referral programs (50%) and targeted events (37%) are also seen as the future of recruitment channels. Social and professional networks Referral programs Targeted recruitment events Job sites Job fairs Others 20% 1% 3% 9% 40% 27% (open days, employer branding, events) Industry IT/Telecom Call Center / BPO BFSI Commerce / Retail Automotive Agencies Referral (1 to 3 scale)Social networks (1 to 3 scale) 1.4 1.7 1.53 1.67 2 1.08 0.82 2.2 2.07 2 2.17 2.33 15 Trending: social networks vs. referral ratings Trending recruitment channels The power of social recruitment
  19. 19. Best in class companies use mainly social and professional networks in recruitment (34%) and referrals (26%). When it comes to evaluating employee performance, companies with the best recruitment results consider their team and culture fit (58%) and their employees’ ability to work under stress and continuous change (50%). Best in class organisations also appreciate their candidates' results orientation and flexibility (42%). Average number of recruiters in best in class companies: 4.36 Best in class companies Best in class for recruitment satisfaction These are companies from a series of industries, satisfied and very satisfied with their recruitment results. Total best in class companies for recruitment satisfaction: 12 Average Recruitment Satisfaction Score: 4,25 Industries: IT-Telecom Call Center / BPO Commerce / Retail Automotive Human ResourcesBFSI (Business, Financial Services and Insurance) 1 2 3 4 5 1 2 3 4 5 16 The power of social recruitment
  20. 20. Top recruitment channels for best in class companies according to recruitment satisfaction Social and professional networks Referrals 34% 26% Recruitment Agencies 11% Events 10% Top performance criteria for best in class companies according to recruitment satisfaction Team and culture fit Ability to work under stress Results orientation Flexibility 58% 50% 42% 42% 17 The power of social recruitment ? Did you know that 46% of all hires at top performing companies are referrals?
  21. 21. 29,45% Closing time for the vacancies is the most important metric when evaluating the efficiency of Recruitment departments (83%) in best in class companies according to recruitment satisfaction. Churn / attrition rates come next (33%), followed by quality of hire (25%). Closing time for the vacancies Churn Quality of hire Performance ratings Costs83% 33% 25% 17% 8% Best in class companies expect social and professional networks to dominate among recruitment trends (75%), alongside referral programs (25%). Social and professional networks Referrals Job sites Job fairs Targeted events 75% 25% 17% 8% 8% 18 The power of social recruitment
  22. 22. Best in class for recruitment rating Six companies were identified as best in class among those that rated their use of recruitment channels as good and very good in the same group of industries: IT-Telecom, Call Center / BPO, BFSI, Commerce / Retail, Automotive and Human Resources. These organizations positively rate their recruitment according to their use of recruitment channels. Social and professional networks, next to referral programs, are top recruitment channels for these companies and are used by roughly 30% of the respondents identified as best in class for recruitment rating. Average recruitment rating scores: 2.74 Social and professional networks Referrals 31% 29% Agencies 23% Events 14% Top recruitment channels Team and culture fit (70%) are the most important performance criteria for best in class companies according to recruitment rating, followed by results orientation and the ability to work under stress, which are simultaneously used by half of these companies. 70% 50% 50% 50% Team and culture fit Results orientation Ability to work under stress Flexibility 19 1 2 3 Average numbers of recruiters: 3.83 1 2 3 4 Top recruitment channels simultaneously used by best in class companies for recruitment rating The power of social recruitment
  23. 23. Best in class companies mainly consider closing time for their vacancies and performance ratings when evaluating their recruitment departments. They also employ KPIs like churn rates and costs. 83% 33% 33% 17% Social and professional networks Job sites Customized events Job fairs 33% Referrals Top recruitment trends* for best in class companies according to recruitment rating 33% 50% 17% Churn Performance ratings Costs 50% Closing time for the vacancies Top KPIs for best in class companies for recruitment rating 33% Quality of hire Best in class companies for recruitment rating see the use of social and professional networks as the main trend in recruitment. In addition, they expect referrals, job sites and customized events to also be a part of recruitment trends. 20 *Simultaneously expected The power of social recruitment
  24. 24. 21 Industry Focus - IT&C Average number of employees % of total IT / Telecom 25 15.00% 75 21.67% 200 28.33% 400 10.00% 750 5.00% 2000 16.67% 3000 3.33% 60 respondent companies Company average sizes Top locations Bucharest 38.89% Cluj - Napoca 14.44% Timisoara 38.89% Average numbers of recruiters in companies 5.55 Top categories recruited per year Recruited Positions Specialists 68 Graduates / internship 27 Managers 5 Average delay rate in IT / Telecom: 3.68% Specialists 17% Managers 4% Other positions 3% Total average number: 100 Most employed performance criteria Team and culture fit 58.33% Results orientation 51.67% Previous job experience 40% Top Delays The power of social recruitment
  25. 25. Top challenges Identifying quality candidates 61.67% Unreasonable salary expectations from candidates 48.33% Competition 45% Most time consuming activities in recruitment Identifying suitable candidates Identifying a large enough number of candidates Low show-up rates 75% 46.67% 20% Most used KPIs for recruitment departments Closing time for the vacancies Quality of hire Performance ratings 58.33% 46.67% 41.67% Manager satisfaction 33.33% Churn 21.67% Average closing time in the industry: 2.09 months Average closing time per position Top management Manager Specialist 3.6months 2.1months 1.8months Entry Level 1.2months Average recruitment satisfaction rate in the industry (1 to 5 scale): 3.38 1 2 3 4 5 22 Top recruitment trends according to industry respondents Social and professional networks Referral programs Personalised recruitment events 75% 57.67% 43.33% 1 month 2 month 3 month The power of social recruitment
  26. 26. Respondent companies The representatives of 163 companies participated to the research - most of them from Bucharest (64%), followed by Cluj-Napoca (11%) and Timisoara (8%). The majority of the respondent companies (66%) have over 100 employees. Most of the companies represent the IT / Telecom industry (37%), followed by Recruitment Agencies (7%) and Call-center / BPO, Banking / Financial Services, Commerce / Retail and Agriculture / Agribusiness (6% each). IT / Telecom 46,81 % Recruitment Agencies 7,36 % Call-center / BPO 6,13 % Agriculture / Agribusiness / Food 5,52 % Banking / Financial Services 5,52 % Commerce / Retail 5,52 % Most of the respondents are specialists (45%), mainly from Recruitment departments (88%), followed by junior managers (20%), senior managers (14%), directors (10%), and board members (6%). Specialist Junior manager Senior manager Bucuresti Cluj Timisoara Brasov Iasi Sibiu 0 % 2,75 % 5,5 % 8,25 % 11 % 63,8% 23 10,43% 7,98% 1,84% 1,48% 1,84% Top respondents’ locations 44.79% 19.63% 13.50% 9,82% 5,52% Director Board member The power of social recruitment
  27. 27. Looking for ways to attract more quality applicants? TalentSpotting is the automated referral system that helps you identify quality applicants fast and easy! See how TalentSpotting taps into your organization social and professional networks and helps you: Increase your employee’ participation by 83% Get 86% more referrals than with a manual program Cut your costs with up to 35% Differentiate your recruitment from the competition Involve employees who never referred before Identify and attract quality candidates with culture fit Start today! www.talentspotting.com

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