ADP, Research, Recruiting, Demand

ADP Research Reveals Heavy Demands on HR Recruiting Staffs

ADP Research Reveals Heavy Demands on HR Recruiting Staffs; Large Organizations Screening Over 20 Candidates per Opening, Nearly Double That of Mid-Size Companies

Recruiters at Mid- and Large-Size Organizations Spending 30 Percent of Their Time Searching for Qualified Candidates; Identify Best Technology Tools to Improve Staff Efficiency

ROSELAND, New Jersey -- August 4, 2008 -- ADP® Employer Services, a leading provider of HR, payroll and benefits administration services, released The Current State of Recruitment Technology (http://pre-employmentservices.adp.com), a study which reveals new challenges and pressures on HR recruiters and their staff. The study finds that recruiting staffs at large organizations* are processing almost two dozen applicants per opening, compared to a dozen for mid-size organizations. Despite outnumbering the mid-size recruiting staffs by a 4-to-1 ratio, the study found, large company recruiters are flooded with a far greater number of job applicants on average, according to the study.

HR recruiters who are tasked with filling these jobs are often engaged in the "war for talent" without the most robust tools -- according to the study fewer than one in four utilize technology to manage the recruitment process from end-to-end. The study also reveals that HR executives believe that software and technology can improve staff efficiency on most core recruiting functions, indicating a growing demand for software and outsourcing in recruiting departments.

According to the study, recruitment professionals overwhelmingly identify their biggest challenge as "finding qualified candidates who meet the job requirements." In large and mid-size companies, the study found that nearly one-third of staff time is spent on the initial recruitment process, consisting of finding qualified candidates, screening them, and scheduling/conducting interviews. Most often these tasks are performed in-house without help from external HR experts or outsourcers.

"Recruiters at companies of all types and sizes have told us their most challenging and time-consuming task is identifying candidates who are both qualified and meet the necessary job requirements," said Mike Martone, Chief Operating Officer, ADP. "Recruitment experts who have embraced technology are now able to quickly analyze and identify the best people ahead of the competition, while staying in compliance with hiring regulations."

ADP Research Findings: The Current State of Recruitment Technology

Interviews with more than 500 senior HR executives in charge of recruitment at mid- and large-size U.S. companies uncovered the following information:

• Large organizations receive, on average, 23 applicants per opening, while mid-size companies attract 12 applicants per position.
• Turnover of hourly positions at large-size companies is almost double that of salaried jobs; mid-size companies reported 22 percent annual hourly turnover, compared to 10 percent of salaried jobs, while 27 percent of hourly and 14 percent of salaried positions are filled annually at large- size companies.
• Roughly 30 percent of recruiters' time in both large and mid-sized companies is spent uncovering qualified candidates who meet job requirements.
• Fewer than one in four large companies use software to manage the recruitment process from end-to-end. Only one in 10 mid-sized companies uses end-to-end tools.
• Eighteen percent of mid-size companies and 11 percent of large-size companies use no software at all in the recruitment process.

"ADP's research points to an industry condition that is widening the gap between those that have invested in recruiting technology and those that have not," said Lisa Rowan, IDC's program director for HR and Talent Management services. "Technology solutions are available which could pay for themselves in less than one year, especially as the battle for qualified candidates continues. This study shows new pressures that are making these tools more necessary than ever."

Please visit http://pre-employmentservices.adp.com for more information on The Current State of Recruitment Technology and to access a white paper that provides further information about ADP's research findings and methodology.

About ADP

Automatic Data Processing, Inc. (NYSE: ADP), with nearly $9 billion in revenues and over 585,000 clients, is one of the world's largest providers of business outsourcing solutions. Leveraging nearly 60 years of experience, ADP offers the widest range of HR, payroll, tax and benefits administration solutions from a single source. ADP's easy-to-use solutions for employers provide superior value to organizations of all types and sizes. ADP is also a leading provider of integrated computing solutions to auto, truck, motorcycle, marine and recreational vehicle dealers throughout the world. For more information about ADP or to contact a local ADP sales office, reach us at 1-800-225-5237 or visit the company's Web site at www.ADP.com.

* Companies with 1,000 or more employees; mid-size companies are ADP Clients with 100-999 employees