According to a 2017 survey by CareerBuilder, it was found that 74% of employers hired the wrong candidate due to ineffective hiring practices. Among the many decisions on a manager’s shoulders, hiring is one of the most important, as it can make or break the team. There are several tools available that can help employers like you quantify or determine the cost of a bad hire. 

However, is that what you really want to do? Or rather, give up traditional ways of hiring and choose advanced technology and AI-based solutions?

Overview of Traditional Hiring Processes

We have all been through the traditional hiring process atleast once in our lifetime, if not more. Here’s a brief overview of what this process typically looks like:

Step #1: Job Analysis

The first step is to conduct a thorough job analysis, which includes defining the job requirements, responsibilities, and qualifications.

Step #2: Job Posting

The job opening is advertised through various channels, like job boards, online portals like LinkedIn, and company websites, and passed on to recruiting agencies working with the organisation regularly. 

Step #3: Resume Screening

The received resumes are reviewed to shortlist candidates based on their qualifications and relevant experience.

Step #4: Virtual or telephonic Interview

A virtual video or telephonic interview is conducted to assess candidates’ communication skills, confirm their qualifications, and gauge their interest in the position. It also acts as the second layer of screening for employers who can evaluate if the candidate and their resume are a close match.

Step #5: Second round (virtual) or In-person Interviews

Shortlisted candidates are invited for a second round of virtual interviews or, in some cases, face-to-face interviews, which may involve a few rounds with different interviewers. These interviews assess candidates’ skills, cultural fit, and overall suitability for the role.

Step #6:Assessments and Tests

Depending on the job requirements, candidates may be asked to take tests or assessments to evaluate their skills, knowledge, cognitive abilities, or personality traits.

Step #7: Background Checks

Once a candidate is considered a potential fit, background checks are conducted to verify their education, employment history, criminal record, and other relevant details.

Step #8: Reference Checks

References provided by the candidate are contacted to gather insights about their past performance, work ethic, and suitability for the role.

Step #9: Decision Making

After considering all the information gathered during the hiring process, the hiring team or manager makes a final decision on the candidate to extend an offer.

Flaws in Traditional Hiring Process

While this hiring process has been followed for years, it has some inherent flaws. Here’s a look at some glaring problems that have not been addressed yet, and most employers continue to waste money in wrong recruitment processes:

Flaws and limitations associated with traditional hiring processes:

1. Bias: Traditional hiring processes are susceptible to various biases, including unconscious bias based on race, gender, age, or other factors. This can result in the exclusion of qualified candidates and a need for more diversity within the workforce.
2. Lengthy and time-consuming process: The traditional hiring process can be lengthy and time-consuming, with multiple rounds of interviews, assessments, and background checks. This can lead to delays in filling the position, affecting productivity and causing frustration for both candidates and hiring teams.
3. Limited reach: Relying solely on job postings and resume screening may limit the pool of potential candidates. Talented individuals who may not actively seek jobs or are unaware of the specific job posting may be missed.
4. Incomplete assessment: Traditional processes often rely heavily on interviews, which may not provide a comprehensive view of a candidate’s skills, abilities, and potential. It can be challenging to gauge a candidate’s performance on the job solely based on interviews or assessments.
5. Expensive: Traditional hiring processes can be costly, requiring significant resources in terms of time, effort, and money. Expenses include job advertisements, conducting interviews, assessments, background checks, and reference checks.
6. Inefficiency: The traditional process can be inefficient, particularly if there is a large volume of applications to review. It can be challenging to manage and compare resumes manually, conduct multiple interviews, and track candidate progress.
7. Negatively impact candidate experience: Lengthy and impersonal hiring processes can negatively impact the candidate experience, leading to a poor employer brand reputation and potential loss of top talent.
8. Failure of the managers to educate the employee about the company, its culture and its way of working: According to a survey, 12% of new hires quit the company within 90 days as the company was not as presented during the hiring process, while 19% said they did not like to company culture.

The Need for Innovation

If you have been grappling with the flaws in your company’s hiring process, it is time to innovate! By embracing new trends, technologies, and strategies, organisations can revolutionise the hiring landscape and overcome the limitations of the traditional approach. Here’s what innovation can do to your hiring process! 

1. Enhance efficiency: Innovative solutions can streamline and automate various aspects of the hiring process, saving time and effort for both candidates and hiring teams. For example, applicant tracking systems (ATS) can efficiently manage applications, screen resumes, and track candidate progress.
2. Mitigate human bias: Technology-driven solutions can help reduce unconscious biases in hiring by focusing on objective criteria and eliminating discriminatory factors. AI-powered tools can screen resumes based on qualifications, skills, and experience rather than personal characteristics.
3. Expand the candidate pool: Innovation allows organisations to tap into a wider talent pool beyond traditional job postings. Online platforms, social media, and professional networks enable access to passive candidates and those with diverse backgrounds and skills.
4. Ensure data-driven decision-making: Emerging technologies enable collecting and analysing vast amounts of data to make informed hiring decisions. Predictive analytics can assess candidate fit and performance potential, reducing reliance on subjective judgments.
5. Improve candidate experience: Innovative hiring processes prioritise the candidate experience, promoting a positive employer brand. Features like video interviews, virtual assessments, and personalised communication can enhance engagement and provide a seamless experience for candidates.
6. Promote diversity and inclusion: Innovative approaches can help address the need for more diversity in traditional hiring processes. Tools focusing on skills-based assessments and blind screening can mitigate bias and create opportunities for underrepresented groups.
7. Enable efficient remote and distributed hiring: With the rise of remote work, innovative hiring strategies embrace virtual interviews, collaborative tools, and remote assessments to enable organisations to recruit talent from anywhere in the world.

In a Nutshell

In today’s rapidly evolving job market, traditional hiring processes often need to address the complexities and challenges organisations face. This blog explored the flaws of conventional hiring processes and emphasised the importance of innovation in revolutionising the hiring landscape.

Key points discussed include the common steps involved in traditional hiring processes, their limitations, such as bias, inefficiency, and limited reach, and the need for change to overcome these shortcomings. 

Organisations must embrace industry-wide innovation in their hiring processes to stay competitive and attract top talent. By adopting new approaches, leveraging technology, and focusing on data-driven decision-making, organisations can improve efficiency, reduce bias, enhance the candidate experience, and foster diversity and inclusion.

The conclusion encourages readers to be open to change and explore innovative practices in their hiring processes. By embracing new technologies, rethinking traditional methods, and continuously evaluating and improving their operations, organisations can improve hiring outcomes and secure the best talent for their teams.

In the fast-paced world of talent acquisition, it is imperative to adapt and evolve. The future of hiring lies in embracing innovation, challenging the status quo, and exploring new approaches. Organisations can position themselves at the forefront of recruitment, attracting top talent and building diverse, high-performing teams. So, let us embrace the change and revolutionise our hiring processes for a better future.

References:

• https://hr.northwestern.edu/about/news/february-2019/the-cost-of-a-bad-hire.html 
• https://www.linkedin.com/pulse/too-many-new-employees-quit-jobs-first-90-days-greg-weiss/