Keep up with the latest hiring trends!
In the news this week:
Has Facebook Accidentally Revolutionised Recruitment with its Latest Change?
This week, Facebook announced a change to the way their messaging systems work, which has the potential to significantly impact recruiting on Facebook. In short, the change means that you are virtually guaranteed to have your recruitment message at least read by a large proportion of Facebook’s massive, and more importantly, very active, audience (1.5 billion people, 84% of which check it daily).
Previously, as a Facebook user if you were to receive a message from someone you didn’t know (i.e. a recruiter), or didn’t share a mutual connection with, it would be sent to your “Other” folder, crucially without notifying you. For recruiters, this was a nightmare when it came to getting in touch with prospects. The only way around this was to either find a mutual friend (not always possible and bit stalker-like), or to pay a fee (which ranged from $0.50-1.50) to send the message directly to a candidate’s inbox. This paid facility had limits and was Facebook’s way of discouraging cold messages, but importantly their approach appears to have changed.
Now, the “Other” folder has been replaced by a new feature called Message Requests. Messages from people you don’t know will show up in your Messenger inbox as a Message Request. The recipient can then read this message without alerting the sender and decide whether to ignore or accept it:
What does this mean for recruitment?
The potential of this new feature for recruitment is massive, especially when it comes to connecting with passive talent.! Just check out the example mocked up above by Prominence Talent Attraction.
With LinkedIn InMails remaining the most popular cold prospecting tool (email is still favoured for warm leads), it is about time there was another option that, when used correctly, has the potential to generate higher response rates. Though there will still be some hesitation when contacting candidates on Facebook, (as there always is with the more personal focused social networks) the implementation of Facebook Message Requests is a direct acknowledgement from Facebook that people want to communicate with people they don’t know.
BUT… a word of caution, recruiters are solely responsible for the demise of InMails, in particular the poor response rates we all now experience. We now have another chance with Facebook messages, and hopefully we are also all better educated on how to utilise these types of tools. In other words, don’t abuse the system people, or we’ll all be screwed!
LinkedIn’s Revenues from Recruiters’ Continue to Rise (and Beat Analysts’ Expectations!)
Recruiters’ using Talent Solutions, showed strong performance, with revenue of $502 million growing 46% year-over-year, and represented 64% of sales versus 61% last year.
“LinkedIn delivered strong results in the third quarter, and recently announced several products focused on delivering increased member and customer value,” said Jeff Weiner, CEO of LinkedIn. “Our commitment to investing in our long-term roadmap continues to lay the foundation for future growth of the company.”
Main results of note:
- Total revenue increased 37% year-over-year to $780 million. Talent Solutions revenue increased 46% year-over-year to $502 million.
- Hiring contributed $461 million in revenue, up 34% year-over-year, driven by continued operational improvement from the company’s field sales organisation and strong online growth.
- Learning & Development contributed $41 million in revenue, in its first full quarter of contribution post acquisition.
- Marketing solutions revenue grew 28% year-over-year to $140 million.
Sponsored Updates performance once again exceeded 100% year-over-year growth, partially offset by expected premium display headwinds.
- Premium Subscriptions revenue improved 21% year-over-year to $138 million.
- Sales Navigator continued to gain traction with large enterprises and saw improvements in customers’ satisfaction.
View the full report here.
Talent Pool Expanding as FTSE 350 Boards Expected to be 33% Female by 2020
Lord Davies has concluded 5 years of outstanding work on gender equality by proposing a series of recommendations including a bold new target of all FTSE 350 boards having 33% female representation by 2020 – around 350 more women in top positions.
This comes as the UK’s FTSE 100 reached a milestone of 25% of board positions being filled by women earlier this year – a target set by Lord Davies in 2011. There are more women on FTSE 350 boards than ever before, with representation of women more than doubling since 2011 – there have also been 550 new female appointments in just over 4 years.
Lord Davies said: “Looking back to 2011, I could not have predicted British business would have embraced the Women on Boards agenda as they have, or indeed that the 25% target would have been achieved 6 months ahead of schedule. This is truly amazing progress. I cannot thank the many, many businessmen and businesswomen enough for their significant and collective contribution. It has been a privilege to lead this campaign.”
Minister for Women and Equalities Nicky Morgan said, “Lord Davies has been an inspirational champion; he has thrown the gauntlet down to business and pushed them to do more than ever before. The government fully supports his recommendations because we are clear, that in order to deliver our commitment to extending opportunity we must do more to secure equality for women in the workplace and beyond.”
The report makes recommendations in 5 key areas:
- Voluntary approach
The national call for action and voluntary, business-led approach is continued for a further 5-year period
- Increased target, more chairs and action from all listed companies.
– Increasing the voluntary target for women’s representation in boardrooms of FTSE 350 companies, to a minimum of 33% to be achieved in the next 5 years.
– All stakeholders to work together to ensure increasing numbers of women are appointed to the roles of Chair, Senior Independent Director and into
- Executive Director positions on boards of FTSE 350 companies.
All FTSE listed companies now assess the gender balance on their boards and take prompt action to address any shortfall.
- Focus on the executive layer
FTSE 350 companies extend the best practice seen at board level to improve gender balance and fundamentally improve the representation of women on the Executive Committee and senior-most leadership positions.
- Independent steering body
An independent steering body, made up of business and subject matter experts with a newly appointed Chair and members, is reconvened to support business in their efforts, act as a catalyst for sustained progress, monitor and report periodically upon progress.
- Maintaining momentum
The newly convened steering body will review the recommendations 1 to 4 above and in consultation with key stakeholders, publish more detailed comments as appropriate, at the beginning of 2016.
Melanie Richards Vice Chairman of KPMG said, “As sponsors, we are delighted to support the launch of today’s report. The challenge now is not simply to maintain momentum, but to redouble our efforts to see the success in the non-executive pipeline, mirrored in the executive pipeline. Identifying and promoting diversity will deliver real benefits for business, both financial and non-financial. By tackling homogeneity, boards should make more robust, balanced decisions and no longer run the risk of echoing the voices of the few.”
“The government also wants to see further progress in the number of women making it to senior executive and executive director roles across all sectors, not just the corporate world. That’s why we have made changes to modernise the workplace and also develop the female executive pipeline. We have:
- extended the right to request flexible working to all employees
- introduced a new system of flexible parental leave
- funding for 30 hours of free childcare a week for working families with 3- and 4-year-old children
- provided support for women’s enterprise – now ranked number 1 in Europe
- GEO supporting research looking at the vast talent pool of women in board roles outside the private sector (eg charity sector and higher education)”
Susan Vinnicombe CBE, Professor of Women and Leadership at Cranfield said, “Cranfield has been measuring the number of women on boards for 16 years, so we are of course delighted to see such progress, especially in the last few years. We do however remain acutely aware that the big challenge ahead is to tackle why there are still so few women at executive level – 9.6% is just not acceptable. Our research shows that the pool of new talent available for board positions is expanding and the women have plenty of relevant board experience. We must now turn our focus to opening up executive level positions to these very capable and credible women.”
The Top 3 Staffing Firm Priorities for 2016
LinkedIn have just released their new Global Staffing Trends report, which reveals how recruiting professionals the world over believe the search and staffing landscape will evolve in 2016.
In this year’s results, recruitment firm leaders identified three key priorities for the year ahead – growing their client base, being a strategic client partner, and improving sourcing techniques.
Check out this infographic to learn more about the top three priorities, and how you can apply them to your firm:
For a look at each of the Top 3 priorties in more details, visit the LinkedIn Talent blog post.
Three-quarters of UK Cities “Struggle” to Fill Advertised Vacancies
A shortage of skilled labour is holding back the jobs market, with three-quarters of UK cities lacking the job seekers needed to fill advertised positions, according to the latest UK Job Market Report from Adzuna.co.uk.
As of September, 41 out of the Top 56 UK cities don’t have enough applicants to fill advertised roles. By comparison, a year ago only 27 cities lacked enough job seekers to fill available positions.
Advertised vacancies are increasing steadily, as seasonal roles and graduate jobs flood the market. There were 1,178,129 vacancies in September, 2.4% higher than August’s figures and up 30.0% compared to twelve months ago. Despite these rises, positions are proving increasingly hard to fill. The number of job seekers has fallen to 685,456, the first time since the recession this figure has dropped under 700,000. More workers are entering part-time and temporary jobs, while some job seekers are looking to self-employment for a regular income, further depleting the number of job hunters competing for permanent positions.
As a result, job competition has fallen to a post-recession record low of 0.58 applicants per vacancy, down 6.9% from 0.62 in August and 43.1% from 1.02 job seekers in September 2014. At the same time, data from the ONS shows the UK unemployment rate is at its lowest level since 2008, falling to 5.4% in September.
The average UK advertised salary fell to £33,121 in September, dropping 0.6% from £33,318 in August and 4.5% down compared to £34,695 twelve months before. This is in part due to an influx of temporary seasonal roles ahead of the Christmas season, as well as the recent flood of graduate positions advertised and an uplift in lower-paid roles.
Wages for those in work, however, are rising, with the latest ONS data showing pay for employees has risen 2.8% year-on-year, excluding bonuses. Employers are recognising the difficulty in recruiting top talent, and are raising the salaries of existing staff to help increase employee retention.
The South of England leads the country for the best jobseeker prospects, as Cambridge maintains its lead with 0.09 applicants per vacancy. Southern strongholds including Exeter, Oxford and Reading also performed well. Meanwhile fortunes for jobseekers in Wolverhampton worsened and the city now has 2.25 jobseekers applicants per vacancy. The North East similarly struggled to show an improvement, with job hunters in the region facing tough competition for each role:
View all the highlights of the report here.
Why Women Are Leaving Their Jobs
The number of women in the workforce is the lowest it has been since 1988 and most people think they know why: Women are leaving work because they want better work/life balance and more time for their families. Well, according to LinkedIn, that theory isn’t completely true.
They surveyed over 4,000 women who are on LinkedIn and recently changed companies, and none of their Top 3 reasons had anything to do with work/life balance. The results told them that women leave companies because of a “concern for the lack of advancement opportunity,” followed by their “dissatisfaction with senior leadership” and their “dissatisfaction with the work environment/ culture.”
Men also list advancement opportunity and senior leadership as the top reasons to leave, but culture is less important to them (their 3rd reason is because they want more challenging work).
- Age does not influence why women switch companies
While the majority of these female job changers were millennials (ages 18-35), the top 3 reasons women leave does not vary significantly by age. Millennial women list advancement opportunity as their #1 reason to leave, while dissatisfaction with senior leadership is #1 for Gen X and Baby Boomer women. But neither listed “I was unsatisfied with the work/life balance” as their #1 reason to leave.
- Industry also does not affect why women change
There’s not much of a difference for why women leave the financial services, retail CPG, or even professional services/consulting industries. The top reasons to leave an industry (wanting more opportunity and better leadership) are the same for all women. The only difference worth noting is that women who left the tech industry were more likely to leave because they wanted more challenging work, compared to women who left other industries (financial services, media/entertainment).
- So, what can you do to get women to stay?
First off, help women at your company navigate their career path and advance by surfacing unique opportunities they should consider. It’s important to ensure that career conversations are happening in your workplace and that the paths to opportunities are evident.
Mentorship and development programs are a great way to help high potential talent get senior sponsorship, coaching on what different paths are possible, and general help with career advancement through training, interest groups, etc. The key is to really invest in this as a priority. Build out programs that help women develop professionally and connect them with role models for inspiration. For example, GoDaddy holds bi-quarterly events for their female employees that feature inspirational women or highlight women’s rights issues.
Think about events like this and programs that could work at your organization, in addition to the career support you offer your female employees. It’s these things that can making the difference between women staying at your company and moving on.
What Recruiters Look At During The 6 Seconds They Spend On Your Resume
A recent study is shedding some light on recruiters’ decision-making behaviour. According to TheLadders research, recruiters spend an average of “six seconds before they make the initial ‘fit or no fit’ decision” on candidates. The study used a scientific technique called “eye tracking” on 30 professional recruiters and examined their eye movements during a 10-week period to “record and analyse where and how long someone focuses when digesting a piece of information or completing a task.”
In the short time that we spend with a candidate’s CV, the study showed recruiters will look at the candidate’s name, current title and company, current position start and end dates, previous title and company, previous position start and end dates, and education. The two resumes below include a heat map of recruiters’ eye movements. The one on the right was looked at more thoroughly than the one of the left because of its clear and concise format:
With such critical time constraints, job seekers are advised to make it easier for recruiters to find pertinent information by creating a resume with a clear visual hierarchy. Don’t include distracting visuals since “such visual elements reduced recruiters’ analytical capability and hampered decision-making” and kept them from “locating the most relevant information, like skills and experience.”
Recruitment Agency Raided by Police in Fraud Probe
A total of six people have been arrested for fraud following the raid of a recruitment agency. Smart Recruitment UK was raided on Tuesday. The Derby Telegraph reports that three men aged 28, 37 and 38 and a 31-year old woman were arrested at the business premises. Another person was then arrested after voluntarily attending a police station in Derby, according to a statement on Derbyshire Police’s website.
A second raid at a business address in Nottingham saw a sixth person arrested. They were all arrested on suspicion of fraud, the police stated.
The probe was a joint effort conducted by the Derbyshire and Nottinghamshire police, The Pensions Regulator and the Employment Agency Standards Inspectorate.
A spokesman for the regulator said: “The searches and arrests are part of an ongoing criminal investigation into allegations of fraud relating to the automatic enrolment of staff into workplace pensions and underpaying workers.” The 5 people who were arrested at the two business locations were released on bail pending further inquiries.
The person who voluntarily attended a police station, and was questioned under caution will have an appointment to return to a police station in the new year.