Unemployment may be at record lows, but the economy hasn’t been robust for everyone. Amid increasing payroll, many companies still reported in a newly released survey that they are having a hard time finding quality talent. It has proved even harder for employers to hang on to the workers they have.
The latest report from hiring platform HireVue concludes employees are quitting, and, at the same time, being hired right away elsewhere as the strong labor market continues.
In its annual Global Trends Report, HireVue surveyed more than 3,800 human resource professionals about internal experiences with hiring. Nearly 40% agreed that finding quality talent was their top issue — an issue that takes the top spot in the report for a third consecutive year.
GETTING CREATIVE THROUGH TECHNOLOGY
To find success in hiring, nearly half of those surveyed said they are pivoting. Instead of emphasizing educational experience and work history, 48% of the companies said they are adopting a skills-first approach. Meaning, companies are relying less on traditional hiring means that emphasize what’s on a candidate’s CV. According to the report, the skills-first method has only widened the talent pool and brought a more diverse workforce. When it comes to the actual hiring bit, plenty of organizations continually rely on technology to make up for a dwindling budget.
The latest jobs report from the U.S. Labor Department reflects what some analysts concur, to be a slowly decelerating labor market, even if progress is subtle. In March, 236,000 new jobs were added, less than the average of 334,000 jobs each month over the last six months. On the same measure, there was less wage growth in March than in February. But even with a little reprieve in March, companies still struggle over high turnover. Besides retention issues, there has also been a lack of hiring resources. The report found 40% of companies were working with a reduced hiring budget stemming from economic insecurity. But the Global Trends Report wasn’t all bad news. It’s not so surprising that HireVue, a hiring platform specializing in video interviewing software and automated text recruiting, notes companies are leveraging technology to help analyze a candidate’s profile.
THERE MIGHT BE A LAW FOR THAT
According to the report, 2-in-3 talent-recruiting teams have implemented video or virtual interviews to boost hiring productively, saving on company time and costs and to expand their reach across a larger network. According to the company itself, HireVue has hosted more than 35 million video interviews as a hired third-party.
Virtual anything isn’t that astonishing, especially given the boast in remote work or education during the pandemic, but the report also notes some other ways technology is coming into play. About 58% of companies are using standardized assessments, while 32% have implemented game-based assessments to screen candidates. Perhaps, more significantly, 40% have adopted none-other-than AI chatbots or automated texts to their recruiting processes.
Last year, New York City became the first municipality to pass restrictions on using AI or automated employment decision tools (AEDTs) in hiring & promotions processes. Ultimately, the goal was in favor of the employee in trying to weed out racial, gender and other bias. Interviewing over Zoom is one thing, but imagine AI gauging your emotional responses as the computer lists questions for you to answer over a video.
The bill, which is set to take effect April 15 after a near three-month delay, requires employers to conduct audits on AEDTs and requires notices be given to employees and candidates in the city. It’s the first piece of real legislation targeting the use of AI in hiring processes, but it hasn’t come without its critics. Some groups are hinting at the need for even stronger protections in place, while other companies like LinkedIn and Indeed are asking NYC for more clarification.
Interestingly, HireVue’s Global Trends Report asked companies about how or if they are planning to prepare for such changes.
A SKILLS-FIRST APPROACH & EMPHASIS ON EMPLOYEE RETENTION
With adopting a skills-first approach, the Global Trends Report found companies were increasingly finding talent in places they’ve long overlooked. This includes talent pools regarding internal candidates, diverse employees, mature-aged workers, interns, or diverse candidates.
On the same chord, it seems companies are making real efforts to recognize their own staff. New employees can be costly, HireVue estimates on average new employee costs $4,700. Doubling-down on internal mobility is almost certainty due to the amount of employee resignations. In the meantime, a stunning 58% of companies surveyed said they increased compensation and nearly half state they’ve added more resources, such as employee recognition programs.
HireVue surveyed around 1,030 candidates to find out how the current landscape is affecting their work life. Despite persisting turnover, 2-in-3 candidates said they have no desire or plan to leave their current job. Job stability continues to be the number-one priority for candidates, showing, as the report says, that economic uncertainty doesn't only affect employers.
Questions about this article? Email us or leave a comment below.