NEW YORK, Nov. 29, 2016 /PRNewswire/ — America’s employers are more cautious with hiring plans than in the past two years, according to the semi-annual survey from DHI Group, Inc. (NYSE: DHX), a leading provider of data, insights, and employment connections for select professional communities. More than half (56%) of hiring mangers anticipate increased hiring levels in the first half of 2017; however, this is a six point drop from when surveyed in June 2016 and a five point drop from when asked a year ago.

While the survey was conducted spanning the recent U.S. election and therefore too early for substantive insight related to the election results, the responses do paint a picture of employers being less bullish on hiring in 2017. A significant number (68%) of hiring managers who focus on recruiting technology professionals anticipate more hiring, however that’s a 10 point drop from November 2015, indicating waning confidence levels.

As employers appear more cautious with hiring in the year ahead, positions are taking longer to fill. Nearly half of hiring managers who recruit across industries state the time to fill open positions has lengthened compared to last year, the highest since the survey began. This is slightly more evident among tech-focused hiring managers who face increased competition as employers across the country increase their tech needs and skilled talent is becoming harder to find.

The inability to find qualified professionals remains the primary reason employers broadly have difficulty filling positions. The DHI-DFH Mean Vacancy Duration Measure, DHI Group’s proprietary index which leverages JOLTS data from the Bureau of Labor Statistics, mirrors hiring managers’ observations. In September (latest data available), it took 28.0 working days, up from 27.7 days in August, to fill open positions in the U.S. The record high (since the data became available in 2001) was 29.5 days in April of this year.

“Finding the right candidates for the right positions continues to be a challenge for America’s hiring managers as demand for highly skilled professionals creates tension and competition among employers,” said Michael Durney, President and CEO of DHI Group, Inc. “To combat the time a position remains unfilled, recruiters are turning to sourcing and services which speed efficiency. But, professionals remain ultimately in control and are asking for more money during the recruiting process.”

Wages on the Rise

A combination of rising competition, shortage of skilled talent and compensation-savvy professionals adds to the talent tango and is driving wages higher.

Pay expectations are trending upwards with 59 percent of hiring managers (both tech and across a variety of industries) noting salaries for new hires will be higher in 2017. The rise is more pronounced among hiring managers who recruit a variety of professionals with 12 percent expecting significantly higher salaries in the current survey versus eight percent in November 2015, signaling the need for employers to reassess budgets and ensure compensation and benefit offers are aligned for a competitive employment market.

That doesn’t appear to be happening yet as a majority (55%) of recruiters across industries say they can’t fill positions due to salary guidelines for the position, up three points from the mid-year survey and eight points from November 2015.

“Companies are missing a big opportunity by not evaluating salary trends and changing expectations for positions,” said Mr. Durney. “While some employers fail to stay current with rising salaries, savvy recruiters who keep up with changing market dynamics come out ahead and land top skilled talent.”

The jockeying for new talent is pressuring recruiters to consider the whole employment package, including benefits outside salary. Paying for relocation (50%), offering sign-on bonuses (48%) or providing perks such as free lunches, gym memberships and unlimited snacks (44%) are some of the tactics hiring managers leverage to land the best candidates.

Building Up the Bench

Employers are finding a wait and see mentality doesn’t work in this heated recruiting environment. A majority (75%) of hiring managers who recruit for a variety of professionals say sourcing passive candidates is more important today than year ago. For tech, this bumps up to 77 percent.

“It’s becoming increasingly important for employers to have a proactive approach to attracting candidates, one that goes beyond reacting when a position becomes available and extends to building a bench of talent and having candidates at the ready, year round,” said Mr. Durney.  “Services such as getTalent and Lengo ease this pipelining process for employers to ensure candidates are engaged when a position opens up.”

Technology-focused hiring managers anticipate recruiting budgets to be greater in 2017, compared to those who recruit for a variety of professionals who expect much of the same next year.

The Year Ahead

Employers in the U.S. overwhelmingly anticipate no impact from Brexit in 2017 with 77 percent of hiring managers who recruit across industries saying the United Kingdom’s vote to leave the European Union will have no influence on hiring decisions. For those recruiters whose hiring needs are more broad-based, one in five (20%) are unsure of the impact on hiring plans.

Hiring managers in each category say layoffs are not likely in the next six months.

About the Survey

From October 31 through November 11, 2016, DHI Group, Inc. surveyed U.S. companies, government entities and recruiting firms from every region of the country who hire or recruit a variety of professionals and technology professionals. Overall, 618 hiring professionals responded they recruit for a variety of professionals and 785 for technology professionals. For the variety responses, 61 percent identified themselves as working for companies that recruit for their own needs in sectors such as healthcare, technology, energy, manufacturing, defense, education and financial services. More than a third (36%) worked at companies with more than 500 employees.

Survey Results

About DHI Group, Inc.

DHI Group, Inc. (NYSE: DHX) is a leading provider of data, insights and connections through our specialized services for professional communities including technology and security clearance, financial services, energy, healthcare and hospitality. Our mission is to empower professionals and organizations to compete and win through expert insights and relevant employment connections. Employers and recruiters use our websites and services to source and hire the most qualified professionals in select and highly-skilled occupations, while professionals use our websites and services to find the best employment opportunities in and the most timely news and information about their respective areas of expertise. For more than 25 years, we have built our company on providing employers and recruiters with efficient access to high-quality, unique professional communities, and offering the professionals in those communities access to highly-relevant career opportunities, news, tools and information. Today, we serve multiple markets located throughout North America, Europe, the Middle East and the Asia Pacific region.