Evolution of Hiring Practices: Insights from HR Expert Peter Cappelli
Explore the changing landscape of hiring practices and how HR has responded, shedding light on internal development, home ownership trends, and the importance of filling vacancies from within. Discover why more focus on passive candidates is needed, along with the consequences of outside hiring and strategies for engaging employees in social media. Dive into the latest industry interests and avenues for optimizing recruitment funnels based on the Jobvite 2017 Benchmarking Report.
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Presentation Transcript
The phenomena of hiring has changed a lot has HR responded? Peter Cappelli The Wharton School
Continued hangover from great recession Cutting back on HR Pushing hiring, etc. onto the line Internal development down Home ownership down: Wealth down:
Context of Hiring: US Fills 66 million jobs per year Over $4000/hire on average Staffing industry is $200 billion 80% of the roughly $30 billion in HR vendors goes to hiring 40% outsource some part of hiring process RPO s hire more people than Fortune 500 People Scout hires 300,000 per year
Why are we doing so much hiring? 95+% is backfilling turnover because We only fill 35% of vacancies from within Only 28% of talent acquisition leaders say internal candidates are an important source Most important reason for leaving? Career advancement Outside hiring is expensive Why don t we post more jobs internally? JR Keller posted jobs get better, more diverse hires
The consequence of outside hiring Majority of new hires weren t looking for a new job 87% of those not looking for jobs are open to moving.
Focus on passive candidates. Majority of the spending but only 11% of hires Passive candidates #1 reason for moving? More money Active candidates? Career advancement Referrals? Most common Cheaper, but only lead to better candidates if referee onboards them
Engaging Employees in the Employers Social Media https://www.webershandwick.com/uploads/news/files/employees-rising-seizing-the-opportunity-in-employee-activism.pdf
What interests the industry? Optimizing the funnel Jobvite 2017 Recruitment Funnel Benchmarking Report
Pouring more candidates into the funnel doesn t work because we aren t good at sorting out those who don t fit Should be doing a better job getting candidates to self-select Show them the reality, don t apply if you don t fit The purpose of internships Texas Instruments pre-application tests
Whats the biggest problem with hiring? Less than one-third of employers try to see if their practices produce better hires What they do track is time to hire and cost per hire What they ask RPO s to do is lower hiring costs and speed up hiring
What do we do to sort out candidates? 70 percent do drug tests Only 40 percent do skill tests Interview time has 2x in ten years Interviews used to assess culture fit, a criterion with no measure When hiring managers decide which criteria to use, they do worse When hiring managers when they decide how to weight criteria, they do worse
The wild west of vendors Machine learning just looks for relationships between measures and outcomes Problem of building these around best performers selecting on the dependent variable The problem of association and the conflict with legal and ethical norms https://www.wsj.com/articles/artificial-intelligence-the-robots-are-now-hiring-moving- upstream-1537435820 The Amazon debacle the algorithms discriminate because they are backward-looking We are reasonably comfortable using algorithms for admissions or hiring. But how about for firing: should we dismiss someone if an algorithm indicates they will steal? Recall the movie Minority Report .
The Arms Race in Hiring Techniques. LLOYDS BANKING GROUP ASSESSES CANDIDATE STRENGTHS WITH VIRTUAL REALITY https://business.linkedin.com/content/dam/me/business/en-us/talent- solutions/resources/pdfs/linkedin-global-recruiting-trends-2018-en-us.pdf JobTestPrep company teaches you how to prepare for the Lloyds assessment center https://www.jobtestprep.co.uk/lloydsbank
The search for authentic predictors of hiring Using social media, social networks, etc. Q: Is there anything less authentic than Facebook posts?? Gaming social media entries will surely happen as well Out go the Spring Break photos, in go the tutoring and self-improvement links
What should our focus be? Be simple: Focus on realistic job requirements Show candidates the truth sort themselves out Test for skills Check to see if it works Don t believe the vendors Ask for evidence
