Fountain Unveils “The State of Frontline Hiring: 2023 Annual Benchmarking Report”

Fountain, the world’s leading platform for connecting employers with frontline workers, has just released its comprehensive “The State of Frontline Hiring: 2023 Annual Benchmarking Report.” This in-depth report unveils pivotal insights into the current landscape of frontline hiring, drawn from Fountain’s extensive dataset covering over 4 million applications and thousands of job openings offered by high-volume employers recruiting more than 1,000 applicants annually. The report delves into various industries, such as Professional and Business Services (Call Centers), Delivery Services, Food Services and Restaurants, Healthcare, and Warehouse Operations and Logistics, providing a detailed analysis of metrics like applications per open role and conversion rates, shedding light on the evolving dynamics in the hiring market for frontline workers.

Despite the significant demand for frontline workers during the pandemic, the report reveals a shift in the market. Factors such as stabilized unemployment and an additional surge in hiring between February and August 2023 have better prepared employers for the 2023 holiday season.

The frontline workforce, which constitutes 70% of U.S. jobs, has witnessed substantial changes. While office-based industries have returned to pre-pandemic levels in terms of hires, job openings, and quits, frontline industries have experienced a 25% increase in job openings compared to July 2019, with quit rates reaching their highest levels since the pandemic.

Key Highlights From The Report

1. Frontline Jobs Demand: Call Centers (within Professional and Business Services) have the highest application rates among the sectors analyzed, but there has been a 58% decline in average weekly applications per job posting in 2023 compared to 2021. Delivery Services applications have fallen by 11% in 2023, with hiring remaining relatively steady.
2. Warehousing Continues to Shine: The Warehouse Operations and Logistics sector displays resilience, with 28% of applicants hired in 2023 and an average compensation of $19 per hour. Despite a slight drop in average weekly application rates, hiring slowed after a robust 2022, indicating fewer openings for the 2023 holiday season.
3. Pay vs. Hiring: Healthcare’s average hiring rate peaked at 17% in 2022 but has since decreased to 12% in 2023. This contrasts with a recent surge in application rates, likely influenced by rising pay. Healthcare sector advertises the highest average wage of $34 per hour in 2023.
4. Rise of Video Interviews: Food Services and Restaurants have seen value in video interviews, with companies offering this option experiencing conversion rates of over 60%, surpassing the rates for phone and in-person interviews, which are around 45%. Employers in this sector are encouraged to incorporate video interviews to boost conversion rates.
5. Contract Signing: In 2023, all industries have witnessed contract signing rates above 90% for jobs offered, except for Warehouse Operations and Logistics, where the rate has dropped to 82%. This suggests that unattractive pay or hours might prompt applicants to explore other opportunities.
6. Holiday Outlook: Application rates for frontline workers across these sectors have been steadily declining since August 2022, remaining at levels similar to those seen in 2019, indicating a reduced appetite for hiring as the 2023 holiday season approaches.

The report’s methodology involved analyzing proprietary and anonymized data from thousands of job applications and openings in the U.S. between March 2021 and August 2023. Categories examined included Application Rate, Applicant-to-Hire Ratio, Average Pay Per Hour, and Stage Conversion Rate. The report presents application and hire rates as three-month rolling averages to provide a smoother trend identification.

More On Fountain

Fountain is the premier end-to-end platform for hiring and onboarding the frontline workforce, streamlining the hiring process to connect employers with more qualified candidates quickly. The platform’s mobile-first technology caters to candidates and employers, processing over 30 million applications annually. Fountain’s AI-driven technology and exceptional customer service empower companies across various industries to enhance their frontline recruiting, onboarding, and retention processes, ultimately building a stronger workforce. For more information, visit Fountain’s official website.