ZipRecruiter Inaugural Employer Survey: With Labor Shortages Right here to Keep, U.S. Employers Are Pulling Out All of the Stops

New annual employer research reveals insights into the return to the workplace, the state of pay, skills-based hiring, and expertise traits 

Santa Monica, Calif. (October 11, 2023) – ZipRecruiter®, a number one on-line employment market, as we speak launched the outcomes from its first Annual Employer Survey, offering an in-depth look into the challenges, motivations, and newest hiring practices of employers throughout the U.S. In keeping with the brand new report, employers are adopting new insurance policies, processes and choices to recruit and retain prime expertise in as we speak’s labor market.

“Employers more and more perceive that labor shortages are right here to remain, given present demographic traits and authorities insurance policies. In response, they’ve made a dizzying array of modifications to their hiring processes, tech stacks, advantages choices, and distant work insurance policies over simply the previous yr. Now, many are turning to rising Generative AI instruments, desperate to discover a silver bullet,” stated Julia Pollak, ZipRecruiter Chief Economist and lead writer of the report.  

ZipRecruiter surveyed people accountable for hiring selections at 2,000 companies of various sizes and industries all through the U.S. The report offers insights into 4 main classes – work preparations, skills-based hiring, the state of pay, and prime expertise traits. 

Distant or RTO?: Employers and Staff Meet within the Center 

As employers discover totally different distant work and return to workplace insurance policies, one factor stays clear—most U.S. firms are carried out with the five-day in-office work week.

Key findings embody:

  • A mere 16% of firms with workplace Jobs that would feasibly be carried out remotely require workers to be within the workplace 5 days per week.
  • Even among the many 43% of firms which have revised their distant work insurance policies and mandated some type of return-to-office over the previous yr, solely 14% have required staff to return again 5 days per week. 
  • There’s a massive distant recruitment premium on ZipRecruiter, with distant Jobs getting greater than thrice as many purposes as related in-person Jobs.
  • The distant reversal is essentially based mostly on employer beliefs that efficient in-person monitoring and mentoring require workers and managers to be within the workplace on the identical time. Nonetheless, over 70% of employers say they don’t centrally coordinate in-office days, which may diminish the meant advantages of returning to the workplace.

The total work arrangements report with extra information and commentary is on the market right here.

Past Levels: Rethinking {Qualifications} within the Abilities-First Period

Employers are ditching levels and embracing skills-based hiring—particularly within the wake of abilities shortages, post-pandemic school enrollment declines, and a broadly acknowledged school affordability disaster. 

Key findings embody: 

  • 45% of firms stated they’d distributed with diploma necessities for some roles in simply the previous yr, and 72% stated they now apply skills-based hiring, prioritizing abilities over levels.
  • The share of job postings on ZipRecruiter itemizing a bachelor’s diploma as a requirement fell 10% between 2022 and 2023 so far, whereas the share of job postings providing candidates coaching and tuition help rose 31% and 24%, respectively. 
  • Going through abilities gaps, employers are ready to make investments in candidates with the suitable smooth abilities. 10% of employers stated they added scholar Loan help to their advantages packages, 15% stated they added tuition help, and 30% stated they added new worker coaching and improvement applications up to now yr.

The total skills-based hiring report with extra information and commentary is on the market right here.

Pay Developments Amid Rising Pay Transparency

IT is turning into normal apply for employers to publish wage Information in job descriptions, however figuring out the correct amount to put up is difficult within the present atmosphere the place employers are each decreasing pay for sure roles and having bother filling vacancies at present wage ranges. 

Key findings embody: 

  • 41% of employers polled say a place has gone unfilled up to now six months as a result of candidates wished extra pay than the corporate was ready to supply. And pay is the highest response employers gave as their #1 differentiator in recruitment.
  • ZipRecruiter information exhibits that, on common, posted pay ranges have declined over the yr in additional industries, classes, and job titles than elevated—a deviation from the historic development. 
  • This development of employers attempting to alter worker wage expectations following two years of speedy (nominal) wage will increase is backed up by the survey information, with 48% saying they’ve reset pay downwards for some roles up to now yr. 
  • 75% of employers agree that pay transparency helps them appeal to high quality candidates, and 61% agree that pay transparency makes recruitment extra environment friendly by discouraging poorly matched candidates from making use of and stopping post-offer disappointment.

The total state of pay report with extra information and commentary is on the market right here.

The Prime 10 Expertise Acquisition Challenges of 2023

Employers might need anticipated hiring circumstances to ease because the pandemic waned after which later because the Federal Reserve raised rates of interest to restrictive ranges. Nonetheless, many employers report they nonetheless discover themselves in a tricky labor market.

Key findings embody:

  • When requested to listing their prime three recruitment challenges, 57% of employers stated they lacked certified candidates, and 46% stated they’d too few candidates of any variety.
  • The labor market stays extremely aggressive, with 40% of employers saying that competitors for expertise from better-known firms is amongst their prime three recruitment challenges, and 40% itemizing competitors from firms that pay extra or supply extra advantages.
  • 50% of employers bemoaned an absence of underrepresented candidates within the expertise pipeline, 43% famous an absence of candidates of coloration, and 42% an absence of feminine candidates.

The total talent trends report with extra information and commentary is on the market right here.

Survey methodology

The ZipRecruiter Annual Employer Survey is a nationwide on-line survey exploring employer attitudes towards latest hiring traits and their experiences of present U.S. labor market circumstances. Respondents had been verified expertise acquisition professionals and hiring managers with appreciable accountability for hiring processes and selections. They symbolize 2,000 companies of all sizes and throughout industries. The survey was fielded from July 7 to August 1, 2023. 

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