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How efficient is your recruitment?

Recruitment in Romania - Practices and Trends


2016

TalentSpotting carried out in Jan - Feb 2016 a research on recruitment


practices and trends on the Romanian market, designed to help
companies increase the efficiency of their recruitment departments.

This report is property of, and embodies proprietary information belonging to Brainspotting.
Brainspotting 2016 The contents of this document can be reproduced only by mentioning Brainspotting as source.
Executive Summary

Identifying quality candidates remains a challenge for most of the companies, regardless of the
industry, alongside unreasonable salary expectations, talent competition and the need to
reach a large enough pool of candidates for each position.

Businesses are searching most often for specialists, with an annual average of 50 hires,
while delays are reported by 1 in 10 companies, at all seniority levels.
Recruitment agencies report the biggest delays on the market, and their average delay rate
amouts to 8% for all positions, with top hiring lags for managers.

When it comes to professional profiles that are difficult to find, most issues arise when
recruiting IT software experts, who are hard to recruit according to 60% of the respondents.
These are followed by IT hardware professionals, technical engineers and sales professionals.

Companies expect recruitment to become more and more difficult and most of them
regard social networks as the future of recruitment, next to referrals.
These two recruitment channels are intensely used by the organizations identified as
best in class in what concerns recruitment satisfaction and the efficient use of recruitment
channels.

Most of the respondent companies assess their capacity of identifying


quality candidates as good and very good. In addition, they are satisfied with their use of
social and professional networks in recruitment and with their ability to reach marginal
candidates through their own channels.

However, less than half of the respondent organisations are content with their overall
recruitment results. Approximately 65% of the companies scored below their average
industries scores in terms of recruitment satisfaction.

All the companies identified as best in class for recruitment satisfaction and for
recruitment channels efficiency measure their candidates team and culture fit and their
results orientation.
Interestingly enough, the majority of companies appreciate flexibility more than previous
job experience.

In what concerns recruitment departments KPIs, the majority of the companies measure
closing time for the vacancies, while over half of them consider mainly the quality of their hires.

Business from IT / Telecom, Call-center / BPO, Commerce / Retail measure closing time, while
Banking / Financial Services / Insurance, Professional Services and Health companies consider
mainly the quality of hire. Manager satisfaction is important for organizations from Automotive,
Advertising, Media, IT / Telecom, BFSI, Media and Professional services.

The collected data also reveals that there are no significant differences in the recruitment
challenges based on company industry. It seems that we are all dealing with the same
predicaments when faced with attracting the best talent for our organizations.

The power of social recruitment


Contents

Recruitment Channels ................................................................................................................ 1


Recruitment Challenges.............................................................................................................2
Recruitment Departments and Vacancies............................................................................3
Average Closing Time................................................................................................................. 4
Difficult to Fill Positions............................................................................................................. 4
Delays in Recruitment................................................................................................................ 5
Time Consuming Factors .......................................................................................................... 6
Company Expectations..............................................................................................................7
Evaluating Recruitment ............................................................................................................. 8
Recruitment Satisfaction ......................................................................................................... 12
Recruitment Satisfaction Scores ........................................................................................... 13
Recruitment Rating Scores......................................................................................................14
Recruitment Trends ................................................................................................................... 15
Best in Class Companies..........................................................................................................16
Industry Focus - IT&C ............................................................................................................... 21
Respondent Companies ......................................................................................................... 23

The power of social recruitment


Recruitment Channels

Over 40% of the respondent companies


are using their own recruitment team.
Social and professional networks (28%)
and internal referrals (22%) are among 40%
the most used recruitment channels.

Internal
recruitment teams

In addition, 9% of the companies rely mainly on events in recruitment.

Top recruitment channels

27.55 %
Social networks

21.70%
Referrals

8.56 %
Events

?
Did you know that referrals are
the #1 source in hiring volume?
1
The power of social recruitment
Recruitment challenges

When invited to acknowledge their recruitment challenges, most companies


report difficulties in identifying quality candidates (62%).
Unrealistic salary expectations make recruitment more difficult for 39% of the
respondents, while 32% of them see the biggest challenge in the competition for
talent.

Identifying a large enough pool of candidates for each position, next to candidate
attraction and engagement in the recruitment process are also serious challenges
for employers.

Biggest recruitment challenges

1 2 3 4
61.96% 38.65% 31.90% 27.61%
Identifying quality Unreasonable Talent Identifying a large
candidates salary expectations competition enough pool of
from candidates candidates for
each profile

?
Did you know that referrals
are the #1 source for new
hire quality?

2
The power of social recruitment
Recruitment departments and vacancies

The average number of recruiters amounts to 3 in 80% of the companies, while


6% of the organisations do not have recruitment departments.

Average number of recruiters


79.14%

8.59%
6.13%

3 recruiters 8 recruiters No recruiters

Most of the respondent companies have specialists vacancies, with an annual


average of 50 hires. Blue collar and sales vacancies follow, with 24 and 20 hire
averages per year.

Average number of recruited positions / year

50
Specialists hired / year

24
Blue collar hired / year

20
Sales hired / year

3
The power of social recruitment
Average closing time

The average closing time for top management positions amounts to 3.4 months,
and 2.7 months for middle management positions.

Top management 3.42 months

Middle management 2.72 months

The average closing time is 2.4 months for specialist positions, and 1.3 months
for entry level ones.

Specialists
Specialist 2.40 months

Entry level 1.33 months

Difficult to Fill Positions


The collected data shows that companies encounter the biggest difficulties in
recruiting IT software (60%) experts, independent of the industry of the company.

IT hardware (21%) professionals, technical experts and engineers (20%) come


next, followed by sales professionals (18%), accountants (11%) and customer
support experts (10%).

Profiles with dificulties in recruitment

58.28% 20.86%
19.02% 17.79%
Engineering -
IT Software IT Hardware Technical Sales

4
The power of social recruitment
Delays in recruitment

Companies report delays at all seniority levels. However, specialist (10%) and
manager (5%) positions are filled with the largest delays.

Thus, 35% of the respondent companies declare recruitment delays for over 15%
of their specialist positions. Similarly, 10% of the companies report delays in filling
more than 15% of their management positions.

Delays in recruitment by seniority


11%

8,25%

5,5%

2,75%

0
Board members Directors Managers Specialists Administrative Internship/Graduates Blue collar Other

Recruitment agencies report the biggest delays on the market, with an average
delay rate of 8% for all positions and top hiring lags for managers. Businesses in
Agriculture follow with a 6% delay rate and IT / Telecom companies, with a 4%
annual delay average for all their positions. In both cases, the biggest delays are
declared for specialist positions.

Industry % of all recruited positions Top delays for


Recruitment Agencies 7.97% Managers
Agriculture/Food 6.11% Specialists
IT / Telecom 3.68% Specialists
Commerce / Retail 2.92% Other positions
Professional services 2.77% Graduates / Interns
BFSI* 2.42% Specialists
Automotive 2.29% Workers
Call-center / BPO 2.05% Other positions
Advertising / Marketing 1.88% Specialists
*Business, Financial Services and Insurance ?
Did you know that referrals
are the #1 fastest time to fill?
5
The power of social recruitment
Time Consuming Factors

Almost 74% of the companies spend most of their recruitment time trying to
identify suitable candidates. At the same time, 32% of employers invest a lot of
time in identifying a large enough pool of candidates for each profile.
Low show-up rates for interviews are also time consuming for 23% of the
respondent organisations.

Most time consuming

1.84%

10.43%
11.66%

23.31%

30.67%

Identifying suitable candidates


Identifying a large enough number of candidates
Low show-up rates
Candidate communication
Sending candidate feedback & status updates
Other (lack of quality candidates)
73.62%

6
The power of social recruitment
Companies from industries like Transportation, Health, Agribusiness, Automotive,
BFSI, IT and Professional Services invest between 50% and 100% of their
recruitment time in identifying suitable candidates.

Time spent to identify suitable candidates vs. industry


Transportation / Logistics / Import - Export

Media / Internet
Medical / Health

Recruitment Agencies

Agriculture / Agribusiness / Food

Automotive

BFSI

IT / Telecom

Commerce / Retail

Professional services

Advertising / Marketing / PR

Call-center / BPO
0% 25 50 75 100%

Identifying a large number of candidates takes also a lot of the recruitment time
of Transportation companies, followed by those from Media and Health
industries.

Time spent to identify a large number of candidates for each position vs. industry

Transportation / Logistics / Import - Export


Media / Internet

Medical / Health

Recruitment Agencies

Agriculture / Agribusiness / Food

Automotive

BFSI

0% 12,5 25 50 60%

7
The power of social recruitment
Company expectations

Candidates team and culture fit - or congruence between the norms and values
of the person and those of the organization - is valued by 60% of the companies,
alongside results orientation (59%). The ability to work under stress and to deal
with continuous change is regarded as important by 43% of the companies.

Flexibility is also appreciated - to a higher extent than previous job experience.

Previous job
experience
Results orientation Creativity

16.56% 26.99%
58.90% Flexibility

29.45%
Team and culture fit

59.51%
Ability to work under
stress and deal with
continuous change

42.94% Other*
1.84%

* initiative, curiosity and technical skills, the desire to develop within the organisation
and advanced knowledge of foreign languages

8
The power of social recruitment
Results orientation is a fundamental performance criteria according to a series of
companies from different industries. All the respondents from Transportation,
Media and Health use it, alongside the majority of the respondents from
Automotive, Commerce, Call-center and IT / Telecom.

Results orientation vs. industry

Media / Internet

Medical / Health

Agencies

Professional services

Automotive

Commerce / Retail

BFSI*

Call-center / BPO

Agriculture / Agribusiness / Food

IT / Telecom

Advertising / Marketing / PR

0 25 50 75 100
*Business, Financial Services and Insurance

Team and culture fit is another essential performance criteria for these
companies. In fact, it is more appreciated than previous experience by all the
companies, regardless of industry.

Team and culture fit vs. previous job experience


Transportation / Logistics / Import - Export 100% 0%

Medical / Health 66.67% 66.67%

Automotive 66.67% 33.33%

Commerce / Retail 66.67% 11.11%

Agriculture / Agribusiness / Food 66.67% 55.56%

BFSI 60% 22.22%

Call-center / BPO 60% 10%

IT / Telecom 58.33% 40%

Advertising / Marketing / PR 50% 25%

Professional services 42.86% 0%

Recruitment agencies 41.67% 16.67%

Media / Internet 33.33% 33.33%

Team and culture fit


Previous job experience

9
The power of social recruitment
Evaluating recruitment

Closing time for the vacancies is a KPI for 68% of the respondent organizations when evaluating
the efficiency of their recruitment departments.

In turn, quality of hire is taken into account by 58% of the companies; it is a top KPI for
respondends from Media, Transportation, BFSI, Health and Professional services.

Manager satisfaction - measured after 3 or more months from hire start - is an important KPI for
45% of the respondents. Most of them represent industries like Automotive, Advertising, Media,
IT / Telecom, BFSI and Professional services.

Recruitment departments KPIs

Manager satisfaction

Closing time for the vacancies

Quality of hire

Costs

Performance rating

Churn / Attrition / Turnover

Others*

0% 17,5% 35% 52,5% 70%

* Number of interviews per profile; the evolution within the organization; internal recruitment

10
The power of social recruitment
Costs are an important KPI for 17% of the participating companies - specifically for
organisations from Agribusiness and BFSI.

Agriculture / Agribusiness / Food Call-center / BPO

Manager satisfaction Manager satisfaction

Closing time for the vacancies


Closing time for the vacancies

Quality of hire

Quality of hire

Costs

Performance ratings
Performance ratings

Churn Churn

0% 25 % 50 % 75 % 100 % 0% 17,5 % 35 % 52,5 % 70 %

IT / Telecom Commerce / Retail

Manager satisfaction Manager satisfaction

Closing time for the vacancies Closing time for the vacancies

Quality of hire Quality of hire

Performance ratings Performance ratings

Churn Churn

0% 15 % 30 % 45 % 60 % 0% 15 % 30 % 45 % 60 %

BFSI

Manager satisfaction

Closing time for the vacancies

Quality of hire

Costs

Performance ratings

0% 20 % 40 % 60 % 80 %

11
The power of social recruitment
Recruitment Satisfaction

In turn, referral programs are assessed as weak by 27% of the respondents, who
are also dissatisfied with their candidate attraction and engagement in the
recruitment process (16%).
Almost 47% of the companies are satisfied and very satisfied with their
recruitment results, while 12% are little or not satisfied at all.

Most of the respondents assess their


Satisfied capacity of identifying quality candidates
and
(90%) as good and very good, next to
very satisfied
recruitment through social and
46.63% Little or not
satisfied at all professional networks (88%) and their
12.27% ability to reach marginal candidates
through their own channels (83%).

Good and very good

Reaching quality candidate through company owned channels 89.57%

Social and professional network recruitment 88.34%

Identifying quality candidates 83.44%

Weak

Referral programs efficiency 26.99%

Candidate attraction and engagement in the recruitment process 15.95%

Reaching quality candidate through company owned channels 14.11%

12
The power of social recruitment
Recruitment Satisfaction Scores
Respondent companies were invited to evaluate their level of satisfaction in what
concerns recruitment using a 1 to 5 scale.

Average recruitment satisfaction scores (ARSS) calculated per industry indicate


that companies from Automotive, Transportation, Advertising, Professional
services and BFSI, IT / Telecom - among others - are some the most satisfied in
terms of recruitment.

Automotive
Transportation / Logistics
Recruitment agencies

Advertising / Marketing / PR
Professional services
BFSI
IT / Telecom
Agriculture / Agribusiness / Food
Commerce / Retail

Medical / Health
Media / Internet
Call-center / BPO
Constructions
Pharma
0,0 1,0 2,0 3,0 4,0

Average Recruitment Satisfaction Scores


43,56%
Companies above industry ARSS

43,56%
49,69%
Companies below industry ARSS

13
The power of social recruitment
Recruitment Rating Scores
Respondent companies also rated the efficiency of their recruitment channels
using a 1 to 3 scale.
Collaboration with recruitment agencies
Identifying marginal candidates through your own channels
Referral programs efficiency
Identifying quality candidates
Candidate attraction and engagement in the recruitment process
Candidate communication
Social and professional network recruitment
Job sites recruitment
Mass recruitment events participation
Targeted events

Average Recruitment Rating Scores (ARRS) calculated per industry show that
companies from industries like Automotive, BFSI and Call Center assess their
recruitment as efficient and top efficient.
Electronics
Oil & gas
Media / Internet
Automotive
Tourism / Hospitality
BFSI
Call-center / BPO
Professional services
Energy
Environment protection
Medical/Health
Commerce/Retail
IT / Telecom
Agriculture/Agribusiness/Food
Recruitment Agencies
Education / Training
Constructions
Pharma
Sports/beauty
Advertising / Marketing / PR
Transportation / Logistics
Textiles
Library
Other
0 0,65 1,3 1,95 2,6

While average recruitment satisfaction scores suggest that almost half of the participant
companies are satisfied with their recruitment, average recruitment rating scores show that
the majority are discontented with the efficiency of their recruitment channels.
Thus, 64.42% of the respondent companies scored above their industries averages, while
29.45% obtained scores above their market results.
Companies above industry ARSS

29,45%
64,42%
Companies below industry ARSS
14
The power of social recruitment
Recruitment trends

Most of the companies anticipate that recruitment will become more and more
difficult (72%) and expect social and professional networks (74%) to become the
trend in recruitment.

Referral programs (50%) and targeted events (37%) are also seen as the future of
recruitment channels.

Trending recruitment channels


1%

Social and professional networks 3%


9%
Targeted recruitment events
Job fairs
Referral programs 40%
Job sites 20%

Others
(open days, employer branding, events)

27%

Trending: social networks vs. referral ratings

Industry Social networks (1 to 3 scale) Referral (1 to 3 scale)


IT/Telecom 1.4 0.82
Call Center / BPO 1.7 2.2
BFSI 1.53 2.07
Commerce / Retail 1.67 2
Automotive 2 2.17
Agencies 1.08 2.33

15
The power of social recruitment
Best in class companies
Best in class for recruitment satisfaction
These are companies from a series of industries, satisfied and very satisfied with
their recruitment results. Total best in class companies for recruitment
satisfaction: 12

Average Recruitment Satisfaction Score: 4,25

1 2 3 4 5

Industries:

IT-Telecom Commerce / Retail

Call Center / BPO Automotive

BFSI (Business, Financial Services and Insurance) Human Resources

Best in class companies use mainly social and professional networks in


recruitment (34%) and referrals (26%).

When it comes to evaluating employee performance, companies with the best


recruitment results consider their team and culture fit (58%) and their employees
ability to work under stress and continuous change (50%).

Best in class organisations also appreciate their candidates' results orientation


and flexibility (42%).

Average number of recruiters in best in class companies: 4.36

1 2 3 4 5

16
The power of social recruitment
Top recruitment channels for best in class companies according to recruitment satisfaction

Referrals

26%

Recruitment
Agencies
11%

Social and professional Events


networks 10%
34%

?
Did you know that 46% of all hires at top
performing companies are referrals?

Top performance criteria for best in class companies according to recruitment satisfaction

58% 50% 42% 42%


Team and culture fit Ability to work under Results orientation Flexibility
stress

17
The power of social recruitment
29,45%
Closing time for the vacancies is the most important metric when evaluating the
efficiency of Recruitment departments (83%) in best in class companies according
to recruitment satisfaction. Churn / attrition rates come next (33%), followed by
quality of hire (25%).

Closing time for the


33% vacancies

Churn

25% Quality of hire


17% Performance ratings
83% 8% Costs

Best in class companies expect social and professional networks to dominate


among recruitment trends (75%), alongside referral programs (25%).

Social and professional


networks

25% Referrals

17% Job sites

8% Job fairs

8% Targeted events

75%

18
The power of social recruitment
Best in class for recruitment rating

Six companies were identified as best in class among those that rated their use of
recruitment channels as good and very good in the same group of industries:
IT-Telecom, Call Center / BPO, BFSI, Commerce / Retail, Automotive and Human
Resources. These organizations positively rate their recruitment according to their
use of recruitment channels.

Social and professional networks, next to referral programs, are top recruitment
channels for these companies and are used by roughly 30% of the respondents
identified as best in class for recruitment rating.

Average recruitment rating scores: 2.74 Top recruitment channels

Referrals

29%
1 2 3
Agencies

Average numbers of recruiters: 3.83 23%

Social and professional Events


networks 14%
1 2 3 4 31%

Team and culture fit (70%) are the most important performance criteria for best in
class companies according to recruitment rating, followed by results orientation
and the ability to work under stress, which are simultaneously used by half of
these companies.

Top recruitment channels simultaneously used by best in class


companies for recruitment rating

70%
50%
Team and culture fit Results
orientation

50% 50%
Ability to work Flexibility
under stress

19
The power of social recruitment
Best in class companies mainly consider closing time for their vacancies and
performance ratings when evaluating their recruitment departments.

They also employ KPIs like churn rates and costs.

Top KPIs for best in class companies for recruitment rating

50%
33%
Closing time for
the vacancies Churn

33% 17%
50%
Quality of hire Costs
Performance ratings

Best in class companies for recruitment rating see the use of social and
professional networks as the main trend in recruitment. In addition, they expect
referrals, job sites and customized events to also be a part of recruitment trends.

Top recruitment trends* for best in class companies according to recruitment rating

33% 33%
Referrals Job sites

83% 33% 17%


Social and professional networks
Customized Job fairs
events

*Simultaneously expected
20
The power of social recruitment
Industry Focus - IT&C
60 respondent companies

Company average sizes

Average number of employees % of total IT / Telecom


25 15.00%
Average
numbers of
75 21.67%
recruiters
200 28.33% in companies
400 10.00%
750 5.00% 5.55
2000 16.67%
3000 3.33%

Top locations Top categories recruited per year


Cluj - Napoca Recruited Positions
14.44%
Specialists

Bucharest 68
38.89%
Graduates / internship

27
Timisoara Managers
38.89%
5
Total average number: 100

Average delay rate in IT / Telecom: 3.68%

Top Delays Most employed


performance criteria
Specialists Team and culture fit
17% 58.33%
Managers Results orientation
4% 51.67%
Other positions Previous job experience

3% 40%
21
The power of social recruitment
Top challenges Most time consuming
activities in recruitment
Identifying quality candidates Identifying suitable candidates

61.67% 75%
Unreasonable salary Identifying a large enough
expectations from number of candidates
candidates

48.33% 46.67%
Low show-up rates
Competition

45% 20%
Most used KPIs for
recruitment departments Average closing time in
the industry: 2.09 months
Closing time for the vacancies
month month month

58.33% 1 2 3
Quality of hire

46.67% Average closing time per position


Performance ratings Top management

41.67% 3.6months
Manager satisfaction Manager

33.33% 2.1months
Churn Specialist

21.67% 1.8months
Entry Level
Top recruitment trends according
to industry respondents 1.2months
Social and professional
networks

75% Average recruitment satisfaction


rate in the industry (1 to 5 scale): 3.38
Referral programs

57.67%
Personalised recruitment events 1 2 3 4 5

43.33% 22
The power of social recruitment
Respondent companies

The representatives of 163 companies participated to the research - most of them


from Bucharest (64%), followed by Cluj-Napoca (11%) and Timisoara (8%).
The majority of the respondent companies (66%) have over 100 employees.

Top respondents locations

Bucuresti 63,8%

Cluj 10,43%

Timisoara 7,98%

Brasov 1,84%

Iasi 1,48%

Sibiu 1,84%

0% 2,75 % 5,5 % 8,25 % 11 %

Most of the companies represent the Most of the respondents are specialists (45%),
IT / Telecom industry (37%), followed by mainly from Recruitment departments (88%),
Recruitment Agencies (7%) and followed by junior managers (20%), senior
Call-center / BPO, Banking / Financial managers (14%), directors (10%), and board
Services, Commerce / Retail and members (6%).
Agriculture / Agribusiness (6% each).

46,81%
IT / Telecom
7,36%
Recruitment
6,13%
Call-center / BPO 44.79% 19.63% 13.50% 9,82% 5,52%
Agencies

5,52%
Agriculture /
5,52%
Banking / Financial
5,52%
Commerce /
Specialist
Junior manager
Agribusiness /
Food
Services
Retail Senior manager
Director
Board member

23
The power of social recruitment
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