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Four major challenges that eclipse recruitment in 2016

The Society for Human Resource Management (SHRM) conducted a study in which they asked HR professionals about the biggest challenges they are likely to face in the next decade. Around 51% feel that obtaining human capital is their biggest challenge. This challenge is likely to be one of the most immediate concerns in the future. Let's have a look at the major challenges of 2016 faced by recruiters:
Four major challenges that eclipse recruitment in 2016

  1. Growing rate of turnover

  2. As the market economy is becoming more and more competitive and job markets are rebounding, many employees will start hunting for different job options. According to The Bureau of Labour Statistics around 292,000 jobs were added in December 2015 and this is the largest gain. Job growth was seen across many sectors. The industries that experienced a higher number of growth in 2015 are: educational and health services, professional business services, leisure and hospitality, construction, warehousing, government and transportation. There is no reason for employers to get surprised if turnover in these sectors is increasing as the talent are seeking other job opportunities.

    A survey done by SABA has found in late 2015 that around one third of workforce was planning to switch their current job within six months of timeframe. Anecdotal evidence has suggested that employees working in certain industries are getting new job offers in different job portals. Many firms are focusing on their retention rates but still have to deal with a certain amount of turnover which is natural with the improvement in market economy.

  3. Difficulty in finding qualified applicants

  4. Many companies get candidates for open positions in their company. Usually these jobseekers lack competencies and skills required for performing any job. According to a survey conducted in 2015, companies are not able to fill these job positions which require adequate skills because of certain reasons like:

    • Candidate lacks required technical competencies
    • Lacks relevant experience
    • Soft skills are missing which is required at a workplace

    These factors make it difficult for HR teams to close the position on time. Many HR professionals believe that quality of hire is the most valuable metric to evaluate job performance of any employee. Companies now focus on quality rather than quantity of candidates.

  5. Increase in recruiting cost

  6. In the 2015 last quarter, there was an increase of 1.1% in wages across all the sectors in the US. There was an uneven increase in the wages; certain geographical areas experienced higher wage growth. The highest growth in wage was experienced mainly in Chicago, San Francisco, St Louis and Washington DC.

    • For cost-cutting in the recruitment process you can recruit through social media. Research has found that 84% of companies recruit through social media.
    • Employee referral programmes will help in higher job performance and longer tenures than any other applicants.
    • Use Applicant Tracking System
    • Start outsourcing

  7. Higher demand for certain job functions

  8. Companies reported that the most difficult job openings to fill are skilled trade workers, teachers, management and executive, technicians, financial staff, sales representatives and nurses. In some other cases a shift in demography is driving demand. There is an increase in retirements and there is an increase in demand of certain services. For instance home health aides demand is expected to hike 48% within the next seven years. It is becoming challenging to find quality workers for these areas because of the low salaries.
These four challenges are making the recruitment process one of the biggest problems. The rate of turnover is increasing as the market economy is showing improvements, it's becoming even more difficult to keep a tab on quality workers, companies are facing an increase in cost in the recruitment process, and finally the increase in demand for certain jobs. You need to start planning strategically for overcoming these hurdles in your recruitment process.

21 Nov 2016 14:29


About Boris Dzhingarov

Boris Dzhingarov graduated UNWE with a major in marketing. He is the CEO of ESBO ltd brand mentioning agency. He writes for several online sites such as,,, Boris is the founder of and