U.S. Hiring Trends Q3 2015:
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1 U.S. Hiring Trends Q3 2015: icims Quarterly Report on Employer & Job Seeker Behaviors 2017 icims Inc. All Rights Reserved.
2 Table of Contents The following report presents job creation and talent supply trends for various industries, geographies, and company sizes within the United States based on icims' customer base data, representing approximately 4,500 organizations, for the third quarter of 2015 (Q3). In addition, we present new evidence on the role of social networking tools in the job application process across various industries, U.S. regions, and company sizes. Key Findings....3 Available Jobs vs. Number of Applicants...4 Overall Trends by Industry...5 Regional Trends by Industry...6 Company Size Trends by Industry...9 Social Media s Growing Role in the Job Application Process Overall Trends...12 Regional Trends...15 Company Size Trends...17 Q2 vs. Q Overall Trends by Industry...20 Regional Trends by Industry...21 Company Size Trends by Industry icims Inc. All Rights Reserved. U.S. Hiring Trends Q
3 Key Findings Important Trends The gaming industry had the most applicants per open position in Q In Q the gaming industry had the largest pool of talent applying to open positions. For every open position there were two times the applicants entering the hiring pipeline. More than a million people used their social media profiles to apply to jobs. Out of more than 11.5 million applications submitted throughout Q approximately 1.1 million (almost 10 percent of all applications) were submitted using social media profiles. Biggest Challenges Transportation and distribution employees have been in high demand. The transportation and distribution industry had the greatest shortage of talent in Q This indicates relatively strong demand for talent in these industries relative to the supply of applicants. This has been a consistent with the trends in Q Certain industries have been lagging in the amount of applicants applying with social media profiles. The hospital and securities industries had the lowest percentage of applications submitted using social media profiles. The computer services industry stands out with the highest percent of applications submitted via social networking tools. Nineteen percent of all their applicants applied with social media profiles. LinkedIn was the most common social network candidates used to apply to jobs across all the industries followed by Google+ and Facebook. Gaming Industry Most applicants per open position 1,000,000+ Applications More than one million people used social media to apply Transportation & Distribution Employees in high demand Hospitals & Securities Lagging in social media applications 2016 icims Inc. All Rights Reserved. U.S. Hiring Trends Q
4 Available Jobs vs. Number of Applicants This section presents trends for U.S. talent demand for Q3 2015, comparing the ratio of the number of applicants to the number of open jobs that need to be filled. We highlight the industries with the most and the least applicants per job, as well as trends within particular geographic regions and company size groups icims Inc. All Rights Reserved. U.S. Hiring Trends Q
5 Available Jobs vs. Number of Applicants Overall Trends by Industry Job seekers in certain industries are facing an increasingly competitive hiring landscape. Figure 1.1 ranks the industries with the most and least amount of applicants per open job in Q Gaming Leisure Telecommunications Food & Beverage Energy Real Estate Government Engineering Charitable Orgs. & Foundations Transportation & Distribution Applicants per open position The gaming and leisure industries both had an overabundance of applicants in Q3 2015, with practically double the amount of applicants entering the hiring pipeline per open position. The telecommunications, food and beverage, and energy industries also had a surplus of applicants than required to fill open positions in Q3, with ratios of 1.84, 1.82, and 1.53, respectively. This meant a more competitive climate for job seekers looking for positions in these industries. On the other side, the transportation and distribution and charitable organizations and foundations industries both had a shortage of applicants in Q3 2015, with 0.5 and 0.6 applicants entering the hiring pipeline per open job, respectively. In Q the transportation and distribution industry had slightly less applicants, 0.4 per open job, while charitable organizations and foundations had more applicants, 0.8 per open job. The engineering, government, and real estate industries also have fewer applicants than open positions in Q3 versus other industries. This meant lower competition for job seekers looking for positions in these industries. In Q2 2015, these industries all had slightly more applicants in Q icims Inc. All Rights Reserved. U.S. Hiring Trends Q
6 Regional Trends by Industry Talent Applying Where the jobs are plentiful but the applicants are lagging. Figure 1.2: Industries with the Least Applicants by Region Open Positions This section indicates that there were regional differences between the amount of applicants for available positions in certain industries. Figure 1.2 indicates regional trends for the top three industries that had the least applicants per job in Q These industries received less applicants than the number of jobs they had available. In the Northeast and the Midwest the consulting industry had the least applicants per job on average entering the hiring pipeline (0.4 applicants per open position). 0.0 Consulting Manufacturing Construction Consulting Transportation & Distribution Energy, Chemical, Utilities Charitable Orgs. & Foundations Banking & Securities Business Education Consulting Computer In the South, there were approximately 0.3 applicants per open position in the banking and securities and the charitable organizations and foundations industries. In the West, education and consulting had the greatest shortage of applicants entering the hiring pipeline, with approximately 0.4 per open position. Northeast Midwest South West Note: Numbers represent the average number of applicants per open position icims Inc. All Rights Reserved. U.S. Hiring Trends Q
7 Skill Deficits Driving Talent Shortages A recent study by Aberdeen Group 1 stated, Almost 80% of companies indicated that the top talent acquisition pressure they face is shortages of critical skills available in the labor pool. In fact, according to a research study by SHRM 2, HR professionals are having difficulty filling jobs because of the gaps in applied skills. 80% OF COMPANIES REPORT SHORTAGES OF CRITICAL SKILLS AVAILABLE IN THE LABOR POOL Critical thinking/ problem-solving 40% Professionalism/ work ethic 38% Leadership 34% Written communications 27% Teamwork/ collaboration 25% Oral communications 22% Aberdeen Group, "Talent Acquisition 2014: Reverse the Regressive Curve" 2- SHRM, "2014 Economic Conditions - Recruiting and Skills Gaps" 2017 icims Inc. All Rights Reserved. U.S. Hiring Trends Q
8 Where the competition for open positions is most fierce. Figure 1.3: Industries with the Most Applicants per Job by Region Figure 1.3 presents regional trends for the top industries who had the most applicants per job in Q These industries are receiving more applicants than the number of jobs they have available. Region Northeast Midwest South West In the Northeast, there was a surplus of applicants entering the hiring pipeline in the education industry, with approximately two times the applicants per open position. 1st Education (2.2) Food & Beverage (3.1) Travel, Tourism (3.4) Telecommunications (2.8) In the Midwest, the food and beverage industry had the greatest surplus of applicants entering the hiring pipeline. The number of applicants entering the hiring pipeline was more than three times the number of open jobs. In the South, jobs in the travel and tourism industry had the most applicants entering the hiring pipeline relative to the number of job openings (3.4). 2nd Food & Beverage (2.0) Financial (1.8) Leisure (2.0) Government (2.0) In the West, the telecommunications industry had the highest surplus of applicants for every open position (2.8) in Q3. 3rd Financial (1.7) Business (1.7) Education (1.9) Energy (2.0) Note: Numbers represent the average number of applicants per open position icims Inc. All Rights Reserved. U.S. Hiring Trends Q
9 Company Size Trends by Industry Calling all applicants! Here are the industries across each company size that struggled to fill their hiring pipelines in Q3. This section ranks the ratio of applicants to the number of open positions by company size in Q Our analysis suggests the following trends: Figure 1.4: Industries with the Least Amount of Applicants per Job by Company Size Small companies (less than 100 employees) Medium-small companies ( employees) Medium companies ( employees) Medium-large companies (1,000 4,999 employees) Large companies (more than 5,000 employees) Healthcare Business Food & Beverage Energy, Chemical, & Utilities Business Healthcare Technology Energy, Chemical, Utilities Computer Construction Financial Computer Consulting Financial Government Note: Numbers represent the average number of applicants per open position icims Inc. All Rights Reserved. U.S. Hiring Trends Q
10 Better shine your shoes! The competition for open positions is high in certain industries and it varies by company size. Figure 1.5 presents the top three industries with the greatest amount of new applicants entering the hiring pipeline to open positions by company size in Q3. Figure 1.5: Industries with the Most Amount of Applicants per Job by Company Size Small companies (less than 100 employees) Medium-small companies ( employees) Medium companies ( employees) Medium-large companies (1,000 4,999 employees) Large companies (more than 5,000 employees) Food & Beverage Travel & Tourism Travel & Tourism Advertising/ Marketing/PR Charitable Orgs & Foundations Business Telecommunications Retail Charitable Orgs & Foundations Education Technology Business Education Leisure Education Note: Numbers represent the average number of applicants per open position icims Inc. All Rights Reserved. U.S. Hiring Trends Q
11 Social Media s Growing Role in the Job Application Process To gauge the role of social networking tools such as LinkedIn, Google+, and Facebook in the job application and hiring process, this section presents data on the number of applications submitted with these social networks in Q We calculated the following three metrics across industries, regions, and company sizes: Fraction of applications submitted via social networking tools of the total number of applications Relative shares of applications submitted by a given social networking tool (LinkedIn, Google+, Facebook) of the number of all social applications Name Phone Company APPLY APPLY icims Inc. All Rights Reserved. U.S. Hiring Trends Q
12 Social Media s Growing Role in the Job Application Process Overall Trends Smart move: Some companies allow candidates to quickly join their talent pipeline by enabling them to use their social media profile data to pre-populate online job applications. Name Phone Overall, out of about 11.5 million applications submitted throughout Q3 2015, about 1.1 million applications were submitted with a social media profile almost 10% of all submissions. 63% 21% 16% About 63% of these applications were submitted via LinkedIn, 21% via Google+, and 16% via Facebook. According to Glassdoor, 79% of all people surveyed are likely to use social media in their job search, while 86% of people in the first 10 years of their career are likely to use social media in their job search icims Inc. All Rights Reserved. U.S. Hiring Trends Q
13 Percentage of Social Applications out of the Total Number of Applications, Q Check out the early adopters of social media in the job application process. Industries with the Highest Percentage of People Who Apply to Jobs with Social Applications Candidates in these industries showed lower social media adoption in the job application process. Industries with the Lowest Percentage of People who Apply to Jobs Using Social Applications 20% 19% 10% 15% 14% 14% 14% 6% 6% 7% 7% 10% 5% 3% 4% 0% Computer Advertising/ Marketing/PR Engineering Media Energy, Chemicals, Utilities 0% Hospitals Security Healthcare Government Transportation Pharmaceuticals Industries in tech-savvy fields were the earliest adopters and remain the heaviest users of social apply functionality. It s important for employers in these sectors to offer social media functionality within their online applications, providing a fast and easy way for candidates to join their talent pipeline icims Inc. All Rights Reserved. U.S. Hiring Trends Q
14 Percentage of Applications Submitted via LinkedIn, Google+, and Facebook, Q Candidates in different industries favor certain social media networks for job applications. Figure 2.1: Percentage of Applications Submitted via LinkedIn/Google+/Facebook, Q % 4% 6% 6% 6% 5% Figure 2.1 displays the relative percentage of LinkedIn versus Google+ versus Facebook in the total number of social applications across industries. Computer Consulting Advertising/ Marketing/PR 91% 90% 88% In general, LinkedIn was the most popular social networking tool used for job applications. It was used most often in the computer services, consulting, and advertising industries (with about 90% of all social applications submitted via LinkedIn). The security and food and beverage industries, in contrast, received the lowest share of applications via LinkedIn relative to other industries (36% and 38%, respectively). After LinkedIn, Google+ was the second most popular method of applications via social networking tools. Google+ was most popular in the transportation industry (43%) while the food and beverage industry received a slightly higher share of job applications via Facebook (29%) compared to other industries. Computer Consulting Advertising/Marketing/PR Transportation Hospitals Food & Beverage Security 0% 25% 50% 75% 100% LinkedIn Google+ Facebook 2016 icims Inc. All Rights Reserved. U.S. Hiring Trends Q
15 Regional Trends Job seekers across the U.S. are using their social media profiles to apply to jobs. This section summarizes the percent of social media applications across U.S. regions in Q Figure 2.2 shows that there was little variation in terms of the percent of social applications per total number of applications across U.S. regions. The South had a slightly higher amount of social applications (10%), while the West had the lowest share (8.8%). Figure 2.2: Percent of Social Applies out of the Total Number of Applications by Region 10% 5% 0% 9.1% 9.4% 10.0% 8.8% Northeast Midwest South West 2016 icims Inc. All Rights Reserved. U.S. Hiring Trends Q
16 Regional Trends Professional social networks, like LinkedIn, dominate. Google+ and Facebook, however, are well represented in select regions of the U.S. Figure 2.3: Percent of Applications Submitted via LinkedIn/Google+/Facebook by Region 100% 17% 14% 17% 15% Figure 2.3 illustrates the relative popularity of the three networking tools when submitting job applications across regions in Q There was little variation in relative popularity of the three tools across regions, but some differences exist. 50% 21% 24% 20% 62% 62% 63% 18% 67% While LinkedIn was largely popular across regions it was slightly more popular in the West (67% of all social applies). 0% Among all the Google+ users, applicants in the Midwest used it slightly more often than users in other regions (24%). Facebook was about equally unpopular in all four regions accounting for 14% to 17% of all social applications. Northeast Midwest South West LinkedIn Google+ Facebook 2016 icims Inc. All Rights Reserved. U.S. Hiring Trends Q
17 Company Size Trends Technology is enabling companies of all sizes to offer fast and easy social apply functionality to the hiring process. Figure 2.4: Percent of Social Applies out of the Total Number of Applications by Size Small Less than 100 Employees 10.6% This section highlights social media application data trends across different company sizes. Medium-small companies received the highest share of applications via social networking tools (13%) while large companies received the lowest share (8%). Medium-small Employees Medium 500 1,000 Employees 10.9% 13.3% Medium-large 1,000 5,000 Employees 10.3% Large More than 5,000 Employees 8.2% 0% 5% 10% 15% 2016 icims Inc. All Rights Reserved. U.S. Hiring Trends Q
18 Company Size Trends The social media network used to apply to jobs varies by company size. Figure 2.5: Percentage of Applications Submitted via LinkedIn/Google+/Facebook by Size Figure 2.5 illustrates the relative popularity of the three networking tools in submitting job applications across companies of different sizes. 100% 12% 15% 8% 10% 12% 16% 13% 17% 21% 27% Medium-small sized companies had a higher share of applications via LinkedIn (82%) while large companies had the least (53% through LinkedIn) compared to other company sizes. 50% 73% 82% 72% 70% 53% While LinkedIn was still the most popular among large companies, Google+ was used by more than a quarter of applicants, making Google+ more popular among larger companies compared to smaller ones. 0% Facebook is the least popular among all the companies, although a fifth of the applications in larger companies came through this Small Less than 100 Employees Medium-small Employees Medium 500 1,000 Employees Medium-large 1,000 5,000 Employees Large More than 5,000 Employees particular social media site. LinkedIn Google+ Facebook 2016 icims Inc. All Rights Reserved. U.S. Hiring Trends Q
19 Q2 vs. Q This section outlines the notable changes we observed quarter over quarter for industries with the most and least competition for job seekers. Resume 2017 icims Inc. All Rights Reserved. U.S. Hiring Trends Q
20 Industry Trends Q2 vs. Q3 The industries with the most and the least applicants vs. available jobs shifted from Q2 to Q3. Figure 3.1 Industries with the Most and the Least Available Jobs vs. Number of Applicants Q2 vs. Q3 Gaming Leisure Telecommunications While minor fluctuations in talent trends exist thus far in 2015, the top industries gaming, leisure, and telecommunications remain consistent over the last two quarters of the year. The exception is the food and beverage industry, where a slight shortage of applicants was observed in Q2 before almost doubling to a surplus in Q3. This is perhaps due to the demand of seasonal summer hiring for that industry. Gaming Leisure Telecommunications Food & Beverage Energy Real Estate Government In Q the gaming industry moved to the top with the largest pool of applicants compared to open positions (2.13 applicants per open job) after coming in second behind the leisure industry during Q2. The charitable organizations, engineering, government, and real estate industries all continued to suffer from having fewer applicants than open positions to fill in Q3, declining from Q2. The transportation industry saw a slight increase in the average number of applicants vs. available jobs. Engineering Charitable Orgs. & Foundations Transportation & Distribution Q2 Q3 Note: Numbers represent the average number of applicants per open position icims Inc. All Rights Reserved. U.S. Hiring Trends Q
21 Regional Trends by Industry Q2 vs. Q3 The industries with the most and the least competition for open positions in certain U.S. regions has shifted somewhat quarter over quarter. While the Northeast and the Midwest remained consistent from Q2 to Q3, there were shifts in the South and West for the industries with the most and least applicants per open job. Figure 3.2 and 3.3 indicates regional trends for the top three industries that had the most and the least applicants per job in Q2 vs. Q Figure 3.2: Industries with the Most Applicants per Job by Region Q2 vs. Q3 Figure 3.3: Industries with the Least Applicants per Job by Region Q2 vs Q3 Northeast Midwest Education (2.2) Food & Beverage (3.1) Food & Beverage (2.0) Financial (1.8) Leisure (2.0) Government (2.0) Financial (1.7) Business (1.7) Education (1.9) Energy (2.0) Construction (0.6) South West Q3 Northeast Midwest South Consulting (0.4) Consulting (0.4) Manufacturing (0.5) Transportation & Distribution (0.5) Charitable Orgs. & Foundations (0.3) West Q3 Travel and Tourism (3.4) Telecommunications (2.8) vs Energy, Chemical, Utilities (0.6) vs Midwest Northeast South West Q2 Northeast Midwest Education (0.4) Consulting (0.4) Banking & Securities (0.3) Business (0.5) Computer (0.5) South West Q2 Computer (2.0) Food & Beverage 3.3) Education (1.6) Education (3.0) Consulting (0.3) Consulting (0.3) Education (1.6) Business (1.7) Leisure (1.5) Government (2.9) Financial (0.4) Business (1.5) Financial (1.6) Telecommunications (1.3) Telecommunications (2.9) Manufacturing (0.4) Transportation & Distribution (0.4) Energy, Chemical, Utilities (0.4) Energy, Chemical, Utilities (0.5) Aerospace & Defense (0.4) Banking & Securities (0.4) Computer (0.2) Staffing (0.3) Consulting (0.4) Note: Numbers represent the average number of applicants per open position icims Inc. All Rights Reserved. U.S. Hiring Trends Q
22 Company Size Trends by Industry Q2 vs. Q3 Quarter over quarter the industries with the most applicants by company size have shifted. There were shifts in the leaders for all industries by company size however, the food and beverage industry for companies with employees remained consistent, bringing in the most applicants per job quarter over quarter. While the industries by company size with the least amount of applicants per open job were consistent from Q2 to Q3, there were some notable changes in the industries with the most applicants quarter over quarter. Small companies (less than 100 employees) Medium-small companies ( employees) Medium companies ( employees) Medium-large companies (1,000 4,999 employees) Large companies (more than 5,000 employees) Education Advertising/ Marketing/PR Charitable Orgs & Foundations Charitable Orgs & Foundations Business Business Travel & Tourism Telecommunications Financial Retail Staffing Charitable Orgs & Foundations Beverage & Food Food & Beverage Education Technology Technology Education Travel & Tourism Business Business Beverage & Food Education Retail Travel & Tourism Transportation Leisure Food & Beverage Education Business 0.0 Q2 Q3 Note: Numbers represent the average number of applicants per open position icims Inc. All Rights Reserved. U.S. Hiring Trends Q
23 icims Quarterly Report Road Map Interested in learning more about U.S. Hiring Trends? icims' quarterly hiring trends reports seek to provide actionable insights to help employers and job seekers connect and achieve success. Up next is our 2015 full year summary report. In 2016 and beyond, we will feature data highlighting these hot topics: Average time-to-fill data across industries, regions, and company sizes comparing part-time and full-time positions The use of recruitment marketing automation and campaign effectiveness Career site traffic from desktops and mobile devices Valuable details on the source of hires across industry types, locations, and company sizes Don t see something on this list that you are interested in learning more about? Contact us with your suggestions at hei@icims.com icims Inc. All Rights Reserved. U.S. Hiring Trends Q
24 Methodology This report was compiled using icims' customer base data from Q1 and Q (across approximately 4,500 organizations). icims worked with Hanover Research, a third-party data analyst firm, to arrive at the data conclusions reflected within. Within the report, Hanover Research presents job creation and demand trends for third quarter of 2015 (Q3). In addition, they also present new evidence on the role of social networking tools in the job application process. Dataset To gauge the relative talent demand, Hanover Research calculated the ratio of the total number of applicants entering the hiring pipeline to the total number of open positions. This measures the talent supply relative to the talent demand. A ratio above one indicates a surplus of talent supply relative to demand, and a ratio below one ratio indicates a shortage of talent supply relative to demand. Hanover calculated and presented this metric by industry, geography, and company size. In absolute terms, larger companies tend to post more jobs and have more applicants, which can skew results when analyzing talent demand trends. To account for this issue, data is analyzed both at the overall market-wide level and after controlling for the size of the company. In order to account for the size of the companies, we categorized each company into one of the five groups depending on their size in terms of number of employees: Less than 100 employees: Small companies; Between 100 and 499 employees: Medium-small companies; Between 500 and 999 employees: Medium companies; Between 1,000 and 4,999 employees: Medium-large companies; More than 5,000 employees: Large companies. Throughout the report, we segment our findings using these categories and examine how trends change after accounting for company size. For this report, we only analyzed industries with at least 10 companies. In addition to the talent surplus and demand measures, Hanover also uses new data from Q to calculate the following metrics for describing the role of social networking tools in the application process: Fraction of applications submitted via social networking tools in the total number of applications; Total number of applications submitted via social networking tools; Relative shares of applications submitted by a given social networking tool (LinkedIn, Google+, Facebook) in the number of all social applications. The above measures are calculated across industries, regions, and company sizes. Disclaimer Except as otherwise expressly provided herein, this report is provided on an as is and as available basis. Neither icims nor Hanover make any representations or warranties with respect to the accuracy, quality, reliability, or completeness of the contents of this report, and expressly disclaims all warranties, express or implied, including all implied warranties of fitness for a particular purpose, merchantability, accuracy, and/or non-infringement. The accuracy and completeness of the information provided herein and the opinions stated herein are not guaranteed or warranted to produce any particular results, and the 2017 icims Inc. All Rights Reserved. U.S. Hiring Trends Q
25 advice and strategies contained herein may not be suitable for every client. Any use of this report is entirely at your own risk. In no event will icims or Hanover be liable for any incidental, indirect, special, punitive, consequential, or other damages (including lost profits), arising out of or in connection with this report. Neither icims or Hanover are engaged in the rendering of legal or accounting advice, and nothing herein should be construed or interpreted as either party providing any legal advice in regards to compliance with any employment or other applicable state, federal, or international laws. About icims Hiring Insights icims Hiring Insights is an online resource for labor market insights and hiring trends. Our team of researchers and writers uses icims exclusive data, as well as proprietary and secondary research, to create reports and articles that cover the most recent developments in the workforce. Featuring icims Chief Economist, Josh Wright, icims Hiring Insights helps its readers stay well-informed about the latest in recruiting, technology, and the labor market. To learn more visit: www. icims.com/hiring-insights 2017 icims Inc. All Rights Reserved. U.S. Hiring Trends Q
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