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Top Challenge for Recruiters? Competition from Other Employers

Employ Inc., a leading provider of people-first recruiting and talent acquisition solutions, has released its latest Recruiter Nation Report. The annual report, titled “Empowering People-First Recruiting,” leverages findings from a survey of more than 1,200 talent acquisition decision makers and recruiters in North America and proprietary recruiting data from more than 22,000 Employ customers. The report provides key insights into the current state of talent acquisition, top challenges, and where future investments should be made to scale recruiting efforts and influence outcomes.  

The most significant challenges recruiters face today were shared by one-third of respondents: competition for talent from other employers (37% in 2024 versus 30% in 2023), not enough people to fill open positions (33% in 2024 versus 3% in 2023), and too many candidates applying for open positions (26% in 2024 versus 24% in 2023). 

TA decision-makers also indicated not being able to offer remote or hybrid work (22%), poor communication from candidates in the hiring process (21%), and not being able to compete on salary requirements (20%) as top challenges their companies face when hiring. 

“Businesses have responded to market challenges through strategic investments made to enhance hiring processes and focus on flexibility, scalability and speed,” says Steve Cox, CEO of Employ. “Employ data shows that 64% of businesses expect to increase their recruiting budgets in the next 12 months, with 64% of that group expected to increase investments in new recruitment technology processes specifically.” 

Cox adds, “The challenge is not only finding candidates fast but also finding qualified candidates and meeting them where they are. Whether you’re exploring the use of AI or improving your reporting capabilities, putting candidates and their needs at the center of your hiring process will be critical. When choosing where to invest, look for a solution that solves current and evolving needs and also one that puts people first.” 

Key findings from the report include the following.  

  • Time to fill roles has dropped by seven days (41 in 2024, down from 48 in 2023). 
  • Nearly half (47%) of TA leaders focused on a faster hiring process overall in 2024 compared to 42% in 2023, followed by incorporating AI-powered technologies, which made a 10% jump to 44% compared to 34% in 2023, and increasing salaries for new open jobs (41% in 2024 versus 40% in 2023). 
  • Over half (63%) of recruiters and TA decision-makers already use AI to augment their current recruitment technology, up from 58% last year. Similarly, 89% of this group are using AI frequently or very frequently—an increase of 7% from last year’s 82%. 
  • To further support the traction AI-powered recruiting tools are gaining, 71% plan to increase their budgets in that area, up 12% from 2023. The next ranking area, candidate relationship management, came in at 46%, followed by applicant tracking systems (44%), diversity, equity, and inclusion initiatives (41%), and sourcing (40%). 
  • Job boards increased as the most effective channel in growing employer brand in 2024, with a 12% increase over last year taking it to 67%. Social media also saw a relevant increase of 7% (up to 54%). Employee referrals and career websites tied for third at 35%, while internal hires fell 13% to 22%. 

“Hearts and minds are won and lost in the acquisition process,” says Stephanie Manzelli, CHRO of Employ. “That’s why a people-first experience is so essential. Giving talent acquisition teams more time to focus on building employer brand and cultivating relationships with candidates will positively impact both short- and long-term business results.” 

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