It is no secret that recruitment is at an all time high. Corporates and sectors on the whole are trying to make a comeback after months of uncertainty. This when juxtaposed with the current recruitment trends underscores the chasm between the demand and the ability to fill the gap. Fortunately, technology-based platforms can come to the rescue.
Based on anecdotal data and informal interviews conducted by CBREX between August 12-24, this year, a clear pattern emerged. On average, a corporate recruiter makes five to ten offers per month. At this rate, companies who need to hire in 100s in a month and want to hire more need to keep increasing their team size. This leads to a further pressure on hiring recruiters who are not really available in those numbers.
There are a number of reasons that exacerbate this situation. To begin with there is no getting around the fact that there is a huge upsurge in hiring. In fact, vacancy growth holds close to an all-time high crossing pre-pandemic levels. This isn’t something the recruitment industry is prepared to deal with. Moreover, right now it's a candidate market with an acute talent shortage. This coupled with the lack of availability of relevant and timely talent adds additional pressure on recruiters. The current scenario is also driving sharper increases in pay.
Ultimately, this adversely impacts recruiter productivity and an organisation’s bottomline as time to hire increases and in most cases open vacancies lie unfulfilled even after 3-4 months. Typically, recruiter productivity is determined by the stage of the market. Since the sheer number of positions is at an all-time high, candidates have a choice. This essentially means that a recruiter will need to speak with a larger pool of candidates to close an offer resulting in lower recruiter productivity, which is why in times like these companies are faced with a tough situation ie they need to hire faster but the upswing in the market prevents them from doing so.
When a recruiter is unable to fill positions in a timely manner, it impacts a company’s bottomline. Since closure rates come down, a company will need to hire more recruiters to fill these positions effectively costing the company a lot more. Further, there are delays in hiring. Some estimates suggest that depending on the seniority of the role, this could cost a company about 19% of its bottomline. This is a significant cost.
The question is then how should companies address this challenge? Talent sourcing is done through various channels of which vendor sourcing accounts for 30-50% . Fortunately, tech-enabled tools (Digital Vendor Management Systems i.e. DVMS) can increase recruiter productivity significantly when it comes to vendor sourcing. From our own data (see table below), we know that in terms of the total number of offers made by a recruiter using the CBREX platform, a recruiter’s productivity can be easily quadrupled.
Improving recruiting productivity has been long overdue and now might be the time to transition onto a more reliable and efficient tech-based platform.
The triple advantage of a DVMS makes it the future of talent sourcing. It enables a company to hire faster, hire more and not increase their vendor hiring spends.