U.S. Hiring Trends: Available Positions vs. Available Talent

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1 U.S. Hiring Trends: Available Positions vs. Available Talent icims Quarterly Report on Employer & Job Seeker Behaviors 2015 icims Inc. All Rights Reserved.

2 Table of Contents Executive Summary...3 Key Findings...4 Industries With High Demand for Talent...5 Overall Trends...6 Trends in Retail...8 Trends in Healthcare...9 Trends in Transportation...10 Talent Demand...11 Industry Trends...12 Geography Trends...13 Company Size Trends...14 Use Of Mobile Devices for Job Applications...15 Industry Trends...16 Passive Job Interest and Company Connections...17 Industry Trends...18 Company Size Trends icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 2

3 Executive Summary The following report presents job creation and demand trends for industries, geographies, and company sizes within the United States based on icims' customer base data. Three industries stand out as having highest demand for talent when looking at 2014 and Q data: healthcare, transportation, and retail. Because the concentration of demand for talent varies across the country, certain regions or industries may require special focus on fostering a best-in-class recruitment strategy. For example, the West has the highest demand for talent (i.e., open positions) in the healthcare industry. jobs. The West has the largest demand for talent with the lowest ratio of applicants entering the hiring pipeline to the number of open positions. Applicants in the Midwest are more likely to be connected with the jobs they are passively interested in, compared with other regions. Consistent with demand for talent trends, retail and healthcare stand out as significant industries, and support more than half of all candidates passively interested in jobs. Regardless of industry or geography trends, the highest demand for talent is located within larger companies with more than 5,000 employees. Across the country and industries, there is a notable gap between talent demand and talent availability. The technology and construction industries have the largest gap between talent entering the hiring pipeline and the number of positions that need to be filled. This signals the need to develop qualified applicants to fill these types of 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 3

4 Key Findings The top three industries with the highest demand for talent in 2014 and Q are healthcare, transportation, and retail. The concentration of talent demand varies across the U.S. in top industries. The West has the highest concentration of talent demand for the healthcare industry. Transportation has the highest demand in the Midwest. Talent demand for retail is highest in the Northeast. There are notable differences in talent demand across industry, geography, and company size. Industry Trends: The pharmaceutical and construction industries have the most notable gap between talent demand and talent availability. Both have the lowest number of applicants entering the hiring pipeline based on the open positions that need to be filled. Geography Trends: The South has the highest demand for talent with the lowest number of applicants entering the hiring pipeline for open positions compared to all other regions. However, when company size is controlled, the West has the highest demand. Company Size Trends: All companies, regardless of size, have more applicants entering the hiring pipeline than the number of open positions, but the smallest companies (i.e., less than 100 employees) tend to have a lower ratio of open positions to applicants entering the hiring pipeline compared to larger companies. When we factor in the relative size of a company, small companies (i.e., less than 100 employees) post the most jobs relative to their size. There are notable differences in the use of mobile devices for job applications across industry. The hospitality and retail industries have the highest use of mobile devices for job applications at 11 and 10 percent, respectively. There are notable differences in passive job interest and job connections across industry, geography, and company size. Industry Trends: More than half of all passive candidates are interested in companies within retail and healthcare. Roughly half of passive candidates interested in education jobs are connected to a job, which is almost 30 percentage points higher than the next highest connection rate of 21 percent for the beverage and food industry. Geography Trends: The Northeast region has the highest concentration of passive candidates interested in jobs. The Midwest region has the highest rate of connecting passive applicants to jobs, though it has the lowest number of passive candidates. Company Size Trends: Larger companies (i.e., more than 5,000 employees) tend to have more applicants passively interested in jobs, and tend to connect more passive applicants to jobs than smaller companies (i.e., less than 500 employees) icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 4

5 Industries With High Demand for Talent 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 5

6 Industries With High Demand for Talent This section presents significant trends for the top three industries with high demand for talent across the United States, defined as those areas with the highest concentration of open jobs that need to be filled. Overall Trends Figure 1.1 shows the percentage of open jobs that need to be filled by industry. Figure 1.1: Industries with High Demand for Talent HEALTHCARE TRANSPORTATION RETAIL TECHNOLOGY FINANCIAL 18 % 12 % 11 % 7 % 6 % The Top Three Industries With the Highest Concentration of Demand for Talent MEDIA BEVERAGE & FOOD 5 % 5 % HOSPITALITY 3 % PHARMACEUTICALS 3 % HEALTHCARE TRANSPORTATION RETAIL EDUCATION 3 % CONSTRUCTION 2 % ENERGY 2 % 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 6

7 In the healthcare, retail, and transportation industries, even though larger companies (those with more than 5,000 employees) had the highest number of available jobs, very small companies (those with less than 100 employees) in these industries actually posted more jobs relative to the size of the company. Figure 1.2 shows the demand for talent in the top three industries by relative company size. Figure 1.2: Industries With High Demand For Talent by Relative Company Size 429 2,095 LESS THAN 100 1, , ,000 5, MORE THAN 5,000 3 Retail Jobs Posted per Employee Healthcare Jobs Posted per Employee Transportation Jobs Posted per Employee 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 7

8 Trends in Retail Figure 1.3 shows the geographic distribution of open jobs that need to be filled for the retail industry. RETAIL Figure 1.3: States with the Highest Demand for Talent in Retail 32 % 10 % 10 % 9 % 8 % 5 % 5 % 4 % 3 % 3 % 2 % PENNSYLVANIA FLORIDA ARIZONA NEW JERSEY GEORGIA TEXAS NEW YORK MINNESOTA SOUTH CAROLINA OHIO MONTANA 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 8

9 Trends in Healthcare Figure 1.4 shows the geographic distribution of open jobs that need to be filled for the healthcare industry. HEALTHCARE Figure 1.4: States with the Highest Demand for Talent in Healthcare 15 % 11 % 10 % 9 % 9 % 6 % 6 % 5 % 5 % 3 % 3 % ARIZONA NEW YORK TEXAS NEW JERSEY ILLINOIS PENNSYLVANIA MICHIGAN FLORIDA TENNESSEE CALIFORNIA OHIO 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 9

10 Trends in Transportation Figure 1.5 shows the geographic distribution of open jobs that need to be filled for the transportation industry. TRANSPORTATION Figure 1.5: States with the Highest Demand for Talent in Transportation 35 % 30 % 4 % 4 % 4 % 4 % 4 % 3 % 2 % 2 % MISSOURI FLORIDA KANSAS OREGON CALIFORNIA TEXAS TENNESSEE ARIZONA VIRGINA ILLINOIS 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 10

11 Talent Demand 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 11

12 Talent Demand This section presents significant trends for U.S. based talent demands, comparing the ratio of new applicants entering the hiring pipeline to open positions that need to be filled. Trends are examined for where talent needs are most prevalent in top industries and states, as well as significant company size trends. Figure 2.1: Talent Demand by Industry PHARMACEUTICALS MEDIA CONSTRUCTION 16,107 7,205 33,005 29,439 11,177 10,506 RATIO Industry Trends HEALTHCARE 105, , Figure 2.1 ranks industries by the ratio of applicants entering the hiring pipeline to the number of open positions. The pharmaceutical, media, and construction industries experienced a shortage of applicants in 2014 and Q1 2015, where the pharmaceutical industry had over twice as many open positions than applicants entering the hiring pipeline during the same time period. In contrast, the hospitality and energy industries experienced a surplus of applicants entering the hiring pipeline compared to open positions. OTHER FINANCIAL TECHNOLOGY EDUCATION TRANSPORTATION 144, ,714 34,344 41,618 44,510 59,915 15,392 21,528 73, , Note: Industries are sorted by the ratio of the number of applicants entering the hiring pipeline over open positions. RETAIL BEVERAGE & FOOD 68,049 96,642 28,248 44, ENERGY 9,226 16, HOSPITALITY 16,729 37, Open Positions Applicants Entering the Hiring Pipeline 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 12

13 Geography Trends Figure 2.2 highlights the top 10 states with the lowest ratio of applicants entering the hiring pipeline to the number of open positions. Figure 2.2: Talent Demands by State HAWAII RATIO 0.60 VIRGINIA 1, SOUTH DAKOTA SOUTH CAROLINA ,911 2, DELAWARE ALABAMA MONTANA ,788 6,580 3,233 2, NEBRASKA OREGON ,534 6, NORTH DAKOTA Open Positions Applicants Entering the Hiring Pipeline Note: Some states with a low ratio (e.g. Hawaii and South Dakota) have very few new jobs posted. Note: States are sorted by the ratio of the number of applicants entering the hiring pipeline over open positions icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 13

14 Company Size Trends Figure 2.3 ranks the ratio of applicants entering the hiring pipeline to the number of open positions by company size. All companies, regardless of size, have more applicants entering the hiring pipeline than the number of open positions, but smaller companies (i.e., less than 100 employees) tend to have a lower ratio of open positions to applicants entering the hiring pipeline than larger companies (i.e., more than 5,000 employees). Figure 2.3: Talent Demand by Company Size RATIO ,939 66,686 64,872 55,769 51,581 40, , , , ,526 LESS THAN ,000 1,000 5,000 MORE THAN 5,000 Open Positions Applicants Entering the Hiring Pipeline 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 14

15 APPLY Use of Mobile Devices for Job Applications 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 15

16 Use Of Mobile Devices for Job Applications This section presents significant trends for candidates applying for jobs via mobile devices. Trends in mobile device use are examined for the top industries and states, along with significant company size trends. Industry Trends Figure 3.1 ranks industries by the percentage of all applications submitted via a mobile device. Figure 3.1: Top Industries that Use Mobile Devices for Job Applications HOSPITALITY RETAIL BEVERAGE & FOOD PHARMACEUTICALS TRANSPORTATION 11 % 10 % 10 % 7 % 7 % The hospitality and retail industries have the highest percentage of mobile applicants. ENERGY HEALTHCARE 6 % 5 % TECHNOLOGY 5 % MEDIA 4 % FINANCIAL 4 % CONSTRUCTION 4 % EDUCATION 3 % 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 16

17 Passive Job Interest and Company Connections 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 17

18 Passive Job Interest and Company Connections This section presents significant trends regarding passive candidates. First, we examined candidates across industry that have expressed passive job interest and are registered in talent pools. We then tracked passive interest in jobs to how many people eventually became applicants for specific jobs, examining the ratio of passive job interest to job applicants within companies. In addition, we explored these trends with respect to company size. Industry Trends Figure 4.1 presents the percentage of candidates in top industries passively interested in a job and registered in a talent pool. Retail and healthcare constitute almost half of all passive job interest. Figure 4.1: Top Industries with Passive Job Interest HEALTHCARE RETAIL TECHNOLOGY OTHER FINANCIAL EDUCATION HOSPITALITY MEDIA 30 % 16 % 11 % 10 % 7 % 7 % 5 % 4 % PHARMACEUTICALS 3 % TRANSPORTATION 2 % BEVERAGE & FOOD 2 % CONSTRUCTION 2 % ENERGY 1 % 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 18

19 Figure 4.2 ranks top industries by the percentage of total passive candidates in talent pools that are eventually connected to specific jobs. The top industries for connecting passive applicants to jobs include education and beverage and food. Top Industries for Connecting Passive Applicants to Jobs Figure 4.2: Top Industries with Passive Job Connections EDUCATION BEVERAGE & FOOD ENERGY RETAIL 132, % 66,178 34,042 7,024 20,208 3, ,012 49,722 Percentage 20.6 % 17.1 % 16.0 % HEALTHCARE 606,493 67, % MEDIA 86,950 7, % EDUCATION BEVERAGE AND FOOD TRANSPORTATION 43,529 3, % OTHER 191,506 15, % Almost 50 percent of passive applicants in the education CONSTRUCTION 33,819 2, % industry were connected to a job, and 21 percent were connected for beverage and food. Note: Industries are sorted by the percentage of passive candidates connected to jobs. PHARMACEUTICALS TECHNOLOGY HOSPITALITY 64,034 4, ,327 13, ,011 5, % 6.0 % 5.2 % FINANCIAL 141,313 7, % Total Passive Candidates New Candidates Connected 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 19

20 Company Size Trends Figure 4.3 presents company trends for the percentage of candidates passively interested in jobs and registered in talent pools. Companies with more than 5,000 employees and companies with 500 to 1,000 employees have the highest concentration of passive interest. Figure 4.3: Passive Job Interest by Company Size 4 % 8 % 32 % 21 % 35 % LESS THAN ,000 1,000 5,000 MORE THAN 5, icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 20

21 Figure 4.4 presents company size trends for the percentage of passive candidates in talent pools Figure 4.4: Passive Job Connections by Company Size that became connected to jobs. Percentage Larger companies with more than 5,000 employees tend to have the highest percentage of passive company MORE THAN 5, , ,902 19% connections (19 percent). 1,000 5, ,373 20,624 6 % 500 1, ,680 71, % ,147 10,989 8 % LESS THAN ,196 5,391 7 % Total Passive Candidates New Candidates Connected 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 21

22 Methodology This report was compiled using icims' customer base data from 2014 and Q (across approximately 2,700 customers). icims worked with Hanover Research, a third-party data analyst firm, to arrive at the data conclusions reflected within. Within the report, Hanover Research presents the concentration of new jobs posted and passive job interest across industry, geography, and company size. In absolute terms, larger companies tend to post more jobs and have more applicants, which can skew results when analyzing talent demand trends, for example. To account for this issue, data is analyzed using both the absolute size of the company and controlling for the size of the company. Hanover compares the results of absolute versus relative company size, and any impacts on the trends throughout the report. Hanover also presents the number of new jobs posted and passive interest per employee (i.e., the number of new jobs posted over the number of employees), across industry, geography, and company size 1. Controlling for company size in these cases does not address the issue of small sample size. For example, four transportation companies in the Midwest posted jobs regardless of the absolute or relative size of the company. Yet, the adjustment provides useful information on talent demand relative to the size of the company. To measure the relative talent demand, Hanover defines a ratio that is equal to the number of applicants entering the hiring pipeline over the total number of open positions. It measures the relative talent supply over talent demand. A larger than one ratio indicates a surplus of talent supply, or a relatively low talent demand, and a smaller than one ratio indicates a shortage of talent supply, or a relatively high talent demand. To measure the usage of mobile devices for job applications, Hanover calculates the percentage of applications through mobile devices over the total number of applications. A higher percentage indicates a more prevalent usage of mobile devices. To measure how applicants are connected to a company, Hanover calculates the percentage of passive candidates connected to a job over the total number of candidates passively interested in the job. icims, through its partnership with Hanover, will continue to analyze its data on a quarterly basis. Through this partnership, icims will continue to discover and share new trends and insights in the U.S. talent acquisition landscape. 1 Such adjustment should not change the relative talent demand, the percentage of mobile device usage, and the percentage of passive job connection at the company level, as both the numerator and denominator are adjusted by the same factor, i.e., the number of employees. However, due to missing data in company size, the aggregated percentage at industry and regional level can be slightly different icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 22

23 Disclaimer Except as otherwise expressly provided herein, this report is provided on an as is and as available basis. Neither icims nor Hanover make any representations or warranties with respect to the accuracy, quality, reliability, or completeness of the contents of this report, and expressly disclaims all warranties, express or implied, including all implied warranties of fitness for a particular purpose, merchantability, accuracy, and/or non-infringement. The accuracy and completeness of the information provided herein and the opinions stated herein are not guaranteed or warranted to produce any particular results, and the advice and strategies contained herein may not be suitable for every client. Any use of this report is entirely at your own risk. In no event will icims or Hanover be liable for any incidental, indirect, special, punitive, consequential, or other damages (including lost profits), arising out of or in connection with this report. Neither icims or Hanover are engaged in the rendering of legal or accounting advice, and nothing herein should be construed or interpreted as either party providing any legal advice in regards to compliance with any employment or other applicable state, federal, or international laws icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 23

24 About icims The disruptive force of technology has permanently changed the way people apply for jobs and how employers hire. The old tools and the status quo no longer work. Recognizing this, icims provides the single talent acquisition platform that helps companies find, screen, and hire the right talent in today's new era of job seeking and recruiting. icims, a leading provider of innovative Software-as-a-Service (SaaS) talent acquisition solutions, is an Inc. 500 and Software Satisfaction honoree focused on helping businesses win the war for top talent through the implementation of easy-touse, scalable solutions that are backed by award-winning customer service. icims' Talent Acquisition Software Suite enables organizations to leverage mobile, social, and video technologies to manage their entire talent acquisition lifecycle from building talent pools, to recruiting, to onboarding all within a single web-based application. icims is one of the largest and fastest-growing talent acquisition system providers with offices in North America, UK, and China. About the icims Hire Expectations Institute icims Hire Expectations Institute (HEI) provides hiring professionals and job seekers with a community for the latest recruitment tips, technology developments, career advice, and industry insights. Providing resources for both parties of talent acquisition, HEI strives to bridge the gap between employers and job seekers by helping job seekers with their professional development and career goals, while helping hiring professionals stay well-informed on the latest recruitment trends, job seeker and candidate behavior, and technology advancements. With a growing urgency to find the best talent and a growing amount of people and opportunities in the job market, HEI helps its readers navigate a dynamic landscape of rapidly changing requirements, behavior, and technology that has become the new era of recruiting and job-seeking today. Learn more at icims.com/hei Learn more at icims.com 2015 icims Inc. All Rights Reserved. U.S. Hiring Trends: Available Positions vs. Available Talent 24

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