The ClearInsights Max Recruiting Benchmark report helps you view how your labor demand and supply compare to the industry and the U.S. Market by analyzing over 90 million data points. This report will help you gain more awareness of the macro recruiting market and where you stand to help you make more informed hiring decisions. In this article, we delve into the report and how to navigate through the information.
In this article:
General Information
Navigating to the Report Summary
Section Information
Data & Calculations
Navigating to the Report
General Information
The industries listed in these reports are based on the North American Industry Classification System (NAICS). The data model is normalized to effectively compare your organization and an industry or an organization or the U.S. Labor Market.
The industry grouping is based on the NAICS industry classification system. This allows for a general grouping of related industries (instead of the full 600+ granular industries supported by NAICS). You can modify the filter to select a different industry to compare against. The NAICS code (first two digits) is displayed following the name of the industry when viewing the filters.
Below are some resources to help you understand the NAICS.
Navigating to the Report
You will need the recruiter's permission to see this report.
- From the dashboard, click Tools, then ClearInsights.
- Click Benchmarking.
- Click on the Recruiting Benchmarks Report.
Summary
The benchmarking reports are divided into four sections. Sections 1-2 compare your labor supply (left side) and demand to industry and U.S. market benchmarks (right side). Section 3 presents your raw labor supply and demand data. Section 4 compares your relative labor demand to industry and the U.S. market for a specific week. With most of the charts, you can toggle on/off to show either the industry and/or the U.S. Market.
Section Information
Section One
Section 1: Compare Your Labor Supply & Demand to the Industry:
- Snapshot Metrics: This shows if you are above or below the Industry in terms of Labor Supply or Demand. This takes the average over the past 6 months to provide a single easily digestible metric.
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Trend Line Charts: This shows whether your organization has been trending above or below the Industry in terms of Labor Supply or Demand. We have normalized the Industry data into a flat benchmark for easy comparison.
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What does it mean if my labor supply is above or below the Industry benchmark?
Being above the benchmark suggests strong candidate attraction, while below suggests room to improve. The results can prompt strategies like optimizing job descriptions, simplifying applications, ensuring competitive compensation, enhancing sourcing, strengthening employer brand, and/or implementing robust referrals.
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What does it mean if my labor demand is above or below the Industry benchmark?
Being above the benchmark might indicate high turnover or hiring inefficiencies that result in prolonged open requisitions, or they can indicate a period of business growth. Being below the benchmark can indicate low turnover or efficient hiring practices.
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What does it mean if my labor supply is above or below the Industry benchmark?
This chart will show whether your organization has been trending above or below the Industry in terms of Labor Supply or Demand. In the graph below you can see functions of being above and below.
Section Two
Section 2: Compare Your Labor Supply & Demand to the U.S. Market:
- Snapshot Metrics: This shows if you are above or below the U.S. Market in terms of Labor Supply or Demand. This takes the average over the past 6 months to provide a single easily digestible metric.
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Trend Line Charts: This shows the trend of you being above or below the U.S. Market in terms of Labor Supply or Demand. We have normalized the U.S. Market data into a flat benchmark for easy comparison.
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What does it mean if my labor supply is above or below the U.S. Market benchmark?
Being above the benchmark suggests strong candidate attraction, while below suggests room to improve. The results can prompt strategies like optimizing job descriptions, simplifying applications, ensuring competitive compensation, enhancing sourcing, strengthening employer brand, and/or implementing robust referrals.
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What does it mean if my labor demand is above or below the U.S. market benchmark?
Being above the benchmark might indicate high turnover or hiring inefficiencies that result in prolonged open requisitions, or they can indicate a period of business growth; being below the benchmark can indicate low turnover or efficient hiring practices.
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What does it mean if my labor supply is above or below the U.S. Market benchmark?
This chart will show the trend of you being above or below the U.S. Market in terms of Labor Supply or Demand. In the example below, you can see that labor supply is mostly below while demand is above.
Section Three
Section 3: Your Labor Supply & Demand
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Your Labor Supply Chart
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What insights does this chart offer?
This chart displays your labor supply as a ratio, specifically as the number of candidates relative to the number of open requisitions. Recurring cyclical patterns, like annual peaks followed by troughs, can indicate seasonal changes in supply that can be anticipated in advance.
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What's the significance of a positive or negative percentage?
Positive means surplus candidates over open requisitions, negative indicates a shortage, and zero denotes equilibrium (see more below under "Calculations").
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How is Labor Supply calculated?
For each given week, your labor supply is displayed as the number of candidates divided by the number of open requisitions.
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Why calculate Labor Supply this way?
Candidate attraction is presented as a ratio, relative to the number of open requisitions, in order to highlight the degree to which labor supply meets labor demand. Higher ratios indicate stronger attraction.
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What insights does this chart offer?
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Your Labor Demand Chart
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What insights does this chart offer?
This chart displays your labor demand as the number of open requisitions at a given time, indicating intent to fill one or more vacant positions. Recurring cyclical patterns, like annual peaks followed by troughs, can indicate seasonal changes in demand that can be anticipated in advance.
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How is Labor Demand calculated?
Your labor demand is displayed as the number of requisitions in an open state during a given week. This number includes both newly-opened requisitions and those requisitions that were opened previously and are still open.
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Why do we calculate Labor Demand like this?
Labor demand is calculated this way in order to represent intent-to-hire at each given week, regardless of when a requisition was originally posted. On-Hold requisitions are not counted.
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What insights does this chart offer?
Section Four
Section 4: Your Labor Demand Relative to the Industry and U.S. Market
This chart compares your labor demand to those of the U.S. Market and a selected industry for each given week. It offers two benefits:
- The ability to identify patterns in your labor demand, whether due to national or industry trends or specific to your organization or season of the year.
- The ability to compare and contrast your labor demand with the U.S. Market and a selected industry at specific points in time.
Why are we showing this chart?
The previous Labor Demand charts normalized the Industry and U.S. Market data into a flat benchmark for easy comparisons. However, you may want to see how they all trend together and compare those trends in a single chart, this chart allows you to visually do this.
Data & Calculations
Calculations
This is calculated by the sum of candidates / open requisitions during a specified period.
It's not just about raw numbers; it's about understanding candidate availability relative to open requisitions. For instance, having 100 candidates may seem positive, but if you have 200 open requisitions, it's not as beneficial. Using this ratio offers a more accurate assessment of true candidate supply, considering the context of open requisitions.
- 1 means there was a 1:1 ratio or equal amount of Labor Supply (ie number of candidates), compared to Labor Demand (number of requisitions in the open state) for that given week.
- 2 means there was a 2:1 ratio or twice the amount of Labor Supply (ie number of candidates), compared to Labor Demand (number of requisitions in the open state) for that given week.
- Anything below 1 means Labor Supply (ie number of candidates) fell short of your Labor Demand (number of requisitions in the open state) for that given week.
Your labor demand is displayed as the number of requisitions in an open state during a given week. This number includes both newly-opened requisitions and those requisitions that were opened previously and are still open. For instance, if you opened 2 new requisitions in the week of 1/14/24 and there were 6 requisitions still open from previous weeks, the total would be 8 requisitions in the open state for the week of 1/14/24.
Labor demand is calculated this way in order to represent intent-to-hire at each given week, regardless of when a requisition was originally posted. On-Hold requisitions are not counted.
Data: Where does the benchmarking data come from?
ClearCompany is using all of our customer data to create the Industry and US labor market benchmarks. This encompasses over 90MM data points. See below for more information.
ClearCompany is segmenting all of our clients based on industries and company size and then using their data to create these industry-based benchmarks. The data is normalized to effectively compare apples-to-apples between a client and a selected industry. An industry group will only be included if ClearCompany has enough data for the benchmarking. ClearCompany must have at least 30 clients within a specific industry for that industry to have a reasonable data set.
The list of industries is based on the North American Industry Classification System (NAICS).
ClearCompany uses all of our customer data for this benchmark. Since each industry makes up a different portion of the overall US labor market we have weighted each industry's data upon the actual distribution within the overall US labor market. We have also factored in weightings for company size. This removes any bias in our data based upon us having a disproportionate number of organizations from some industries or company size vs the country as a whole.
Note: The vast majority of data is for US requisitions so we are presenting this as the U.S. Labor Market even though some small percentage might be requisitions for hires outside the U.S.
For each given week, the number of Open requisitions is considered to be the number of requisitions that:
- (a) had an open status during the given week and
- (b) currently have an open or closed status.
On-Hold requisitions are not counted. The number of openings on a given requisition does not impact the count.
The metrics are updated on a weekly basis over the weekend.
F.A.Q.
We will display data going back to 2019.
We only count candidates during the week that they applied, and after that they are not counted anymore. We do not consider their status of active vs new.
We suggest optimizing job descriptions, simplifying applications, ensuring competitive compensation, enhancing sourcing, strengthening employer brand, and/or implementing robust referrals.
Since each industry makes up a different portion of the overall US labor market we have weighted each industry's data upon the actual distribution within the overall US labor market. We have also factored in weightings for company size. This removes any bias in our data based upon us having a disproportionate number of organizations from some industries or company size vs the country as a whole.
Recurring cyclical patterns, like annual peaks followed by troughs, can indicate seasonal changes in supply that can be anticipated in advance.
For privacy:
- We have aggregated the data to ensure the privacy of business information. We have aggregated the industry, each of which has at least 30 active organizations with requisition volume.
- No candidate PII or employee PII is used in the calculation of any of the measures shown in the report.
Users have an option to Download the Report as a PDF.
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