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Remote Hiring Statistics and Testing for HR Teams

02/19/2022
Remote Hiring Statistics for HR Teams

Remote work tools gained popularity and remote work policies rose, allowing millions to carry out daily job-related tasks from the comfort of their own home (and their pink bunny slippers).

But while work itself became more accessible to many, the challenges of making hiring decisions based solely on resumes and cover letters increased.

HR teams must adopt innovative and tech-savvy approaches to identify and select the best talent as they embrace flexible work arrangements.

The challenge has shifted from finding qualified individuals to discovering those who can excel in virtual work environments and contribute meaningfully to the success of distributed teams.

Remote work is on the rise, and HR teams need to stay up-to-date with the latest trends and insights surrounding remote hiring and testing. Here are some statistics that shed light on the impact of remote work on businesses, including pre-employment use and distributed teams.

Remote Work Statistics

As of Fall 2023,12% of full-time employees work from home, while 30% work a hybrid model. (WFH Research)

Remote work has become increasingly popular, with a significant portion of the workforce embracing flexible work arrangements. Statistics show that 12.7% of full-time employees work from home, while 28.2% have a hybrid work model. 

The COVID pandemic accelerated the remote work trend, leading many companies to adopt hybrid models, offering employees flexibility. Remote work provides benefits such as increased productivity, reduced costs, and improved work-life balance

Approximately 40.7 million employees in the US will have fully remote jobs by 2027. (Upwork)

The number of people who work remotely is increasing year after year. Nearly 28% of respondents in Upwork’s survey believe they will be fully remote in the next five years, up from 22.9% in their last survey conducted in November 2020.

For 90% of employees, productivity remained unchanged after switching to remote. (Owl Labs)

The switch to remote work should not be a surprise, as the model is delivering results. Owl Lab’s research also revealed that almost half of respondents would accept a 5% pay cut to work from home permanently. The reasons behind such responses shed light on why employees find remote work appealing and continue to embrace it.

Studies have shown that when employees are given the autonomy to design their own working environment, they experience an increased sense of agency and control over their work.

It also empowers employees to work at times when they are most focused, leading to higher productivity levels overall. By providing employees this freedom, companies also communicate that they trust their employees, which strengthens their bond and improves engagement and retention.

70% of businesses will be relying on a hybrid work model going forward. (Jobvite)

As businesses shift to a hybrid work model, they must adapt to new ways of working. The following statistics highlight how companies are embracing this work style.

The flexibility associated with hybrid work has made it the most popular option going forward, providing employees with a more dynamic and engaging work schedule.

1 in 3 workers would resign if they had to go back to the office after the pandemic. (Owl Labs).

There are many benefits that come with remote working, and employees now have first-hand experience of their value. 71% of employees now would prefer to continue working remotely or hybrid.

For those employees with families, staying at home has allowed them to care for their children or others who need them.

Working from home full-time is preferred by 57% of employees. (Owl Labs)

Satisfied employees have much more to offer, which is why executives should consider creating a model that will bring the best results.

But not every aspect of remote work is perfect. One of the biggest challenges that companies face today is remote hiring.

Key Takeaway:

“Remote work has become increasingly popular, with numerous benefits for both employees and businesses. Hybrid work is the preferred model, offering flexibility and collaboration, and employees overwhelmingly prefer remote and hybrid work options.”

How HR Teams Are Navigating Remote Hiring Trends And Challenges

68% of HR executives identified “finding ways to reduce costs or improve efficiency” as a top priority for 2024. (SHRM)

This finding underscores the ongoing challenges that organizations are facing in the current economic climate, which have been further compounded by the impact of the COVID-19 pandemic.

The rising costs of doing business, coupled with the need to maintain operational efficiency, are driving HR leaders to explore innovative strategies to improve hiring efficiency.

33.1% of employers view remote hiring as their biggest challenge today. (Workable)

The efforts to find the missing piece that each company needs have multiplied, and new methods are arising to accommodate these rapid changes.

Workable’s survey respondents have identified the most challenging elements of remote hiring ones:

Candidate engagement increases the interest among job applicants, and it affects the reputation of your organization. Knowing how to attract talent is one of the keys to success, but even the most talented hire will need to go through effective onboarding to become a productive employee.

46% of HR Teams believe that evaluating emotional intelligence, soft skills, and team culture fit was their main challenge in remote hiring.

31% of recruiters reported that their biggest challenge was not having enough qualified candidates to fill open job positions (Jobvite)

In 2023, talent teams are grappling with three primary challenges that significantly impact their ability to attract and retain top talent.

46% of Recruiters worldwide grapple with evaluating candidates’ emotional intelligence (Statista)

Remote hiring challenges HR teams to assess emotional intelligence, soft skills, and team culture fit. Evaluating emotional intelligence in virtual interactions is difficult due to limited body language and facial expression cues.

A combination of technology and creative approaches helps recruiters effectively assess critical attributes for successful team dynamics and performance in remote hiring.

To tackle this issue, many companies turn to Emotional Intelligence Tests.

Key Takeaway: 

“Remote hiring is a challenge for HR teams, with engagement, onboarding, and evaluation being the most difficult elements. Emotional intelligence, soft skills, and team culture fit pose a challenge, and companies use technology and creative methods to assess these attributes.”

Pre-Employment Testing Statistics

Remote organizations are 1.5 to 2.5 times more effective when it comes to recruitment and retention (SHRM)

Specifically, remote organizations outperformed in-person companies when it came to:

Over 65% of employers today use some form of a pre-employment test (Talent Board)

Pre-employment assessments are highly valued among hiring managers. More than 65% of employers state that they use one or more tests during the interview stage, a report from Talent Board reveals.

62% of employers say the top reason they use pre-hire assessments is to help hiring managers make better decisions (Talent Board)

Additionally, 47% of employers use pre-employment tests to improve new hire performance, 34% to risk mitigation, 34% to increase early retention, and 31% to introduce the candidate to the expectations of the role.

Companies that use pre-hire screenings report a 39% lower turnover rate (Aberdeen)

With the help of pre-employment assessments, organizations are more likely to find the perfect candidate for their open roles, which can significantly reduce turnover.

Additionally, organizations that include assessments in the hiring process are 24% more likely to have employees who exceed their performance goals. 

Key Takeaway:

“Pre-employment assessments are highly valued among hiring managers and can help reduce turnover, make better decisions, and improve new hire performance.”

Remote work is here to stay, and so is remote hiring.

Companies are finding new ways to adapt to the challenges that remote hiring presents. Candidate engagement, onboarding, and evaluation are the most common challenges that HR Teams face.

If you want to align your strategy with 22% of respondents from Jobvite’s report and switch to end-to-end virtual hiring, every data point about your candidates will be helpful in making the best hiring decision.

This means that hiring teams will need access to a variety of tools, including pre-employment tests, to help them understand their candidates better.

If you’re hiring for remote or in-office positions, consider sampling a few different pre-employment test types. This will help you gain insight into the various data points relevant to the roles your HR team is searching for.