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RECRUITING
TRENDS
2018
T h e 4 i d e a s c h a n g i n g
h o w y o u h i r e
A new wave in recruiting
is killing the transaction
Hiring talent has become highly transactional. The tedious candidate
searches, the endless scheduling, and the repetitive screening are
inefficient and mind-numbing. It’s time for a new era of recruiting that
About this report focuses on the more gratifying parts of the job — the human part, the
strategic part. This year’s four top trends are doing just that.
We interviewed industry experts about the state
of hiring and four trends came in hot: diversity,
New interviewing tools, many powered by artificial intelligence, now sift
new interviewing tools, data, and artificial
through resumes and automatically weed out candidates so that your
intelligence. We then surveyed nearly 9,000
team can investmore in connecting with and closing the best ones.
recruiters and hiring managers from 39 countries
Meanwhile diversity is a hot source of corporate growth — embrace it
about those trends. This report combines
and you can be a revenue-driver for your company. Data is your other
those survey insights with examples from 17
ticket to strategic impact as it provides the credibility and insight you
companies at the forefront of these trends.
need to boost your organization’s bottom line.
Contents
T r e n d s t o w at c h i n 2 0 1 8
D i v e r s i t y: t h e n e w g l o b a l m i n d s e t
D ata i s t h e n e w c o r p o r at e s u p e r p o w e r
C o n c l u s i o n : I t ’ s o n y o u t o s tay r e l e v a n t
Methodology
4 trends shaping Top trends shaping the future of
recruiting and hiring
the future of
talent acquisition
Very/extremely important Mostly/completely adopted
Diversity
The trends below are the four that will most shape how
78%
you hire in the years to come. Diversity is the biggest
game-changer and most embraced trend with over 53%
8%
Diversity:
the new
global mindset
You can’t have diversity without
inclusion and belonging
Diversity, the popular phrase of the1980s, became diversity and inclusion as the movement
matured, and today has expanded to diversity, inclusion and belonging. Here’s why: diversity is
being invited to the party, inclusion is being asked to dance, and belonging is dancing like no one’s
watching. Belonging is the feeling of psychological safety that allows employees to be their best
selves at work. Even at the most diverse of companies, employees will disengage and leave if they
don’t feel included and accepted. The good news is that companies are focusing on all three,
signaling an understanding that inclusion and belonging make diversity stick. Looking ahead, we’ll
see more companies disentangling the concepts and especially measuring belonging.
C o m pa n i e s t h at a r e “ v e r y ” o r “ e x t r e m e ly ” f o c u s e d o n :
30% 28%
Steve Pemberton
former Chief Diversity
Officer, Walgreens
Show diverse candidates career paths at the company Sponsor quality programs
Walgreens Veterans Network teams up with recruiters at job fairs and At its annual TEDx Walgreens, the company’s Next Gen Empowerment
local events to strike common ground with veterans and help them Network (WNEXT) gathers hundreds of employees and local business
envision paths at Walgreens. Once on board, their relationships continue leaders to share ideas on topics like entrepreneurship and healthcare.
through mentoring, networking and professional development. BRGs geared toward women, Asians, and Latinos also sponsor events
to foster inclusion and belonging.
Sa r a h Na h m
CEO, L e v e r
Lisa Lee
Director of Diversity
a n d I n c l u s i o n, Pa n d o r a
Importance 67%
around the 82%
TURKEY
82%
world UK CHINA
FRANCE
80% 81%
MIDDLE EAST & INDIA
78% NORTH AFRICA
89%
SOUTH AFRICA 85%
AUSTRALIA
Reinventing
the
interview
Traditional interviews The popularity and effectiveness
of traditional techniques
aren’t going away (yet)
Used frequently/always Rated somewhat/very effective
You know the drill with traditional interviews — when
you ask candidates about their skills and experience
Structured interview
to see if they’re fit for the job. Formats vary from
74%
in-person vs. phone to one-on-one vs. panel to
structured vs. unstructured questions, but traditional 88%
Phone screen
57%
70%
Interview panel
48%
79%
84%
69% 59%
54% | Job auditions
P o s i t i v e ca n d i d a t e e x p e r i e n c e All candidates receive immediate and personalized feedback on their top skill. Nearly
90% rate the experience positively.
Courtney Storz
Head of Global Campus
R e c r u i t i n g, C i t i
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Case Study
T h e I m p ac t
B e t t e r a b i l i t y t o a s s e s s s k i ll s Observing candidates in high-pressure situations that mimic Citadel’s work life gives a
more realistic preview of performance.
M o r e o b j e c t i v e e v al u a t i o n s Auditions reduce bias by measuring actual performance rather than interviewing skills,
past experience or former employers.
P o s i t i v e ca n d i d a t e e x p e r i e n c e Competing for cash is fun and exciting, and the audition experience mirrors the
employee experience, helping candidates assess fit.
Stronger employer brand The events themselves generate significant buzz for Citadel and marketing them has
been an opportunity to engage with key talent.
T h e I m p ac t
Better ability to Casual settings can reveal how candidates deal with the day-to-day and the Walt B e t t i n g e r
s e e c h a r ac t e r unexpected. Hiring managers can’t get that by listening to rehearsed answers in a CEO, C h a r l e s S c h w a b
conference room.
M o r e r e la x i n g ca n d i d a t e Outside the standard interview environment candidates are more likely to be at ease.
experience Background noise and interruptions can make them feel less under-the-microscope.
B e t t e r a b i l i t y t o a s s e s s s k i ll s Instead of candidates describing how they’d do a task, they actually do the task,
giving Lloyds a first-hand look at behavior. A r b i Ra i
Senior Recruitment Manager,
Lloyds Banking Group
Less unconscious bias Evaluators are ‘blind’ to past experience. Diversity across gender and Black, Asian
and minority ethnic exceed industry norms as a result.
M o r e ca n d i d a t e e n g a g e m e n t 96% of candidates rate the VR experience as both comfortable and impressive, and
100% think it adds value to the hiring process.
P o s i t i v e ca n d i d a t e e x p e r i e n c e Tech-savvy students are already comfortable using video, it’s less confrontational than
in person, and it eliminates the hassle of travel.
Traditional Traditional
Resume phone screen in-person interviews
OLD
HIRE
MODEL
NEW
HIRE
MODEL
LinkedIn profile Soft skills assessment Traditional in-person interviews
AND/OR AND
Video interview Virtual reality assessment
AND/OR AND/OR
Job tryout (in group, shorter duration) Job tryout (individual, longer duration)
AND/OR
Casual setting interview
Importance 58%
around the 49%
TURKEY
59%
world UK CHINA
FRANCE
70% 58% 61%
MEXICO MIDDLE EAST & INDIA
56% NORTH AFRICA
67%
SOUTH AFRICA 54%
AUSTRALIA
Data is the
new corporate
superpower
The power of data is Da t a u s a g e t o d a y
79%
hiring managers use data in their work now and even
more are likely to use it in the next two years.
of recruiters and hiring managers are at least
“somewhat likely” to use data in the next 2 years
Now it’s true — data informing talent decisions isn’t
a new concept. But what is new is the volume of
data available and the speed with which it can be
analyzed. What’s new is that data can be used to
predict hiring outcomes, not just track them. What’s
new is that data can power machines to make
smarter recruiting decisions for you, a.k.a. artificial
intelligence (AI). The most sophisticated companies
are piecing together every bit of data they have to try
to compete. Just as they might have a social media
strategy or an events strategy, they now have a talent
intelligence strategy too.
Da w n Kl i n g h o ff e r
G e n e r a l M a n a g e r o f HR
B u s i n e s s I n s i g h t s, M i c r o s o f t
New tools such as LinkedIn Talent Insights (to be released 2018) offer
self-serve analytics that give real-time, in-depth talent statistics and
trends. Users can tap LinkedIn’s rich global dataset with a few clicks
and feel confident in the results without needing a PhD in statistics.
We’re biased of course, but it removes some of the management and
analysis steps that so often jeopardize data quality.
20% Not sure where to get it
6% Other
Increased employee retention Most groups achieved a 5-10% increase in annual retention of their at-risk employees.
Chris Louie
SVP, P e o p l e A n a ly t i c s a n d
Ta l e n t A c q u i s i t i o n, N i e l s e n
I m m e d i at e c r e d i b i l i t y f o r The analysis caught the attention of other business leaders and has since been
t al e n t a n aly t i c s replicated for other Nielsen units.
Higher customer There was also an uptick in customer satisfaction as shown by the half-point boost R y a n D u lla g h a n
s a t i s fac t i o n in Net Promoter Score (NPS). That small increase translates into a whole lot of added Manager, People Assessment
revenue for JetBlue. a n d A n a ly t i c s,
J e tB l u e A i r w a y s
More credibility for The analysis and ultimate success of the relocation program helped build trust
t al e n t ac q u i s i t i o n between the talent acquisition and engineering teams.
69%
D a n a h e r C o r p o r at i o n A n a ly t i c s, E m e r s o n
Celia analyzed supply/demand data to see where Danaher’s Brett used to not be invited to meetings with the executive team.
talent hubs were, and found its competitors were in all the same He would have talent insights but they were based on anecdotes
places. This led her to discover hidden pockets of talent in and not getting him anywhere. That’s when he started pulling
Danaher’s customer hubs. Her findings were so influential that data from the company ATS, LinkedIn and other sources to
she got the attention of senior executives for the first time. With support his ideas. This got him on the leadership team’s agenda, of talent professionals
newfound credibility, she was able to secure money for other a big move forward for his team. Through data Bret earns the think data could
projects such as employer branding. trust of colleagues and gets the confidence to go toe to toe. elevate their position
“Before I presented my findings at the leadership “Data is the one language that everybody speaks
table, I was tentative to influence a decision. But across the company. I gain trust from people
the data gave me the confidence I needed to across functions by bringing something that can
drive the strategy forward.” be verified, something that can be checked.
Importance 51%
around the 38%
TURKEY
56%
world UK CHINA
FRANCE
61% 48% 56%
MEXICO MIDDLE EAST & INDIA
50% NORTH AFRICA
49%
SOUTH AFRICA 43%
AUSTRALIA
Artificial intelligence:
your secret workhorse
AI’s impact on recruiting is on the rise
Artificial intelligence is a machine’s ability to have human-like intelligence. Computers can be
programmed to learn with data in order to perform a task, and improve at the task as more data pours
in. AI is the powerful force behind new technologies from self-driving cars to search engines, and it’s on
its way to revolutionizing the talent industry. This next-generation technology helps recruiters work faster
by automating administrative tasks, and smarter by generating insights they wouldn’t think of alone.
According to our research, most recruiters and hiring managers already foresee its impact.
67% 43%
56% | Screening candidates
31% 30%
24% | Engaging candidates
T o p s k i ll s A I i s l e a s t l i k e l y t o r e p lac e
T h e I m p ac t
M o r e q u al i f i e d e m p l o y e e s Intuit tracks employee performance by source of hire. Employees overall have a high N i c k Ma i l e y
score of 4.6/5 on average, but it’s 4.8/5 for those sourced from the model due to VP o f T a l e n t A c q u i s i t i o n ,
weeding out more unqualified candidates. Intuit
Fa s t e r t i m e t o h i r e It takes under 30 days to hire from the prioritized list of candidates versus 62 days
from the extended pool.
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Case Study
T h e I m p ac t
C a t al i n a Sc h v e n i n g e r
Fa s t e r t i m e t o h i r e AI-powered video interviews have cut Vodafone’s hiring time in half for its higher-
Global Head of Resourcing and
volume call center and customer service roles. Over 50,000 applicants have
G l o b a l B r a n d, V o d a f o n e
participated.
Better ability to In contrast to phone screens, video interviews allow Vodafone to actually see its
a s s e s s s o f t s k i ll s candidates. Coupled with the AI-powered screening, this has been a huge advantage
in hiring for “attitude.”
T h e I m p ac t Anna Ott
HR e x p e r t,
B e t t e r ca n d i d a t e e x p e r i e n c e The chatbot is available 24/7 to answer potential applicants’ questions. Candidates hub:raum
are spared the information ‘black hole’ because the chatbot maintains interaction with
them while they wait.
H i g h e r r e c r u i t e r e ff i c i e n c y The chatbot filters out applicants who lose interest in jobs upon receiving detailed
information. HR staff thus have more time to spend with applicants who are suitable,
interested candidates.
HIGH
so is the human touch Gauging
Story-telling/selling the role
interpersonal Negotiations/
AI is a huge step forward for talent acquisition, skills persuasion
but it will never fully automate it. Companies still Detecting diversity
need people — people to persuade and negotiate, indicators
Understanding
Gauging
to understand candidate needs, and to build candidate’s needs
culture-fit
communities and cultures. Paradoxically the more
Nurture marketing
Recruitment marketing
Interview scheduling
Candidate sourcing
Resume collection/
parsing De-duping/
LOW
ATS updates
HIGH LOW
Automation potential
Importance 39%
around the 28%
TURKEY
47%
world UK CHINA
Percentage of respondents
31% 34%
who say that AI is the top
trend affecting how they hire
USA 21% GERMANY
FRANCE
37% 36% 36%
MEXICO MIDDLE EAST & INDIA
35% NORTH AFRICA
41%
SOUTH AFRICA 33%
AUSTRALIA
If you don’t seize the forces shaping the world around you,
you’ll fall behind in your career and in the war for talent.
24% Professional Technology - Financial Services & Retail & Consumer Healthcare & Architecture &
1-200 employees Services Software Insurance Products Pharmaceutical Engineering
26%
1,001-10,000 employees
24% 6% 5% 4% 3% 3% 3%
>10,000 employees Manufacturing/ Aero/Auto/Transport Unknown Oil & Energy Telecommunications Media &
Industrial Entertainment
270
NETHERLANDS
709
328 214 UK
CANADA GERMANY
375 606
1,362 CHINA
FRANCE
Respondents
US
339 146
394 MIDDLE EAST & 442 NEW ZEALAND
ARGENTINA NORTH AFRICA SOUTHEAST
ASIA
185
SOUTH AFRICA
D i v e r s i t y : t h e n e w g l o b al m i n d s e t
Janet H. Cho. “’Diversity is being invited to the party; inclusion is being asked to dance” Verna Myers tells Cleveland Bar,’ cleveland.com, May 25, 2016 | SOURCE
Sid Lipsey. “Why Diversity = Winning for the U.S.. Olympic and Paralympic Teams.” LinkedIn Talent Blog, June 16, 2016 | SOURCE
Laura Sherbin and Ripa Rashid. “Diversity Doesn’t Stick without Inclusion.” Harvard Business Review, February 1, 2017 | SOURCE
Walgreens
Walgreens 2014 Diversity and Inclusion Report | SOURCE
Michael Johnsen. “CVS, Walgreens and Walmart each ace Disability Equality Index.” Drug Store News. August 24, 2017 | SOURCE
Lever
Ushma Mistry. “What Mistakes Do Companies Make with Diversity and Inclusion?” Undercover Recruiter. accessed November 16, 2017 | SOURCE
Amy Feldman “Recruiting Software Firm Lever Raises $30M For Effort To Transform Hiring.” Forbes. July 19, 2017 | SOURCE
Sarah Nahm. “Cultivating Diversity and Inclusion in the Workplace.” The Talent Innovation Blog. March 21, 2017 | SOURCE
Salvador Rodriguez. “Tech Diversity: These Startups Are Breaking The ‘Brogrammer’ Mold By Baking In Diversity From The Start.” International Business Times. August 27, 2015 | SOURCE
Kim-Mai Cutler. “How Lever Got to 50-50 Women and Men.” Medium. January 13, 2017 | SOURCE
“How Lever Empowered Employees as Brand Storytellers to Diversify Our Team.” HR Open Source. July 9, 2016 | SOURCE
Pandora
Kate Reilly. “Ban the Term ‘Culture-fit’ and Other Great Diversity Tips from Pandora.” LinkedIn Talent Blog, December 14, 2016 | SOURCE
Richard Nisbett. “Why Job Interviews are Pointless.” The Guardian. November 22, 2015 | SOURCE
Jason Dana. “The Utter Uselessness of Job Interviews.” The New York Times. April 8, 2017 | SOURCE
Jennifer Shappley. “A LinkedIn HR exec shares the top 6 things recruiters look for when assessing your ‘soft skills.’” Business Insider. May 5, 2017 | SOURCE
Marcel Schwantes. “The Job Interview Will Soon Be Dead. Here’s What the Top Companies Are Replacing It With.” Inc. March 6, 2017 | SOURCE
Citadel
Justin Pinchback. “Introducing Talent Auditions.” LinkedIn Talent Connect presentation. October 4, 2017 | SOURCE
Charles Schwab
Adam Bryant. “Walt Bettinger of Charles Schwab: You’ve Got to Open Up to Move Up.” The New York Times. February 4, 2016 | SOURCE
Shannon Brayton. “Here’s Why I Won’t Hire Anyone Until I Take Them to Lunch First.” LinkedIn. January 28, 2015 | SOURCE
Joe Burridge. “Interviewing Candidates Over Lunch? Lettuce Help You With That.” LinkedIn Talent Blog. October 14, 2016 | SOURCE
“Introducing Virtual Reality to attract the best Digital and IT talent.” Lloyds Banking Group press release. October 12, 2016 | SOURCE
KPMG
Verity Edwards. “Video resumes and interviews: welcome to the brave new world.” The Australian Business Review. November 7, 2015 | SOURCE
Pavana KR. TalQuest’16 | Award for Best Candidate Experience.” Talview Blog. 2016 | SOURCE
Catherine Cunningham. “Job Interview Selfies and Skype: the Brave New World of Online Job Interviews.” Career Consultancy. September 30, 2015 | SOURCE
“Let the Games Begin!” KPMG Newsroom press release. March 26, 2015 | SOURCE
Rebecca Trigger and James Carmody. “Robot recruiters, Snapchat applications, online games: This is how we’ll get our future jobs.” ABC News. September 21, 2017 | SOURCE
Unilever
Kelsey Gee. “In Unilever’s Radical Hiring Experiment, Resumes Are Out, Algorithms Are In.” The Wall Street Journal. June 26, 2017 | SOURCE
“Global Impact - Unilever.” Pymetrics website. Accessed November 11, 2017 | SOURCE
“Game on! Our graduate recruitment drive’s gone digital” Unilever News press release. September 14, 2016 | SOURCE
Michael Stephan. “Say Hello to the Cognitive Recruiter.” The Wall Street Journal. April 12, 2017 | SOURCE
Jon-Mark Sabel. “How Unilever Hires 50% of the Candidates it Screens.” Hirevue Blog. March 15, 2017 | SOURCE
John Sullivan. “12 Innovative Recruiting Strategies That Savvy Companies are Using.” LinkedIn Talent Blog. July 10, 2017 | SOURCE
Todd Raphael. “Unilever Wants to Shorten Hiring From 4 Months to 2 Weeks.” EREMedia. September 21, 2016 | SOURCE
Da t a i s t h e n e w c o r p o r a t e s u p e r p o w e r
Daniel Shapero. “Our Vision for Talent Intelligence: A New Way to Win in Today’s World of Work.” LinkedIn Talent Blog. October 4, 2017 | SOURCE
Greta Roberts. “Making HR the Hero: Using Predictive Analytics to Solve Real Business Challenges.” TLNT. October 29, 2015 | SOURCE
JetBlue
“Should Hiring be Based on Gut - or Data?” Knowledge@Wharton. August 24, 2015 | SOURCE
Nielsen
LinkedIn interview with Chris Louie and Douglas Shagam. January 3rd, 2017
People Analytics Isn’t as Hard as You Think—Nielsen Proves Why. LinkedIn Talent Blog. March 9, 2018 | SOURCE
Atlassian
LinkedIn Interview with Devin Rogozinski. December 6th, 2017 and January 4th, 2018
Atlassian’s 5-Step Strategy for Recruiting European Tech Talent to Australia. LinkedIn Talent Blog. September 9, 2015 | SOURCE
A r t i f i c i al i n t e ll i g e n c e : y o u r s e c r e t w o r k h o r s e
Jack Uldrich. “HR’s “HAIR”-y Future: 5 Ways Artificial Intelligence Will Transform Human Resources.” LinkedIn. April 26, 2017.
Dan Shapero and friends. “Talent Intelligence - Where Instincts and Insights Meet.” LinkedIn Talent Connect. October 4, 2017 | SOURCE
Ji-A Min. “How Artificial Intelligence Is Changing Talent Acquisition.” TLNT. November 11, 2016 | SOURCE
Sean Captain. “Can Using Artificial Intelligence Make Hiring Less Biased?” Fast Company. May 18, 2016 | SOURCE
Sankar Venkatraman. This Chart Reveals Where AI Will Impact Recruiting (and What Skills Make Recruiters Irreplaceable). LinkedIn Talent Blog. November 2017 | SOURCE
Intuit
Rahim Daya. “The Next Generation of LinkedIn Recruiter is Here.” LinkedIn Talent Blog. April 19, 2016 | SOURCE
Vodafone
Sarah Butcher. “Hirevue interview questions at Goldman Sachs and J.P. Morgan.” eFinancialCareers. August 11, 2017 | SOURCE
Roy Mauer. “Digital Video Upgrades the Hiring Experience.” Society for Human Resource Management. May 16, 2017 | SOURCE
Deutsche Telekom
Gregory Lewis. “Recruiting Chatbots Won’t Take Your Job, But They May Make It Easier.” LinkedIn Talent Blog. August 21, 2017 | SOURCE
Research E d i t o r i al
B e n j a m i n S pa r Ily a Pl e t e n y u k Ka t e R e i lly Ma r i a I g n a t o v a
Sr. Manager, Market Research S r . R e s e a r c h A s s o c i at e W r i t e r & C o n t e n t St r a t e g i s t Thought Leadership Lead
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