Talent Benchmark Explained

1. Talent Supply

Talent Supply Index (Social Profiles Data)

Measures regional talent availability relative to the national average, using a location quotient-style formula:

Formula:
(Supply share in region ÷ total profiles in region) ÷ (Supply share nationally ÷ total profiles nationally)

Interpretation:

1.0 = Average supply
Greater than 1.0 = Abundant supply
Less than 1.0 = Limited supply

Source (Index):
Professional profiles, normalized through Lightcast’s proprietary occupation and skill mapping.

Use Cases:
Workforce planning, location strategy, internal mobility readiness.

Talent Supply Rating (Modeled)
A modeled estimate of talent availability, calculated from government employment data, estimated unemployment, and turnover.

Components Include:

SOC-based employment figures
Proxy unemployment rates adjusted locally
Estimated number of available workers (unemployed + likely to turnover)
Skill adjacency modeling for related occupations

Examples:
"High Supply," "Somewhat Low Supply"

Source (Rating):
Government occupational statistics (e.g., BLS OES), U.S. Census labor force data, Lightcast turnover models.

Key Difference:
The index is based on digital activity (profiles); the rating reflects broader labor pool estimates.

2. Hiring Demand

Hiring Demand Index (Job Postings Data)

Assesses hiring competition in a market using posting volume comparisons:

Formula:
(Job postings for occupation in region ÷ total postings in region) ÷ (Job postings for occupation nationally ÷ total postings nationally)

Interpretation:

1.0 = Average demand
Greater than 1.0 = Intense hiring competition
Less than 1.0 = Below-average demand

Source (Index):
Job postings from employer websites, job boards, and aggregators, deduplicated and normalized by Lightcast’s proprietary taxonomy.

Use Cases:
Competitive intelligence, demand forecasting, recruiting strategy.

Hiring Demand Rating (Modeled):
Assesses market momentum based on job posting trends, comparing current 90-day posting volume to the same period last year.

Examples:
"Somewhat High Demand," "Low Demand"

Source (Rating):
Lightcast job postings database, calculated using year-over-year growth rates for unique postings in a 90-day rolling window.

Key Difference:
Index reflects current market share; rating shows directional demand change.

3. Compensation Trends

Wage Level Index (Job Postings Data):
Compares regional median advertised wages to national wages for the same occupation:

Formula:
Median wage in region ÷ Median wage nationally

Interpretation:

1.0 = Equal to national median
Greater than 1.0 = Higher-than-average wages
Less than 1.0 = Lower-than-average wages

Source (Index):
Advertised salary values from job postings, aggregated to produce median wage values by occupation and location.

Use Cases:
Pay equity audits, compensation planning, salary calibration.

Wage Trend Rating (Modeled):
Measures wage momentum by comparing current advertised wages with those from the same period last year.

Thresholds:

Greater than 15% = Very High Inflation
Greater than 7.5% = High Inflation
Greater than 2.5% = Mild Inflation
Between -2.5% and 2.5% = No significant change
Less than -2.5% = Wage deflation

Source (Rating):
Rolling average of advertised wages in job postings, tracked and compared year-over-year for inflation or deflation trends.

Key Difference:
Benchmark shows wage level; rating shows wage change.

4. Diversity Benchmark

National Diversity Benchmark (%):
Represents the percentage of talent in a given occupation who are not White males, based on national-level occupational data.

Source:
U.S. Census Bureau data, including the American Community Survey (ACS) and Quarterly Workforce Indicators (QWI), blended with Lightcast’s proprietary occupation mappings to estimate national racial and gender representation by occupation.

Use Case Alignment:
Diversity strategy, inclusive hiring, DEI benchmarking.

Why Both Indexes and Ratings Matter

Question	Lightcast Benchmark Index (Quantitative)	Lightcast Qualitative Rating (Modeled)
What is the current competitiveness of this market for talent?	Current view based on postings and profiles	Modeled labor pool size and turnover trends
How are salaries changing over time?	Wage levels relative to national benchmarks	Year-over-year inflation/deflation trends
Is there enough talent in this market to hire for this job?	Observed online presence of talent	Estimated available workers in labor force

Together, these perspectives deliver both instant visibility and structural insights, allowing HR leaders to make smart, timely decisions that align with broader workforce dynamics.

Final Note on Methodological Differences

In cases where index and rating values seem contradictory (e.g., "High Supply" but also "Hard to Fill"), users should consider the underlying methodology:

Index Scores rely on real-time market signals from digital sources.
Qualitative Ratings incorporate modeled government data, macroeconomic trends, and inferred behavior.

Both are credible—when used together, they offer richer insights and greater confidence in decision-making.