recruitment report ro

How e�cient is your recruitment?

TalentSpotting carried out in Jan - Feb 2016 a research on recruitment practices and trends on the Romanian market, designed to help companies increase the e�ciency of their recruitment departments.

Recruitment in Romania - Practices and Trends2016

Executive Summary

All the companies identi�ed as best in class for recruitment satisfaction and for recruitment channels e�ciency measure their candidates’ team and culture �t and their results orientation. Interestingly enough, the majority of companies appreciate �exibility more than previous job experience.

In what concerns recruitment departments KPIs, the majority of the companies measure closing time for the vacancies, while over half of them consider mainly the quality of their hires.

Business from IT / Telecom, Call-center / BPO, Commerce / Retail measure closing time, while Banking / Financial Services / Insurance, Professional Services and Health companies consider mainly the quality of hire. Manager satisfaction is important for organizations from Automotive, Advertising, Media, IT / Telecom, BFSI, Media and Professional services.

Identifying quality candidates remains a challenge for most of the companies, regardless of the industry, alongside unreasonable salary expectations, talent competition and the need to reach a large enough pool of candidates for each position.

Businesses are searching most often for specialists, with an annual average of 50 hires, while delays are reported by 1 in 10 companies, at all seniority levels. Recruitment agencies report the biggest delays on the market, and their average delay rate amouts to 8% for all positions, with top hiring lags for managers.

Companies expect recruitment to become more and more di�cult and most of them regard social networks as the future of recruitment, next to referrals. These two recruitment channels are intensely used by the organizations identi�ed as best in class in what concerns recruitment satisfaction and the e�cient use of recruitment channels.

When it comes to professional pro�les that are di�cult to �nd, most issues arise when recruiting IT software experts, who are hard to recruit according to 60% of the respondents. These are followed by IT hardware professionals, technical engineers and sales professionals.

Most of the respondent companies assess their capacity of identifying quality candidates as good and very good. In addition, they are satis�ed with their use of social and professional networks in recruitment and with their ability to reach marginal candidates through their own channels.

However, less than half of the respondent organisations are content with their overall recruitment results. Approximately 65% of the companies scored below their average industries scores in terms of recruitment satisfaction.

The power of social recruitment

The collected data also reveals that there are no signi�cant di�erences in the recruitment challenges based on company industry. It seems that we are all dealing with the same predicaments when faced with attracting the best talent for our organizations.

Contents

Recruitment Channels ................................................................................................................ 1Recruitment Challenges.............................................................................................................2Recruitment Departments and Vacancies............................................................................3Average Closing Time................................................................................................................. 4Di�cult to Fill Positions............................................................................................................. 4 Delays in Recruitment................................................................................................................ 5Time Consuming Factors .......................................................................................................... 6Company Expectations..............................................................................................................7Evaluating Recruitment ............................................................................................................. 8Recruitment Satisfaction ......................................................................................................... 12Recruitment Satisfaction Scores ........................................................................................... 13Recruitment Rating Scores...................................................................................................... 14Recruitment Trends ................................................................................................................... 15Best in Class Companies..........................................................................................................16Industry Focus - IT&C ............................................................................................................... 21Respondent Companies ......................................................................................................... 23


Recruitment Channels

Over 40% of the respondent companies are using their own recruitment team. Social and professional networks (28%) and internal referrals (22%) are among the most used recruitment channels.

27.55 %Social networks

21.70%Referrals

8.56 %Events

40%

Internal recruitment teams

Top recruitment channels

In addition, 9% of the companies rely mainly on events in recruitment.

1


?Did you know that referrals are the #1 source in hiring volume?

Identifying quality candidates

Unreasonablesalary expectations

from candidates

Talent competition

Identifying a large enough pool of candidates for

each pro�le

Recruitment challenges

When invited to acknowledge their recruitment challenges, most companies report di�culties in identifying quality candidates (62%).

Unrealistic salary expectations make recruitment more di�cult for 39% of the respondents, while 32% of them see the biggest challenge in the competition for talent.

Identifying a large enough pool of candidates for each position, next to candidate attraction and engagement in the recruitment process are also serious challenges for employers.

Biggest recruitment challenges

1 2 3 461.96% 27.61%31.90%38.65%

2


?Did you know that referrals are the #1 source for new hire quality?

Recruitment departments and vacancies

Most of the respondent companies have specialists vacancies, with an annual average of 50 hires. Blue collar and sales vacancies follow, with 24 and 20 hire averages per year.

50

24

20

Specialists hired / year

Blue collar hired / year

Sales hired / year

The average number of recruiters amounts to 3 in 80% of the companies, while 6% of the organisations do not have recruitment departments.

79.14%

8.59%6.13%

3

Average number of recruiters

3 recruiters 8 recruiters No recruiters

Average number of recruited positions / year


Average closing time

The average closing time for top management positions amounts to 3.4 months, and 2.7 months for middle management positions.

The average closing time is 2.4 months for specialist positions, and 1.3 months for entry level ones.

Specialist

Entry level

2.40 months

1.33 months

Top management

Middle management

3.42 months

2.72 months

Di�cult to Fill Positions

The collected data shows that companies encounter the biggest di�culties in recruiting IT software (60%) experts, independent of the industry of the company.

IT hardware (21%) professionals, technical experts and engineers (20%) come next, followed by sales professionals (18%), accountants (11%) and customer support experts (10%).

IT Software IT HardwareEngineering -

Technical Sales

58.28% 20.86% 19.02% 17.79%

4

Specialists

Entry level

Pro�les with di�culties in recruitment


Delays in recruitment

Companies report delays at all seniority levels. However, specialist (10%) and manager (5%) positions are �lled with the largest delays.

Thus, 35% of the respondent companies declare recruitment delays for over 15% of their specialist positions. Similarly, 10% of the companies report delays in �lling more than 15% of their management positions.

0

2,75%

5,5%

8,25%

11%

Board members Directors Managers Specialists Administrative Internship/Graduates Blue collar Other

Industry

Recruitment Agencies

Agriculture/Food

IT / Telecom

Commerce / Retail

Professional services

BFSI*

Automotive

Call-center / BPO

Advertising / Marketing

% of all recruited positions

7.97%

6.11%

3.68%

2.92%

2.77%

2.42%

2.29%

2.05%

1.88%

Top delays for

Managers

Specialists

Specialists

Other positions

Graduates / Interns

Specialists

Workers

Other positions

Specialists

5

Delays in recruitment by seniority

Recruitment agencies report the biggest delays on the market, with an average delay rate of 8% for all positions and top hiring lags for managers. Businesses in Agriculture follow with a 6% delay rate and IT / Telecom companies, with a 4% annual delay average for all their positions. In both cases, the biggest delays are declared for specialist positions.

*Business, Financial Services and Insurance


?Did you know that referrals are the #1 fastest time to �ll?

Time Consuming Factors

Almost 74% of the companies spend most of their recruitment time trying to identify suitable candidates. At the same time, 32% of employers invest a lot of time in identifying a large enough pool of candidates for each pro�le.Low show-up rates for interviews are also time consuming for 23% of the respondent organisations.

73.62%

30.67%

23.31%

11.66%10.43%

1.84%

Identifying suitable candidates

Identifying a large enough number of candidates

Low show-up rates

Candidate communication

Sending candidate feedback & status updates

Other (lack of quality candidates)

6

Most time consuming


Companies from industries like Transportation, Health, Agribusiness, Automotive, BFSI, IT and Professional Services invest between 50% and 100% of their recruitment time in identifying suitable candidates.

Transportation / Logistics / Import - Export

Media / Internet

Medical / Health


Agriculture / Agribusiness / Food

Automotive

BFSI

IT / Telecom

Commerce / Retail


Advertising / Marketing / PR

Call-center / BPO

0% 25 50 75 100%

Time spent to identify suitable candidates vs. industry

Identifying a large number of candidates takes also a lot of the recruitment time of Transportation companies, followed by those from Media and Health industries.

Media / Internet

Medical / Health



Automotive

BFSI

0% 12,5 25 50 60%


7

Time spent to identify a large number of candidates for each position vs. industry


Company expectations

Candidates’ team and culture �t - or congruence between the norms and values of the person and those of the organization - is valued by 60% of the companies, alongside results orientation (59%). The ability to work under stress and to deal with continuous change is regarded as important by 43% of the companies.

Flexibility is also appreciated - to a higher extent than previous job experience.

59.51%

Team and culture �t

58.90%

Results orientation

42.94%

Ability to work under stress and deal with continuous change

29.45%

Flexibility

26.99%

Previous job experience

16.56%

Creativity

1.84%

Other*

* initiative, curiosity and technical skills, the desire to develop within the organisation and advanced knowledge of foreign languages

8


Media / Internet

Medical / Health

Agencies


Automotive

Commerce / Retail

BFSI*

Call-center / BPO


IT / Telecom


0 25 50 75 100

Results orientation vs. industry

Team and culture �t is another essential performance criteria for these companies. In fact, it is more appreciated than previous experience by all the companies, regardless of industry.


Medical / Health

Automotive

Commerce / Retail


BFSI

Call-center / BPO

IT / Telecom



Recruitment agencies

Media / Internet

Team and culture �t vs. previous job experience

0%

66.67%

33.33%

11.11%

55.56%

22.22%

10%

40%

25%

16.67%

33.33%

100%

66.67%

66.67%

66.67%

66.67%

60%

60%

58.33%

50%

41.67%

33.33%

42.86% 0%

9

Results orientation is a fundamental performance criteria according to a series of companies from di�erent industries. All the respondents from Transportation, Media and Health use it, alongside the majority of the respondents from Automotive, Commerce, Call-center and IT / Telecom.


*Business, Financial Services and Insurance

Team and culture �tPrevious job experience

Evaluating recruitment

Closing time for the vacancies is a KPI for 68% of the respondent organizations when evaluating the e�ciency of their recruitment departments.

In turn, quality of hire is taken into account by 58% of the companies; it is a top KPI for respondends from Media, Transportation, BFSI, Health and Professional services.

Manager satisfaction - measured after 3 or more months from hire start - is an important KPI for 45% of the respondents. Most of them represent industries like Automotive, Advertising, Media, IT / Telecom, BFSI and Professional services.

Manager satisfaction

Closing time for the vacancies

Quality of hire

Costs

Performance rating

Churn / Attrition / Turnover

Others*

0% 17,5% 35% 52,5% 70%

* Number of interviews per pro�le; the evolution within the organization; internal recruitment

10

Recruitment departments KPIs


Costs are an important KPI for 17% of the participating companies - speci�cally for organisations from Agribusiness and BFSI.

11



Quality of hire

Costs

Performance ratings

Churn

0 % 25 % 50 % 75 % 100 %



Quality of hire

Performance ratings

Churn

0 % 17,5 % 35 % 52,5 % 70 %



Quality of hire

Performance ratings

Churn

0 % 15 % 30 % 45 % 60 %


IT / Telecom

Call-center / BPO



Quality of hire

Performance ratings

Churn

0 % 15 % 30 % 45 % 60 %

Commerce / Retail



Quality of hire

Costs

Performance ratings

0 % 20 % 40 % 60 % 80 %

BFSI


Almost 47% of the companies are satis�ed and very satis�ed with their recruitment results, while 12% are little or not satis�ed at all.

46.63%

Satis�ed and

very satis�ed

12.27%

Little or not satis�ed at all

In turn, referral programs are assessed as weak by 27% of the respondents, who are also dissatis�ed with their candidate attraction and engagement in the recruitment process (16%).

Most of the respondents assess their capacity of identifying quality candidates (90%) as good and very good, next to recruitment through social and professional networks (88%) and their ability to reach marginal candidates through their own channels (83%).

Good and very good


Social and professional network recruitment

Reaching quality candidate through company owned channels 89.57%

88.34%

83.44%

Weak

Reaching quality candidate through company owned channels

Candidate attraction and engagement in the recruitment process

Referral programs e�ciency 26.99%

15.95%

14.11%

12

Recruitment Satisfaction


Average Recruitment Satisfaction Scores

Recruitment Satisfaction Scores

Respondent companies were invited to evaluate their level of satisfaction in what concerns recruitment using a 1 to 5 scale.

Average recruitment satisfaction scores (ARSS) calculated per industry indicate that companies from Automotive, Transportation, Advertising, Professional services and BFSI, IT / Telecom - among others - are some the most satis�ed in terms of recruitment.

Automotive

Transportation / Logistics

Recruitment agencies



BFSI

IT / Telecom


Commerce / Retail

Medical / Health

Media / Internet

Call-center / BPO

Constructions

Pharma

0,0 1,0 2,0 3,0 4,0

43,56%

49,69%

Companies above industry ARSS

Companies below industry ARSS

13

43,56%


Recruitment Rating Scores

Respondent companies also rated the e�ciency of their recruitment channels using a 1 to 3 scale.

Collaboration with recruitment agenciesIdentifying marginal candidates through your own channelsReferral programs e�ciencyIdentifying quality candidatesCandidate attraction and engagement in the recruitment processCandidate communicationSocial and professional network recruitmentJob sites recruitmentMass recruitment events participationTargeted events

Average Recruitment Rating Scores (ARRS) calculated per industry show that companies from industries like Automotive, BFSI and Call Center assess their recruitment as e�cient and top e�cient.

0 0,65 1,3 1,95 2,6

Electronics

Oil & gas

Media / Internet

Automotive

Tourism / Hospitality

BFSI

Call-center / BPO


Energy

Environment protection

Medical/Health

Commerce/Retail

IT / Telecom

Agriculture/Agribusiness/Food


Education / Training

Constructions

Pharma

Sports/beauty


Transportation / Logistics

Textiles

Library

Other

While average recruitment satisfaction scores suggest that almost half of the participant companies are satis�ed with their recruitment, average recruitment rating scores show that the majority are discontented with the e�ciency of their recruitment channels.Thus, 64.42% of the respondent companies scored above their industries averages, while 29.45% obtained scores above their market results.

64,42%

Companies above industry ARSS

Companies below industry ARSS

14

29,45%


Recruitment trends

Most of the companies anticipate that recruitment will become more and more di�cult (72%) and expect social and professional networks (74%) to become the trend in recruitment.

Referral programs (50%) and targeted events (37%) are also seen as the future of recruitment channels.

Social and professional networks

Referral programs

Targeted recruitment events

Job sites

Job fairs

Others

20%

1%

3%9%

40%

27%

(open days, employer branding, events)

Industry

IT/Telecom

Call Center / BPO

BFSI

Commerce / Retail

Automotive

Agencies

Referral (1 to 3 scale)Social networks (1 to 3 scale)

1.4

1.7

1.53

1.67

2

1.08

0.82

2.2

2.07

2

2.17

2.33

15

Trending: social networks vs. referral ratings

Trending recruitment channels


Best in class companies use mainly social and professional networks in recruitment (34%) and referrals (26%).

When it comes to evaluating employee performance, companies with the best recruitment results consider their team and culture �t (58%) and their employees’ ability to work under stress and continuous change (50%).

Best in class organisations also appreciate their candidates' results orientation and �exibility (42%).

Average number of recruiters in best in class companies: 4.36

Best in class companies

Best in class for recruitment satisfaction

These are companies from a series of industries, satis�ed and very satis�ed with their recruitment results. Total best in class companies for recruitment satisfaction: 12

Average Recruitment Satisfaction Score: 4,25

Industries:

IT-Telecom

Call Center / BPO

Commerce / Retail

Automotive

Human ResourcesBFSI (Business, Financial Services and Insurance)

1 2 3 4 5

1 2 3 4 5

16


Top recruitment channels for best in class companies according to recruitment satisfaction

Social and professionalnetworks

Referrals

34%

26%

RecruitmentAgencies

11%

Events

10%

Top performance criteria for best in class companies according to recruitment satisfaction

Team and culture �t Ability to work under stress

Results orientation Flexibility

58% 50% 42% 42%

17


?Did you know that 46% of all hires at top performing companies are referrals?

29,45%Closing time for the vacancies is the most important metric when evaluating the e�ciency of Recruitment departments (83%) in best in class companies according to recruitment satisfaction. Churn / attrition rates come next (33%), followed by quality of hire (25%).


Churn

Quality of hire

Performance ratings

Costs83%

33%

25%17%

8%

Best in class companies expect social and professional networks to dominate among recruitment trends (75%), alongside referral programs (25%).


Referrals

Job sites

Job fairs

Targeted events

75%

25%

17%

8%

8%

18


Best in class for recruitment rating

Six companies were identi�ed as best in class among those that rated their use of recruitment channels as good and very good in the same group of industries: IT-Telecom, Call Center / BPO, BFSI, Commerce / Retail, Automotive and Human Resources. These organizations positively rate their recruitment according to their use of recruitment channels.

Social and professional networks, next to referral programs, are top recruitment channels for these companies and are used by roughly 30% of the respondents identi�ed as best in class for recruitment rating.

Average recruitment rating scores: 2.74

Social and professionalnetworks

Referrals

31%

29%Agencies

23%

Events

14%

Top recruitment channels

Team and culture �t (70%) are the most important performance criteria for best in class companies according to recruitment rating, followed by results orientation and the ability to work under stress, which are simultaneously used by half of these companies.

70%

50%

50% 50%

Team and culture �t Results orientation

Ability to work under stress

Flexibility

19

1 2 3

Average numbers of recruiters: 3.83

1 2 3 4

Top recruitment channels simultaneously used by best in class companies for recruitment rating


Best in class companies mainly consider closing time for their vacancies and performance ratings when evaluating their recruitment departments.

They also employ KPIs like churn rates and costs.

83%33%

33% 17%Social and professional networks

Job sites

Customized events

Job fairs

33%

Referrals

Top recruitment trends* for best in class companies according to recruitment rating

33%

50%17%

Churn

Performance ratings

Costs

50%


Top KPIs for best in class companies for recruitment rating

33%

Quality of hire

Best in class companies for recruitment rating see the use of social and professional networks as the main trend in recruitment. In addition, they expect referrals, job sites and customized events to also be a part of recruitment trends.

20*Simultaneously expected


21

Industry Focus - IT&C

Average number of employees % of total IT / Telecom

25 15.00%

75 21.67%

200 28.33%

400 10.00%

750 5.00%

2000 16.67%

3000 3.33%

60 respondent companies

Company average sizes

Top locations

Bucharest38.89%

Cluj - Napoca14.44%

Timisoara38.89%

Averagenumbers of

recruitersin companies

5.55

Top categories recruited per year Recruited Positions

Specialists

68Graduates / internship

27Managers

5

Average delay rate in IT / Telecom: 3.68%

Specialists

17%Managers

4%Other positions

3%

Total average number: 100

Most employed performance criteria

Team and culture �t

58.33%Results orientation

51.67%Previous job experience

40%

Top Delays


Top challenges


61.67%Unreasonable salary expectations from

candidates

48.33%Competition

45%

Most time consuming activities in recruitment

Identifying suitable candidates

Identifying a large enough number of candidates

Low show-up rates

75%

46.67%

20%

Most used KPIs for recruitment departments


Quality of hire

Performance ratings

58.33%

46.67%

41.67%Manager satisfaction

33.33%Churn

21.67%

Average closing time in the industry: 2.09 months

Average closing time per position

Top management

Manager

Specialist

3.6months

2.1months

1.8months

Entry Level

1.2months

Average recruitment satisfaction rate in the industry (1 to 5 scale): 3.38

1 2 3 4 5

22

Top recruitment trends according to industry respondents


Referral programs

Personalised recruitment events

75%

57.67%

43.33%

1month

2month

3month


Respondent companies

The representatives of 163 companies participated to the research - most of them from Bucharest (64%), followed by Cluj-Napoca (11%) and Timisoara (8%). The majority of the respondent companies (66%) have over 100 employees.

Most of the companies represent the IT / Telecom industry (37%), followed by Recruitment Agencies (7%) and Call-center / BPO, Banking / Financial Services, Commerce / Retail and Agriculture / Agribusiness (6% each).

IT / Telecom46,81

%Recruitment

Agencies

7,36%

Call-center / BPO6,13

%

Agriculture / Agribusiness /

Food

5,52%

Banking / Financial Services

5,52%

Commerce / Retail

5,52%

Most of the respondents are specialists (45%), mainly from Recruitment departments (88%), followed by junior managers (20%), senior managers (14%), directors (10%), and boardmembers (6%).

SpecialistJunior managerSenior manager

Bucuresti

Cluj

Timisoara

Brasov

Iasi

Sibiu

0 % 2,75 % 5,5 % 8,25 % 11 %

63,8%

23

10,43%

7,98%

1,84%

1,48%

1,84%

Top respondents’ locations

44.79% 19.63% 13.50% 9,82% 5,52%

Director Board member


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recruitment report ro

Recruiting & HR