HireVue, a leader in Human Potential Intelligence, unveils compelling insights from its Global Trends Report, shedding light on a paradigm shift in hiring strategies among UK businesses.
The data, derived from a survey of 900 hiring professionals and 2,319 candidates, underscores the impact of financial constraints and evolving candidate expectations, prompting a surge in tech-driven and skills-focused approaches to recruitment.
In response to economic challenges, 47% of UK businesses have tightened their hiring budgets in the past year. Despite this, an interesting trend emerges, with 30% of organisations increasing their technology budgets. This strategic move aims to leverage technology for enhanced efficiency, targeted candidate selection, and overall cost savings. As part of these cost-conscious strategies, 44% of businesses are opting for internal promotions to fill vacancies, avoiding external recruitment fees and indicating a broader shift towards tech-centric hiring approaches in times of economic uncertainty.
Skills Assessments Gain Precedence over Resumes
A departure from traditional hiring practices is evident as organisations shift their focus from resumes to skills assessments. A substantial 72% of respondents now rely on skills assessments to gauge a candidate’s true potential, with 34% prioritising potential over established experience. This aligns with candidate sentiment, as 83% express comfort in completing skills assessments, and 71% are aware of their transferable skills. The adoption of skills-based assessments by 63% of surveyed organisations underscores the growing recognition of adaptability and future-proofing the workforce in a rapidly changing job landscape.
In response to talent scarcity, businesses are diversifying their recruitment strategies. Nearly half, or 46%, actively seek to attract and retain mature workers, while 44% focus on internal mobility to foster career growth and development within their existing workforce. Tom Cornell, Senior A/O Psychologist at HireVue, emphasizes the multifaceted benefits of this strategy, stating, “This not only saves on recruitment costs but also fosters employee engagement and loyalty, providing businesses with a competitive edge in a challenging job market.”
DEI&B Goals Remain a Priority Despite Economic Challenges
A noteworthy finding is that, despite economic headwinds, 45% of surveyed organisations have met all or most of their Diversity, Equity, Inclusion, and Belonging (DEI&B) goals. Internal training emerges as a crucial driver of progress, with 51% implementing programs to educate employees and address potential biases. However, challenges persist, as over half of the organisations have not fully met their DEI&B goals. The report also indicates that 43% of UK hiring professionals are not adjusting their DEI&B budgets, highlighting the ongoing commitment required to achieve and sustain inclusive workplaces.
As the hiring landscape undergoes significant transformations, UK businesses are leveraging technology and prioritizing skills assessments to navigate the challenges posed by economic uncertainties and talent scarcity. The commitment to diversity, equity, and inclusion remains steadfast, with organisations recognizing the need for continuous efforts and internal training to foster inclusive workplaces. This tech-driven and skills-focused approach positions businesses to not only address current hiring challenges but also to build resilient and diverse workforces for the future.
