With a new generation entering the workforce, the rise in remote work, and innovative technologies reaching mainstream adoption, the landscape of work is changing at a rapid pace. For talent acquisition professionals, it’s more important than ever to stay on top of the trends that are shaping the recruitment and retention of talented candidates. We rounded up 4 essential facts and figures that should be on the radar of every employer concerned about building a better workforce:
1. Millennials are currently the largest generation in the U.S. workforce.
Some people still mistakenly believe that the Millennial generation is made up of young adults in their 20s who are just starting to make their mark on the workforce. The reality is that Millennials became the largest generation in the U.S. labor force in 2016, outnumbering both Baby Boomers and Gen X. With the oldest Millennials approaching 40 and the youngest Millennials nearing their mid-20s, the next decade will bring a continued focus on the Millennial manager, especially as this generation moves into more senior roles.
However, it’s only a matter of time before Millennials are eclipsed as the largest workforce – Bloomberg reports that Generation Z recently surpassed Millennials as the largest global population, now making up 32% of the global population. With the youngest members of Generation Z now entering the workforce, employers will need to focus on both helping Millennial managers grow into leadership roles, and recruiting a generation that is touted as sensible, passionate about career growth, and socially-conscious. [Further reading: A Comprehensive Guide to What Generation Z Wants at Work]
2. The percentage of people working remotely is higher than ever.
70% of people globally work remotely at least once a week, according to one study conducted by a Swiss office company. Another study conducted by Gallup in 2016 found that 43% of employees spent some time working remotely, compared to 39% of employees in 2012. Providing a more conservative look at remote work trends, the U.S. Census reported that 5.2% of people work from home – up from 3.3% in 2000.
While the numbers vary on just how many people are working remotely, it’s clear that the option to work remotely at least some of the time is becoming the norm, not the exception, and companies are increasingly on board. According to a 2016 Society for Human Resource Management (SHRM) benefits survey, 60% of companies offer their employees the opportunity to work remotely, a percentage that’s increased 3x since 1996. As more and more employers use remote work policies as a way to attract top talent, the dominant question is no longer, “Should we offer remote work options?” rather, “How can we set our remote workers up for success?”
3. More and more companies are making diversity & inclusion a part of their institutional framework.
Not only is it the right thing to do, but study after study has shown that recruiting and retaining a diverse workforce leads to better business results. Whether or not these studies had an impact on a larger push for increasing diversity, it’s clear that more and more and companies have established formal roles for promoting a diverse and inclusive workplace. In 2018, Indeed shared that its platform saw a 35% increase in diversity & inclusion job postings within a two-year span, and the number of searches for diversity & inclusion roles has slowly increased over the past five years.
The 2017 NACE Recruiting Benchmarking Survey also reported the existence of diversity recruiting programs at a 10-year high – 80% of employers surveyed reported having formalized diversity recruiting efforts, compared to 66% of employers in 2008.
In addition to the overall increase of formalized diversity initiatives, the larger conversation surrounding diversity – especially in the tech sector – has grown in the past decade.
Prior to 2013, the lack of diversity in tech was well-known – but there were rarely hard figures to show just how bleak representation was at many top tech companies. According to The Atlantic, Tracy Chou’s widely-read call-to-action for top tech companies to release their diversity data may have prompted companies like Google, Apple, and Facebook to release their first public diversity reports a year later, in 2014. Today, top tech companies regularly release their diversity data in addition to public information about the steps they are taking to improve the representation within their workforce.
4. Artificial intelligence has become increasingly prevalent in the talent acquisition space, but recruiters and hiring managers aren’t worried they will be replaced by AI.
A 2018 survey of nearly 800 talent acquisition professionals conducted by executive search firm Korn Ferry reveals that the use of artificial intelligence in recruiting is reaching mainstream adoption – 63% of respondents said that AI has changed the way recruiting is done in their organization. Nearly 70% of survey respondents said that using AI as a sourcing tool garners higher quality candidates, and nearly half of respondents said that big data and AI makes their roles easier. Despite the power of AI, the talent acquisition professionals surveyed weren’t worried about it impacting their job – only 11 percent of respondents believed AI will replace their job.
LinkedIn’s 2018 Hiring Trends Report also reveals that the use of AI among recruiters is here to stay – 35% of talent professionals and hiring managers surveyed by LinkedIn said that AI is the top trend influencing how they hire. However, the use case for AI seems to lie in enhancing the process of a recruiter or hiring manager, rather than replacing it altogether.
Close to 60% of respondents said that AI is most helpful when it comes to sourcing and screening candidates, while only 6% of respondents said that AI is most helpful for interviewing candidates. When it comes to things like building relationships with candidates, assessing soft skills, and gauging potential, survey respondents aren’t worried about being replaced by AI.
The landscape of work is constantly changing and these are just a few of the most pressing issues that talent professionals should stay on top of, whether you’re a campus recruiter or involved in executive search. If you’re interested specifically in university recruiting trends, be sure to read our article on campus recruiting trends here, check out our resource library, and subscribe to our ‘Future of Work’ newsletter below.