Another year under our belt — meaning another year of new content and fresh ideas. Recruitment process outsourcing (RPO) and talent acquisition as industries have taken off at breakneck speeds, with a revolving door of changes. To help you plan for the next year, it’s important to identify global statistics and trends that defined the last year. We’ve compiled some of the latest and greatest talent acquisition research as you make plans for the year ahead. Find out some of the major takeaways from 2021 so you can be proactive in your strategy for 2022.
Diversity, equity, inclusion and belonging
- 61% of organizations surveyed said diversity, inclusion, equity and belonging (DEIB) is discussed at board level. And, a quarter (25%) do not view DEIB as a board-level agenda at all. Because a top-down approach to inclusivity is important for its success, this points to a problem. (WilsonHCG Research Institute)
- Right now, in the US, women still only make 82 cents for every $1 a man makes. Latina women only make 54 cents for every dollar white, non-Hispanic men make, and Black women only make 63 cents for every dollar white, non-Hispanic men make. (US Department of Labor)
- 42% of survey respondents said they did not have a budget dedicated to DEIB and 23% said they did. Of those who said they have a budget, 63% said they will invest in education, followed by recruitment (51%), community involvement (40%) and technology (29%). (WilsonHCG Research Institute)
- 40% of organizations said they were conducting training workshops, followed by 34% leveraging technology to ensure job ads are inclusive. And just over a quarter (27%) run campus recruitment programs, have diverse interview panels (26%) and publish testimonials from diverse employees on their career sites to attract diverse candidates (26%). (WilsonHCG Research Institute)
- 76 was the average score when respondents were asked to rate whether they agree that diversity is key to fostering innovation on a scale of 1-100 (with one being not important and 100 being very important). This shows promise that diversity is looked at as a key contributor to business innovation. (WilsonHCG Research Institute)
- Businesses with a higher-than-average diversity had 19% higher innovation revenues (Harvard Business Review study).
- Racially and ethnically diverse companies are 35% more likely to outperform competitors (McKinsey research)
- Candidates share positive recruitment experiences with their inner circles 77% of the time and their negative experiences 52% of the time, so ensuring a top-notch candidate experience is vital (Talent Board).
- 71% of organizations expect the use of contingent labor to increase in the next 12 to 18 months (Everest Group).
- When considering a career move in the APAC region, finance candidates are looking closely at business performance to ensure they make the right decision. They are also seeking opportunities to develop and progress. When asked why they are considering leaving their current organization, almost two-thirds (59%) of respondents cited a lack of career growth and developmental opportunities (Profile's 2020 Working in APAC report).
- Today’s challenges won’t be solved with today’s talent. More than half (58%) of the workforce needs new skills to accomplish their jobs (Gartner).
Learn more about the top talent acquisition trends for 2022
- The number of companies with a talent community/network has doubled compared to last year, prioritizing genuine engagement to hire the right people with the right skills for the job (2022 Fortune 500 Employment Branding Report)
- The majority (89%) of career seekers think it’s important for an employer to have a clear mission and purpose and one that’s easy to find on a job posting (Glassdoor).
- Companies that invest in employee development experience 11% greater profitability than organizations that don’t invest (Gallup).
- The desire candidates have to learn in their roles is not a new trend by any means, but it has become a key driver for many when considering new roles. Almost two-thirds (59%) of respondents in APAC cited a lack of career growth and developmental opportunities when asked why they would leave their current organizations (Profile's 2020 Working in APAC report).
- 37% of candidates said they’d be willing to take a pay cut for a chance to learn new skills. That same percentage said they see upskilling opportunities as the most important factor when considering a new job, after salary and benefits (PwC report).
- 75% of active job seekers are likely to apply to a job if the employer actively manages its employer brand (Glassdoor).
- Companies that actively invest in their employer brand can reduce turnover by as much as 28%. Talent outsourcing partners help their clients to understand the value brought by empowering employees to share their experiences in a candid manner. The culture this creates is one that trusts its employees, feels secure in its brand and is receptive to feedback (Glassdoor).
Recruitment process outsourcing (RPO)
- The 2020 global RPO market is estimated to have reached around $5.8bn. Although this was a drop of 7% from 2019, the organization anticipates that for 2021, the RPO market will grow by double digits, surpassing pre-pandemic levels as companies seek to rebuild their talent acquisition capabilities (Staffing Industry Analysts)
- RPO provides a 38% improvement in year-over-year hiring costs — with 69% of those employees hired being highly engaged (NelsonHall).
- With the global RPO market being forecasted to reach $20.8 billion by 2027, it’s especially vital for customers to truly understand the quality of their partnerships (Grand View Research, Inc).
- 73% of organizations will seek tech/tools advice from their RPO provider wholly or partially (NelsonHall’s 2020 Evolution of RPO Report).
Mental health and well-being
- Well-being is a top-ranked trend and mentioned as important or very important for more than 80% of survey respondents (2020 Human Capital Trends study from Deloitte).
- A recent HR Sentiment Survey from hundreds of HR leaders indicates strategic priorities have shifted away from digital transformation and gone to employee well-being, mental health and diversity initiatives (AP News).
- Some organizations are adopting 32-hour work weeks to help reduce burnout and have found it also boosts productivity. Today’s worker only needs 11 hours of work to produce as much as 40 hours took in 1950 (Massachusetts Institute of Technology study).
- The pandemic has made it more acceptable to discuss mental health with colleagues, according to 74% of respondents (WilsonHCG survey).
- 95% of US workers were considering leaving their jobs, with burnout being the No. 1 reason for one-third of those surveyed, followed by a lack of growth opportunities at 29% (2021 Monster.com poll).
- 63% of employees surveyed indicated being recognized regularly means they are less likely to look for a new job (Bonusly.com survey)
Remote and flexible workforce
- In the US, the No. 1 reason people want to change careers is because they want a role with a better work-life balance. More than half of respondents (56%) cited work-life balance as their No. 1 priority for a new job; a higher salary came in second. The pandemic has undoubtedly changed people’s opinions on what they want in life and what they want from their career (FlexJobs survey).
- The number one reason for staying in a role was work-life balance (at 23%), followed by recognition (at 21%) according to research from the (Achievers Workforce Institute).
- 73% of workers surveyed want flexible remote work options. There’s a clear need here for employers to accommodate hybrid workspaces to ensure employees’ comfort and safety (Microsoft).
- Two-thirds (66%) of employers are redesigning their workplaces to accommodate hybrid work arrangements (Microsoft’s Work Trend Index).
- The number of job searches for remote opportunities grew by 460% between June 2019 and June 2021 and it’s still rising (Glassdoor).
HR technology and tools
- 86% of organizations consider talent shortages as a key barrier to achieving outcomes in digital transformation (Everest Group).
- More than half (56%) of CEOs emphasize the need to “aggressively pursue” operational agility and flexibility over the next two to three years (IBM 2021 CEO study).
- 48% of HR leaders surveyed said transformation plans are concentrated on reinventing flexibility in all its guises (Mercer's 2021 Global Talent Trends Study).
- 40% of companies say they “can’t pursue business opportunities” because they lack the right leadership. Evolutions in technology, shifting hierarchical structures, globalization, disruption across all industries – each are impacting how organizations assemble their executive roles (McKinsey & Company).
- CEOs who “start by developing an astute understanding of their stakeholders’ needs and motivations, then get people on board by driving for performance and aligning them around the goal of value creation” (i.e., “deftly engaged stakeholders”) are 75% more successful in their roles. Success in this instance refers to business impact, but travels much deeper – significantly impacting culture, employee engagement, authenticity and transparency (Harvard Business Review).
- 85% of CEOs agreed the pandemic has significantly accelerated digital transformation (Fortune and Deloitte CEO survey).
- Indecisiveness can be problematic and impact performance. Executives described as “decisive” are 12 times more likely to be high performing; moreover, of all executives “fired” over issues related to decision making, 66% are ousted for indecision, with only 33% because of the bad decision itself (Harvard Business Review).