For HR directors keeping tabs on the ever-evolving recruitment landscape, Resource Solutions’ new whitepaper provides insights on the key global trends shaping recruitment strategy for 2017.
Trend 1: One click buy, one click apply: HR tech, innovation and talent motivation
In a hyper-connected world where consumers can purchase in just one click, the on-demand customer journey needs to be replicated in a recruitment process for candidates who see themselves as customers.
In a previous research, Karen Cariss, CEO and co-founder, PageUp, had said: “The Millennials have the convenience of mobile in all aspects of their life, then why not for their careers? They will go to the employer who provides that convenience.”
Resource Solutions took the example of Commonwealth Bank of Australia which developed a custom-built HR smartphone app called the Sidekick system to manage all aspects of the employment experience. The app saw an impressive 20,000 downloads in two weeks of its launch.
Trend 2: The political boiling point
June’s Brexit result and the United States’ election are watershed moments in history, adding economic uncertainty, geopolitical dissent, and regulatory change to a complex business environment.
Accordingly, it is expected that organisations will cope with these significant macro factors by investing more in a contingent workforce. Hiring non-permanent workers may give them the flexibility to downsize and upsize, particularly in territories with stricter laws around engaging permanent workers.
Employers may also review more flexible legal agreements, such as having a Master Service Agreement with local addendums. They can be tailored on a country-by-country basis, driven by the need for flexibility in workforce planning and being legally covered from a risk perspective.
Trend 3: Taking the leap of faith: Meritocratic recruitment
Relying on what’s written on a CV is losing traction – meritocratic recruitment moves away from traditional notions by prioritising candidates’ abilities over their experience. It leans heavily on a skills based system of recruitment, often involving practical assessment, as opposed to CV based assessments.
If we’re to challenge our assumptions about hiring practices, it’s essential to have tools to help us with the decision making process. Here are some tools to get you started:
1. Codility – A coding assessment tool, whereby candidates are required to submit their code while solving a real-world programming problem.
2. Gender Decoder – A web-based tool that identifies words and phrases in job advertisements that are ‘gender-coded’. The tool helps eliminate words that may discourage men or women from applying.
3. GapJumpers – A US start-up which aims to remove bias by recruiting through performance audition challenges that evaluate candidates on work performance rather than keywords on a resume.
Trend 4: Embracing the gig: Task-based crowdsourcing
Welcome to the rise of the gig economy trend – the on-demand talent marketplace that utilises non-permanent resources to undertake tasks and services. Freelancing is not a new trend, but what has changed in the last few years is the emergence of cloud-based platforms connecting buyers and sellers.
What characterises the assignments within the gig-economy are:
- Workers are not classified as employees
- The service is flexible and is usually project based for a defined piece of work
- Uses technology, apps typically referred to as a marketplace (such as Freelancer or Upwork)
However, the gig economy also poses its own risks and challenges:
- Ethics and inequality – 2016 saw many negative headlines regarding gig economy services such as Deliveroo and Uber. Many of these platforms can appear exploitative rather than responsible, so these platforms need to build in a favourable arrangement between both the user and contractor.
- Tax and worker classification – There is still a lot of unknown regarding whether organisations can ensure that freelancers are playing proper taxes, particularly given the global nature of the work being carried out.
- Security – Organisations need to ensure that forward planning includes adequate data security checks. For example, businesses should limit any sensitive information that goes into the hands of a contractor if there are no legally binding documents that protect the organisation.
- Lack of penalties – Short of a two-way feedback review system built into marketplace apps, there are no guarantees around the quality of the work, nor are there serious consequences for uncompleted work (short of refusing payment and giving negative feedback).