2023 Hiring Challenges: How to Prepare and Fix Them

Hiring challenges are robust and consistent anytime of year, use ExactHire’s ATS to minimize these challenges and get you the best candidates on the market.

No matter how revolutionary your product or service is and no matter how innovative your solution is, your business won’t grow without high-value staff. Your bottom-line results are directly connected to your ability to attract, hire, and retain incredible workers. And today’s workforce and hiring environment are challenging. In fact, these are the top 2023 hiring challenges, along with insights to prepare for and fix them. 

Attracting Diverse Workforces

As an employer, you’re feeling the pressure to expand your company culture to be more inclusive and diverse. However, trying to attract and retain a more diverse workforce can be challenging. To improve your efforts and attract more diversity to your teams, it starts with a shift in company culture. Consider redefining your company’s position on inclusivity and diversity. And from there, branch out by developing targeted recruiting strategies that open the door to more applicants. Look for job fairs and networking events that specifically support underrepresented groups. Additionally, create diversity position statements in your job descriptions and throughout your online marketing. 

Finding Top-Quality Candidates

Another 2023 hiring challenge you’re likely facing involves finding top-quality and high-value candidates for your key positions. The competition right now for skilled candidates is fierce. Those applicants with the rooted experience you need are going to be tough to find. But, you can expand your recruiting efforts to include a more robust presence on the job boards. Be open with your marketing channels, like social media and your website, about unique job openings. Tap into your professional networks to create buzz about your role and ask for referral candidates. The top-quality candidates you’re looking for may also be working elsewhere right now. So, look to develop a strategy for connecting with passive candidates who may be ready for a career change but aren’t actively looking.

Remote Hiring Challenges: Job Candidates Need Flexibility 

It’s a worker-driven economy right now, meaning employees and job seekers have more opportunities to consider. Yes, they need to work. But they’re also being choosy about which positions to apply for and the companies they work with in the end. Regardless of how you feel about remote working dynamics, today’s workers need that flexibility and won’t change careers without it. But there’s more to flexibility than just remote and hybrid work. As an employer, you can offer more flexibility in terms of redefining working hours or work weeks. Consider implementing more progressive approaches to work-life balance initiatives that place value on employee experiences. 

Applicants Want the Opportunity to Explore New Skills

Internal mobility is the order of the day. And to address the 2023 hiring challenge relating to workers who want to try new things, you’re going to need to adopt a more comprehensive approach to internal promotion and in-house opportunities. Employees are more often looking to transform their careers in new directions. And they’ll stay with employers who routinely offer opportunities for continued learning, additional certifications, and new skills in other departments. To fix these hiring challenges, look to internal growth initiatives. When your new hires and existing employees show interest in exploring new paths, provide them with the roles and opportunities so they can continue to grow and improve – with your company and not someone else’s.

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Skills-Based Hiring Carries More Weight

If you’re struggling to find and hire top talent, take a look at your job requirements. The days of strict educational requirements and industry experience are in the rearview mirror. Today’s companies are adopting a more skills-based approach to hiring, seriously considering candidates with relatable skills and trainable characteristics. Create your job descriptions in a way that outlines the precise skills needed for the role. Instead of a bachelor’s degree in marketing, be open to those who have relevant experience with marketing on social media, content creation, or email campaigns. Broaden your lens to include skills, and you’ll broaden your pool of worthy applicants.

Retaining Your Best Talent

Hiring challenges in 2023 also extend to retention strategies. Once you do find great workers, you’re going to have to prepare for the challenges related to retention. This means sitting down with your current staff and gathering feedback about what they value most from an employer. And then, create an attractive strategy for keeping your best team members for the long term. Consider more comprehensive benefits packages, increased job flexibility, improved company culture, competitive compensation, and professional development opportunities. 

 

Prepare to address the unique hiring challenges in 2023 with these insights rooted in data and the latest hiring trends. And when you need a partner to help facilitate your new strategies, let ExactHire be your guide!

What makes Talent Acquisition so hard (and important)

Talent Acquisition (TA) is a complicated but highly rewarding concept. For Human Resources professionals focused in the realm of TA, they are on a high speed roller coaster with multiple twists and turns that can often lead them on a white knuckled trip. What makes talent acquisition so hard, and yet so important, is the main focus of the task. TA is a competitive, time-sensitive task that can yield disappointment but also joyous rewards. To really ensure you acquire the best talent you need ExactHire’s ATS. This allows you to compare hundreds of candidates against various criteria to get the best candidate for your position.

Talent Acquisition Challenges

The main reason TA can be so challenging yet rewarding is the same – the people factor. In the current job market, the talent pool is very competitive due to disproportionate numbers of skilled available talent compared to the number of vacant jobs. The competition is fiercely competitive. Rival companies are recruiting the same candidates that TA professionals seek to hire. Getting the message out to job seekers about the company’s vacancies and the company’s stellar branding to entice them to apply and pursue the company takes precision to filter through competitors’ noise. TA specialists can resonate their message more clearly and combat the noise by ensuring that company branding promotes the company as being the employer of choice due to culture.

Having a culture inclusive to employees with benefits that meets and exceeds the needs of employees solidifies TA’s claims to job seekers that their company is the one for job seekers. If job vacancies in certain geographic areas are more difficult to fill, examine what could help with filling those roles. Consider expanding the candidate search to additional areas or explore options for remote or hybrid work settings to attract more candidates. Utilize social media to its fullest and promote vacant job listings on major platforms. Social media platforms reach target audiences of differing ages and backgrounds. Using different social media platforms allows TA professionals to reach job seekers with diverse demographics.

The “People Factor”

Digging deeper into the people factor. What if applicants are plentiful, but none are perceived to have the needed skill set to be fully qualified to fill the vacant roles within an organization? This is where TA must partner closely with the department leaders of the vacant roles. Focus on the required skills needed for the vacant role. Candidates that meet those required skills can be evaluated further. They then identify the reasons why Human Resources cannot completely commit to extending a job offer.

For candidates who are contenders for a role but not 100% vetted, explore what it would take to mold a candidate for the vacant role in which they applied. The “perfect” candidate is equivalent to a unicorn; sought-after, beautiful and fictitious. If there are candidates for vacancies that can be shaped into productive contributors to an organization with some assistance upon hire, consider providing that assistance. It is possible that extra training or classes could be beneficial. The financial investment initially could pay off more down the road. A new hire will then have been given the opportunity to refine weaker areas to enhance their performance. Investing in employees, particularly new hires, can lead to higher employee retention and productivity.

Screening Candidates

Upon review of candidates, TA must be tasked with screening those who are potential for the company. TA is often the first impression of a company so TA professionals must display professionalism with a personable demeanor. Phone screens and interviews, whether face-to-face or virtual, generate nervousness in the minds of job seekers. TA professionals should create a positive rapport with interviewees. they can do this through sincerity and a genuine interest in learning more about the person’s desire to work for the company. Establishing a dialogue that is reflective of the company culture of inclusivity will help TA professionals formulate a working relationship with job seekers that help set a competitive edge. The best job seekers will be receiving employment offers from multiple companies. Job seekers will migrate to the company that demonstrates a bona fide interest in employees. This will help attract stellar job seekers from competitors.

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How to make Talent Acquisition Easier

Monitoring efficiency in talent acquisition can be challenging if data is not being collected and analyzed. Using an Applicant Tracking System (ATS) consolidates applicant data into a central location for analysis and communication by TA professionals and other designated employees in the hiring process. Having a central location to screen applicant data and communicate with stakeholders in the hiring process saves time and creates a comprehensive trail of actions taken when screening applicant records. Robust reporting tools deliver accessible data quickly to identify efficiency gaps in the hiring process. Using analytics helps TA professionals confidently formulate short-term and long-term goals. These can be used in immediate activities and strategic planning with leadership.

Conclusion

TA professionals work diligently to overcome competitive challenges in the hiring process. It is often a role which entails erratic schedules with long days and weekend events. Disappointment is frequent when TA professionals witness coveted potential talent decline their best pitch at landing them within their organization. While it is a game of wins and losses in a very broad generic sense, talent acquisition hosts a plethora of rewards. Without TA professionals to lead the charge of recruiting and retaining key talent, an organization would be sailing a ship without sails ultimately leading to a lack of sales.

TA professionals relentlessly pursue potential talent. They need to have the support of executive leadership as they navigate the recruitment process. Providing TA professionals with the tools they need for success is the best option for an organization. Then leadership can ensure that the company’s growth and productivity as a whole will weather threatening situations. This will allow them to survive things such as pandemics and global recessions. Talent acquisition is truly a hard but essential component in an organization’s overall health. It is crucial that appreciation is shown to those charged with acquiring talent to the company.

How will ChatGPT affect the hiring process?

Chat Generative Pretrained Transformer (AKA ChatGPT) is making headlines consistently throughout the world. ChatGPT is an Artificial Intelligence (AI) driven, human-like chat concept created by OpenAI and released to the world in November 2022. OpenAI has a strong, powerful and well-known investor – Microsoft.  In fact, the partnership with OpenAI and Microsoft is so strong, Microsoft is slated to incorporate AI called “Copilot” into Microsoft 365. Technology is constantly evolving, and the world is getting mainstream access to software that is reflective of human-like responses. AI driven software is new and exciting yet intimidating and overwhelming. ChatGPT is promoted as a resource for industries across the board, and Human Resources are starting to field questions, benefits and concerns as it is integrated in the hiring process. Want to streamline your hiring process? Use ExactHire’s Full Service Hiring service and forget about hiring struggles and just get the best available candidates for your open positions delivered to you!

 

Benefits to using ChatGPT in recruiting

Crafting a job listing or creating a standard job template can take time. ChatGPT can help by providing a foundation of content describing the role that can be customized to reflect the requirements of a vacant job listing. ChatGPT can generate content that does not include unconscious bias towards protected classes. It can keep content neutral, remove potential gender biases and eliminate jargon.

ChatGPT can provide job specific content for an organization. It can provide Human Resources professionals with sample interview questions to use in phone screens and face-to-face/virtual interviews. It can focus on the roles being filled at the moment. This is helpful as a starting point for recruiters.  These recruiters might be interviewing candidates for different types of roles that might be outside their niche. Before becoming dependent on the interview questions generated by ChatGPT, it is important to check with the company’s legal team. They can ensure that all application  and interview questions meet local, state and federal legal guidelines. HR professionals need to customize questions to reflect the culture, mission and vision of the organization as a whole.

Using ChatGPT in the workplace

Trying to come up with a way to draft an email that is not too wordy but yet “personable”? ChatGPT can be tasked with composing email content related to the mission of the message. Spelling and grammar errors are reduced. Save the content as a Communication Template to use when texting and/or emailing others.

Once new talent has been hired, it is crucial for a company to keep them engaged. ChatGPT can help new hires by answering their questions about company policies. ChatGPT can also provide assistance to new hires as they complete required paperwork and enroll in benefits. This can save HR time by automating tasks such as scheduling orientation, supervisor meetings and ordering company swag for new hires.

Microsoft’s AI, Copilot, will be integrated into Word, Excel, PowerPoint and Outlook.  Abilities of the AI integration will allow for the automatic creation of data graphs in Excel. It also has the ability for PowerPoint to create presentations with images based on user prompts. For people who miss a Teams meeting, Copilot is set to generate automatic summarization. It will document the key content points from conversations within Teams. The inclusion date of this feature has not yet been released. This is promoted to offer cost and time savings to end users. Considering the volume of companies that use Microsoft, this will impact internal and external stakeholders.

 

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Concerns about using ChatGPT in the hiring process

While AI has been trickling into mainstream software and internet use, the immersion of ChatGPT fosters some genuine concern. Such as how intuitive the tool can be and whether it can cross a line of no return in its answers. There is no guarantee that answers provided to the users’ questions will be accurate or even ethically appropriate. Individuals who are starting conversations with an employer via chat dialogues need to be aware of who is or is not on the other side of the chat. Be forthcoming to employees that AI is driving the results and direction of the chat conversation to mitigate negative perception of the “employee” communicating in the chat.

Some companies will seek the use of ChatGPT as a replacement for human capital in a way to save time and money. If ChatGPT can do the tasks of one or more individuals, it is likely there will be some cost-cutting measures by eliminating human roles. Goldman Sachs estimates that 300 million jobs could be lost or diminished due to AI. To mitigate risk of elimination, at-risk employees need to explore opportunities for ongoing education and cross-training in in-demand areas.

Questions exist over safety controls. As with any software program, engineers work diligently to establish the highest parameters of safety. Will answers be accurate and appropriate? If ChatGPT generates inappropriate answers in a chat conversation, the impact of that conversation could lead to negative publicity that could impact the recruitment and retention of employees.

Conclusion

As an Applicant Tracking System helps streamline the recruitment process and an Onboarding System securely organizes employees’ content, technology is designed to simplify tasks in a process.  With ChatGPT, a lingering question exists. How will ChatGPT affect the neurodevelopment of employees? Will individuals find ChatGPT as a time saving tool that helps individuals light the fire of innovation of new projects, or will ChatGPT foster a sense of dependency and lethargy that stymies creativity and self-awareness? Time will tell as the debate is escalating on the use of AI in the employment sector. As with any new tool, it takes time to develop and refine the skills of its use. Knowledge is power; do not underestimate the powerful partnership of technology and the human brain in the quest for efficiency and productivity.

Workforce Redeployment

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Layoffs have been a recurring theme in the news lately. Major organizations such as Disney, Meta, Microsoft, and Goldman Sachs are some of the most well-known organizations that are cutting staff due to concerns of a pending global recession. Layoffs are designed to cut costs and implement a more lean style of business to yield a higher profit. However it can often communicate internal instability to consumers. They might look at other product and service providers who appear more stable to complete business transactions.

Layoffs not only reduce staff, but they also reduce employee morale. They generate a sense of uncertainty as many employees wonder if they are next on the “chopping block”. If employees are tense wondering if they are going to be laid off, they will start looking at employment elsewhere. Often this is with the company’s competitors in the same niche.  Although layoffs can be unavoidable, other options worth examining exist before making the decision to eliminate jobs. To help mitigate damage to employee morale and maintain a positive perception of company stability, companies need to explore the option of workforce redeployment instead of layoffs.

Internal Mobility

Workforce redeployment, AKA “internal mobility”, is a strategic function conducted by Human Resources and leadership to shift existing employees into different roles within the same organization. This is not a new concept. Companies have been utilizing workforce redeployment for years. Particularly in the case of health issues where an employee might not be able to physically or mentally perform the duties of their current role. They are then moved into a different role within the same organization which is more feasible for success. Workforce redeployment is commonly used at times of internal reorganization to help employees maintain employment within the company. Redeployed employees do not necessarily keep the same pay, schedule and working arrangements. Those factors are based on the needs of the new role in which the employee was redeployed.

Currently, workforce redeployment is gaining more traction as a strategic function to offset unexpected situations that impact business functions. The economy will continue to ebb and flow with periods of expansion and contraction so that is a known variable. Unknown variables such as a global pandemic are difficult to anticipate. Over three years later, companies are still reeling from the effects of COVID-19’s impact on working arrangements and job adaptability. Throw in the ongoing challenge of finding qualified talent, and these three items form the perfect storm for business failure if proactive processes to retain talent are not integrated within the company’s strategic plan.

Maximizing Efficiencies

Human Resources and leadership must conduct regular reviews of an organization’s structure. To help maximize efficiencies within an organization, a company needs to evaluate current roles. Then forecast where growth and reductions are anticipated to occur. In departments where growth and value are lagging, examine the likelihood of their future impact and their timeframe of dissipating value. Before the expiration date of those departments and/or roles within that have lagging value, invest in the talented employees. Offer the ability to reskill, as needed, and move into a different role. During times of prosperity, cross train employees. Provide training on skills that are internally forecasted with a high need.

Proactively identifying where cuts are needed, but allowing time to partner with those affected employees, shows the organization’s commitment to their employees. Redeploying employees can boost employee morale and demonstrate a view of solidarity and strength to internal and external stakeholders. Employees who believe that their organization is committed to their tenure and growth are more likely to stay within the organization reducing the loss of knowledge and talent.

For those employees who are redeployed into a different role within an organization, management must take into account that there will be varying degrees of emotion. Employees will run through a gamut of nervousness, excitement, and fear. Establish regular check-ins and monitor the transition into the new role. The redeployed employee is already familiar with the company’s culture and mission, vision and values so time to productivity should be quicker. Allow the employee to openly share their needs, goals and expectations for success.

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Workforce Redeployment Challenges

Not all employees will be supportive of workforce redeployment initiatives so there will be some attrition. For those employees who willingly leave the company, keep the door open and offer a warm welcome for a potential future return. Boomerang workers are employees who leave an organization and come back later to work for the same company. Harvard Business Review reports that 20% of employees who left an organization during the pandemic have returned to a previous employer. Losing talent is hard. It is even more painful for the organization if the talent built a positive rapport with colleagues. Provide a positive departing experience for talent who is voluntarily leaving. There is a solid chance they could want to return, and they might be the talent your organization is seeking.

Due to the nature and complexity of the scope of business, not all organizations can launch a mainstream workforce redeployment plan. However, often feasible opportunities exist to shift employees into roles that are conducive to company growth. Creative efforts must be made when examining the potential jobs and employees for redeployment. Create an internal network so employees can have a better understanding of other departments’ functions. Conduct skills assessments to identify skills transferable into different roles. Use an Applicant Tracking System’s (ATS’s) internal application to collect the interest of employees interested in other company opportunities. Maintain performance and employee records in a robust onboarding platform.

Conclusion

To offset financial loss and maintain a competitive edge, include workforce redeployment initiatives in the company’s strategic plan. Companies must forge through merciless storms of talent wars, evolving technology, pandemics, inflation and supply chain issues among many other barriers that disrupt operations and threaten a company’s existence. The loss of talent and the negative publicity that results from layoffs can be a one-two punch that can impede profits and even existence. Taking initiatives, such as workforce redeployment, can mitigate those losses and help keep doors open longer. Having an agile workforce is in an investment that pays in the long run.

3 Changes to HR in 2023

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The role of a Human Resources Manager looks a lot different today than it did just a few years ago. The responsibilities have shifted, as have the workplace landscapes. And the future of HR is going to depend on your company’s ability to adapt and grow in these new directions. HR in 2023 calls for a new playbook. And to ensure your HR teams remain flexible with emerging trends and diligent in connecting employees to career paths with brands they love, these are the insights you need to know. These are the three ways HR is changing the most.

1. Internal HR Changes

Some of the most notable changes in human resources will take place internally. Consider examining your current HR processes, internal structure, and policies. You might spot possible areas of improvement based on these emerging HR trends and changes.

Internal Organizational Ecosystems Will Change

Organizational design structure and change management will be a priority for HR in 2023. In fact, 53% of HR managers and 45% of their staff say they’re already experiencing fatigue from all the change. Chances are, your HR teams are fatigued, as well. New digital adoptions, changing workplace dynamics, and economic stress affect employees and leaders at every level. To provide relief, many HR teams are now focusing on changing up the ecosystem and prioritizing change management to minimize employee fatigue and disruption. Too much change or uncertainty, left unchecked, will lead to high turnover and reduced productivity.

HR Budgets Will Increase

Another change that will remain evident throughout the future of HR is the budget. Most HR executives say they anticipate increases in their organizational budgets. And many say those boosts in spending will be a sizable 4% to 6%. Those increased HR budgets will mostly be dedicated to efforts related to expanding the workforce, too. Recruiting and onboarding represent the biggest budget increase, while employee compensation drives investment increases as well.

Based on current HR management surveys, the top three priorities within recruiting and retention that call for bigger budgets include:

  • Finding and recruiting applicants from broader talent pools
  • Retaining the best employees
  • Maintaining and improving company culture, morale, and engagement

2. Employee Wellness Is a Priority

Another key shift you’re going to see in the future of HR involves prioritizing employee health, wellness, and experiences. A company’s employee retention strategies are more important now than ever before. And while more traditional methods of HR involve enforcing guidelines and managing strict procedures, today’s HR professionals are looking for better ways to engage and support employees.

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Employee Experiences Matter

The employee experience matters, and today’s HR managers recognize changes are needed to improve the workplace culture. In fact, roughly 47% of HR managers say significant changes have to happen to transform the employee perspective. Employees will only remain loyal and productive to their employers if they feel there is a compelling career path before them. And if at any point they feel devalued or disposable in any way, they’ll seek employment elsewhere. HR leaders are exploring these three areas the most to introduce improvements to the employee experience:

  • Expanding health, mental health, and wellness initiatives
  • Developing healthier food and affordable menu selections
  • Creating more educational programs to support and incentivize learning, certifications, and skills improvement

Flexible and Hybrid Work Environments Are the Norm

Your HR teams are already keenly aware of the need for hybrid work flexibility wherever possible. Of course, some roles are only effective with in-person or on-the-job reporting. But those departments and staff who can be just as productive or more productive working from home will need employers to accommodate those hybrid dynamics. And when your employees are working from home, the accountability and productivity metrics will need to change, too. Your HR leaders can expect to abandon any micromanagement efforts of yesterday and adopt new ways for off-site staff to remain accountable and productive.

3. Changes in Attracting, Hiring, and Onboarding New Talent

The third massive change in human resources to consider involves a slew of new perspectives and methods relating to hiring. Today’s recruiting landscape is vastly different from years past. And if your company needs top talent to facilitate growth and scaling, you’ll have a new playbook to adopt outlining improved methods for attracting, hiring, and onboarding new employees.

Skills Carry More Value Than Degrees

Your company might need to revisit job descriptions and role prerequisites. Recent studies suggest skillsets carry more value to employers today than traditional degrees or certified education. In fact, skills-based hiring has been up more than 60% in the last year. Make sure your hiring managers are placing enough value on candidate experiences without automatically disqualifying candidates who maybe lack a four-year degree. Focusing on skills will also help you to remove salary or career barriers for some two-thirds of the working population that doesn’t have a bachelor’s degree. Other advantages include more diverse workforces, broader talent pools, and increased time to hire.

ESG Reporting Will Attract Applicants

There are increased pressures from regulatory compliance and stakeholders alike for improved environmental, social, and governance (ESG) reporting. More than 90% of S&P 500 businesses publish sustainability reports. Dedicating efforts to develop and maintain a healthy ESG reporting system is contributing to executive-level compensation, improving how existing employees perceive their employers, and attracting new hires.

Key Takeaways for HR in 2023

Consider these HR changes happening now and start re-evaluating your current position relating to internal HR operations, employee wellness, and recruiting talent. And if you need guidance in this new realm of HR, connect with ExactHire! We can help you navigate the emerging trends and affect change within your departments so you can grow with the future of HR in 2023 and beyond.

5 Best Practices for Pre-Employment Assessments Hiring Managers Should Be Tracking

The hiring process is oftentimes littered with pink slips because of unreliable gut instincts about new hires.

Pre-employment assessments are excellent tools that provide a wealth of data, and much needed objectivity, when used correctly. But those same pre-employment tests can perpetuate bias if hiring managers aren’t paying attention to the whole story.

In this post, we’ll explain how employee assessment tests can help you make successful hiring decisions. We’ll also tell you how to measure an assessment’s validity and outcomes to prevent pre-employment assessment bias.

“one-quarter of the people hired by the traditional methods of interviewing and reviewing resumes will fail.”

Pre-Employment Assessment Tools for Better Hiring Decisions

According to Dianna Podmoroff, author of How to Hire, Train, and Keep the Best Employees for your Small Business, “one-quarter of the people hired by the traditional methods of interviewing and reviewing resumes will fail.”

According to Gallup, turnover costs businesses $1 trillion a year—and that’s just voluntary turnover. Clearly, businesses need to increase their employee retention, and the hiring process is the first place to start. Pre-employment assessments are excellent tools that can help you make more successful hiring decisions.

Pre-employment assessment tools are tests that can measure a variety of candidate attributes. Hiring managers can use pre-assessments to know if a candidate really has the job skills to perform well in the role. Leaders can use a hiring assessment test to reduce theft and increase workplace safety. Pre-employment assessments can help you hire people based personality traits that lead to innovation, teamwork, and a strong culture.

If you’re wondering if pre-employment assessments can really result in better hires, take a look at this article on the U.S. Bureau of Labor website. The article summarizes a 2017 study on the effectiveness of pre-employment assessments. The researchers found that hiring managers make better recruiting decisions when they relied on free pre-employment assessment tools.

Legally Using Employment Tests in the Hiring Process

Yet many hiring managers are reluctant to use an employment test in the selection process because they mistakenly believe they make companies more vulnerable to recruitment-related lawsuits. The fact is that any hiring decision made without objective examination of the candidate’s suitability for the role is vulnerable to litigation. And that, of course, includes your subjective gut instinct.

Pre-employment assessments supplement your gut instinct with an objective measure of a candidate’s characteristics. The 25% of new hires that ultimately fail in their roles interviewed just as well as the other 75%. Several types of employment tests can help you uncover traits that make a candidate unsuitable for your open position.

All that being said, employment tests can lead to discrimination litigation if they are not used properly.

Improper Use of Pre-Employment Assessment Example

Just because a test is standardized and has been around for a long time doesn’t mean it’s legal. In 2015, Target became the target of more than irresistible puns. Everybody’s favorite place for soy candles and rope baskets came under fire in a class-action employment discrimination lawsuit.

Target was using a psychiatric test called the MMPI to screen for security guards. The MMPI was first developed in the 1930s, had undergone countless updates, and had been used as a pre-employment test since World War II. But the MMPI contained several questions pertaining to religion and sexual orientation. These inappropriate questions should be red flags for any hiring manager.

Reduce Bias with Pre-Employment Assessments

Some companies are turning to pre-employment assessments to reduce bias and achieve their diversity goals. Forbes reports, “Some of America’s biggest companies… dropped college degree requirements from job postings” and “turned to skills-based hiring to provide an unbiased, fair and consistent basis for employee selection.”

Such a move is especially important for diversity since racial gaps in college degrees are widening. Removing the requirement for the degree while still ensuring candidates possess necessary skills can diversify your workforce. Skills-based testing can also circumvent a growing problem in recruitment: the growing number of applicants who lie during the hiring process.

Legal Yardstick for Pre-Employment Assessment Test

We’ve already seen the types of pre-employment tests can help you make better hiring decisions, increase productivity and lower turnover. Far from job assessments being a waste of time, there are many pros and few cons of skills tests.

How can you avoid a pre-employment testing lawsuit that sometimes arises from their irresponsible use? To ensure that you’re using pre-employment assessments legally, you must show that they are valid and don’t produce adverse outcomes.

Pre-Employment Assessments Must Be Valid

Your pre-employment tests need to be useful for predicting job performance. That means you can only test for skills and traits that lead to success in that particular role. For example, you can administer a personality test for sales candidates to gauge their extroversion. Or you can test typing skills for an administrative position responsible for data entry. But you can’t test for either of those characteristics when hiring for a manufacturing position.

Pre-Employments Assessments Must Not Have an Adverse Impact on Protected Groups

An otherwise neutral selection tool may nonetheless have an adverse impact on women or minorities. Adverse impact was actually the basis for the first discrimination case against employment testing. In 1971, Duke Power Company was sued when it required aptitude testing, along with a high school diploma, for employees wishing to transfer to high paying positions. The Supreme Court found that the requirements had an adverse impact on Duke’s African-American employees.

Best Practices for Skills Assessment Test

We have a list of best practices for using pre-employment assessments responsibly and successfully. Following these tips will help you get all the benefits of pre-employment assessments, like lower turnover and more successful employees.

  • Take your pre-employment assessments for a test drive. No one knows when anyone on Target’s executive team bothered to read the MMPI. But the moral of Target’s serious hiring gaff is that hiring managers should experience their recruiting process from the candidate’s perspective. At least once a year, hop onto your company’s careers site, fill out the application, and take the pre-employment tests. Doing so will not only alert you to potential legal issues, it will also give you insight on how to improve your candidate experience.
  • Perform your own adverse impact analysis. Track data surrounding your use of skills assessment test for employment. Most importantly, track changes to the diversity of your new hires as a result of the assessments. Applicant tracking software can track this data for you automatically.
  • Use your pre-employment assessment in addition to an unbiased, informal screening. Economic researchers at MIT found that companies using pre-employment assessments were able to improve their retention rates and productivity without impacting their diversity efforts when they hire the best scorers within groups. Don’t simply hire the highest scoring applicants. Instead, use pre-employment testing to improve your selection within minority groups as well.
  • Use more than one pre-employment assessment. There’s a wide variety of pre-employment assessments to help you make the best hiring decision. Some, however, are more likely than other to create an adverse impact. Pairing these with useful tests less likely to create an adverse impact can help you make a more informed, unbiased decision.
  • Provide accommodations for test takers. Providing extra time or providing a reader for pre-employment tests are reasonable accommodations under the ADA. Applicant tracking software that includes pre-employment testing makes providing these accommodations easy. Within the software, hiring managers can use text-to-speech or adjust the time allotted for completion.

Best Pre-Employment Testing Software

The traditional interview is beset with blind spots. And that’s why a quarter of all new hires ultimately fail. Pre-employment assessments are proven to help you make better hiring decisions. Don’t shy away from these vital tools just because you’re unsure how to handle them legally.

The fact is, without objective measures like the kind assessments provide, hiring teams are prone to all sorts of biases.  The ability to improve your hiring decisions and avoid costly litigation are examples of the benefits of pre-employment assessments.

The keys to using pre-employment tests are successfully are to understand how the results of pre-employment assessments can help ensure the new hire’s success, as well as how they can   and taking steps to avoid adverse effects are keys to using pre-employment tests successfully. The best practices we’ve provided here can help you achieve higher productivity and retention rates by using pre-employment assessments.

But you don’t have to go it alone. ExactHire’s pre-employment assessments are written to be effective and avoid adverse effects. Our applicant tracking system can help you analyze all of your hiring practices so you can avoid handing a pink slip to a quarter of your new hires.

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Photo by Nguyen Dang Hoang Nhu on Unsplash

 

5 Considerations for an Applicant Tracking System Vendor

If your organization is exploring the use of an Applicant Tracking System (ATS), or if your company has taken the first step towards internal efficiency by approving the investment of an Applicant Tracking System (ATS), it might seem like a daunting challenge. Many questions resonate as implementation can be a bit overwhelming even for the most seasoned tech users. What should I do next? Where do I go from here? How does this product work?

Don’t let fear get in the way of efficiency. Implementing an ATS into your organization is an investment of time and financial resources. As HR professionals explore the caveats of an ATS, it is essential to find the tool that works best for your organization with a support team that defines ongoing value.

 

When evaluating a system, here are five items to consider:

 

1) Applicant Tracking System Support

If you are asking yourself, “How do we use this new product?”, that’s an essential question that needs to be answered in depth, in addition to other questions centered on product support. What type of training will we receive from the product vendor? Is training personalized to meet our organization’s needs? After training, if we still have questions, will we be able to contact someone in the United States?

Best-in-class vendors offer personalized training by a Client Success team composed of professionals who are genuinely vested in your organization’s success. Training is provided to your team, and follow up questions, which are expected, are supported by the Client Success team. The Client Success team lives up to its name; they are a bonafide, dedicated team who wants to make your lives easier by using employment software solutions. Relationships are important, and those are built here. Tap into their wisdom and expertise to help guide your use of the ATS.

2) The Applicant Experience

Applicants won’t waste time. Can job seekers apply quickly on mobile devices? If a job seeker finds more than one job to which they want to apply, do they have to start over again?

Convenient for the job seekers you are attracting, look for an ATS that is mobile responsive so that your applicants experience a seamless application process. No passwords should be needed by the applicant; the applicant can use their contact information, such as an email or phone number, to access their applications.

More than one job of interest to your job seekers? Not a problem – top of the line HR Software will offer multi-apply where the applicant can apply to more than one job at a time.  And since the best HR Software offers an organization the ability to use different applications to collect data essential for screening, the applicant will complete the questions you specify in one experience without interruption even if the applicant is applying to multiple jobs based on different application templates.

 

3) ATS Job Board Integrations

Visibility of my jobs is important in this competitive job market. What type of boards are available? To which boards are my jobs automatically sent? Does the ATS offer diversity and niche job boards?

The best HR Software offers the ability to automatically push jobs to free boards like Indeed, ZipRecruiter, Snagajob, Job Inventory and indexed for Google for Jobs. No effort needed on your part for those job boards. Interested in other job boards? Some of the best ATS software offers other options to automate job postings to various boards such as diversity boards, niche boards, and many other options.

4) Building Applicant Pools

An applicant today might be the fit for tomorrow’s opening. How can I search for applicants’ talents and skills for my current and future roles? When I find applicants that meet our requirements, how do I communicate with them?

As you screen your applicants, you can “tag” your applicants’ skills and talents using keywords of value to your organization. Best-in-class HR Software offers ways to navigate your view of applicants and jobs to filter to the criteria you are seeking at the moment.

As you find applicants you want to move forward, you’ll need the option to communicate with them via texting  (ideally without additional fees). But not all applicants will want to be texted, so integrated email with customizable communication templates will be required as well. Be sure that your vendor allows you to attach the files with your email communication as well.  Finally, you’ll want to find a software solution that provides communication history displayed on the applicant’s record; however, be sure that HR Managers can restrict access to this area if necessary.

5) ATS Compliance Reporting

Subject to Affirmative Action reporting? Compliance to EEO guidelines and internal company parameters is crucial. Will I be able to analyze data?

You absolutely should! Whether an organization is subject to governmental reporting requirements or simply if they want to keep track of data to fulfill internal parameters, Best-in-class HR Software will offer robust Affirmative Action Plan reporting and reporting compliant with Equal Employment Opportunity guidelines. Whether you are seeking reports for formal reporting, or if you are looking for data specific to particular job(s), top HR Software allows users the opportunity to delve into data using distinctive insights.

An ATS is meant to make HR, hiring managers, and other system users’ lives easier. ExactHire HR Software offers the ability to effectively screen applicants, communicate with those of key interest and identify the talent you seek to fill existing vacancies. ExactHire HR Software can save you time and money through automation and simple quick clicks to perform tasks confirming that an ATS is not an expense but an investment that yields a plethora of rewards.

To see a demo of ExactHire HR Software, click here.

 

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What Is a Recruitment SWOT Analysis?

The Great Resignation, skills gap and increasing recruitment costs may have you wondering how you can improve your talent acquisition strategy.

The evolving economic and labor landscapes mean that what worked in hiring prior to the pandemic doesn’t work now. How can you systematically assess your approach to recruitment against these changing circumstances?

An old business standby, the SWOT Analysis, can be adapted to help you develop a recruitment strategy that uses your strengths to harness opportunities while reducing your vulnerability to those circumstances that make recruiting so challenging.

SWOT Analysis in HR

SWOT, meaning an acronym that stands for Strengths, Weaknesses, Opportunities and Threats, was developed in the 1960s and is widely used today. A SWOT Analysis takes stock of all four factors in a business endeavor to create a strategy to ensure the endeavor’s success. Individuals and businesses can use a SWOT analysis to aid in planning and goal setting.

SWOT Analyses are effective when making decisions in business planning. Business leaders who use a SWOT analysis benefit from the balanced perspective it provides. Leaders can make decisions that build upon existing strengths without falling victim to uncalculated risks.

When performing a SWOT analysis, decision makers typically start by drawing a quadrant with four boxes. They then label each box beginning with the top left with one of the four factors: strengths, weaknesses, opportunities and threats. In a business setting, it’s best if the quadrant is drawn on a large presentation pad or whiteboard for maximum participation from all stakeholders.

The best SWOT Analyses have the following characteristics.

  • Focus on the business activity in question.
  • Avoid complexity that hinders decision-making.
  • Prioritize specificity and honesty over vagueness and evasion.
  • Include input from several stakeholders to overcome the subjective nature of the analysis.
  • Perform the analysis in relation to top competitors in the business activity in question.

There are many benefits of a SWOT analysis in recruitment. It offers the organization an opportunity to reframe their recruitment challenges using a range of considerations not normally examined. Using this fresh perspective, hiring teams may see patterns previously missed. You may find it helpful to also perform an onboarding SWOT analysis and employee engagement SWOT analysis to gain further insight into your recruiting process.

Recruitment SWOT Analysis

Performing your own recruitment SWOT analysis can help you devise a talent acquisition strategy that will leverage your company’s unique strengths to overcome its particular challenges. It will help you identify the employers competing for the same talent and consider the recruitment process from the candidate’s perspective.

Before embarking on a SWOT analysis for the hiring process, gather relevant data and identify the people whose input will help make the analysis as objective and productive as possible. Recruitment areas to examine for SWOT analysis include things such as distributing an anonymous employee survey or performing a job search and researching your company from the candidate’s perspective.

When deciding how to do a SWOT analysis of recruitment for your own company, follow these tips.

  • Clearly identify your recruitment goals, including unofficial goals that the hiring team may not have expressed yet.
  • Identify organizations competing for the same talent, even if they are not a competitor within your industry.
  • Consider candidates’ perspectives when reviewing opportunities and threats.
  • Gather information from outside sources, such as employee reviews on Glassdoor and anonymous surveys from employees and previous candidates.
  • In addition to considering the organization’s strengths and weaknesses, take stock of those factors specific to the HR department.  
  • Consider only those factors which are relevant in the present or the very near future.
  • Think about aspects of your organization that are unrelated to HR but still relevant to the recruiting process, such as company brand and core competencies.

Recruitment Strengths and Weaknesses

The recruitment strengths and weaknesses you list on your SWOT analysis are factors within your organization. These are the factors you have the most control over, but they are also the items about which you’re least likely to be objective. Again, having multiple stakeholders contribute to the SWOT analysis for recruitment will produce the best results.

Recruiting strengths are those items that positively impact your candidate search or make your company appealing to job seekers.

Common strengths of the best recruitment process include:

  • Pay scale above industry norms
  • Tuition reimbursement program
  • Executive buy-in for the importance of recruitment in relation to the company’s goals.
  • A strong team in which members feel valued and cared for
  • An applicant tracking system for talent recruitment that ensures the most qualified applicants are at the top of the interview list
  • A mobile-friendly job application

Recruiting weaknesses are those internal factors that make your candidate search more difficult or cause applicants to view your company as less desirable than your competitors.

Common weaknesses in the recruiting process include:

  • A benefits package that is more costly and less comprehensive than your competitors
  • Lack of insight about which job sites for recruiting job seekers reliably produce the best applicants for your company
  • An online application that takes longer than 15 minutes to fill out
  • A physically demanding or uncomfortable work environment
  • Lack of advancement opportunities

Recruitment Opportunities and Threats

Recruitment opportunities and threats are external factors over which you have little or no control. They may include an influx of recent graduates, lack of candidates with the necessary skills or widespread crises such as the pandemic.

You may have difficulty deciding which quadrant to use as you’re finding opportunities to recruit better. Some factors, like your employer brand, begin as an internal element, but then become an external factor subject to independent opinion. Rather than getting caught up in placing a factor in the “right” box, focus on the insights arising from the discussion about your SWOT analysis for recruitment.  

Examples of opportunities include:

  • The city in which your company is headquartered just appeared on a list of best places to live.
  • You can recruit from almost any geographical region for newly remote positions.
  • A competitor is downsizing and laying off employees.
  • The local university offers educational programs in line with your industry needs.
  • Your brand enjoys a good reputation in your community.

Examples of recruitment threats include:

  • A recent court case just increased personal liability for employees in key positions.
  • There aren’t enough graduates in your field to fill the open positions across your industry.
  • Your recruiting competition has switched to a fully remote workforce.
  • When performing internet research from a candidate’s perspective, you find that your organization has a poor employer brand.
  • The big job sites don’t work well for your highly specialized open positions.

Overcome Recruiting Challenges with SWOT Analysis

When you’ve finished your SWOT analysis, you should have around five, but no more than 10, factors in each quadrant. Your aim is to develop a “strategic fit.” Internal factors should complement external factors. And strengths and opportunities should effectively overcome weaknesses and threats.

For example, perhaps an external threat to your recruiting efforts is that your local area lacks enough candidates with necessary skills. Ideally, a strength or opportunity would exist to mitigate this threat. Your organization could develop an opportunity by partnering with local schools to develop a curriculum to teach students the in-demand skills. Or you could bolster your recruiting strengths by offering an in-house apprenticeship program.

A recruitment SWOT analysis can help you analyze the factors that lead to both your recruiting challenges and success. It’s an effective way to gain insights into the circumstances that affect your recruiting efforts. Whether you’re addressing the changing landscape of talent acquisition in general or looking for solutions to challenges unique to your locale or industry, a recruitment SWOT analysis can offer much-needed perspective.

 

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What Is Good Employer Branding?

In 2021, as the pandemic continues, and the Great Resignation upends the labor market, and the reckoning with the country’s decades-long skills gap arrives, companies are pulling out all the stops to fill positions with the best talent possible. If you’re like most recruiters, you’ve researched the best jobs sites and you’re capable of writing killer job ads that get job seekers’ attention. And if you’re like the smartest recruiters, you’ve invested in an applicant tracking and onboarding system that simplifies the hiring process and lets you focus on the big picture strategies to attract high quality applicants, like good employer branding. But what is employer branding and how will an employer branding strategy help you hire the best candidates?

 

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Why Your Employer Brand Is Important

Good employer branding in recruitment is the blueprint for attracting the attention of and creating a relationship with prospective candidates.

In the digital noise of the current post-information age, companies have to work harder to stand out. I say “post-information age” because, apparently, the experts haven’t quite figured out what to call the emerging age. The “Era of Innovation” is one contender. Then, there’s the rather pessimistic “Age of Reckoning.” Or the straightforward “Age of Automation,” as coined by a self-described former Mechanical Engineer on a Quora forum.

All of this is to say that everything is changing. Really fast. Which is why you may have had trouble figuring out how to develop your employer brand or even why you need an employer brand in the first place.

The speed at which everything is changing is also exactly why job candidates need you to have a strong employer brand. Your employer brand helps candidates know what employees can expect from your company. In the Age of—Something—candidates are looking for assurance that your company can successfully navigate current and future changes. In other words, is your company a steady ship?

That isn’t to say that your employer branding is all about easing your candidates’ anxieties. It’s actually quite the opposite. It’s about proving you’re adaptable and resilient.

It may seem like the key elements that affect an employer’s brand is a lot like your overall brand. To a degree, the character you present to your customers should extend to your employees. Also, after reading your job description, prospective candidates will familiarize themselves with your overall brand. But the benefits of employer branding will help candidates imagine whether your company will support their professional and personal goals—or not.

Assess Your Employer Brand

The importance of employer branding lies in attracting and retaining talent in the modern corporate world.

Do you have a strong Employee Value Proposition? Or is your mentality stuck in the Great Recession, when prolonged unemployment shifted power to employers?

If the employee push to remote work tells companies anything, it’s that employees want work and life balance. Today’s workforce simply isn’t willing to sacrifice their personal life for their career. Flexible schedules, remote work opportunities, and childcare stipends all help employees achieve that balance.

Are your company’s values well-defined? And do those values extend to how you treat your employees?

Your value statement probably talks about things like integrity, trust, and accountability. If your company thinks about your employees as highly as it does your customers—and it should—then those values should also apply everything from your benefits package to your discipline policy.

Is your mission inspiring? And do your new employees have an opportunity to participate in the mission so that their individual roles have meaning?

We all have a basic human need to feel like we are doing something meaningful. You can motivate even entry level employees by connecting their daily duties to the company’s overall mission.

Does your company value social justice? Do you have strong programs aimed at increasing diversity in your organization?

Candidates recognize the importance of diversity, and not just for the value it brings to marginalized groups. Companies with a diverse workforce benefit from fresh ideas and new perspectives. Prospective candidates will be looking for evidence they’ll find inclusion in your workplace.

Does your company have meaningful social responsibility initiatives?

Candidates, as well as your consumers, understand that only strong collective efforts can solve big problems, like climate change and poverty. They’re looking to support businesses committed to contributing solutions.

Make Employer Branding Important

The best employer branding ideas of 2021 start with creating a composite of your ideal candidate. You may have several ideal candidates across multiple positions and departments. But all of your profiles should have common values that drive your business’s success. You will measure employer branding strategy alongside this representation of the model candidate.

Next make an honest assessment of your current work environment. Is it the kind of place your ideal candidate would want to work? The questions in the previous section are a good place to start. But, also gather feedback from your current and former employees.

Check review sites such as Glassdoor and LinkedIn to find out what people are saying about your workplace. Consider conducting an anonymous survey of your current employees. Review your notes on exit interviews with parting employees.

Take stock of your current recruiting results. Applicant tracking software can help you gather important data, such as the most effective jobs sites for your open positions and what percentage of your new employees stick around past their first anniversary. Using assessments to quantify the strengths which make your best employees shine will help you create a recruiting strategy to attract more individuals with the same qualities.

You can begin to develop your employer branding strategies by sorting the information you gather. Make lists of what you’re doing right and what you could improve upon. Strategies for improving the employee value proposition are accessible to even small businesses.

While some important employer branding examples, such as pay and benefits, may require a sizable investment, other less-costly strategies can also pack a punch. Items such as improving your culture, creating a more equitable discipline policy or promoting from within can improve your employee retention while also attracting talent to your organization.

 

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Employer Branding Ideas

After taking stock in what makes your company a great place to work and implementing strategies to improve shortcomings, you’re ready to create a game plan for communicating to prospective candidates the mind-blowing awesomeness that is your workplace.

Your website is fertile ground for growing your employer branding strategies. Microsoft demonstrates that they value their employees’ unique talents, even if those talents are not work-related. Their Microsoft Life page features employees’ passions outside of the office. From bakers to farmers to disability advocates, employees open up about their personal lives, which is a powerful indicator to potential applicants that Microsoft expects and encourages the kind of life balance they’re looking for.

You probably already use social media to post job openings. Go beyond job posting and news releases when developing employer branding strategies. Include photos of employees at work. Highlight the company picnic. Congratulate employees on promotions or other milestones. Share stories about causes your company supports.

Your candidate experience is an important part of your employer branding strategy. Even candidates that don’t get the job can become powerful brand ambassadors if you take steps to make their experience positive. Communicate with candidates. Let them know the next steps. Always provide a respectful review of the reasons they didn’t get the job if you decide to hire someone else. Even better, ask them for a review of their candidate experience in return.

Involve your marketing department. Employer branding ideas require quite of bit of marketing. Candidates have a wealth of information at their fingertips. The best candidates also have a wealth of options. Your marketing department can help you craft a branding strategy that gets in front of your ideal candidates while also persuading them that your company fits well with their professional and personal goals.

Employer Branding Strategy

Your marketing department will also let you in on the secret to codifying your employer brand and attracting the best talent: storytelling. When you incorporate storytelling into your employer brand, you achieve several important goals.

First, you convey a consistent message. Great stories can be summed up one sentence. Authors call this sentence the hook, and it succinctly and enticingly conveys what the book is about. As the hook relates to your employer brand strategy, it tells potential applicants what your company is about.

Take the single line at the top of Charity: Water’s branded careers site: “Quit your day job and come change the world.” That one sentence tells the story of what Charity: Water’s employees do every day. All of the copy on career’s page expounds on that story.

Storytelling has another very powerful function: it inserts the reader into the story. On Charity: Water’s careers page, applicants begin to imagine themselves joining the company on their mission to solve the water crisis.

Which brings us to the most important job of storytelling: eliciting emotion, which your marketing company would happily tell you is the key to selling. From the perspective of employer branding, eliciting emotion accomplishes another crucial task: helping candidates qualify (or disqualify) themselves from the job.

Charity: Water’s careers site tells a compelling and pointed story. Applicants can insert themselves into the story and tell right away if they want to be part of it. And if they don’t—then, the company saves themselves the expense of a bad hire because job seekers who are a poor fit move on.

Final Thoughts on Employer Branding

In the Age of—Something—recruiters have their hands full with hiring tasks.  While the internet helps recruiters reach more candidates, it also makes it more difficult for companies to attract their attention. If you’re ready to take a wider perspective on recruiting to create employer branding strategies that will help you hire the best talent, an applicant tracking system can take care of the mundane details such as tracking and sorting candidates. Schedule a demo today to find out how you can free up time to create an amazing employer strategy and reduce your time-to-hire metrics.

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