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The findings in this report are based on a survey of over 500 hiring professionals from large and small organizations and a diverse range of industries. Criteria conducted the study.
Criteria is a talent success firm that assists organizations in making more objective, evidence-based talent decisions that reduce bias while driving outcomes. The industry-leading tools take into account a comprehensive suite of rigorously validated analysis and decision-making tools that showcase the possibilities for every job candidate while providing a positive candidate experience. Responses were collected in July. A global sample was polled for the 2022 report.
Hiring Managers are Unusually Optimistic About the Future
According to survey respondents, 2023 will be prosperous, defying all expectations. An astounding 78% of hiring professionals expect their company to grow in 2023, while only 2% expect it to decline.
Although Hiring Demand May Level Off Next Year, Budgets are Increasing
Hiring managers predict they will hire 3.9% fewer people next year than they did this year. However, they anticipate a 7.4% increase in their HR budgets.
Talent Mobility Programs are used by only 28% of Organizations
Those who do are less likely to have significant turnover issues.
Hiring professionals who work in organizations with well-defined talent mobility programs are less likely to report that their company is experiencing substantial turnover this year.
54% of Businesses are Returning to Work (RTO). It’s Also Associated with Higher Turnover
Organizations that require RTO are more likely to have had significant turnover this year. Furthermore, companies that operate mainly remotely are 9 percentage points less likely to have considerable turnover problems than hybrid companies and 15 percentage points less likely to have significant turnover problems than companies that operate primarily in person.
Employers Believe that Money is the Most Important Factor for Candidates. Candidates Differ.
There is a misalignment between what candidates want in their next role and what hiring managers believe they want. Candidates place the most significant value on work-life balance and advancement opportunities, while hiring manager place the greatest value on compensation.
Workforce Trends that Shaped 2022
1. RTO (Return-to-Office) is in Full Swing
With the threat of COVID-19 reduced, organizations are beginning to return to the physical office. While many employees have grown accustomed to (and even enjoy) remote work, many organizations prefer a weekly return to the office on some or all days. Most survey respondents (54%) say their company has implemented a Return-to-Office strategy this year.
According to our respondents, 39% of organizations work primarily in person, while the remaining 39% use a hybrid model. Furthermore, 22% of hiring professionals said their company operates mostly remotely. This suggests that the pandemic’s impact will last—while most organizations before 2020 functioned mainly in person, the playing field now appears to be much more varied. While RTO is a big trend this year, remote and hybrid work is probably here to stay in some capacity.
Despite talk of inflation, high turnover, layoffs, and a looming recession, our survey respondents show remarkable optimism about 2023. Despite economic warnings, 78% of survey respondents believe their company will grow in 2023. 15% expect their company to remain the same in 2023, while only 2% expect negative growth. These levels vary by industry, with the Staffing & Recruiting, and Technology industries expected to grow the most.
Also, read Report Analysis of Mason Frank’s Careers & Hiring Guide
2. Findings About the Hiring
The year 2022 has been marked by an exceptionally high demand for Talent and an insufficient number of job seekers to meet that demand. At its peak in the United States, there were approximately two jobs for every unemployed person.
However, early indications from this survey indicate that hiring volume may begin to level off next year. We asked hiring managers how many people they planned to hire this year versus next year. The total hiring volume is expected to fall by 3.9%. Only 27% of businesses expect to increase hiring next year, while 41% expect to decrease hiring.
The ability to find high-quality job candidates will be the most difficult challenge for hiring managers in 2022. It is followed by difficulties attracting enough applicants and reducing employee turnover. These challenges have been consistent in each annual release of this benchmark report. However, hiring managers believe many of these challenges are less complicated this year than last.
3. Hiring Trend Followed by Companies
The resume remains the most common way for hiring managers to get to know their candidates. Pre-employment assessments are also prominent, with most respondents coming from Criteria’s customer base.
Interestingly, most items on this list have decreased from last year: 14% fewer people use reference checks and work samples, while 11% more occasionally use in-person interviews, background checks, and cover letters. Video interviews are the only selection method on the list that has grown in popularity.
The use of video interviewing exploded in 2020 and has remained relatively stable since then, with 55% of hiring professionals now stating that they conduct video interviews. 90% of hiring managers use an available tool like Zoom, Skype, or Teams to conduct these interviews, while 8% use a tool specifically designed for video interviewing candidates. Most respondents prefer live video interviews to asynchronous video interviews in nearly equal proportions.
Most organizations evaluate candidates using more than one type of assessment. Personality and behavioral assessments are the most commonly used, with 80% of hiring managers admitting to using them. Following that are 74% who use cognitive aptitude assessments, 60% use basic skills assessments (such as Word, Excel, and Typing tests), 45% use technical skills assessments (such as specific coding assessments), 41% use emotional intelligence assessments, and finally 28% use risk or integrity assessments.
This year, 25% of organizations say that bringing in a more diverse team is a top priority, while 36% say it is a moderate priority. Only 8% say it is not a priority right now.
When hiring a more diverse workforce, most hiring professionals say they use inclusive job descriptions to achieve diversity goals.
Compensation was ranked first by 48% of hiring professionals and second by 17% of candidates. Candidates ranked compensation third on their priority list, after work-life balance and opportunities for career advancement. Meanwhile, hiring managers ranked opportunities for career advancement fourth, two positions below the candidates’ ranking.
4. Attracting Talent is the Main Focus for Most Organizations
Talent mobility allows current employees to move from role to role, and it can be a great way to motivate and reward existing employees. Regarding creating a formal process to encourage talent mobility, only 28% of organizations have a defined program. Another 28% do not have a program but are working on developing one.
Summing Up
The Hiring Benchmark Report 2022 by Criteria provides insight into hiring and recruitment trends to assist professionals in making better career and professional decisions.
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