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The Science of Talent Attraction:
What Makes
Candidates Click
2 © Indeed
Recruiting has one of the
biggest impacts on people
and businesses today.
This means talent leaders have a huge
responsibility in changing people’s lives
and being a top source of business impact
and innovation.
Whether you’re leading a talent acquisition
team or deep in the recruiting trenches, the
talent you attract today will have a significant
impact on your company’s growth. But the
methods you use to attract skilled candidates
may vary depending on your hiring needs
and the competitiveness of your industry.
“Human resources isn’t a thing we do.
It’s the thing that runs our business.”
Steve Wynn
Wynn Hotels
“The secret of my success is that we have
gone to exceptional lengths to hire the best
people in the world.”
Steve Jobs
Apple
3 © Indeed
How will you attract skilled candidates
in an evolving labor market?
To help employers understand job
seeker behavior in 2015 and how to
reach top talent today, we conducted
two large-scale talent studies in the
US. We surveyed more than 8,000
adults to understand how people
search for jobs today and what
influences their decisions. We also
surveyed 1,000 talent professionals
to get their perspectives and explore
how job search trends impact their
recruitment organizations. Based
on the findings from these third-party
studies, we were inspired to look at
our own data and uncovered some
compelling insights about how often
people search for jobs today.
In this ebook, we share the research
that sheds light on the science behind
job search and how candidates make
career decisions today, revealing a new
perspective on the modern candidate.
3 © Indeed
4 © Indeed
Table of contents
5
The science behind
decision making
20
How recruiting tactics
determine candidate
quality
14
Who searches for jobs
today and how
23
5 best practices to find
the right talent
5 © Indeed
When we think about change and how we
decide to make an important change, we
often go through a series of steps toward
making that decision. The first step is
often contemplating a change followed
by preparing for a change and then taking
action to carry out the desired change.
When it involves a career change, the
decision-making process may be more
involved and stressful. That’s because
there are seven major decisions people
have to make to change jobs:
The Career Decision-Making Process
01
Consider a change
02
Consider your company
03
Consider a position
04
Apply
05
Commit to the process
06
Accept the offer
07
Appear at new job
The science behind decision making
The first step is considering a change and
making the decision to be open to other
opportunities. The next series of decisions
involves considering your company as
a potential employer and evaluating a
specific position within your company. After
applying for a job, the candidate has to
commit to the interview and hiring process,
accept an offer and then appear at the new
job on the first day of employment.
While there are many steps, the first one—
considering a change—is the hardest by far.
Here are four key findings we uncovered
about career decision making:
5 © Indeed
Career decisions
are among the
most stressful life
decisions.
1
After family and health, career events
have the biggest impact on stress and
happiness. As talent professionals, we
are all helping people through career
changes and bringing people into new
opportunities.
As we can see from the Holmes and Rahe
stress scale on page 7, the majority of life events
are ranked 0 (low stress) to 65 (high stress) on
the scale.
Career-related events span across the entire
spectrum of stress, from a change in working
hours or conditions to having trouble with a boss.
Change in responsibilities at work can cause
the same level of stress as leaving a child at
home, and changing to a different line of work,
retirement and dismissal from work are ranked as
some of the most traumatic potential life events.
7 © Indeed
0
Career Changes Other Life Changes
65
20
Change in working
hours or conditions
23
Trouble with boss
29
Change in responsibilities
at work
36
Change to a different line
of work
46
Retirement
47
Dismissal from work
20
Change in residence
29
Child leaving home
30
Foreclosure of
mortgage or loan
40
Pregnancy
50
Marriage
63
Death of a close
family member
The Holmes and Rahe Stress Scale
Most people
are wired to be
resistant to career
change.
2
Career change requires people
to project into the the future and
imagine the potential benefits
and risks.
But research shows that most people will
overestimate risks associated with a change,
meaning convincing people to make a
career change is even harder. They’ll focus
on the probability of failure when thinking
about a change, when choosing a job or
when making a big decision, and they won’t
consider the potential benefits of that change
in the same way.
Candidates who are presented with a great
opportunity may focus only on the risks of a
career change and not necessarily the great
potential outcomes.
9 © Indeed9 © Indeed
“ When weighing up
the costs and benefits
of a decision, we make
two errors.
First we overestimate the probability
of failure in a new direction because
of our negative bias. Second,
we underestimate the benefits of
change because we fail to imagine
or visualize the results of that
change in much detail.”
The Career Psychologist, 2014
9 © Indeed
Career changes
are major life
events.
3
The forces against career change
are incredibly strong:
Career changes are high stress.
We underestimate the potential benefits.
Making a career change is hard work.
We overestimate the chance of failure.
So what leads employed people to make
the decision to change jobs? We found that
people look for jobs when they are inspired
by new opportunities or disillusioned with
their current work.
11 © Indeed
Active candidates, those
who are actively looking
or open to a new job, have
already considered these
factors and done most of
the psychological work
to prepare themselves for
change.
While many believe the vast majority
of employed people are passive
candidates, our study found that
most people are quite active in their
job search—a positive sign that the
majority of those in the labor force have
already considered a career change.
Source: Indeed survey conducted by Harris Poll (Base=Employed, n=1,997)
21%
When I see posts about an interesting company or job
20%
When I feel dissatisfied with my current job
19%
When I feel discouraged about my current job situation
17%
When I feel stressed about money
8%
When I don’t get recognized for an accomplishment at work
Factors that inspire people to make a career change
12 © Indeed
9/10talent professionals would prefer
to hire an active candidate over a
passive one.
These candidates have decided
to make a change, they’ve
chosen your company and
they’ve considered a particular
job and applied.
Talent professionals have to guide them
through the last stages of their decision:
committing to your hiring process,
accepting an offer and then showing up
at the new job. This is why nine out of 10
talent professionals would prefer to hire an
active candidate over a passive one.
The Career Decision-Making Process
01
Consider a change
02
Consider your company
03
Consider a position
04
Apply
05
Commit to the process
06
Accept the offer
07
Appear at new job
12 © Indeed
People feel better
about decisions
that they fully
control.
4
When it comes to major purchases,
people are more confident in
the research they do themselves
prior to making the purchase, as
opposed to a purchase that results
from a sales call, for example.
We see the same trend with job seekers. 83%
of candidates agree it is important to look at
other opportunities before accepting a job
offer. 64% of candidates also believe they will
be more successful in the role if they found
the job themselves and applied versus a job
presented by a recruite
The science behind decision making and how
people consider career changes has a huge
impact on the success of your recruitment
efforts. To help you understand the vast
opportunity to attract skilled candidates, we
also examined the behaviors and influencers
of the modern job seeker.
While the responsibility of talent leaders is immense, there are commonly held perceptions
of today’s candidates that have a huge impact on the success of our recruitment efforts.
Many recruiters still believe the vast majority of professionals are passive candidates.
The Myth
Who searches for jobs today and how
14 © Indeed
80%
of candidates are passive
20%
of candidates are active
If this is true, it suggests that to attract the
vast majority of candidates, you need to
proactively source them through phone
calls, email and social networks. The belief
is that passive candidates typically don’t
visit job boards or career sites, but they are
willing to hear from recruiters about that
life-changing role. This is why many talent
acquisition organizations invest heavily in
outbound recruiting, or sourcing.
Truly passive candidate:
Someone who is employed and not actively job seeking, but open to the
right opportunity
Our research completely debunked this belief.
Here’s what we found:
81%
Ever
58%
At least monthly
18%
Daily
20%
Weekly
19%
Monthly
8%
Yearly
15%
Less often than yearly
19%
How frequently people look at job opportunities
Never looks at job opportunities
15 © Indeed
71%
of people in the labor force
are either actively looking
or are open to a new job
67%
of those people are
currently employed
Source: Harris Poll (Base=Employed or not employed but looking, n=2,293)
16 © Indeed
People who actively look at job opportunities are
also younger and more educated.
90%
18-34
Age of candidates who ever look at
job opportunities
Education level of
candidates who ever
look at job opportunities
84%
35-44
75%
45-54
68%
55-64
62%
65+
76%
High school
or less
Some
college
College
grad or
higher
81% 86%
Source: Harris Poll (Base=Employed or not employed but
looking: 18-34, n=779; 35-44, n=426; 45-54, n=427; 55-64,
n=486; 65+, n=175
Source: Harris Poll (Base=Employed or
not employed but looking: High school
or less, n=592; Some college, n=720;
College graduate or higher, n=981
90%
of adults hired within the past year
took an action to find a job within
the six months prior to being hired
17 © Indeed
The research also revealed that the modern workforce
actively seeks opportunity.
10%
of people hired didn’t actively look
for a job in the preceding six months
49%
Visited an online job site
47%
Looked at online job boards
46%
Visited company career sites
44%
Asked friends/family for a referral
29%
26%
Asked a professionsl connection for a referral
Visited an online professional social networking site”
Actions taken 6 months prior to current job among the 90%
hired in the past year
Source: Harris Poll (Base=Employed but not self employed and hired within the past year, n=853)
“Active candidates are
already looking and
mentally prepared to switch
companies, locations, or
careers,” Turner told The
Wall Street Journal.
Passive candidates, by contrast, are
“more difficult to find, engage with, and
motivate to make major life changes,
which leads to longer times to fill.”
Jonathan Turner
Corporate Director of Human
Resources, B/E Aerospace
18 © Indeed
Jonathan Turner, corporate director of
human resources at B/E Aerospace, used
to believe passive candidates led to better
hires because he assumed they were
satisfied their existing roles. But after taking
a closer look at hiring data and tracking the
performance of active and passive hires,
Turner found the opposite to be true.
After surveying hiring managers, the
company determined active candidates are
better-quality hires than passive candidates
during their first year on the job. Active
candidates who found and applied to the
company’s jobs, rather than applying to jobs
presented by a recruiter, were significantly
cheaper and faster to recruit and hire.
Employer spotlight
19 © Indeed
As people get hired, there are two sets of activities
that drive the connection between an employer
and an employee: looking at opportunities online
or interacting and networking with friends, family or
professional contacts.
While these activities help talented people get hired,
the job search doesn’t stop there. In fact, the job
search never really ends. Also, candidates expect jobs
to come to them via mobile, and a large percentage
subscribe to job alerts that bring new listings directly
to them.
91% agree that people are always
keeping an eye on the job market.
85% say highly skilled workers are
more likely to be keeping an eye out on
new employment opportunities.
65% of new hires look at new jobs
again within 91 days of being hired.
50% of high-income hires, earning
$100-$110K, look at new jobs within 28
days of being hired. These findings lead
us to believe no one is “passive” about
their career today.
These findings align with responses from
the talent professionals we surveyed.
But once people take a job, their
behaviors barely change.
44%
49%
52%
40%
of workers subscribe
to job alerts
are between the
ages 18-34
are college
graduates of higher
have household
earnings of $100K+
20 © Indeed20 © Indeed
How recruiting
tactics determine
candidate quality
With the vast majority of employed
people actively looking for jobs,
the opportunity for companies to
capture the attention of skilled
candidates and attract them to new
jobs is immense. And the recruiting
tactics you use will ultimately
determine the quality of the
candidates you receive.
For example, our study found that
candidates are more confident in
the jobs they find themselves rather
than jobs presented by a recruiter,
indicating that candidates prefer to
be in control of their job search so
they can find the best fit.
21 © Indeed21 © Indeed
There have never been more ways
to recruit talent, from staffing
firms and talent marketplaces to
employee referrals and job sites.
All of these tactics fall into two
basic frameworks—they are either
designed to help you recruit inbound
(active) candidates or outbound
(passive) candidates.
Inbound
Inbound candidates are ones who
take action and apply to your jobs
first. They could be people who
find you on job search sites like
Indeed, referrals who apply to your
jobs, people who approach you at a
career fair or people who respond to
a job posting on your career site.
Outbound
Outbound recruiting is where you
contact the candidates first. That
could be through referrals you call,
LinkedIn recruiter or people in a
resume database.
22 © Indeed
Most talent professionals first try to fill positions with
inbound candidates because it’s easier and in many cases
it's free, faster and less expensive.
of recruiters who said that recruiting outbound
candidates is the same or more expensive than
recruiting inbound candidates.
Recruiting outbound candidates is very
labor intensive. The result is often low
candidate response rates, long lead times
and lower offer-acceptance rates. Inbound
(active) candidates, on the other hand,
have already decided to pursue a change,
as we shared in the first section of this
ebook. They already use various tactics and
mechanisms to find new jobs.
But inbound recruiting has its challenges
as well. Some roles receive too many
applicants for recruiters to screen. Also,
some roles are hard to fill quickly because
more employers are competing for a smaller
pool of highly skilled candidates.
Given these challenges, how can you shape
your recruiting organization to best take
advantage of the changing nature of job
search? Based on the findings from our
study, here are five best practices you
can apply to find the right talent and
improve the way you recruit today.
Companies that fully measure
cost per hire find outbound
recruiting is more expensive
for several reasons:
Labor intensive
Low candidate response 	
rates to inquiries
Long lead times
Low offer acceptance rates
Uncertain cultural fit
Time-consuming to
overcome psychological
barriers to change
87%
23 © Indeed
#1: Sequence your recruiting tactics to maximize quality,
cost and performance.
5 best practices to find the right talent
If you open a position and receive a
sufficient flow of active candidates from
organic traffic, fill as many positions as you
can with that free traffic. If you’re getting
the right applicants and just need more
candidates, then invest in paid traffic. With
Indeed Sponsored Jobs, for example, you
can set a budget based on your conversion
rates and the number of candidates you
need to fill a significant portion of your
positions at the lowest possible cost
per hire.
Inevitably, there will also be a set of hard-
to-fill roles that may make up 10–20% of
your positions. If there’s an insufficient
pipeline of candidates after 14 days of free
and paid inbound recruiting, that’s the time
to consider outbound recruiting.
For most people, we recommend focusing
outbound efforts on the jobs that are likely
to be chronically unfilled, or open for at
least three months, which is about 30% of
US job vacancies today.
23 © Indeed
Inbound first Outbound if needed
Free Inbound
Paid Inbound
Outbound
24 © Indeed
#2: Shape your candidate pipeline.
Job titles:
Avoid using internal titles that don’t
accurately describe the job. People
may misunderstand abbreviations or
acronyms, and they’re less likely to
search for them.
Job description:
When writing your job descriptions,
use a style that communicates your
company’s character and values to
draw the right candidates in. Also use
relevant keywords to make it easy for
qualified candidates to find your jobs.
This job posting from Spotify is a great example of a job
description that draws talent in and performs well in search.
We’re looking for thoughtful, well-rounded front-end engineers to
join our team. If you’re the right one for us, you love the Web, take
great pride in your work, think of coding as more than just a job,
and have a few great projects to show off. You can take a concept
and transform it into an awesome Web-based experience with your
own technical and UI/UX expertise.
The words in blue give the reader a sense of the culture. The words in purple
are the types of words that perform well in search. The perfect combination of
both will get your jobs in front of the right people and entice them to apply.
24 © Indeed
In the era of job search engines, you control your talent. Below are three key levers
to shape your talent pipeline:
25 © Indeed
It may be tempting to have
a lengthy application with
a lot of screener questions
to weed out unqualified
applicants.
We found that including 30 screener
questions reduces applications by
50%, and over 45 questions reduces
applicants by almost 90%.
Career site
More than half of Indeed’s job search traffic today is mobile. Ensuring your career
site is mobile friendly is key to ensuring the majority of job seekers can view and apply
to jobs from any device. Also, be judicial in your use of online screener questions.
The more questions you have, the fewer applicants you’re going to receive.
26 © Indeed
#3: Build a brand that brings talent to you.
26 © Indeed
83%
5%
46%
of people say that reviews
impact where they apply.
of people company reputation
has a big impact on the
decision to accept a job.
more applications are seen
when employer reviews are
available on Indeed.
#4: Optimize the inbound and outbound candidate
experience for top talent.
Your inbound recruiting process needs to be so great that it would encourage a great
candidate to go through it. One organization that’s done a great job on this is Airbnb,
the vacation rental site. The company recognized its candidate experience needed an
overhaul, and it started by conducting a storyboarding exercise to map out the end-to-
end candidate experience.
Your brand determines your candidates. 83% of people say that reviews impact where
they apply. 46% say company reputation has a big impact on the decision to accept a job,
and we see a 5% increase in apply rates when employer reviews are available on Indeed.
Storyboarding Excercise What they implemented
1 What do we want them to know?
2 What do we want them to feel?
3 What does rejection feel like at this stage?
4 What makes this stage uniquely Airbnb?
1 Website FAQ for candidates
2 New Applicant Tracking Software
3 Candidate feedback surveys
4 Interviewer training
27 © Indeed
#5: Build a platform for inbound recruiting.
27 © Indeed
If outbound recruiting is akin to sales, then inbound recruiting is much more like
marketing. Over time, we predict that recruiting technology will continue to evolve
to look more like marketing technology in many ways. For example, your typical
recruitment marketing technology platform may include:
Career website and landing page
Candidate CRM that manages all
data around contacts
Candidate marketing
automation tools that automate
communication to prospects
Lead capture functionality
Candidate scoring and
screening
Talent analytics to measure
performance and determine
future investments
This is the type of functionality that can help recruiters better match applicants to
opportunities and nurture them through the hiring process with a comprehensive
candidate experience.
28 © Indeed28 © Indeed
How employers apply the science
of talent attraction
Defining hiring success metrics
Evaluating candidate quality based on source data
“When I talk about sourcing channels, we used to be focused on efficiency. Now we’re
using data to focus on effectiveness, which includes prioritizing, assessing quality and
value and using analytics to continuously improve our recruiting process.”
“When asked about the success of their hires, hiring managers said that 100% of their
hires from Indeed were ”definitely the right choice for B/E” as compared to 94% from
LinkedIn and 91% from referrals or the company’s own website.”
Tim Streeter,
COO, Talent Acquisition
Accenture
Jonathan Turner,
Corporate Director of Human Resources,
B/E Aerospace
Using hiring data to make decisions
“Knowing the data is one thing, acting upon it is another. A big development is marrying
the data together with a set of activities that will capitalize on what the data is telling
you. To be able to provide a hiring manager with that exact hiring pool that they’re
looking for is one of the biggest benefits we’ve found from Indeed.”
Frank Hynes,
VP of Talent Acquisition,
Charles Schwab
29 © Indeed
Questions
Contact us at
indeed.com/hire/contact
About Indeed
More people find jobs on Indeed than anywhere else. Indeed is the #1 job site in the world
and allows job seekers to search millions of jobs on the web or mobile in over 50 countries
and 28 languages. 180 million people each month search for jobs, post resumes and
research companies on Indeed, and Indeed is the #1 source of external hires for thousands
of companies. (sources: SilkRoad & iCIMS)
See how Indeed can help you hire
indeed.com/hire
Stay up-to-date on hiring trends
blog.indeed.com
Follow us on Twitter @indeed
Your next hire is here.
30 © Indeed
Research methodology
Indeed conducted two comprehensive talent studies in the United States.
Harris Poll
This survey was conducted online within the United States from March 25-30, 2015,
among 4,041 adults ages 18 and older, among whom 2,293 employed or unemployed
job seekers (1,997 employed adults and 296 unemployed job seekers), by Harris Poll on
behalf of Indeed via its Quick Query omnibus product. A second wave was conducted
from April 27-30, 2015 among 4,025 U.S. adults ages 18 and older, among which 1,761
are employed but not self employed and 461 are employed but not self employed and
hired within the past year. Figures for age, sex, race/ethnicity, education, region and
household income were weighted where necessary to bring them into line with their
actual proportions in the population. Propensity score weighting was used to adjust for
respondents’ propensity to be online.
The Polling Company
On behalf of Indeed, the polling company, inc. conducted a nationwide online survey
among 1,000 HR/Recruitment professionals in the U.S. Interviews were conducted
April 6-10, 2015. Participants were recruited through opt-in online panels. Sampling
controls ensured that a proportional and representative number of interviews were
collected according to overall company size. Small companies represented 25% of the
sample and Medium and Large represented 75%. The survey measured HR/Recruitment
professionals who were active in recruiting job applicants. The questionnaire included
contained 28 inquiries in total, including five demographic questions. The margin of error
for the survey is ±3.1% at a 95% confidence interval, meaning that in 19 out of 20 cases,
the data obtained would not differ by any more than 3.1 percentage points in either
direction had the entire population of HR/Recruitment professionals in the United States
been surveyed. Margins of error for subgroups are higher.

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Science of Talent Attraction

  • 1. The Science of Talent Attraction: What Makes Candidates Click
  • 2. 2 © Indeed Recruiting has one of the biggest impacts on people and businesses today. This means talent leaders have a huge responsibility in changing people’s lives and being a top source of business impact and innovation. Whether you’re leading a talent acquisition team or deep in the recruiting trenches, the talent you attract today will have a significant impact on your company’s growth. But the methods you use to attract skilled candidates may vary depending on your hiring needs and the competitiveness of your industry. “Human resources isn’t a thing we do. It’s the thing that runs our business.” Steve Wynn Wynn Hotels “The secret of my success is that we have gone to exceptional lengths to hire the best people in the world.” Steve Jobs Apple
  • 3. 3 © Indeed How will you attract skilled candidates in an evolving labor market? To help employers understand job seeker behavior in 2015 and how to reach top talent today, we conducted two large-scale talent studies in the US. We surveyed more than 8,000 adults to understand how people search for jobs today and what influences their decisions. We also surveyed 1,000 talent professionals to get their perspectives and explore how job search trends impact their recruitment organizations. Based on the findings from these third-party studies, we were inspired to look at our own data and uncovered some compelling insights about how often people search for jobs today. In this ebook, we share the research that sheds light on the science behind job search and how candidates make career decisions today, revealing a new perspective on the modern candidate. 3 © Indeed
  • 4. 4 © Indeed Table of contents 5 The science behind decision making 20 How recruiting tactics determine candidate quality 14 Who searches for jobs today and how 23 5 best practices to find the right talent
  • 5. 5 © Indeed When we think about change and how we decide to make an important change, we often go through a series of steps toward making that decision. The first step is often contemplating a change followed by preparing for a change and then taking action to carry out the desired change. When it involves a career change, the decision-making process may be more involved and stressful. That’s because there are seven major decisions people have to make to change jobs: The Career Decision-Making Process 01 Consider a change 02 Consider your company 03 Consider a position 04 Apply 05 Commit to the process 06 Accept the offer 07 Appear at new job The science behind decision making The first step is considering a change and making the decision to be open to other opportunities. The next series of decisions involves considering your company as a potential employer and evaluating a specific position within your company. After applying for a job, the candidate has to commit to the interview and hiring process, accept an offer and then appear at the new job on the first day of employment. While there are many steps, the first one— considering a change—is the hardest by far. Here are four key findings we uncovered about career decision making: 5 © Indeed
  • 6. Career decisions are among the most stressful life decisions. 1 After family and health, career events have the biggest impact on stress and happiness. As talent professionals, we are all helping people through career changes and bringing people into new opportunities. As we can see from the Holmes and Rahe stress scale on page 7, the majority of life events are ranked 0 (low stress) to 65 (high stress) on the scale. Career-related events span across the entire spectrum of stress, from a change in working hours or conditions to having trouble with a boss. Change in responsibilities at work can cause the same level of stress as leaving a child at home, and changing to a different line of work, retirement and dismissal from work are ranked as some of the most traumatic potential life events.
  • 7. 7 © Indeed 0 Career Changes Other Life Changes 65 20 Change in working hours or conditions 23 Trouble with boss 29 Change in responsibilities at work 36 Change to a different line of work 46 Retirement 47 Dismissal from work 20 Change in residence 29 Child leaving home 30 Foreclosure of mortgage or loan 40 Pregnancy 50 Marriage 63 Death of a close family member The Holmes and Rahe Stress Scale
  • 8. Most people are wired to be resistant to career change. 2 Career change requires people to project into the the future and imagine the potential benefits and risks. But research shows that most people will overestimate risks associated with a change, meaning convincing people to make a career change is even harder. They’ll focus on the probability of failure when thinking about a change, when choosing a job or when making a big decision, and they won’t consider the potential benefits of that change in the same way. Candidates who are presented with a great opportunity may focus only on the risks of a career change and not necessarily the great potential outcomes.
  • 9. 9 © Indeed9 © Indeed “ When weighing up the costs and benefits of a decision, we make two errors. First we overestimate the probability of failure in a new direction because of our negative bias. Second, we underestimate the benefits of change because we fail to imagine or visualize the results of that change in much detail.” The Career Psychologist, 2014 9 © Indeed
  • 10. Career changes are major life events. 3 The forces against career change are incredibly strong: Career changes are high stress. We underestimate the potential benefits. Making a career change is hard work. We overestimate the chance of failure. So what leads employed people to make the decision to change jobs? We found that people look for jobs when they are inspired by new opportunities or disillusioned with their current work.
  • 11. 11 © Indeed Active candidates, those who are actively looking or open to a new job, have already considered these factors and done most of the psychological work to prepare themselves for change. While many believe the vast majority of employed people are passive candidates, our study found that most people are quite active in their job search—a positive sign that the majority of those in the labor force have already considered a career change. Source: Indeed survey conducted by Harris Poll (Base=Employed, n=1,997) 21% When I see posts about an interesting company or job 20% When I feel dissatisfied with my current job 19% When I feel discouraged about my current job situation 17% When I feel stressed about money 8% When I don’t get recognized for an accomplishment at work Factors that inspire people to make a career change
  • 12. 12 © Indeed 9/10talent professionals would prefer to hire an active candidate over a passive one. These candidates have decided to make a change, they’ve chosen your company and they’ve considered a particular job and applied. Talent professionals have to guide them through the last stages of their decision: committing to your hiring process, accepting an offer and then showing up at the new job. This is why nine out of 10 talent professionals would prefer to hire an active candidate over a passive one. The Career Decision-Making Process 01 Consider a change 02 Consider your company 03 Consider a position 04 Apply 05 Commit to the process 06 Accept the offer 07 Appear at new job 12 © Indeed
  • 13. People feel better about decisions that they fully control. 4 When it comes to major purchases, people are more confident in the research they do themselves prior to making the purchase, as opposed to a purchase that results from a sales call, for example. We see the same trend with job seekers. 83% of candidates agree it is important to look at other opportunities before accepting a job offer. 64% of candidates also believe they will be more successful in the role if they found the job themselves and applied versus a job presented by a recruite The science behind decision making and how people consider career changes has a huge impact on the success of your recruitment efforts. To help you understand the vast opportunity to attract skilled candidates, we also examined the behaviors and influencers of the modern job seeker.
  • 14. While the responsibility of talent leaders is immense, there are commonly held perceptions of today’s candidates that have a huge impact on the success of our recruitment efforts. Many recruiters still believe the vast majority of professionals are passive candidates. The Myth Who searches for jobs today and how 14 © Indeed 80% of candidates are passive 20% of candidates are active If this is true, it suggests that to attract the vast majority of candidates, you need to proactively source them through phone calls, email and social networks. The belief is that passive candidates typically don’t visit job boards or career sites, but they are willing to hear from recruiters about that life-changing role. This is why many talent acquisition organizations invest heavily in outbound recruiting, or sourcing. Truly passive candidate: Someone who is employed and not actively job seeking, but open to the right opportunity
  • 15. Our research completely debunked this belief. Here’s what we found: 81% Ever 58% At least monthly 18% Daily 20% Weekly 19% Monthly 8% Yearly 15% Less often than yearly 19% How frequently people look at job opportunities Never looks at job opportunities 15 © Indeed 71% of people in the labor force are either actively looking or are open to a new job 67% of those people are currently employed Source: Harris Poll (Base=Employed or not employed but looking, n=2,293)
  • 16. 16 © Indeed People who actively look at job opportunities are also younger and more educated. 90% 18-34 Age of candidates who ever look at job opportunities Education level of candidates who ever look at job opportunities 84% 35-44 75% 45-54 68% 55-64 62% 65+ 76% High school or less Some college College grad or higher 81% 86% Source: Harris Poll (Base=Employed or not employed but looking: 18-34, n=779; 35-44, n=426; 45-54, n=427; 55-64, n=486; 65+, n=175 Source: Harris Poll (Base=Employed or not employed but looking: High school or less, n=592; Some college, n=720; College graduate or higher, n=981
  • 17. 90% of adults hired within the past year took an action to find a job within the six months prior to being hired 17 © Indeed The research also revealed that the modern workforce actively seeks opportunity. 10% of people hired didn’t actively look for a job in the preceding six months 49% Visited an online job site 47% Looked at online job boards 46% Visited company career sites 44% Asked friends/family for a referral 29% 26% Asked a professionsl connection for a referral Visited an online professional social networking site” Actions taken 6 months prior to current job among the 90% hired in the past year Source: Harris Poll (Base=Employed but not self employed and hired within the past year, n=853)
  • 18. “Active candidates are already looking and mentally prepared to switch companies, locations, or careers,” Turner told The Wall Street Journal. Passive candidates, by contrast, are “more difficult to find, engage with, and motivate to make major life changes, which leads to longer times to fill.” Jonathan Turner Corporate Director of Human Resources, B/E Aerospace 18 © Indeed Jonathan Turner, corporate director of human resources at B/E Aerospace, used to believe passive candidates led to better hires because he assumed they were satisfied their existing roles. But after taking a closer look at hiring data and tracking the performance of active and passive hires, Turner found the opposite to be true. After surveying hiring managers, the company determined active candidates are better-quality hires than passive candidates during their first year on the job. Active candidates who found and applied to the company’s jobs, rather than applying to jobs presented by a recruiter, were significantly cheaper and faster to recruit and hire. Employer spotlight
  • 19. 19 © Indeed As people get hired, there are two sets of activities that drive the connection between an employer and an employee: looking at opportunities online or interacting and networking with friends, family or professional contacts. While these activities help talented people get hired, the job search doesn’t stop there. In fact, the job search never really ends. Also, candidates expect jobs to come to them via mobile, and a large percentage subscribe to job alerts that bring new listings directly to them. 91% agree that people are always keeping an eye on the job market. 85% say highly skilled workers are more likely to be keeping an eye out on new employment opportunities. 65% of new hires look at new jobs again within 91 days of being hired. 50% of high-income hires, earning $100-$110K, look at new jobs within 28 days of being hired. These findings lead us to believe no one is “passive” about their career today. These findings align with responses from the talent professionals we surveyed. But once people take a job, their behaviors barely change. 44% 49% 52% 40% of workers subscribe to job alerts are between the ages 18-34 are college graduates of higher have household earnings of $100K+
  • 20. 20 © Indeed20 © Indeed How recruiting tactics determine candidate quality With the vast majority of employed people actively looking for jobs, the opportunity for companies to capture the attention of skilled candidates and attract them to new jobs is immense. And the recruiting tactics you use will ultimately determine the quality of the candidates you receive. For example, our study found that candidates are more confident in the jobs they find themselves rather than jobs presented by a recruiter, indicating that candidates prefer to be in control of their job search so they can find the best fit.
  • 21. 21 © Indeed21 © Indeed There have never been more ways to recruit talent, from staffing firms and talent marketplaces to employee referrals and job sites. All of these tactics fall into two basic frameworks—they are either designed to help you recruit inbound (active) candidates or outbound (passive) candidates. Inbound Inbound candidates are ones who take action and apply to your jobs first. They could be people who find you on job search sites like Indeed, referrals who apply to your jobs, people who approach you at a career fair or people who respond to a job posting on your career site. Outbound Outbound recruiting is where you contact the candidates first. That could be through referrals you call, LinkedIn recruiter or people in a resume database.
  • 22. 22 © Indeed Most talent professionals first try to fill positions with inbound candidates because it’s easier and in many cases it's free, faster and less expensive. of recruiters who said that recruiting outbound candidates is the same or more expensive than recruiting inbound candidates. Recruiting outbound candidates is very labor intensive. The result is often low candidate response rates, long lead times and lower offer-acceptance rates. Inbound (active) candidates, on the other hand, have already decided to pursue a change, as we shared in the first section of this ebook. They already use various tactics and mechanisms to find new jobs. But inbound recruiting has its challenges as well. Some roles receive too many applicants for recruiters to screen. Also, some roles are hard to fill quickly because more employers are competing for a smaller pool of highly skilled candidates. Given these challenges, how can you shape your recruiting organization to best take advantage of the changing nature of job search? Based on the findings from our study, here are five best practices you can apply to find the right talent and improve the way you recruit today. Companies that fully measure cost per hire find outbound recruiting is more expensive for several reasons: Labor intensive Low candidate response rates to inquiries Long lead times Low offer acceptance rates Uncertain cultural fit Time-consuming to overcome psychological barriers to change 87%
  • 23. 23 © Indeed #1: Sequence your recruiting tactics to maximize quality, cost and performance. 5 best practices to find the right talent If you open a position and receive a sufficient flow of active candidates from organic traffic, fill as many positions as you can with that free traffic. If you’re getting the right applicants and just need more candidates, then invest in paid traffic. With Indeed Sponsored Jobs, for example, you can set a budget based on your conversion rates and the number of candidates you need to fill a significant portion of your positions at the lowest possible cost per hire. Inevitably, there will also be a set of hard- to-fill roles that may make up 10–20% of your positions. If there’s an insufficient pipeline of candidates after 14 days of free and paid inbound recruiting, that’s the time to consider outbound recruiting. For most people, we recommend focusing outbound efforts on the jobs that are likely to be chronically unfilled, or open for at least three months, which is about 30% of US job vacancies today. 23 © Indeed Inbound first Outbound if needed Free Inbound Paid Inbound Outbound
  • 24. 24 © Indeed #2: Shape your candidate pipeline. Job titles: Avoid using internal titles that don’t accurately describe the job. People may misunderstand abbreviations or acronyms, and they’re less likely to search for them. Job description: When writing your job descriptions, use a style that communicates your company’s character and values to draw the right candidates in. Also use relevant keywords to make it easy for qualified candidates to find your jobs. This job posting from Spotify is a great example of a job description that draws talent in and performs well in search. We’re looking for thoughtful, well-rounded front-end engineers to join our team. If you’re the right one for us, you love the Web, take great pride in your work, think of coding as more than just a job, and have a few great projects to show off. You can take a concept and transform it into an awesome Web-based experience with your own technical and UI/UX expertise. The words in blue give the reader a sense of the culture. The words in purple are the types of words that perform well in search. The perfect combination of both will get your jobs in front of the right people and entice them to apply. 24 © Indeed In the era of job search engines, you control your talent. Below are three key levers to shape your talent pipeline:
  • 25. 25 © Indeed It may be tempting to have a lengthy application with a lot of screener questions to weed out unqualified applicants. We found that including 30 screener questions reduces applications by 50%, and over 45 questions reduces applicants by almost 90%. Career site More than half of Indeed’s job search traffic today is mobile. Ensuring your career site is mobile friendly is key to ensuring the majority of job seekers can view and apply to jobs from any device. Also, be judicial in your use of online screener questions. The more questions you have, the fewer applicants you’re going to receive.
  • 26. 26 © Indeed #3: Build a brand that brings talent to you. 26 © Indeed 83% 5% 46% of people say that reviews impact where they apply. of people company reputation has a big impact on the decision to accept a job. more applications are seen when employer reviews are available on Indeed. #4: Optimize the inbound and outbound candidate experience for top talent. Your inbound recruiting process needs to be so great that it would encourage a great candidate to go through it. One organization that’s done a great job on this is Airbnb, the vacation rental site. The company recognized its candidate experience needed an overhaul, and it started by conducting a storyboarding exercise to map out the end-to- end candidate experience. Your brand determines your candidates. 83% of people say that reviews impact where they apply. 46% say company reputation has a big impact on the decision to accept a job, and we see a 5% increase in apply rates when employer reviews are available on Indeed. Storyboarding Excercise What they implemented 1 What do we want them to know? 2 What do we want them to feel? 3 What does rejection feel like at this stage? 4 What makes this stage uniquely Airbnb? 1 Website FAQ for candidates 2 New Applicant Tracking Software 3 Candidate feedback surveys 4 Interviewer training
  • 27. 27 © Indeed #5: Build a platform for inbound recruiting. 27 © Indeed If outbound recruiting is akin to sales, then inbound recruiting is much more like marketing. Over time, we predict that recruiting technology will continue to evolve to look more like marketing technology in many ways. For example, your typical recruitment marketing technology platform may include: Career website and landing page Candidate CRM that manages all data around contacts Candidate marketing automation tools that automate communication to prospects Lead capture functionality Candidate scoring and screening Talent analytics to measure performance and determine future investments This is the type of functionality that can help recruiters better match applicants to opportunities and nurture them through the hiring process with a comprehensive candidate experience.
  • 28. 28 © Indeed28 © Indeed How employers apply the science of talent attraction Defining hiring success metrics Evaluating candidate quality based on source data “When I talk about sourcing channels, we used to be focused on efficiency. Now we’re using data to focus on effectiveness, which includes prioritizing, assessing quality and value and using analytics to continuously improve our recruiting process.” “When asked about the success of their hires, hiring managers said that 100% of their hires from Indeed were ”definitely the right choice for B/E” as compared to 94% from LinkedIn and 91% from referrals or the company’s own website.” Tim Streeter, COO, Talent Acquisition Accenture Jonathan Turner, Corporate Director of Human Resources, B/E Aerospace Using hiring data to make decisions “Knowing the data is one thing, acting upon it is another. A big development is marrying the data together with a set of activities that will capitalize on what the data is telling you. To be able to provide a hiring manager with that exact hiring pool that they’re looking for is one of the biggest benefits we’ve found from Indeed.” Frank Hynes, VP of Talent Acquisition, Charles Schwab
  • 29. 29 © Indeed Questions Contact us at indeed.com/hire/contact About Indeed More people find jobs on Indeed than anywhere else. Indeed is the #1 job site in the world and allows job seekers to search millions of jobs on the web or mobile in over 50 countries and 28 languages. 180 million people each month search for jobs, post resumes and research companies on Indeed, and Indeed is the #1 source of external hires for thousands of companies. (sources: SilkRoad & iCIMS) See how Indeed can help you hire indeed.com/hire Stay up-to-date on hiring trends blog.indeed.com Follow us on Twitter @indeed Your next hire is here.
  • 30. 30 © Indeed Research methodology Indeed conducted two comprehensive talent studies in the United States. Harris Poll This survey was conducted online within the United States from March 25-30, 2015, among 4,041 adults ages 18 and older, among whom 2,293 employed or unemployed job seekers (1,997 employed adults and 296 unemployed job seekers), by Harris Poll on behalf of Indeed via its Quick Query omnibus product. A second wave was conducted from April 27-30, 2015 among 4,025 U.S. adults ages 18 and older, among which 1,761 are employed but not self employed and 461 are employed but not self employed and hired within the past year. Figures for age, sex, race/ethnicity, education, region and household income were weighted where necessary to bring them into line with their actual proportions in the population. Propensity score weighting was used to adjust for respondents’ propensity to be online. The Polling Company On behalf of Indeed, the polling company, inc. conducted a nationwide online survey among 1,000 HR/Recruitment professionals in the U.S. Interviews were conducted April 6-10, 2015. Participants were recruited through opt-in online panels. Sampling controls ensured that a proportional and representative number of interviews were collected according to overall company size. Small companies represented 25% of the sample and Medium and Large represented 75%. The survey measured HR/Recruitment professionals who were active in recruiting job applicants. The questionnaire included contained 28 inquiries in total, including five demographic questions. The margin of error for the survey is ±3.1% at a 95% confidence interval, meaning that in 19 out of 20 cases, the data obtained would not differ by any more than 3.1 percentage points in either direction had the entire population of HR/Recruitment professionals in the United States been surveyed. Margins of error for subgroups are higher.