Chapter 1. The New Way to Hire

Every business wants to hire the best people and to create successful teams. We all aim to attract job candidates with the appropriate technical skills, relevant experience or education, and attitude. As job-seekers, we want to find rewarding positions that use our knowledge, pay us fairly, and make us feel valued.

That’s been true for as long as newspapers have had a help wanted section. But in a digital era, the traditional interviewing and staffing processes have serious weaknesses. Well-meaning HR departments cannot keep up with the deluge of applicants, those candidates have a difficult time getting noticed, and job interviews are less an actual assessment of technical ability than game-show contests.

As a result, companies are thinking differently about how to hire. In a genuine desire to match open positions with stellar candidates, tech firms and experienced recruiters are trying new techniques and inventing computing solutions.

“The recruiting industry is ripe for disruption, as it must address the ever-changing global economy and related needs for a talented workforce,” says Kristen Hamilton, CEO and cofounder of Koru. “Raw smarts and technical skills aren’t enough to succeed in business.”

Companies are becoming increasingly savvy in how they recruit, assess, and retain high-performing talent. The effort to improve the hiring process takes advantage of plenty of new technologies, from big data to artificial intelligence (AI) to scientifically based skill assessments—though HR departments are trying to make the process more human, too. Although this area is still very much in development, it’s sure to have positive effects on businesses’ talent acquisition efforts. Whether you’re a hiring manager, HR professional, or lone techie looking for a better job, you should consider these options.

The Changing World of Hiring

Once, placing a help wanted ad in the local newspaper was the primary way for a business to attract applicants, and job seekers to learn about open positions. The world is far different today. The internet gave us all megaphones, letting our voices be heard over a wider area—and created a cacophony as a result.

Some changes are good, even if they also create new challenges. Many of them are better-class problems. For example, we’re all more aware of the advantages of team diversity (even if we’re not sure how best to achieve it), and our mobile lifestyles make remote work a real possibility (even when we aren’t sure how to hire or manage people who telecommute).

But some hiring-process changes present new trials that confound us all. For instance, nobody is quite sure of the legal and privacy boundaries in snooping through a would-be employee’s Facebook account.

Social issues have changed the hiring process, too. Gwen, who has worked in office jobs on and off, says it was easy for her to get a moonlighting job fifteen years ago. “All I had to do was sign on at a temping agency and get sent to a gig. If the position I was covering happened to be open, I had a job offer by the end of the week.” She knew she’d have work, short-term or otherwise, because she had marketable skills, technical knowledge, and ability. But now, Gwen says, the job search emphasizes highly subjective and arbitrary factors, such as “attitude” and “team fit” that remain mostly undefined. “It essentially comes down to whether someone likes you personally,” she says. “The pendulum has swung too far away from IQ to EQ. For an ex-staffer for whom stats talk and BS walks, I’m trying to get my head around this, and not succeeding too well.”

What factors are influencing the changes in hiring practices? Let’s consider a few.

You Have a Résumé? How 2010 of You

“The internet has led to the widespread availability of social profiles and data, making it easier than ever before to identify qualified talent across the web,” says Leela Srinivasan, CMO for Lever, a recruiting software company. That data volume has spawned a generation of tools for proactive sourcing and candidate generation.

Recruiters find job candidates from many sources, with referrals naturally remaining the most effective source of quality hires. But social networks are now the No. 2 way for people to find a job; 56% found a job using one, according to a 2015 Jobvite survey.

When is the last time you took part in a job interview—on either side of the desk—without using a search engine? If you’re considering hiring someone, you do a web search to learn more about him. You look at his blog posts, his social media profiles, whom you know in common on LinkedIn. That raises issues of personal privacy and changes the way some individuals conduct themselves online, such as posting messages about politics only using a pseudonym.

On the other hand, it also means a hiring manager can discover important information about a candidate before she even knows she’s a candidate. Employers and recruiters find candidates more easily using technology and can perform quick research on a potential hire. By the time the phone interview comes around, the employer knows the candidate’s accomplishments in detail.

Eyes-Open Employer Research

The visibility also works in the other direction, given that would-be employees have an equal opportunity to learn about the company. According to a Harris Interactive Survey for Glassdoor, two-thirds (67%) of employers believe retention rates would be higher if, before taking the job, candidates had a clearer picture of what to expect about working at the company. That’s more than gossip about promotion opportunities and company culture. “Job seekers need a deeper level of understanding of the hard and soft skills needed for success,” says Karl McDonnell, CEO of Strayer Education. “They also want to know about the company’s identity and how it connects to the industry at large.”

“It’s never been easier for candidates to explore a company’s employer brand and find out what it’s really like to work there,” agrees Lever’s Srinivasan. “Rising demand for technical and highly skilled talent, coupled with supply that doesn’t meet that demand, has made this a candidate’s market.”

More Ways to Strut Your Stuff

Everyone hates to look for a job. Even when you’re confident of your skills, the application process and job interview experience is stressful. The way we present ourselves during an interview process (perhaps displaying uncharacteristic shyness) might not be who we are at work, 40 hours each week. However, the ability to demonstrate our expertise online (deliberately or otherwise) can sidestep much of that painful experience.

Today, it’s easy to demonstrate one’s unique skills and interests and share achievements. Someone who contributes to an open source project can share a link to his work on GitHub. Writing a blog shows where a techie’s interests lie, demonstrates an ability and willingness to write and communicate, and creates a professional network within its reader community. Quora conversations in which a programmer explains how she’d solve a problem permit a recruiter to identify the people who know a subject in depth—and to reach out to those individuals to gauge their interest in a new job.

Another aspect of online participation is in learning new skills and supplementing a college degree. Need a new programming language to qualify for the coolest new jobs? Anyone can turn to coding boot camps or more formal training through massive open online courses (MOOCs) such as Udacity and Coursera.

That gives everyone more educational opportunity in terms of useful knowledge, and also should enable us to find better jobs—assuming that employers recognize that “education” isn’t only acquired from a brick-and-mortar university. “The companies with the massive advantage will be the ones who can figure out how to hire engineers without relying on traditional channels like résumés and pedigree,” says Aline Lerner, CEO of interviewing.io, which provides a bias-free platform for interviews.

The Broken Hiring Process

“Different” is OK. We can adjust to changes. But traditional hiring processes are failing everybody:

  • Businesses cannot easily judge the suitability of applicants.

  • Recruiters are measured with poor metrics.

  • Job applicants struggle to get attention even when they’re the right fit.

It’s not fair to anyone. The business is less productive, it takes longer to find the right workers, and staff turnover is increased.

“In an organization, an empty seat is like an open wound,” says Scott Wintrip, author of High Velocity Hiring: How to Hire Top Talent in an Instant (McGraw Hill) and president of the Wintrip Consulting Group. “It’s a painful distraction that interferes with the business’s core mission.”

Paying Attention to the Wrong Signals

“Credentialing, or the standardized type of information we can use to predict good hires, is changing particularly quickly,” says interviewing.io’s Lerner.

How do we know that someone is good? Often, we look for affirmation from applicants’ previous experience, starting with their school grades. That’s particularly true of high-tech fields such as programming.

Established fields such as law and medicine have credentialing exams (the bar and the board, respectively). But, Lerner points out, “Software engineering is an extremely young profession. In lieu of well-established credentialing methods like exams, employers have had to rely on an evolving series of proxies”—primarily a college degree from a top computer science school. “Where someone went to school is lauded as the gold standard when companies decide whether to interview a candidate,” Lerner says.

“Many employers recruit from the same 10 to 20 colleges and use GPA cutoffs. Why? Because it’s what they’ve done, and they believe GPA is a predictor of performance,” agrees Koru’s Hamilton. “But there’s a great deal of research to show that GPA isn’t a predictor of performance; it’s just an easy signal to grab. From a great deal of primary and secondary research, we know that performance is not just cognitive and technical ability, but also noncognitive skills.”

That’s reflected in both job performance and in the separate skills of getting-the-job attributes. “At interviewing.io, we regularly track how well candidates from all walks of life perform in technical interviews,” says Lerner. “After thousands of these interviews, it’s become clear that a college degree has no correspondence to interview performance.”

But when businesses look only at graduates from top schools, they miss out, says Harj Taggar, CEO of Triplebyte, which does skills-based recruiting. “Companies complain they can’t hire enough great people while only looking within a restricted pool of candidates,” says Taggar. “They miss out on great people who didn’t go to a name-brand college or work at a well-known company.”

Replacing Relationships with Impersonal Technology

We’re all attracted to shiny things, especially in high-tech fields. That includes technology that purports to help us hire the right people. But the first thing lost is a personal relationship. None of us are SEO terms, buzzwords, or database fields: yet so many “solutions” treat job applicants as if we were.

“What works, as either a candidate or hiring manager, is surprisingly low tech,” says Stephen, a software professional. “What’s broken, as either a candidate or hiring manager, appears to be anything high tech.” For example, he’s been spammed by recruiters who found one key word on his LinkedIn profile that matches something in a job description. “This is obviously an automated process on their end, as any human would see that I’ve never held a relevant job title for 90% of the positions I get spammed about,” he says. “Data analytics, automation, and machine-driven profile scraping are making this process terrible. There is a ridiculous amount of noise that technology is generating, and very little signal.”

“While finding people is easier, paradoxically it’s become harder to engage qualified talents, now that the novelty of receiving an InMail or email from a random recruiter has worn off,” says Lever’s Srinivasan. “The true art of recruiting is in building an emotional connection with the candidate. It’s the recruiter’s or hiring manager’s job to understanding the candidate’s motivations, listen, and encourage a conversation. “We may be drowning in technology and science, but recruiting at its core is still incredibly human and relationship-based,” Srinivasan says. “So, we’ve seen the rise of candidate relationship management—the other CRM, if you will—and solutions to help companies nurture, engage, and pipeline candidates for future roles.”

The result is that the people doing the hiring have very little intersection or understanding of those whom they aim to serve. It’s one reason they rely on proxies like college degrees and past employers rather than actual ability. “Recruiters are, generally speaking, not technical,” says Lerner. “Instead of relying on some internal barometer for competence, they have to rely on quickly identifiable attributes that function as a proxy for aptitude.”

One proxy for knowledge is to quiz job candidates on random knowledge that has no relationship to the “real world” of the actual position. Even well-known techies object strenuously to being asked to rattle off programming or networking trivia.

Diversity Is Hard

Plenty of data has demonstrated that product quality is improved when it’s created by diverse teams, and companies want their employees to reflect their own customers and clients. But the usual hiring practices get in the way of diversity.

“Recruiting has traditionally been a profession driven by gut feel and subjective judgment,” says Ji-A Min, head data scientist at Ideal, whose software uses machine learning to screen résumés and match candidates to open positions. Using subjective judgment relies in part on unconscious bias, which contributes to the lack of workplace diversity. “Studies have found that résumés with white-sounding names receive requests for interviews 50% more often than identical résumés with African American-sounding names; résumés with English-sounding names receive requests for interviews 40% more often than identical résumés with Chinese, Indian, or Pakistani names; and résumés with male names receive requests for interviews 40% more often than comparable résumés with female names,” says Min.

Diversity isn’t only about gender or skin color; it’s an effort to attract people with different viewpoints. “In the face of high volume and a lack of clarity of what really drives success in a given role at a company, teams can resort to hiring a former version of themselves,” says Koru’s Hamilton. “Employees have their own opinion on what drives performance and they hire to their own opinions. This results in inconsistent hiring and also hurts diversity.”

Even with an ostensibly level playing field, the other social changes benefit some communities more than others. Consider ageism: employers reaching out to candidates via social media (such as Twitter and LinkedIn) can get a chance to learn about the real person behind the résumé, says career advancement coach Lauren Milligan. “But it also tends to weed out older employees, who are not accustomed to running their job search through these platforms,” she adds.

Part of that “mini-me” is reflected in a reluctance to consider different work locations. “Leaders need to support and nurture diversity and countries need to make immigration easier so knowledge and the flow of ideas can thrive globally,” points out Karoli Hindriks, CEO of Jobbatical, a job search site that facilitates professionals going on one-year “job sabbaticals” to work at companies around the world. Because today, technology and infrastructure makes it possible to find and accommodate people from all over the world. Why place artificial limits on who can contribute?

However, several studies have demonstrated a distinct bias in hiring, even (or particularly) in tech firms, and it starts with problems in the technical interview. Writes Lerner, in You can’t fix diversity in tech without fixing the technical interview: “Though impostor syndrome appears to hit engineers from all walks of life, we’ve found that women get hit the hardest in the face of an actually poor performance.”

That’s backed up by an article in The New Yorker, which argues that “building momentum for social change is nuanced and painful and slow.” Worse, writes author Anna Wiener, those issues are reflected in the hiring companies’ products, such as a subtle gender bias entrenched in the data sets used to teach language skills to AI programs. Even if that bias is a representation of the real world, don’t we want to do better?

But Mostly: Automated Application Systems Fail Everyone

Online job postings make it easy for anyone to apply for a job—and that’s the downfall, too, because it’s so difficult to get noticed. Although the average job posting receives 50 or fewer résumés, a job posting for a high-volume role such as hospitality receives more than 250 résumés on average.

One of Koru’s clients received 12,000 applicants per cycle, and only reviewed about 3,000 of them to boil down to 120 offers, says Hamilton. “In addition to an inefficient recruiting process, only 44% of hires ended up as strong performers,” she adds.

With that kind of volume, most companies turn to application tracking systems (ATS’s) to collect résumés and cover letters, measure legal thresholds, perform a first-level triage (What salary does the applicant expect? Is she willing to relocate?), and, essentially, reject the obviously unworthy. The initial systems, little more than glorified digital filing cabinets, were designed back when hiring was a transactional, administrative task performed largely by HR, before CEOs talked about talent in the hushed tones that they do today.

There’s nothing inherently wrong with automating the initial sort—except that it doesn’t work effectively for anyone. Not for the HR departments, not for the job applicants, and ultimately not for the employer.

Shouting into a well

An ATS typically screens out 80%–88% of applicants, says Nachi Junankar, the CEO of Avrio, an AI talent platform that uses machine learning technologies; in doing so, they pinch the pipe at the entryway to a company’s HR system. “ATS’s are partly a metaphor for the problem,” says Junankar. “They do a good job with some things, like compliance and creating a workflow for recruiters.” But among the consequences is negative psychological impact on applicants, especially given that the software is designed for the HR department and recruiter, without regard to easing life for an applicant.

Karen, a science tech writer, is a perfect example. “They request that you upload your résumé, cover letter, and then fill out an outline form that asks for everything that’s already on your résumé.” The ludicrous online forms mean it can take 45 minutes just to apply to one position. “No one seems to realize what this says to candidates,” says Karen. “‘Welcome to our organization, where your position will be plagued by time-wasting, redundant processes!’ I think what they hope they’re doing is screening out scattershot candidates who apply to everything, on the theory that only the most persistent will make it through to the end. Instead, I think they lose top-cut candidates who think, ‘The hell with this—I’ll apply elsewhere.’”

Karen’s right, says interviewing.io’s Lerner. “Because of all the noise around hiring, applying online is like shouting into a black hole. Even if you look really good on paper, you probably won’t hear back.”

That turns the ATS into a game of search engine optimization, where successful job seekers are those who figure out the right keywords.

For example, recruiters can search for keywords in a set of résumés, the way you use a search engine. Only résumés with a high number of keyword mentions in the results queue are reviewed, according to Dawn Boyer, who rewrites résumés for job seekers. “All the others can be marked as ‘not enough experience’ or ‘no relevant key experience,’” says Boyer. The job candidate may have the expertise, but if the résumé didn’t mention it directly, she’ll never hear back. And, because the HR people rarely know the knowledge domain for which they’re hiring, the consequence is an overreliance on credentials that are not necessarily relevant to the job.

It’s Worse for Hiring Managers

That’s bad news for job applicants, but it’s even worse for recruiters and hiring professionals who idealistically want to find the exact right needle in a haystack. “Current potential candidate targeting is more ‘spray and pray,’ whereby recruiters cast a very wide net, hoping to catch a few interested candidates without much regard for how appropriate that candidate is for the job,” says Chris Bolte, CEO of Paysa, which offers personalized career and hiring recommendations and real-world salary insights. “Recruiters, generally, also don’t focus on why the candidate is a good match to the company and the job. Much of today’s recruiting efforts could be classified as spam.”

But ATS’s have plenty of other weaknesses that are invisible to the job applicants. According to Lever’s Srinivasan, here are some other things they get wrong:

ATS’s don’t focus enough on proactive candidate sourcing and candidate relationships

These key drivers of recruiting must work seamlessly with broader hiring initiatives, says Srinivasan, which leads add-on products to get the job done. That’s expensive, creates more complexity, and breaks the candidate experience. (“You’re sourced and nurtured in one place, then passed somewhere else, which creates two sources of truth,” says Srinivasan.)

ATS’s are difficult to use

They’re clunky, outdated, slow, frustrating. “And that’s only the internal picture, says Srinivasan. “Most ATS’s have made it incredibly hard for hiring managers to log in, give feedback effortlessly, see the things they need to see, participate, and quickly get on with their day jobs.” That inhibits the hiring manager’s responsiveness and the communication between the hiring manager and the recruiter. The result is missed opportunities and a poor candidate experience. “Hiring will always be hard, but the act of collaborating during the hiring process should be effortless,” adds Srinivasan.

Users run different hiring processes in different business silos

These are applied in an ever-more fragmented ATS. That can obscure what’s actually going on in hiring across the organization, says Srinivasan, causing talent leaders to lose confidence in the information the ATS stores.

A New Breed of Hiring Tools

With these recurring themes about what’s broken in hiring, several industry startups are working to address the weaknesses in the system. Unsurprisingly, these echo the problems already discussed, along with a ready technology answer to respond to them:

  • Is there too much data for existing processes to turn into useful information? “Too much data” sounds like a recipe for “bring in the big data systems and artificial intelligence engines.”

  • Do companies need to make themselves more attractive to would-be employees? Let’s use the latest crop of tech tools, such as gamification and virtual reality.

  • Are traditional candidate assessment processes failing to identifying qualified techies? Let’s bring in online training, testing systems that obfuscate gender and physical attributes, and metrics to measure success. Startups are building predictive models based on strong performers to help companies better identify game-changing talent.

  • Ultimately (and idealistically): let’s use all these tools to improve our ability to communicate with one another.

Creating Better Matches

Like many recruiters, Sharon Powers de Vries is always on the lookout for talented, loyal, successful, and passionate colleagues—many of whom are employed, due to that talent and loyalty. “It would be great to have a Match.com [for jobs] where everyone has a profile,” she says, which would let those people “date” other companies to find a perfect fit, says the talent recruiter at Referral Exchange. “I understand the downsides, as well, like poaching employees or encouraging job hopping,” de Vries says, “But it will give both employees and employers a better overview and understanding of what is out there.”

She’s not the only person to contemplate ways to improve the matching process between job applicants (even passive ones) and hiring firms. Several companies are developing solutions that rely on big data, AI, and other algorithmic tools. Some aim to replace the legacy ATS’s; others work in conjunction with them.

These vendors have many commonalities—and unique differentiators, as well.

Ideal

We are seeing an increase in AI and automation in all parts of our society, from self-driving cars to medical diagnoses. That’s often driven by the need to work with a lot of data that benefits from non-obvious correlation—particularly when the volume of data is overwhelming.

For recruiting in particular, in a LinkedIn survey of 4,000 corporate talent acquisition leaders, 56% expected their hiring volume to increase in 2017, but 66% of recruiting teams will either stay the same size or shrink. Recruiting thus is motivated to intelligently automate some part of the workflow.

Aren’t humans better at these decisions? Not necessarily. A Harvard Business Review meta-analysis of hiring decisions found that using an algorithm outperforms human judgment by at least 25% on average. A National Bureau of Economic Research study of more than 300,000 hires found that candidates picked by an algorithm stayed on the job longer and performed as well or better than candidates picked by human recruiters.

And that’s where Ideal comes in. “By automating résumé screening through AI,” says Ji-A Min, the company’s head data scientist, “Ideal enables talent acquisition to make precise and efficient high-volume hiring decisions.”

Ideal uses machine learning to automate résumé screening, eliminating the need for a human to use subjective judgment. “Automating résumé screening standardizes the matching between candidates’ experience, knowledge, and skills and the job’s requirements,” says Min. “This helps avoid unconscious bias because the system can be programmed to ignore information about candidates’ race, gender, and age.”

Ideal’s machine learning algorithm analyzes the employer’s existing résumé database—the ATS—to learn which candidates moved on to become successful and which were unsuccessful, based on their performance and tenure. Ideal treats the employer’s ATS as a source of data to mine, looking at the job’s qualifications, and based on historical hiring decisions, what qualified candidates look like. It can also use public data sources about candidates’ prior employers and public social media profiles. The Ideal software applies the knowledge gained to automatically screen and grade new candidates on a workable scale so that recruiters can focus on the best prospects.

“AI for recruiting requires a lot of data to learn how to accurately mimic human intelligence,” says Min. “For example, learning how to screen résumés as accurately as a human recruiter requires several hundreds to several thousands of résumés for a specific role.”

Avrio

Avrio, too, works in conjunction with ATS’s. Its AI talent platform uses machine learning technologies to analyze applications, open jobs, and candidates, and works to discover matches that aren’t necessarily obvious. Using an API, Avrio sucks all the résumés received for every job listing into its system and provides a proprietary “fit score” for suitability. And it applies those scores not just to today’s job application, but for a reasonable period of time.

You might apply to a job today for which you’d score, say, 55%, says Nachi Junankar, Avrio’s CEO. But tomorrow, unbeknownst to you, the same business might open up a job requisition for which you’d score 85%. You’d be the needle the recruiter wants to find in his haystack.

Using Avrio’s system, recruiters get a list of candidates that score well on the stated criteria, typically 10 to 20 at time. Scorecards show a detailed snapshot of each candidate’s work history, skills and experience, education, certification, and so on—highlighting both matching and missing skills and attributes.

But that assumes a recruiter knows everything he wants, and that an applicant is aware of everything she ought to mention. So Avrio also has an AI robot that starts an online conversation with the candidate to validate or verify skills. For instance, “Tell me more: Do you know about branding? Have you led a team of people? Will you relocate for this job?” Candidates leave off this kind of information on résumés all the time, and they can be deal-breakers or deal-makers. Essentially it customizes the résumé for this particular job or at least for this particular company.

In the course of the conversation, the bot updates the candidate’s profile, says Junankar. For instance, if the candidate did manage a team, the systems updates the profile with that data, updates her score, and transcribes the conversation into the record.

The AI system works in the other direction, as well. Applicants can ask questions such as, “Tell me about the company culture” or “How many people have applied to the job?” or “How many marketing jobs does this company have open?”

Avrio gives applicants some transparency about the process. If the candidate is a good match, say she scores above 70%, it says so and takes the applicant to the next phase. “If not,” Junankar says, “The system tells you, ‘You applied, but only scored 50% on this job. However, here’s some other jobs where you might be a better fit. Here’s a link to apply.’”

Note that these aren’t the only tech solutions applying data analysis to ATS databases. Another in this category is Entelo, which works from two directions. On the outbound side the company helps its customers find prospective candidates by aggregating and analyzing publicly available data, engage with candidates, and track that engagement. On the inbound side, says John McGrath, its CPO, Entelo’s data science algorithms mine ATS data to help them consider applicants for additional roles and to more efficiently sift through them.

Comparably

Remember the recruiter’s wish for a Match.com meant for hiring? “What eHarmony originally did for dating a decade ago, we’re doing for careers,” says Jason Nazar, Comparably’s CEO. “In fact, we just hired the president of eHarmony to help lead these efforts for us.”

“Comparably matches companies and candidates on a variety of key factors to help make the best matches,” Nazar says. Candidates don’t even have to apply to jobs; they’re sent quality matches of companies that want to hire them.

Most candidates are gainfully employed, explains Nazar. They use the platform to learn about companies that would want to hire them at or above their target salary. “Candidates list their ‘dream job,’” he explains, including a desired job title, compensation, company type, and locations they’d consider. Or they can identify specific companies where they’d want to work. “They then start receiving notifications of companies that want to meet and hire them,” Nazar says.

Employers can access a dashboard where they can see at a glance the types of candidates interested in their company, and review interested candidates. The candidates’ anonymous work profiles include past jobs, education, and skills. Individuals’ name and contact information is hidden until mutual interest is established.

Lever

The ATS end of the recruiting supply chain isn’t sitting still, either. ATS vendors and those who build on them recognize the weaknesses in the current system, and some, at least, are building or improving their software to streamline it for a modern era, providing a better candidate experience and more useful data to employers. Case in point: Lever sells a talent acquisition suite that promises to efficiently connect the recruiting process with all the people involved.

For example, says Leela Srinivasan, Lever CMO, when KPMG switched from a legacy system to Lever, its time to screen candidates dropped by 70%, and its percentage of offer acceptance went from the low 80s to high 90s.

With built-in tools like structured emails, employers can give genuinely useful guidance to applicants. “With candidates who don’t get past the first stage to the video stage, we put together an email with tips and feedback that align with common reasons for rejection,” explains a KPMG representative on the Lever blog. “We’ll give them advice on how to structure their CV, for example, and encourage them to use stronger examples of their competencies. Then, we provide relevant links in that email to different posts, articles, and videos that could help the candidate improve [an] application. … The smaller volume of candidates that make it to the video interview and testing stage get a similarly structured email, but it’s more personalized.” That certainly helps job applicants feel as though they aren’t shouting into that deep well, even if they don’t get the job.

At the core of the push to data-driven recruiting is the industry’s ongoing quest to measure quality of hire. “What if you could know with more certainty that the hire you’re making is going to stay for longer, be more productive, and serve as a cultural rock star?” asks Srinivasan. That Holy Grail metric for talent acquisition hasn’t been achieved, yet, but with better automation in the administrative parts of recruitment, clean reporting, realistic comparisons, and better stakeholder involvement, the focus can be on the art of making quality connections and humanizing the candidate experience.

“We recently published The Little Grey Book of Recruiting Benchmarks, which served up a wealth of comps for companies to use in assessing their own hiring practices,” says Srinivasan, “and we have more planned in that area.”

Paysa

Another factor in the human resources realm is employee retention—ensuring that existing workers don’t have any desire to leave. Employees and job seekers become aware of important milestones, such as when they are eligible for a raise or to recognize opportunities that match their background and market worth. Employers have to respond, says Chris Bolte, CEO of Paysa, and transform their hiring process using a data-driven approach.

Using always-on technology, Paysa’s AI platform monitors a user’s individual relationship to the job market. When there is a change in that relationship, it sends an alert and recommends actions.

“Paysa analyzes millions of data points, including jobs, résumés, and compensation information, providing professionals with actionable tools, insights, and research,” says Bolte. That data helps HR and hiring managers to be clearer with employees and candidates on which skills and experience they value, and why. It also permits HR professionals to be confident about making competitive offers and salary increases, reducing the risk that new hires and existing employees will jump ship.

“We provide employers with access to data that fuels this transformation,” says Bolte. When employers have current data about an employee’s market worth, they can take action before the worker gets antsy. “Employers can learn which skills, real-world company experience, and educational background offers the greatest predictor of a candidate or employee’s future success at their organization,” Bolte adds.

Attract Job Applicants

You can’t throw a computer mouse without finding an article about the dearth of qualified techies available for IT organizations to hire. Usually that article is right next to an essay about the difficulty that techies encounter in finding jobs that pay a fair wage.

Nonetheless, quite a few companies promise solutions that aim to improve hiring firms’ ability to attract the “right” people to work for them. Frankly, some appear to be attempting to surf a buzzword wave (Gamification! Virtual reality!), but there’s value in the tools nonetheless.

For instance, a Dutch startup called IamProgrez demonstrated at the Consumer Electronics Conference its gamification technology, which it claims can accurately profile millennials entering the workforce. IamProgrez measures everything from candidates’ soft and hard job skills to company culture and work environment to ensure that every business gets the employees they need, said Linda Frietman, IamProgrez CEO, in a statement.

For instance, an IamProgrez Ready4Work game operates within municipalities, with the intention of helping (unemployed) 16- to 28-year-olds start on the labor market with a measured and enhanced résumé and a more accurate view on the skills they possess. It promises: “Play company-specific games, designed with quests and challenges crafted to reveal the types of people they are searching for, and showcase your talents to enthusiastic recruiters: This is the world’s first gamified job interview!”

Another shiny tool for companies showing off their advances is virtual reality (VR). For instance, the British Army uses VR in its recruitment process, and Cleveland-based Lincoln Electric Holdings has used VR to let young people test their welding skills. Whether these are any more effective than interactive websites is yet to be seen.

However, it’s always a good thing to give job candidates accurate expectations of what a company offers its employees. One tool to assist in that endeavor is PathBoost, an online skills training platform that helps candidates learn the job-specific skills needed to land a position prior to applying and helps employers screen and train applicants prior to being hired.

“Job candidates click the PathBoost button from a company’s career page and gets started by building a virtual résumé,” explains Karl McDonnell, Strayer Education CEO. The job candidates can watch a series of documentary-style videos to learn more about the company, core job skills, mindsets, and behaviors needed to excel in the position, and interview preparation. They might also be asked questions along the way, with the answers sent to a hiring manager who gauges their fit for the position. If the story has a happy ending, candidates are invited to apply and schedule the date and time of their interview.

Improve Skills Assessment

After a business identifies which applicants are worth an interview, the next issue is how to judge whether which candidates are suitable for the open position. As discussed earlier, success isn’t guaranteed by someone’s attendance at a top school, college major, self-confidence in an interview, or ability to answer trivia questions. Nor is diversity served by testing how well candidates conform to an arbitrary measure of “team fit.”

What to do instead? These companies have several answers.

Koru

Companies and hiring teams need to know what to look for when they assess candidates. That’s not just based on a skill match or interview performance, but on an assessment of current high and low performers in particular roles at the company. Koru’s first step is applying predictive analytics to deliver a company’s unique performance “fingerprint.” That defines two things, says Kristen Hamilton, Koru’s CEO and cofounder: signals of success and true predictors of success.

Koru evaluates an array of factors, including work experience, academic experience, and what the company calls its “impact skills”: grit, rigor, impact, teamwork, curiosity, ownership, and polish. By doing so, says Hamilton, the company learns what drives performance in a particular context. That makes it possible to better measure candidates using those factors so that they have an equal chance. And, importantly, she says, to do so in a way that delights candidates and actually helps them on what is usually a painful and unclear journey. The result? A richer understanding of a candidate’s potential with a recruiter/hiring manager’s experience and judgment in order to make a better-fit hire who will perform.

“Next, we help companies weave the predictive model into their hiring practices,” says Hamilton. At the top of the funnel, this means that candidates are invited to a simple 20-minute assessment experience, at the end of which they receive immediate feedback and acknowledgement from the company. “To date, over 80% of candidates who have completed the pre-interview (what we call the assessment) were highly satisfied with the experience,” says Hamilton. “They voluntarily leave comments such as, ‘I thought this experience differentiated [company] from other similar companies by trying to get to know candidates better,’ and ‘I actually enjoyed this because I think it is really nice to see that [company] cares about the type of person they are hiring instead of just their GPA.’”

Candidates’ results are compared to the company’s fingerprint and predictive model. “Recruiters access an online dashboard that stack ranks candidates based on likelihood of performance at that company,” says Hamilton, and may look at an individual’s impact skills data, with reference to how to probe for those skills in an interview, and how the candidate’s work and academic experiences relate to the job in mind.

And, of course, this means the process keeps candidates from falling into a résumé black hole, improving the hiring experience no matter what the outcome. Hamilton recalls, “One respondent said, ‘It was fun answering all questions. Though some were really tricky, I enjoyed putting my brain to work! The experience was as painless as all the questions were about me! Thank you!’”

Interviewing.io

Interviews don’t directly correspond to the work you do every day. At best, they’re a baroque ritual that feels otherworldly, as if everyone is playing a part. “Technical interviews are hard for everyone,” says Aline Lerner, CEO of interviewing.io. So, it’s wise to warm up before venturing out to look for a new technology job.

Interviewing.io helps techies prepare by doing practice interviews. And because the company has a good reputation, that can put you on a fast track to meet with tech firms.

The interviewing.io practice sessions are more than asking a buddy to throw you softball questions. “Our interviewers are coming from Google, Facebook, and other awesome companies, so the bar is really high,” says Lerner. “The practice is intense and hyper-realistic.”

Everything is completely anonymous, and candidate ability speaks louder than anything else. “We weigh recent performance really heavily,” says Lerner. “So, if you screw up, you can always pick yourself up and get back in the game.”

After you practice, she says, if you do well, you can skip right to the technical interview with companies like Uber, Twitch/Amazon, Lyft, Evernote, and Asana. “You don’t have to talk to recruiters, apply, harangue your friends for referrals, or do anything else,” says Lerner. “You just get the interviews.”

Obviously, that benefits hiring companies, as well. “Instead of having to source a bunch of candidates, hope they respond, sell to them, and then have a bunch fail the technical portion,” says Lerner. That also speeds up the process. Companies get a steady stream of engaged and vetted candidates, and more than half of candidates that speak to companies via interviewing.io end up onsite. “This is leaps and bounds better than you’d see with a résumé,” adds Lerner.

“We believe this is the right path because we’re fixing the real problems in hiring: companies’ inabilities to find smart people and smart people’s inability to get in front of companies,” Lerner says. “And we’re doing it in a way that is morally satisfying. Anyone, no matter who they are, can prove their mettle and get in front of a great company without having to ‘know someone.’”

Triplebyte

Plenty of job applications ask for “expert knowledge” in a programming language or “five years’ of experience” in project management. But what employers truly want is competence: how much does the candidate actually know?

Triplebyte focuses on skills evaluation as a standalone component of the hiring process. Triplebyte ignores background and culture fit. “The only way to do this is by tracking lots of data on both sides: what skills candidates have and which skills each individual employer cares the most about,” says Harj Taggar, the company’s CEO. “We evaluate engineers without using their résumés, focusing on just measuring their skills and using this data alone to match them with top technology companies.”

Engineers go through a two-part evaluation process. First is an online, multiple choice programming test. That’s followed with a two-hour remote technical interview with an engineer who knows nothing about the candidate’s background or credentials. “This interview is very practical,” says Taggar. “The candidate shares their screen and starts working through coding problems. They have to produce actual code, not just talk about things they’ve worked on.” The output is a score across several attributes, which is provided to the hiring company. “Triplebyte never even asks for a resume, so the company doesn’t know anything about where the candidate went to school or where they’ve worked,” noted TechCrunch. Candidates skip all initial screens and coding challenges, going straight to their final onsite interview.

The result, says Taggar, is an individual model for more than 40 technology companies that predicts the exact kind of engineer each company is likely to hire. “We use this model to match each candidate with the companies who are the best fit for them and fast track them through the hiring process at them.”

Changing the Human Process

Ultimately, most objections to the existing ways to hire people is that it removes any personal touch or compassion from the process. Some suggested solutions stress thoughtfulness rather than technology.

For example, Scott Wintrip, author of High Velocity Hiring: How to Hire Top Talent in an Instant (McGraw-Hill) and president of the Wintrip Consulting Group urges leaders to plan ahead and to line up talented people before they’re needed. “Instead of waiting until a seat is empty to search for talent, the new way of hiring starts the talent search before that job opens,” Wintrip says. That permits organizations to fill jobs the instant they become open.

Wintrip’s process includes creating blueprints for the ideal person for each job, generating a continuous flow of quality candidates who are ready to hire, and employing better interviewing methods to improve precision and speed. “An effective interview is a reality check—a real and efficient experience that allows an interviewer to see proof that the candidate can do the job,” he says.

HR specialists might know about legal thresholds and the best way to write a “We’re hiring!” tweet, but few of them understand the tech details of what a hiring manager is actually looking for. That’s how we end up with job requisitions asking for five years of experience in a technology that’s only three years old.

Chuck Solomon has one simple answer to reduce this frustration: move their chairs. “My bold proposal is for companies is to decentralize their recruitment departments,” says the recruitment strategist and cofounder of LineHire.com, a recruitment product. “Move their recruiters to sit with the departments that they support and make them part of the team, attend team meetings, eat lunch with team members, participate in team-building events, and most importantly have them report directly to the Team Leader.”

Doing so helps everyone in the company, says Solomon. “The recruiter will be a team member and not some faceless individual in a far-off office. A decentralized recruiter will get to know what the teams’ current and future talent needs are and can thus become more proactive in seeking the right talent. And finally, much of the ‘friction’ between all departments and HR will dissipate.”

Not everyone is in favor of machine learning solutions, seeing them as another impersonal barrier for the job applicant. It’s important to add a human element—or to add it back. (Coincidentally, these people often work in recruiting companies.)

“For large companies, automation is an efficient way to provide a simple first cut of applicants to see if they have the basic attributes for the job. At that point, the surviving pool should be turned over to recruiters who can then consider them carefully for hiring,” says Nicole Smartt, author of From Receptionist to Boss: Real-Life Advice for Getting Ahead At Work (Advantage Media Group) and co-owner of Star Staffing. “A recruiter adds the personal touch needed for job seekers.” For instance, a recruiter can send a personalized email message to let candidates know where they stand in the hiring process, or a candidate-experience survey afterward. A human has a better chance of remembering the person who wasn’t right for this job but may be a good connection for future openings, she adds.

“Salesforce does the hiring process well,” says Smartt. “They use recruiters to screen candidates, keeping hiring managers in the loop. The managers use Talentforce to review résumés and offer feedback. The managers then choose experienced interviewers who know the position best and can provide diverse perspectives on the role.”

It all needs to be part of a human process, not wholly automated. “Managers define who will cover which job competencies to ensure a consistent candidate experience,” says Smartt. “Afterward, managers meet with their team to integrate candidate information—same day if possible. At the end of the experience, Salesforce looks at every decline to find out how they could have made a more positive candidate experience.”

Ronni Beckwith, principal at ihouse, is another who seeks a balance between automation and personal recruiters. She oversees the strategic direction of the ihouse human resource information system. “You need personalization through networking to enhance your applicant pool, but you also need strong technology to automate the administrative work that goes along with the hiring process while ensuring compliance,” Beckwith says. “People are attracted to an organization’s culture. This culture needs to shine through during the recruiting process, whether it’s through the branding in the tools being used, personalized messages, or the conversations had with the firm.”

Another element in the job search is expanding the notion of who’s qualified for a job. For example, a help wanted ad that insists staff be onsite in the office can limit the organization, when telecommuting would enable the company to discover the right fit. (That’s a topic we explore in depth in another white paper, “The Remote Worker’s Survival Guide”.)

Nor should job seekers limit themselves. “The internet leveled the playing field,” says says Karoli Hindriks, CEO of Jobbatical. There’s an entire virtual world where anyone with an idea can start a business or make their voice known. “Jobbatical builds on that principle, translating the great level playing field into a global, physical landscape,” Hindriks says. Its platform connects employers with a database of 70,000+ tech, business, and creative professionals who are ready to relocate for the right career opportunity.

“As talent, you don’t have to have a trust fund, tons of connections who will help handle immigrations, or a nearly perfect passport to go abroad,” Hindriks says. You just have to be one of the best people in the world at what you do. If you have the skills and determination to be dynamite at your job, the world will literally, tangibly, be at your fingertips. Companies will pay you to take a trip halfway around the world, wherever you want to go.”

This also means that employers don’t have to relegate a talent search to the local market. “You can search the entire world for your next killer developer, designer, salesperson, or marketing director,” says Hindriks. “The power of this is unprecedented.”

What Success Looks Like

It’s one thing to claim that a new way to hire people is better. But how do we know what “better” means? And, without regard to traditional hiring practices or new ones, what metrics should anyone use to judge success?

As with so many other things, time is money. Not just your own. Think of the 100 applicants who each spent 45 minutes filling out a single job application, half of whom don’t even merit consideration. If that 45 minutes could be reduced—due to any of the process and tool improvements discussed in this report—and the “not a fit!” determination made sooner in the application process, everyone benefits.

And don’t forget the time spent replacing staff who don’t work out, because that means even more money spent on recruiting.

“Simple percentage arithmetic is all an employer needs to determine what is working and what is not working,” says Jen Teague, a staffing and onboarding coach for small businesses. “With recruiting, almost all aspects of the process can be measured: length of phone screenings, number of applicants that are considered for interviews, etc.”

Some of those calculations are fairly straightforward. “A company should definitely look at cost per hire, which is external plus internal costs divided by the total number of hires,” says Star Staffing’s Smartt. “Keeping track of cost per hire helps ensure your recruiting efforts are feasible for your business and on par with your industry, size, and location.”

A business that hires many people needs to consider additional steps, and the efficiency therein. “Given the overlap between recruitment and sales/marketing, we encourage companies to closely measure their conversion rates from stage to stage in the hiring process,” says Lever’s Srinivasan.

For example, look at application completion rates. “The rate of application abandonment helps identify weaknesses in your process, such as candidates dropping off on mobile devices or having too many input fields,” says Smartt. Asking candidates for information that’s irrelevant at a given stage in the process, such as references’ phone numbers before an initial screening, contributes to abandonment rates (and to applicant cussing).

That’s worse if the organization does an online assessment as part of the application process but doesn’t do anything with the data. “A negative would be collecting the data but not using it immediately to inform the kinds of decisions you need to make,” Smartt adds.

Those hiring stages ultimately end with a job being offered and accepted. “We measure success by one metric: our candidate offer rate,” says Triplebyte’s Taggar. That is, what percentage of interviews result in the candidate being made an offer? “Employers care about this metric a lot,” says Taggar. If they’re not making enough offers, they are wasting the time of the team; those people are locked up in interviews with a poor-quality candidate. “The industry standard in technology for percentage of onsite technical interviews resulting in an offer is 25%,” says Taggar. And he adds with pride, “The average offer rate on our candidates is 50%; and for companies we’ve built a data set on over several months, it’s 70%.”

There are all sorts of ways to measure the time expended in recruiting. Wintrip looks to two metrics: how long it takes to fill a job (with the ideal being “the same day it opens”), and how many hires result from your efforts.

But the latter should not necessarily be a top metric. In a sense, you don’t want a large number of hires because you want employees to stick around. “It’s also important to track turnover,” says Smartt. “Those retention metrics help companies keep tabs on recruiting efforts as well as company and manager performance.”

Often, technology replaces the human touch. But the ultimate measure for new hiring tools and processes is whether they makes things better.

“Technology should make users’ lives easier,” Lever’s Srinivasan says. “And that’s where, somehow, a lot of HR technology in the past 20 years missed the point.”

“We’re inspired by data-driven recruiting and have rolled out two important analytics modules for our customers in the last few months. But while we focus on providing transparent, insightful, and actionable talent analytics, Lever’s core strength is in humanizing hiring,” says Srinivasan. “Yes, we use technology to automate administrative chores in sourcing and streamline the process, but that’s a means to an end: to empower recruiting teams to partner closely with the business in delivering a fundamentally more human hiring experience.”

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