At one point, the only people truly leveraging data in firms were those in technical roles. But today, in the Age of Information, it has become critical for departments of all backgrounds to embrace data and statistics in order to make the most strategic decisions possible. And recruiters are certainly no exception.
In our new infographic, Top 35 Facts for UK Recruiters, we’ve rounded up a handful of the most surprising, illuminating and important recruiting statistics that talent acquisition practitioners need to know in order to prepare for 2020 and beyond. Read on to get a preview of several top facts, and learn how your organisation can use this information to your advantage.
1. 84 Percent of Job Seekers Say a Company’s Reputation Matters
Job seekers today are operating in an era of unprecedented transparency, where detailed information on nearly every organisation is available right at their fingertips. Quality candidates know this, and use it to their advantage. That’s why they turn to websites like Glassdoor to evaluate companies, researching things like compensation, benefits packages, career opportunities and more.
But among the most important factors is a company’s reputation, with 84 percent of job seekers stating that a company’s reputation is important when making a decision about where to apply for a job. (1) Job seekers looking at a company’s Glassdoor profile pay close attention to ratings and reviews, which can significantly influence whether or not they choose to move forward in the application process. Additionally, 51% of job seekers say they prefer finding job opportunities on online job sites, such as Glassdoor.
The bottom line? If you or your company haven’t been taking your online reputation seriously, now is the time to start.
Related: The ROI of Employer Brand
2. The Average Glassdoor Rating for a UK Company Is a 3.69
You know that job seekers will be using Glassdoor to evaluate your company’s reputation — but what, exactly, constitutes a good reputation? One strong indicator is a high Glassdoor rating. In the UK, the average rating is a 3.69 out of 5, while the average CEO approval rating is 82 percent. (2) If your company is significantly below that threshold, or you just want to improve your ratings to stand out among your competitors, it’s worth taking action.
While there are no quick fixes to immediately improve your score, you can begin by listening to your employees and then investing in your company culture accordingly. If done correctly, this can translate to higher employee satisfaction, which will hopefully be reflected in your anonymous Glassdoor reviews. A few initial steps you can take:
- Read your Glassdoor reviews carefully; identify patterns in the “Cons” and “Advice to Management” portions
- Send out an internal survey to find out what’s working well and what needs improvement
- Evaluate whether your compensation and benefits packages are competitive
- Devise a plan of action to address employee concerns
- Practice transparency; communicate early and often with your employees
- Double down on hiring candidates who live and breathe your company values
RELATED: How to Respond to Reviews
3. 88 Percent of Hiring Decision Makers Agree: an Informed Candidate Is a Quality Candidate
All recruiters want to hire ‘quality candidates,’ but the phrase itself is so nebulous that it can often be misinterpreted. A quality candidate doesn’t necessarily mean somebody you’d like to invite to the pub after work, or who has a degree from a top university — in fact, these beliefs can hinder diversity efforts at your organisation.
Recruiters and hiring managers agree, though, that one sign of a quality candidate is a candidate having done research beforehand in order to ensure that the opportunity and the organisation are a good fit. These informed candidates are engaged, have the right expectations and are more likely to be hired and stick around.
A few indications that you’ve found an informed candidate:
- They came in as a referral
- They tailored their CV to the position
- They ask specific and intelligent questions
4. Glassdoor Hires Have a 30 Percent Higher Retention Rate
There’s no doubt about it — hiring can be expensive. With the average cost-per-hire in the UK at £3,000, making sure that you hire the right candidates for your open positions is a financial imperative. The good news is, there are a number of steps you can take to lower your recruiting costs, like focusing your talent acquisition budget on the most effective recruitment channels.
Hiring on Glassdoor, for example, can save companies thousands. The informed candidates who use Glassdoor during their job search remain at their employers at a rate 30 percent higher than those who do not use Glassdoor, preventing organisations from having to spend money re-opening and re-filling requisitions. (3)
“Employee turnover is expensive, to the point where losing an employee costs around one-fifth of that employee’s salary. Retention, therefore, is a business-critical area impacting every company’s bottom line,” said Glassdoor’s Chief Economist, Dr. Andrew Chamberlain.
5. A One-Star Improvement on Glassdoor Is Linked to a One Percent Higher Financial Return
Human resources and talent acquisition departments haven’t always had a reputation for being critical to a business’s financial success, but in recent years, this has been confirmed over and over again. In March of 2018, for example, an independent study conducted by University of East Anglia’s Norwich Business School using Glassdoor’s UK data found a concrete link between employee satisfaction and financial performance.
In the study, researchers discovered that a one-star higher rating on Glassdoor is related to almost one percent higher annual return on company assets, and that public companies experienced extra stock portfolio returns of up to 16 percent per annum — even amidst uncertain economic times.
“There is clear empirical evidence to suggest that employers should adopt a human-centred approach to running a business,” said Dr. George Daskalakis, Finance Lecturer and Report Co-Author at Norwich Business School.
And as fears around Brexit and global recessions abound, this people-first business strategy will likely become more important than ever.
1. Aptitude Research Partners, Informed Candidate, 2017
2. Glassdoor Internal Data, September 2018
3. Glassdoor EMI Research, November 2017