Hiring Data Shows Employers Struggling to Find Talent in a Tight Labor Market

Leading recruitment software provider, iCIMS, releases Quarterly U.S. Hiring Trends report, offers guidance into developing employee pipelines through internships

MATAWAN, N.J. [September 9, 2016] –While strong job growth is a good sign for the U.S. economy as a whole, it presents certain challenges for employers and HR professionals. iCIMS, Inc., a leading provider of Software-as-a-Service (SaaS) talent acquisition solutions, released its quarterly U.S. Hiring Trends report today, which indicates that while job growth continues, employers are having difficulty attracting suitable candidates. Jobs are becoming harder to fill, requiring more time and money to hire best-fit talent.

“In today’s tight labor market, employers need to think about how best to leverage their employees as rigorously as they do their other resources,” said iCIMS chief economist, Josh Wright. “They should weigh the costs of traditional hiring practices versus building out their talent pipelines. Our data suggests employers should consider the latter more closely.”

The U.S. Hiring Trends report presents data from January 2014 through June 2016, pulled from iCIMS’ client base of more than 3,500 contracted customers, companies that collectively post approximately 1.8 million jobs each year. This report covers the challenges for employers, the types of companies that are most affected and actionable insights on how employers can build talent pipelines for future hiring needs.

Key findings from the report include: 

·         Low turnover in the job market suggests workers have limited confidence in their ability to find another job.

·         Small businesses appear to be struggling the most to compete for talent in the tight labor market. The average number of applicants per open position dropped for small business in Q2 2016.

·         Intern hiring trends remain strong, especially in certain sectors. The leisure and hospitality industry experienced the greatest growth in intern hiring from the first half of 2015 to the first half of 2016.

iCIMS’ data suggests that employers having difficulty filling positions with qualified candidates should invest in their talent pipelines by fostering relationships with passive candidates and interns, as well as by developing an effective employee referral program. Medium and large businesses, apparently recognizing the value of an internship program, have been able to convert interns into full time hires. Not surprisingly, small businesses struggle here.

“Technology is advancing rapidly, transforming the workplace and how employees engage with employers,” said Wright. “These rapid changes are evident in debates about skills gap in the labor force and the impact these have on the labor market. Employers across all industries and company sizes need to examine their operations and search for opportunities to nurture their own pools of talent.”

The report analyzes data generated by user interactions with iCIMS software and focuses on iCIMS’ talent supply/demand ratio, which is the average number of applicants per position across the iCIMS customer base. iCIMS’ chief economist worked with third-party data analyst firm, Hanover Research, to arrive at the findings included within the report.

To view the full report please visit iCIMS Hiring Insights.

About iCIMS

iCIMS is the leading cloud platform for recruiting. iCIMS enables companies to manage and scale their recruiting programs through an award-winning end-to-end talent acquisition platform and an ecosystem of nearly 300 integrated partners. Established in 2000, iCIMS supports more than 4,000 customers, including nearly 20% of Fortune 100 companies, hiring 4 million people each year. For more information, visit www.icims.com.