A new survey from high volume hiring tool Fountain found more than 70% of respondents use the same process for hiring both hourly and white collar workers.
That's a recruiting fail.
This is despite the fundamental differences in these jobs and the particular challenges that persist in these roles (no shows, etc.). This mismatch can be the difference between a company filling these frontline positions, or seeing their business suffer — a dynamic made all the more acute in a hot job market, which continues to soar based on the latest jobs report.
Top 10 Findings:
1. Top three biggest pain points among HR professionals: 1.) Time-to-hire; 2.) sourcing applicants; and 3.) scheduling are the top three biggest pain points among HR professionals when it comes to hiring hourly workers. 38% of HR professionals say time-to-hire is their biggest pain point.
2. Administrative burden: HR professionals are spending a lot of time on administrative recruiting tasks like conducting background checks, scheduling and reaching out to candidates — not to mention reviewing resumes and cover letters.
3. No-show rate is creeping up: Over half report a less than 80% first day attendance rate.
4. Interviews? Still mostly IRL. Despite the digital transformation that followed the pandemic and the rise in virtual interviews overall, 62% of those surveyed still conduct hourly interviews in person. It’s unclear, though, that this is having an impact on the no-show rate, which remains high. And almost half of respondents say more than 20% don’t show for the interview itself.
5. Inefficiencies lead to decreased satisfaction: Two-thirds of HR professionals are not satisfied with their company’s hourly hiring process.
6. Too picky? The majority report hiring between 6–20% of applicants for their jobs. As they continue to fill their funnels, the administrative burden only balloons with such a selection rate. Only around one third of HR professionals hire more than 20% of the candidates out of the total applications they receive. This means the majority of HR professionals may be too selective — or the quality of candidates isn’t on par with what they’re looking for.
7. Yet turnover is high: For all the time spent being selective, turnover is stubbornly high. Nearly a quarter of respondents have 30%+ turnover. 60% of respondents reported turnover of more than 10%.
8. 90 is a good start: 90% of respondents agreed that DEI are important for their company’s hourly hiring.
9. Job boards are sourcing king: Just 6% of companies primarily source candidates through social media — suggesting a major gap between the promise of these platforms and reality and barely ticking up from a 2016 SHRM study that found it was used by 5% as a primary tool. Nearly two thirds (64%) indicated that their company primarily sources hourly workforce candidates on online job boards.
10. Seasonality is stressful: Only 37% say they are very satisfied and only 43% say their teams are able to respond very well to hiring seasonally.
These survey results hit on a major problem–recruiters using the same process to attract hourly workers are missing out on landing these candidates. These workers represent more than half of all wage and salary workers in the U.S., and represent a distinct labor pool operating with a very different set of skills and job requirements.
There are significant differences between these two types of jobs, and the hiring process should reflect those differences.
Hourly workers typically perform manual labor or other tasks that do not require a college degree. They are often paid by the hour, and their work is often seasonal or temporary.
White collar workers typically have a college degree and perform more analytical or creative tasks. They are often paid a salary, and their work is typically more stable.
The following are some of the key differences between the hiring process for hourly and white collar workers:
As a result of these differences, the hiring process for hourly and white collar workers should be different. For example, the education requirements for hourly workers may be waived, and the skills requirements may be more focused on on-the-job training. The interview process may also be different, with more emphasis on the candidate's ability to learn and adapt.