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Tracy Tedesco is an experienced Job Search Strategist and Consultant who consults with job seekers and employers with issues related to recruitment and employment.

Out-dated Hiring Practices Might Be Costing Your Company Millions

Image of a Piggy Bank

Changing the way that your company handles hiring, just might save it a lot of money.

A recent article by Michael Haywood in the Australian Business Review makes startling clear something that, if you’re in recruiting, you’ve probably had a hunch about for some time: hiring practices across the board are out-dated and costing companies millions.

The biggest reason for this great cost is the amount of time it takes companies to fill vacant positions. Haywood states that the average time it takes a company to fill an open position in Australia has, in the past five years, more than doubled, from 28 days to 68 days.

Admittedly, Haywood is pulling stats from Australia, but it doesn’t take too great a leap of the imagination to see how what he’s saying applies just as well elsewhere.

It’s time for a revolution in HR tech. 

At first there were what could be called HR 1.0: Job aggregators, applicant tracking systems, and open marketplace systems. But there a couple of major flaws wit the above systems.

Firstly, they force HR personnel and programs to search through a number of applicants who may be irrelevant to a given role at a time. Once candidates are deemed not a good fit, they are discarded. Sianara. Bye-bye.

But just because a candidate is not a good fit now, doesn’t mean that they won’t be a good fit for another position later on. What if you could easily track good candidates and reach out to them when a position opens up? Better yet, what if you could have a list of good-fit candidates at your fingertips…all the time.

As Haywood puts it,”The dream is to have open positions remain vacant for no longer than a day.”

There already exists a number of HR 2.0 tech companies that have started making steps in the right direction. There are companies that cover culture and productivity (Namely), HR operations management (Zenefits), and most pertinent to this post, recruiting tools and marketplaces (HackerRank, Jobvite, and Greenhouse Software).

But we need to start seeing these services integrated even more so into the way that companies recruit. We need to see a redefinition of terms. We need to see HR 3.0.

Haywood has some stake in the matter. His company LiveHire is looking to spearhead HR 3.0. Other companies looking to fill this same niche are Reffind and 1-page.

For anyone in the recruiting industry, these up-and-coming HR companies are something to watch.

For more recruitment strategy insights, follow me on Twitter @TracyTedesco or check out my blog dedicated to job candidates