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The Science of Talent Attraction: What Matters to Modern Candidates and What Makes Them Click

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If you’re hiring right now, it’s no surprise that the uptick in the economy has led to the tightest labor market in nearly seven years. But what may surprise you is exactly what candidates want ... and how to attract them to your jobs.

Check our our presentation, "The Science of Talent Attraction: What Matters to Modern Candidates and What Makes Them Click,” featuring our job marketing partner, Indeed, to:

-- Understand the decision-making process for active vs. passive candidates in a talent-driven economy
-- Get the data behind who’s looking for jobs, where they’re going to find them and what makes them click on your post
-- Learn 5 ways to future-proof your talent attraction strategy, so you’re always one step ahead of the competition
-- Uncover how your specific recruiting tactics determine candidate quality

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The Science of Talent Attraction: What Matters to Modern Candidates and What Makes Them Click

  1. 1. Today’s Presenters Carmen Bryant Director, Employer Insights, Indeed carmen@indeed.com Tim Dillon Director of Workforce Solutions, PeopleMatter tim.dillon@peoplematter.com
  2. 2. Why we recruit #indeedinsights
  3. 3. Recruiting changes people’s lives Recruiting is the #1 source of business impact #indeedinsights
  4. 4. "The secret of my success is that we have gone to exceptional lengths to hire the best people in the world." Steve Jobs, Apple #indeedinsights
  5. 5. "Our people are our greatest asset. And we are constantly trying to attract and retain high-quality talent." Cathy Engelbert, Deloitte #indeedinsights
  6. 6. "The biggest category of mistakes we've made is in hiring. Over the past 11 years, bad hires cost the company well over $100 million dollars." Tony Hsieh, Zappos #indeedinsights
  7. 7. "The biggest category of mistakes we've made is in hiring. Over the past 11 years, bad hires cost the company well over $100 million dollars." Tony Hsieh, Zappos "Human Resources isn’t a thing we do. It’s the thing that runs our business." Steve Wynn, Wynn Hotel
  8. 8. How will you fill these positions in 2016? #indeedinsights
  9. 9. Part 1: The sociology of job search #indeedinsights
  10. 10. Employer survey Nationwide survey of 1,000 recruitment professionals. Survey conducted online April 6-10, 2015. Job seeker surveys Survey was conducted online within the US by Harris Poll and Decipher Research on behalf of Indeed from March 15-17, 2016 and March 16-22, 2016 among a total of 8,100 adults ages 18 and older. Indeed conducted two comprehensive talent studies
  11. 11. 20% Active 80% Passive Is it a fact or a myth? #indeedinsights
  12. 12. Poll Question #1 Is it a fact or myth that 20% of candidates are active and 80% are passive?
  13. 13. 9% 12% have conducted a full job search in the last two years Source: Indeed job seeker study conducted by Harris Poll and Decipher/FocusVision It turns out that 91% of people say that they are either actively looking or open to a new job Not looking and not open #indeedinsights
  14. 14. 9% Never look at job opportunities 76% Look at job opportunities at least monthly And an even greater percentage say they actively look at job opportunities Source: Indeed job seeker study conducted by Decipher/FocusVision #indeedinsights 91% Look at job opportunities
  15. 15. 18-34 35-44 45-54 90% 84% 75% 55-64 65+ 68% 62% High school or less 76% Some college College grad 81% 86% People who actively look at job opportunities are younger and more educated Sources: Indeed survey conducted by Harris Poll (Base=Employed or not employed but looking: 18-34, n=779; 35-44, n=426; 45-54, n=427; 55-64, n=486; 65+, n=175); High school or less, n= 592; Some college, n= 720; College graduate or higher, n= 981) #indeedinsights
  16. 16. And the vast majority of them are currently employed #indeedinsights
  17. 17. Who doesn’t actively look at jobs? #indeedinsights
  18. 18. Who doesn’t actively look at jobs? People who are very unlikely to change jobs. #indeedinsights
  19. 19. Source: Indeed job seeker study conducted by Decipher/FocusVision Visiting an online job search site is the #1 activity for people hired #indeedinsights Visited an online job site or job board 55% Visited company career sites Used a mobile job search app Visited an online professional social networking site 52% 45% 25% 95% of employed adults hired within the past year took an action to find a job 6 months prior to being hired Accepted help from a recruiter 17%
  20. 20. Candidates expect jobs to come directly to them via mobile #indeedinsights
  21. 21. 59% A large percentage of people have job alerts that bring new listings to them Source: Indeed job seeker study conducted by Harris Poll and Decipher/FocusVision 52% 49% 40% Workers subscribe to job alerts College Graduates or higher Between the ages of 18-34 Household Earnings $100K+ #indeedinsights
  22. 22. 91% 85% Say “highly skilled workers are more likely to be keeping an eye out on new employment opportunities” Say that “people are always keeping an eye on the job market” Talent professionals see this every day #indeedinsights
  23. 23. Poll Question #2 What percentage of candidates look at job opportunities on Indeed within 91 days of being hired at a new job?
  24. 24. 65% 50% Of people who make $100K-$110K look at new jobs again within 28 days of being hired And our research shows that starting a new job barely changes people’s job search behavior Source: Indeed Data Of candidates look at new jobs again on Indeed within 91 days of being hired #indeedinsights
  25. 25. The sociology of job search Truly passive candidates are rarer than you might think Younger, highly educated candidates are more likely to be active Online job search is the #1 activity for people who get hired Job search is never-ending: most new hires look for jobs again within 91 days #indeedinsights
  26. 26. Part 2: The psychology of job search #indeedinsights
  27. 27. Candidates must make at least 7 major decisions before they become an employee with your company #indeedinsights
  28. 28. The Career Decision Making Process 01 Consider a change 02 Consider your company 06 Accept the offer 07 Appear at new job 03 Consider a position 05 Commit to the process 04 Apply #indeedinsights
  29. 29. Research Observation #1 Career decisions are among the most stressful life decisions #indeedinsights
  30. 30. After family and health, career events have the biggest impact on stress and happiness #indeedinsights
  31. 31. 20 Change in residence 65 23 Trouble with boss 36 Change to a different line of work 40 Pregnancy 50 Marriage 63 Death of a close family member 29 Child leaving home Career Changes Other Life Changes 0 20 Change in working hours or conditions 45 Retirement 30 Foreclosure of mortgage or loan 29 Change in responsibilities at work 47 Dismissal from work Source: Holmes and Rahe Stress Scale #indeedinsights
  32. 32. Research Observation #2 Most people are wired to be resistant to career change #indeedinsights
  33. 33. The Problem: Research shows that most people will overestimate risks associated with a change Probability of failureBenefit of change Choosing a Job #indeedinsights
  34. 34. Research Observation #3 Career changes are major life changes and change takes a lot of work #indeedinsights
  35. 35. The forces against career change are incredibly strong Career changes are high stress We underestimate the potential benefits Making a career change is hard work 1. Consider a change We overestimate the chance of failure #indeedinsights
  36. 36. So what leads employed people to make the decision to change jobs? #indeedinsights
  37. 37. 26% When I see posts about an interesting company or job 19% When I feel dissatisfied with my current job 21% When I feel discouraged about my current job situation 18% When I feel stressed about money 10% When I don’t get recognized for an accomplishment at work Source: Indeed survey conducted by Harris Poll People look for jobs when they are inspired by new opportunities or disillusioned with their current work Career changes are high stress We overestimate the chance of failure We underestimate the potential benefits Making a career change is hard 1. Consider a change #indeedinsights
  38. 38. The Career Decision Making Process 01 Consider a change 02 Consider your company 06 Accept the offer 07 Appear at new job 03 Consider a position 05 Commit to the process 04 Apply #indeedinsights
  39. 39. Poll Question #3 What is the number one benefit that attracts candidates to a new job?
  40. 40. 8% none Good pay / compensation Good location Flexible hours 75% 52% 51% 92% would be attracted by: Benefits Meaningful work 49% 46% 43% Company reputation Clear path for advancement Good fit for my family 38% 34% 33% Company mission/vision 22% Source: Indeed survey conducted by Harris Poll (Base=Employed or not employed but looking , n=2,213 ) Work environment
  41. 41. 18-34 35-44 45-54 51% 40% 43% 55-64 65+ 41% 52% High school or less 39% Some college College grad or higher 45% 52% Generational and life-stage differences in the importance of “meaningful work” Selected meaningful work as factor that would most attract them to a job Source: Indeed survey conducted by Harris Poll (Base=Employed or not employed but looking , n=2,293 )
  42. 42. Research Observation #4 People feel better about decisions that they fully control #indeedinsights
  43. 43. Source: Indeed job seeker study conducted by Decipher/FocusVision Candidates believe it’s important to direct their own job search #indeedinsights 79% agree or strongly agree “When deciding whether or not to accept a job offer, it’s important to me that I’ve looked around at other opportunities first.” 72% “If a recruiter or a friend proactively contacted me about a position I would consider other available jobs as well (rather than only consider that specific position).” agree or strongly agree
  44. 44. Even candidates believe they will be more successful if they actively look at new opportunities Source: Indeed job seeker study conducted by Decipher/FocusVision #indeedinsights 60% Think they would be more successful in a job they found on their own versus one they got from a recruiter or company that contacted them. of employed adults
  45. 45. The psychology of job search Career changes involve a stressful, multistep psychological process For passive candidates, the psychological obstacles to change are enormous Active candidates, by definition, are ready for change Candidates prefer to be in control of their job search so that they find the best fit #indeedinsights
  46. 46. Part 3: Your tactics determine your talent #indeedinsights
  47. 47. There have never been more ways to recruit talent Social Recruiting Talent Marketplaces Staffing Firm Employer Brand Campaign Job Search Referral Professional Profile #indeedinsights
  48. 48. The candidate applies first Inbound You contacted the candidates first Outbound But they all fall into two basic approaches #indeedinsights
  49. 49. People finding you in job search Referrals who apply Career fairs Responses to job postings Applications from social recruiting Visitors to your career site Inbound candidates apply to your jobs Inbound People finding you in job search Referrals who apply Career fairs Responses to job postings Applications from social recruiting Visitors to your career site #indeedinsights The candidate applies first
  50. 50. Outbound candidates respond to your recruiters You contacted the candidates first Outbound Contacting people through Indeed Resume Contacting people via LinkedIn Contacting people in a resume database Referrals that you call #indeedinsights
  51. 51. Companies that fully measure cost per hire find additional reasons why outbound recruiting is more expensive Labor intensive Low candidate response rates to inquiries Low offer acceptance rates Long lead times Uncertain cultural fit Time-consuming to overcome psychological barriers to change #indeedinsights
  52. 52. 1. Some roles get too many applications to screen 2. Some roles are hard to quickly fill 3. Difficult to control who applies 4. Some open roles need to be kept confidential 5. Resume often don’t provide enough data to find best candidates Inbound recruiting has its challenges as well #indeedinsights
  53. 53. Practices to Find the Right Talent5 #indeedinsights
  54. 54. 1. Sequence recruiting tactics to maximize quality, cost and performance #indeedinsights
  55. 55. Sequence investments to maximize quality and minimize cost Inbound first Outbound if needed Free Inbound Paid Inbound Outbound #indeedinsights
  56. 56. 2. Shape your candidate pipeline #indeedinsights
  57. 57. In the era of search, you control your talent Job titles Job descriptions Career site Apply process Company reviews 5 key levers to shape your talent pipeline with search Source: The Polling Company (n=1,000) #indeedinsights
  58. 58. Science and the future of recruiting We’re looking for thoughtful, well-rounded front-end engineers to join our team. If you’re the right one for us, you love the Web, take great pride in your work, think of coding as more than just a job, and have a few great projects to show off. You can take a concept and transform it into an awesome Web-based experience with your own technical and UI/UX expertise. Write great job descriptions that draw talent and perform well in search Spotify job posting #indeedinsights
  59. 59. Science and the future of recruiting We’re looking for thoughtful, well-rounded front-end engineers to join our team. If you’re the right one for us, you love the Web, take great pride in your work, think of coding as more than just a job, and have a few great projects to show off. You can take a concept and transform it into an awesome Web- based experience with your own technical and UI/UX expertise. Write great job descriptions that draw talent and perform well in search #indeedinsights Spotify job posting
  60. 60. Make it easy for candidates to browse and apply on mobile devices Source: Indeed Data #indeedinsights 68%Use mobile Don’t use mobile 32%
  61. 61. Poll Question #4 What is the reduction of applicants after 30 screener questions?
  62. 62. Science and the future of recruiting Be careful not to lose good candidates to overly complex application processes 50.0% 0 5 10 20 30 40 45+ 90% 80% 70% 60% 50% 40% 30% 20% 10% 0 ReductioninApplications 16.5% 17.2% 44.1% 50.0% 70.8% 88.7% # of online screener questions Source: Indeed Data #indeedinsights
  63. 63. 3. Build a brand that brings talent to you #indeedinsights
  64. 64. #indeedinsights Your brand determines your candidates Say reviews impact where they apply Increase in apply rate when employer reviews are available Say company reputation has a big impact on decision to accept a job Source: Redshift Research Study for Indeed % 20% 40% 60% 80% 100%
  65. 65. 4. Optimize the inbound and outbound candidate experience for top talent #indeedinsights
  66. 66. Science and the future of recruiting Airbnb recognized that their candidate experience needed an overhaul 1. What do we want them to know? 2. What do we want them to feel? 3. What does rejection look like at this stage? 4. What makes this stage uniquely Airbnb? Storyboarding Exercise | Mapped experience end-to-end #indeedinsights
  67. 67. 5. Build a platform for inbound recruiting #indeedinsights
  68. 68. Recruiting technology will continue to evolve to look more like marketing technology Using technology to get great at matching applicants and opportunities Website and Landing Page Lead Capture Predictive Scoring Marketing Automation CRM Performance Analytics Marketing Technology Platform Career Site Apply Screening Candidate Marketing Automation Candidate CRM Talent Performance Analytics Recruiting Technology Platform
  69. 69. 1. Sequence recruiting tactics 2. Shape your candidate pipeline 3. Build a brand that brings talent to you 4. Optimize candidate experience 5. Build an inbound recruiting platform #indeedinsights
  70. 70. Follow us at blog.indeed.com | @indeed #indeedinsights
  71. 71. PeopleMatter Demo Indeed Integration + Talent Analytics
  72. 72. Q&A Carmen Bryant Director, Employer Insights, Indeed carmen@indeed.com Tim Dillon Director of Workforce Solutions, PeopleMatter tim.dillon@peoplematter.com
  73. 73. HRCI & SHRM Today’s Webinar HRCI Activity ID: 285533 Recertification Credit Hours Awarded: 1 Specified Credit Hours: HR (General) SHRM Activity ID: 16-FX4AB Professional Development Credits (PDCs): 1

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