Talent shortages are driving nearly half of hiring managers and recruiters to seek professionals outside their local markets, according to a new survey released today by Dice Holdings, Inc., a leading provider of specialized career websites for professionals including eFinancialCareers.com.
The study shows that America's hiring managers and recruiters are forecasting healthy job growth for the remainder of this year. Slightly more than half (51%) of employers and recruiters anticipate hiring more professionals in the second half of 2011 than in the previous six months.
Step up in Financial Services Hiring
These survey results suggest the U.S. labor market remains on a favorable trajectory, particularly when the stronger levels of hiring experienced in the first half of the year are taken into account. Companies expecting a step-up in hiring in the next six months represented a broad spectrum of industries, including financial services, energy, technology, telecom, media, internet, distribution, consulting and retail.
"The recovery in jobs appears to be broadening to include more industries, more professions and certainly more local markets," said Scot Melland, Chairman, President and CEO of Dice Holdings, Inc. "We see this every day in our businesses as more and more companies return to recruiting and speed-to-hire becomes increasingly important."
Looking Outside Local Markets for Talent
The disparity between available jobs and skilled talent has sparked companies to adapt to a more competitive market. Nearly half of the hiring manager and recruiters (49%) said they have started to recruit talent from geographies outside their local market due to talent shortages. This emerging phenomenon was more pronounced for companies headquartered in the East, Midwest and South, as compared to those in the Northeast and West.
At the same time, paychecks are starting to be positively impacted, as 41 percent of hiring managers and recruiters indicated salaries for new hires are rising, compared to just 29 percent who felt that way six months ago.
For those planning on making more hires in the second half of 2011, 48 percent project they will add up to 10 percent more employees compared with the first half of 2011, while 29 percent plan to increase hiring by 11 to 20 percent.
Half of employers and recruiters noted they are no longer seeing increases in the number of candidates applying for positions. June 2008 was the last time a similar number of employers indicated a change in applicant behavior.