European employers are facing growing difficulties in hiring talent, as the time it takes to fill vacancies reaches an all-time high. According to the recently released Global Talent Climate report, the average time-to-hire for the first quarter of 2023 has extended by one day across all industries, making the hiring process now take 43 days on average. This increase in hiring time comes despite concerted efforts by employers, leading to a widening gap between “easy to fill” and “difficult to fill” roles. Many positions are remaining vacant for 2-3 months or more, presenting a considerable challenge for European companies striving to maintain competitiveness amidst rapidly evolving industries.
The Talent Climate report, a collaboration between The Josh Bersin Company, the world’s most trusted human capital advisory firm, and global talent solutions business, AMS, analyzed hiring trends across industries. The findings indicate that nearly all job roles have experienced a rise in time-to-hire, highlighting the ongoing hiring challenges that most European companies are facing. As a result, organizational leaders are urged to develop strategic talent plans that address these emerging hiring needs.
Industry-specific analysis reveals that Energy & Defense companies had the longest time-to-hire rates in 2022, requiring over 67 days to replace a specialist. Projections for 2023 suggest that this industry will face an even slower hiring rate. Similarly, the Professional Services sector exceeds the average time-to-hire, with an average of 47 days needed to fill positions. Additionally, tech roles across industries remain particularly difficult to hire for, and this trend is expected to continue in 2023.
On a regional basis, time-to-hire projections for 2023 indicate a significant increase in hiring times for European regions, including APAC, EMEA, and LATAM. LATAM, in particular, may experience more considerable difficulties, with an average increase of six days in time to hire.
To assist hiring teams, Benchmark Scorecards were generated, offering powerful tools for optimising recruiting practices. Employers can compare their time-to-hire targets and outcomes with industry peers, by region and job category, to identify opportunities for improvement.
Commenting on the study, Janet Mertens, The Josh Bersin Company Senior Vice President of Research, highlighted the impact of the pandemic on work priorities and the sharp shift in required skills in many industries. She emphasized that gaps in skills availability need to be addressed through innovative talent development strategies.
Josh Bersin, global HR research analyst and CEO of The Josh Bersin Company, underscored the current mismatch between supply and demand for skills. He noted that HR and talent acquisition professionals must think creatively to develop people and cross-pollinate roles to address talent gaps effectively.
Jim Sykes, Global Managing Director of Client Operations at AMS, pointed out that time to hire has been consistently rising for the past four years. He emphasized the need for HR and Talent leaders to continuously innovate and transform their strategies to acquire, develop, and retain talent effectively.
As European companies grapple with the challenges of hiring in the current talent climate, adopting innovative approaches to attract and retain top talent becomes imperative for sustaining competitiveness in the market.