The state of hiring: 3 trends to keep an eye on

AI video interview platform HireVue recently released a report on the state of talent experience for 2022. Their Global Trends report surveyed 1,600 talent leaders across industries like finance, retail, healthcare and tech. 

The overarching trends from the report showed a lack of qualified candidates, as well as issues with hiring times and shifting qualifications to accommodate the change in the workforce. Here are three findings that the report identified as the top trends for the state of hiring for 2022.

Time to hire is going up

No, you’re not imagining things: time to fill open positions has increased across the board. Despite the ongoing “Great Resignation,” 40% of respondents identified a lack of qualified talent as the biggest barrier to hiring top talent. The lack of qualified candidates also means longer hiring times as they search for the right-fit candidate. 

In 2021, 15% of respondents reported taking 1-2 weeks to fill positions – this year, half as many respondents reported filling roles in that amount of time. What’s more, 8% of respondents reported taking 3 or more months to fill a role last year. In 2022, that number increased by nearly half. 

What you can do: 

• Streamline your hiring process: 1 in 6 respondents believed long lead times contributed to an increase in time-to-fill, and respondents who automated parts of the hiring process reported a shorter hiring time.
• Prioritize skill over experience: Nearly 45% of respondents reported taking a “skills first” approach, which helps reduce bias and may help your organization expand your talent pool to find the perfect fit.
• Keep communication open between hiring managers, recruiters and candidates: Open communication can help keep everyone on the same page, and many respondents listed streamlined communication as one of the top changes they’d like to see in the hiring process.

Digital tools can help streamline

2022 has seen a shift in using digital technologies in the hiring process – instead of going all-in on digital, hiring teams are using a blended approach with both in-person and digital tools. Hiring leaders reported using technology such as standardized assessments (59%), AI (41%) and chatbots (40%). 

Three out of four respondents (77%) reported using virtual interviews at some level, with 20% relying solely on virtual interviews to hire talent. Over half of respondents also reported seeing greater flexibility all around and time savings benefits from changes to interviewing.

What you can do:

• Embrace emerging technology: The report showed an overall trend of better results for companies that adopted digital tools. Using technology in the hiring process can help take the burden off of candidates and recruiters. 
• Find the right balance: Although many teams had to rely heavily on technology in the past few years, many are seeing success with a blend of both digital and in-person approaches. Of course, no approach is right for every company – find the right balance for your company based on organizational and hiring needs.
• Use assessments: Digital tools don’t have to just include AI or resume screeners – 36% of respondents reported using game-based assessments, like PwC, who uses a balloon game to assess if a candidate is averse to risk.

An eye on employee retention

55% of respondents reported a turnover rate that’s higher than it was last year, with education, healthcare and construction sectors seeing the highest amount of turnover. Some strategies that respondents used to increase retention include:

• Compensation (54%)
• Learning and developmental allowances (44%)
• Employee recognition programs (42%)

Respondents with lower turnover rates were more likely to add benefits such as culture events and tuition reimbursement, while employers with higher turnover rates reported using compensation as their top strategy to improve retention.

What you can do:

• Hire the right fit: High turnover may be due to hiring the wrong candidate at the start. 57% of talent leaders are leaning into job-matching technologies to ensure they find the right-fit candidate. 
• Be proactive about retention: The data showed that companies with lower turnover made investments in tools – such as job-matching and other technology – to help increase retention.
• Expand the talent pool: Many hiring managers are turning towards previously overlooked candidates, like retirees and undergrad workers, in a bid to increase retention.