RECRUITER ENGAGEMENT PLATFORM

HARD TO HIRE:2018 THIRD-PARTY RECRUITING & THE STATE OF TALENT ACQUISITION SURVEY

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WHAT’S IN THIS REPORT?Introduction

About this Survey

The Realities of Today’s Hiring Landscape

So What’s a Hiring Manager or Recruiter to Do?

When and Why to Use Third-Party Search

A Look Ahead: Third-Party Search –

Where Do I Go From Here?

A Look Ahead: Data Analytics – The Backbone

of Successful Recruiting Strategies

Demographics

About BountyJobs

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Today the hiring landscape is more

challenging than at any other point

in modern history.

Whether it be third-party search, the latest

in technology solutions, or social media

one thing holds true:

RECRUITING AS WE’VE KNOWN IT IS EVOLVING.

So we ask, how are you navigating the

twists and turns in talent acquisition while

still keeping ahead of your competition?

INTRODUCTION

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ABOUT THIS SURVEY This report is based on a nationwide survey of more than

500 Human Resources, Talent Acquisition, Hiring Manager, and

Recruitment professionals. They come from companies of all sizes

in a wide variety of industries and specializations.

The survey focused on exploring the unique relationship between

companies seeking to fill roles and third-party recruitment

agencies sourcing talent on their behalf.

The goal was to identify common experiences from teams

collaborating across the country, as well as strategies adopted in

this quickly changing and competitive employment market.

Learn about the commonly shared challenges teams face as well as

tools they are employing to thrive in talent acquisition today.

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71%

90%Feel the current

hiring market is more challenging now than

in the past!

THE REALITIES OF TODAY’S HIRING LANDSCAPE It’s no secret that talent acquisition is going through some growing pains.

Headlines scream about jobs growth, salary growth, low unemployment rate,

the list goes on and on. But we wanted to hear the status straight from

Talent Acquisition pros in the field: IS IT REALLY HARDER TO HIRE TODAY?

HERE’S WHAT WE FOUND AS SOME OF THE POSSIBLE CAUSES:Of the answer choices given, the historically low unemployment rate was chosen at a

high volume at 69%. There are less people out there looking for a job, and it’s harder

than ever to lure those passive candidates away from their current role. It’s hard to

find these ideal candidates in this hiring market. The skills gap, baby boomers retiring,

and the dearth of graduates for critical industries also ranked as hiring concerns.

73% of In-House Recruiters/Sourcers ci ted the ‘His tor ically low unemployment rate ’ as a top challenge with 72% of HR Leaders and 67% of Talent Acquisit ion Leaders following close behind.

A C L O S E R

L O O K

U.S. Unemployment Rate

Retiring Baby Boomers

Skills Gap Needed for Open Roles

Lack of Graduates for Critical Industries

Other

22% 22%

WHY DO YOU THINK THIS IS?

69%

31%

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THE REALITIES OF TODAY’S HIRING LANDSCAPE

TOP CHALLENGE

INTERNALRECRUITERS

TALENT ACQUISITION LEADS

68%

67%

25%

17%

22%

12%

SHORTAGE OF SKILLED LABOR

COMPETITIVE INDUSTRY

EXECUTIVE/SENIOR/PROFESSIONAL FUNCTION

INTERNAL RECRUITERS ARE OVERWHELMED

OUTSIDE SCOPE OF INTERNAL RECRUITER’S EXPERTISE

OTHER

79%

65%67%

of respondents

found that hiring in

competitive industries

caused much of their

challenges.

IN YOUR EXPERIENCE, WHAT MAKES A POSITION HARD-TO-FILL?

Given any one open position, what factors do you run into as

obstacles to filling that role?

Hiring in today’s employment market is daunting.

There are many possible causes, so we asked:

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FINANCE

51%45%

44% OPERATIONS

IT & ENGINEERING

*20% Specifed “Other”

51%

5%

22%

21%

14%

41%

Third-party recruiting is growing

as a viable option when hiring for

hard-to-fill roles. These are the top

three job categories employers are

going out to search for:

CREATIVE & DESIGN

CUSTOMER SERVICE/SUPPORT

ENGINEERING/INFORMATION TECHNOLOGY

FINANCE

HEALTHCARE

MANUFACTURING

OPERATIONS

PHARMACEUTICALS/BIOTECH

PROFESSIONAL/SPECIALIZED

RESEARCH & DEVELOPMENT

RETAIL/CONSUMER GOODS

SALES/BUSINESS DEVELOPMENT

24%

42%

45%

44%

19%

19%

WHAT ARE THE JOB CATEGORIES THAT YOU OR YOUR TEAM PRIMARILY RECRUIT FOR?

THE REALITIES OF TODAY’S HIRING LANDSCAPE

The top 3 job categories in the BountyJobs Marketplace

in 2017 were Research & Development, Sales & Marketing

and Information Technology.

A C L O S E R L O O K

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.

40% This

competitive

employment market demands

a high level of expertise.

49% A

historically

low unemployment rate

means your next candidates

are already employed.BRAN

DIN

G &

RECR

UITM

ENT

PASS

IVE

CAN

DIDA

TES

THIRD-PARTY

SEARCH OFFICE

OPEN HO

USES

36% Many organizations are

opening their doors to give

potential candidates a glimpse into life as a

member of their team.

51% Social media platforms

can be used for

candidate outreach for specific roles,

but also as a way to showcase the

company’s culture.

61% Improving branding

and recruitment

strategies go a long way in navigating

this hiring landscape.

SOCI

AL M

EDIA

WHAT’S A HIRING MANAGER OR RECRUITER TO DO?

BRANCH OUT! These 5 recruiting methods are the

most considered in a tight employment market:

*9% Specifed “Other”

WHAT RECRUITING METHODS MIGHT YOU CONSIDER NOW THAT YOU WOULDN’T HAVE IN A LESS CHALLENGING MARKET?

JOB FAIRS

27%

ATTEND/NETWORK AT MEETUPS

34%

ON-CAMPUS RECRUITING EVENTS

34%

OFFICE OPEN HOUSES

36%

THIRD-PARTY SEARCH

40%

PASSIVE CANDIDATES AS SOURCE

49%

SOCIAL MEDIA

51%

IMPROVE BRANDING & RECRUITMENT STRATEGIES

61%

While Talent

Acquisition

Leads were

more apt to

reach out to passive

candidates as a sourcing

option at 57%, 50% of

Hiring Managers opted for

third-party search.A

CL

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80% A massive

percentage

have used a third-party

recruiter before.

85% Talent Acquisition

Leads were the

group leveraging third-party

recruiters the most.

55% Over half

of overall

respondents currently

use third-party

recruiting.

82%

Of Hiring

Managers had used third-party

recruiting in the past.

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PERSONAL PROFESSIONAL NETWORK71%

PAID SOCIAL MEDIA ADS (INCLUDING LINKEDIN)70%

AD PLACEMENT (OTHER THAN SOCIAL MEDIA)52%

OTHER14%

THIRD-PARTY SEARCH55%

JOB BOARD83%

WHAT RECRUITING METHODS ARE YOU OR YOUR TEAM CURRENTLY USING?

HAVE YOU EVER USED A THIRD-PARTY

RECRUITER? 80%

20%YES

NO

The high percentages of “currently using” and “have used third-party search in the past” lend themselves to the idea that third-party search is becoming increasingly seen as a solid option in recruiting your ideal candidate.

A C L O S E R

L O O K

When looking at potential options to navigate this topsy-turvy

hiring landscape, third-party recruiting

came out ahead.

WHAT’S A HIRING MANAGER OR RECRUITER TO DO?

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WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH? With all of the other options in recruiting mentioned in this report, why would you use third-party search?

Some top benefits seen by those respondents that worked with this sourcing option before:

Hiring Managers were split

at 50% over enjoying quick

submission of candidates

as well as the high level

of expertise in their chosen

industry that they get from third-party

recruiters. HR Leads and Internal Recruiters/

Sourcers both clamored for faster time-to-fill at

59% and 41% respectively. Talent Acquisition

Leads were all about the quick submission of

quality candidates at 47%.

40% cited ‘quick

submission of

quality candidates’

35% found they

experienced a

faster time-to-fill

37% stated they

valued the

‘high value of expertise in their

area of hire’

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WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH?

WHEN OTHER AVENUES HAVE FAILED

ALONG WITH OTHER OPTIONS (IN PARALLEL)

WHEN PRESSED FOR TIME

ALWAYS FOR CERTAIN ROLES

OTHER

35%

22%

21%

11%

11%

WHEN IN THE PROCESS

DO YOU USE THIRD-PARTY

SEARCH?OTHER

WHAT, IF ANY, TACTICS DO YOU TRY FIRST BEFORE YOU GO TO THIRD-PARTY SEARCH?

NONE - GO STRAIGHT TO THIRD-PARTY SEARCH

PLACE AN AD (OTHER THAN SOCIAL MEDIA)

FREE SOCIAL MEDIA POST

PAID SOCIAL MEDIA ADS (INCLUDING LINKEDIN)

POST OUT TO PERSONAL PROFESSIONAL NETWORK

15% 19% 48% 68% 70% 72%

JOBBOARD

84%

SOME WAIT 30-90 DAYS BEFORE GOING OUT

TO SEARCH

84%TRY A

JOB BOARD FIRST

72%POST OUT TO

THEIR PERSONAL PROFESSIONAL

NETWORK

35%UTILIZE THIS INVESTMENT

AFTER TRYING OUT THEIR USUAL

GO-TOS

WHEN IS THE RIGHT TIME?

100% of responding

Inside Recruiters/

Sourcers try posting

to Job Boards first.

Utilizing social media for

paid ads as well as free posts is popular

among HR and Talent Acquisition Leads

as well as Internal Recruiters/Sourcers

at 70% or above…but are utilized

on the lower end for

HR Managers at just 36%.

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WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH? Third-party search might be a major part of the talent acquisition strategies of many...

but would you invest more money in premium fees to secure your ideal candidate?

YES

NO

DEPENDS ON THE ROLE

NOT SURE

NOT APPLICABLE

OTHER

7%

39%

35%

9%

8%

2%

ARE YOU OR YOUR

ORGANIZATION MORE

WILLING TO PAY PREMIUM

(ABOVE MARKET) THIRD-PARTY

RECRUITER FEES DUE TO THE

COMPETITIVE HIRING MARKET?

39%

35%

7%

≈

Leveraging the expertise of a third-party

recruiter who has an extensive digital

rolodex full of potential candidates for

your critical roles could be the slight

edge needed to speed past your competitors.

Many organizations aren’t aware what the appropriate fee

is and drop out of the race completely before doing their

due diligence.

#yougetwhatyoupayforA

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I can produce more fills than 3 individual recruiters

combined. My network is vast and solid.

I love what I do.

Taking the time to get to know the motivation and

professional reasons for making a change and

making sure it fits within the client’s need and timing.

It needs to be a win for all parties involved.

Always do my best to fulfill employers’ requests for a

particular position and make sure the candidate submitted

meets all their requirements.

This is what we do all day. The amount of time it takes to

fill a job can often be utilized by HR to focus on other,

more important initiatives.

““

““

WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH?THIRD-PARTY RECRUITERS! Why should an employer choose to work with you?

Some reasons straight from third-party recruiter respondents:

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WHAT, IF ANYTHING, HAS HINDERED YOU FROM USING THIRD-PARTY RECRUITERS?

FEES ARE TOO EXPENSIVE

WE HAVE A RECRUITER ON STAFF - HOW WOULD I JUSTIFY SPEND?

WORRIED ABOUT RECRUITER INTEGRITY

OTHER CHANNELS SUPPLY QUALITY CANDIDATES FOR MY ROLES

69%

41%

29%

26%

I ’VE NEVER BEEN HINDERED FROM USING A THIRD-PARTY RECRUITER

OTHER

NOT SURE WHERE/HOW TO FIND THE RECRUITER I NEED

AM UNFAMILIAR WITH THE APPROPRIATE FEE TO SET FOR MY JOB

11%

7%

5%

14%

WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH?

This tells us that a bit more

education is needed around

third-party recruiting. Fees are

negotiable for most budgets…but

you need to factor in the time saved

and the increase in productivity when leveraging

third-party recruiters – they handle sourcing so you

can focus on other high priority responsibilities.

Respondents questioned the quality of

candidates that would be submitted.

Respondents concerned that the

recruiter may not describe the role

effectively to potential candidates.

56%

53%

56% 69%

41%

29%

26%

The top reason was potentially expensive fees.

Having a recruiter on staff already

was the overall second reason, but only

impacted 7% of Hiring Managers.

Worries about recruiter integrity came in

next, and impacted each respondent

group similarly, between 27%-30%.

Haven’t had the need followed at 26%. HR Leads and

Talent Acquisition Leads were highest at 30% and 25%.

THESE TOP TWO CONCERNS

DIRECTLY CONTRADICT

THE BENEFITS.

Concerns when considering working

with a third-party recruiter?

Until now, what has kept respondents

from using third-party recruiters?

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AGENCY RESPONDENTS MENTIONED THESE AS SOME PITFALLS TO WATCH OUT FOR:

WHEN AND WHY WOULD I USE THIRD-PARTY SEARCH? Employers! Here are a couple of things to keep in mind when working with third-party recruiters to get more out of your investment:

HOW CONFIDENT ARE YOU IN YOUR KNOWLEDGE OF THIRD-PARTY RECRUITING TO ACCOMPLISH THE FOLLOWING?  

49%

55%

62%

48% Select best search type

Negotiate the best fee

Inspect a contract

Find a recruiter

RESPONDENTS FELT VERY CONFIDENT IN THEIR KNOWLEDGE OF THIRD-PARTY RECRUITING WHEN CONSIDERING THESE COMPONENTS:

Job reqs seem to have unrealistic

requirements and companies lack

flexibility for quality applicants who may

require a little time to get up to speed in

some secondary technical skills they are

lacking and will learn in a short time.

“ Employers don’t take the time to

talk to me or to the candidates.

Too much effort is made doing

anything but talking to people.

When you hire a person,

you do not hire a resume.

“

FIND A RECRUITER 62% 32% 6%

INSPECT A CONTRACT 55% 34% 11%

NEGOTIATE THE BEST FEE 49% 37% 15%

SELECT BEST SEARCH TYPE* 48% 42% 10%

VERY CONFIDENT

SOMEWHATCONFIDENT

NOTCONFIDENT

*Contingent, Retained

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ANNUAL SPEND ON THIRD-PARTY

SEARCH

I Don’t Know.

We Don’t Track It.

We Track

It!

30%

28%

42%

A LOOK AHEAD: THIRD-PARTY SEARCH – WHERE DO I GO FROM HERE?

Third-party search could be the answer for your organization.

Now how to find sources when looking for a recruiter?

THE MOST COMMON ANSWER WAS REFERRALS.

When asked about the cost

of third-party search to their

business’ bottom line,

the amount of spend from

respondents ran the gamut!

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A LOOK AHEAD: DATA ANALYTICS, THE BACKBONE OF SUCCESSFUL RECRUITING STRATEGIES

As you move forward in 2018 and throughout 2019,

it ’s a good idea to take a closer look behind the curtain.

WHAT DOES YOUR DATA TELL YOU?

This section gives you a better idea of what your

fellow colleagues are tracking and

leaning on most when making

data-driven decisions. Speed of Hire & Retention/Attrition

Hiring Managers: Speed of Hire and Cost of Hire

HOW ABOUT THE TOP KPIS THAT HELP

TRACK ROI ON TALENT ACQUISITION AS A WHOLE?

AcceptanceRate

61%

73%

64%

59%

56%

54%

50% 35%

32%Talent Acquisition

Leads: Speed of Hire

Inside Recruiter & Sourcer: Retention

HR Leads: Retention

Cost of Hire

Diversity

Time toFill

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WHAT, IF ANY, TACTICS DO YOU TRY FIRST BEFORE YOU GO TO THIRD-PARTY SEARCH?

Diversity: 32%

Not one Hiring Manager selected

Diversity as a KPI to track and only

25% of HR Leads did so.

TOP 3 FOR AGENCIES?#1 MIRRORS THAT FOR EMPLOYERS:

¬ Speed of Hire: 63% ¬ Time to Fill: 62% ¬ Acceptance Rate: 58%

THE LOWEST ACROSS THE BOARD?

WHAT, IF ANY, KPIS DO YOU

OWN THAT HELP YOU

TRACK ROI ON TALENT

ACQUISITION AS A WHOLE?

59%

59%

56%

54%

35%

32%

10%

8%

6%

SPEED OF HIRE

RETENTION AND ATTRITION

TIME TO FILL

COST OF HIRE

ACCEPTANCE RATE

DIVERSITY

NOT APPLICABLE

WE DON’T TRACK ANYTHING

OTHER

A LOOK AHEAD: DATA ANALYTICS, THE BACKBONE OF SUCCESSFUL RECRUITING STRATEGIES

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50% of respondents say yes: this rings true most for Hiring Managers at 63%, and the least for Inside Recruiters/Sourcers at 38%.

19% responded that ‘We don’t track anything’. HR Leads were the highest percentage here at 33%.

14% are not sure. The lowest percentages of these were HR Lead at 0% and Talent Acquisition Lead at 8% - kudos to these groups for being informed either way.

ARE THESE KPIS MEASURED WHEN USING A THIRD-

PARTY RECRUITER? ’

I’m not sure

We don’t use third-party recruiters

Other2%

14%

19%

50%

14%Yes

No, we don’t track

anything

50%

14%

19%

A LOOK AHEAD: DATA ANALYTICS, THE BACKBONE OF SUCCESSFUL RECRUITING STRATEGIESDigging a bit deeper, in addition to identifying metrics that are valuable within your talent

acquisition team overall, we asked: Are these KPIs measured when using a third-party recruiter?

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A LOOK AHEAD: DATA ANALYTICS, THE BACKBONE OF SUCCESSFUL RECRUITING STRATEGIES

SAY WHAT?OVER HALF of respondents say their organization doesn’t or they’re not sure if they routinely evaluate the performance of their pool of third-party recruiters!

How do you know if your ROI is effective if you’re not tracking it? We’ll tell you – YOU DON’T!

The 44% that DO track, list these as the top 3 metrics: quality of candidates, retention, number of placements.

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Company SizeDistribution

50 - 999

1,000 - 4,999

+5,0001- 49

12%

18%

21%

EMPLOYER ROLES

LEAD TALENT ACQUISITION ACTIVITIES FOR MY COMPANY

IN-HOUSE RECRUITER/SOURCER

LEAD HUMAN RESOURCES ACTIVITIES FOR MY COMPANY

HIRING MANAGER FOR A NON-HR DEPARTMENT

33%

25%

22%

9%

AGENCY ROLES

I OWN A RECRUITMENT AGENCY THAT EMPLOYS PEOPLE OTHER THAN MYSELF

I AM AN INDEPENDENT RECRUITER WORKING FOR MYSELF

I WORK FOR A RECRUITMENT AGENCY AS A RECRUITER

43%

37%

21%

EMPLOYER&

AGENCY

TALENT ACQUISITION PROFESSIONALS ≈50046%

DEMOGRAPHICS

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REGIONS TALENT IS SOURCED FROM

¬ United States, Canada, European Union and United Kingdom

¬ Mexico/Central America/The Caribbean, India, Japan and Asia Pacific

¬ South America, China, Middle East, Africa and New Zealand

25

MANUFACTURING

INFORMATION TECHNOLOGY

FINANCIAL SERVICES

HEALTHCARE

RETAIL/CONSUMER GOODS

TOP INDUSTRIES

18%

17%

16%

15%

14%

JOB INDUSTRIES+DEMOGRAPHICS

10,000+ HIGHLY SPECIALIZED RECRUITERS

$1.6B IN PLACEMENT FEES

750,000 CANDIDATES SUBMITTED

B

GET IN TOUCHOur web-based platform consolidates third-party search activities into one convenient

location; giving talent acquisition leaders the tools to track, manage, and evaluate their

search spend. The result: better hires, faster. BountyJobs is headquartered in Austin, TX

and is backed by Greylock Partners, Accel Partners, and RPM Ventures.

Have questions or a topic you’d like us to cover?

Email our Sr. Content Marketing Manager,

Erin Geiger, at blog@bountyjobs.com

Learn more about BountyJobs:

bountyjobs.com @bountyjobs @bountyjobs@bountyjobs

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1114 Lost Creek Blvd, Ste. 420 Austin, Texas 78746