{"id":33963,"date":"2017-08-01T09:47:42","date_gmt":"2017-08-01T16:47:42","guid":{"rendered":"https:\/\/www.smartrecruiters.com\/blog\/?p=33963"},"modified":"2017-10-20T05:13:59","modified_gmt":"2017-10-20T12:13:59","slug":"hiring-success-is-business-success","status":"publish","type":"post","link":"https:\/\/www.smartrecruiters.com\/blog\/hiring-success-is-business-success\/","title":{"rendered":"Hiring Success Is Business Success and That’s Why We Need Smarter Recruitment"},"content":{"rendered":"

You are who you hire.<\/em><\/h2>\n

It\u2019s all about people. It\u2019s as simple as it is true. In our time of accelerating change, a company\u2019s ability to source the right talent, and to do so at scale, will ever more determine its path \u2013 whether it leads towards future growth or towards failure.<\/p>\n

The pressure is on, no doubt. In the 1950s, a Forbes500 company could expect to operate about 75 years; now it’s lifespan is down to 15. Owning dozens of patents or simply having access to capital and resources no longer cuts it. What is needed instead, is talent \u2013 a skilled workforce that can keep up with rapid digitization and ever shorter innovation cycles. Yet, we are about to find ourselves confronted with a serious shortage of qualified candidates. By 2020, the demand for highly-skilled digital natives will already exceed supply by 40 million. And that is in the US alone. According to a recent BCG study, 70% of CEOs recognize the importance of securing the right employees, listing it among their top 5 priorities.<\/p>\n

<\/p>\n

This makes me wonder: why is this not every company\u2019s top priority? After all, recruiting has the potential to be a company\u2019s key competitive advantage \u2013 the one that places it well ahead of the curve. A company can expect 3.5 times more growth through better recruitment (BCG). So why treat it merely as another administrative cost center?<\/p>\n

Let\u2019s be clear here. Hiring success is business success. And in order to hire the best people, you need the best recruitment solution.<\/p>\n

The future is intelligent HR tech<\/h2>\n

Better matching of candidates to jobs is likely to raise GDP by up to $2.7 trillion by 2025 and create 72 million jobs, according to McKinsey<\/a>.<\/p>\n

The reason, as so often, is in the evolution of algorithms, machine learning, deep learning, and AIs. Their main impact \u2013 which is sure to be vast \u2013 will affect both areas of the hiring process:<\/p>\n

    \n
  1. Sourcing<\/em>: Intelligent matching combs through the marketplace and evaluates the fit between potential candidates and jobs \u2013 saving hours of manual screening work. LinkedIn, XING and Jobspotting were forerunners in this field; with the advent of Google Jobs<\/a>, there is again bound to be accelerated development.<\/li>\n
  2. Selection<\/em>: Sophisticated Application Tracking Systems<\/a> (ATS) assess candidates and their CVs for hard skills, education, and work experience, which again saves time for recruiters and hiring managers. The advent of greater automation \u2013 perhaps somewhat surprisingly \u2013 makes the entire process more human again: hiring managers and recruiters have more time to build relationships with candidates and to determine their fit.<\/li>\n<\/ol>\n

    With such powerful technologies, candidates and companies will be able to find the needle in the haystack: the applicant or position that best fits their needs and goals.<\/p>\n

    ATS and sourcing, combined intelligently, will be a win-win for everybody. Considering the entire HR tech ecosystem, then, what does it take to get maximum efficiency and better hiring?<\/p>\n

    The three building blocks of HR tech<\/h2>\n

    \"Human<\/p>\n

    Everything that happens after onboarding is in the domain of HRIS<\/a> (Human Resource Information System). Nearly all organizations have some form of HR, payroll, and performance management software and have for a long time; this is straight-up, first generation data management and automation. HR Management Systems are used to manage records, automate payments, and other information on their existing staff. The solutions in this arena are both well known and time honored.<\/p>\n

    The recruitment phase, i.e. everything prior to onboarding, is a completely different kettle of fish. Unlike HRIS, the tools that matter here are less about record management and automated transactions, but about strategic business growth through intelligent analytics \u2013 the very innovations that companies will need to hire the best talent. The components are as follows:<\/p>\n