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The Role of Data in Today’s Hiring Practice

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By Jan Keiser|

I knew there was something I didn’t trust about Big Data.

“ATS software is very efficient and can eliminate hundreds of applications on hundreds of posted job positions with little or no human interaction. Once the parameters (must haves) of a position are set, your résumé has little or no chance making it through the initial, automated screening process if you lack the predetermined keywords…“ Source: The Job Search Checklist, Birkel, D.

For those of us actively job hunting, the automatic hiring trend is a huge barrier. If you sought employment years ago, companies never acknowledged receiving your résumé, let alone send a rejection notice. In today’s employment process, applicant tracking system (ATS) software is programmed to shoot a rejection notice back at you in less than 30 minutes. It all depends on how your résumé meets the company specifications. Let me explain how the process begins.

The application process can bar candidates from submitting unsolicited résumés to a company of interest. In 2014, the way to reach most companies is to either work through an intermediary (job board, recruiter) or through the company website – although even at the website candidates will often be directed to an application process with a third party. The candidate will begin by uploading a résumé according to the website’s instructions. Soon, an application will appear with the résumé information plugged in. This is rarely done properly. Usually, nearly every field needs to be adjusted because the résumé details are deposited in the wrong field. Some systems will ask what I call “essay questions.” These are the sort of questions that were formerly asked during the first interview; “What are you most proud of, “What will your former employers say about you,” etc. If it’s been several years since you graduated from college, pull out your transcripts. Companies often ask for GPAs and even ask about extracurricular activities. When the application process is complete there is an opportunity to upload any other documents such as a cover letter.

Thank You For Your Interest…”
Nearly half of my résumés have been rejected without any explanation. Recently, Blue Shield had a position available with a job description I could have written myself. The position required some of my best skills and I was careful to incorporate Blue Shield’s language into my résumé/cover letter. Within three hours there was an email rejection notice in my inbox. “Thank you for your interest…blah, blah…” A few days later, another cover letter and customized résumé was sent to Marsh/McLennan Insurance Company and I received a rejection email within 15 minutes! What is happening here?

We Can Now Automate Hiring. Is that Good?
I became curious about this strange submission process and began conducting research. Wharton professor, Peter Cappelli, has written an article, “We Can Now Automate Hiring. Is that Good?” published on the Harvard Business Review Blog at:
http://blogs.hbr.org/2013/12/we-can-now-automate-hiring-is-that-good/. Cappelli describes how the use of the system (ATS) began. It was not because there were too many applicants; companies were attempting to outsource human resources and recruiters were being laid off. Less-seasoned HR recruiters have now replaced the more experienced recruiters. Only during this recession has the software system been used to weed résumés according to employer-determined parameters.

According to Cappelli and other experts, a well-qualified candidate’s résumé may never be reviewed. Gone are the days of “She/he interviewed well.” Before the use of ATS a seemingly unqualified, yet strong, candidate could sway a recruiter with their intelligence, experience and wit. Some experts believe recruiters, and therefore the hiring managers, never see 8 out of 10 résumés. In response, Cappelli has published a book titled Why Good People Can’t Get Jobs.

Beware of Young Recruiters?
The San Francisco Public Library recently sponsored a seminar led by a former recruiter who has worked in most industries, with all levels of management, both inside and outside the corporation. She provided insight into the recruiting profession, describing a new wave of recruiters. The career coach believes these younger and less experienced recruiters aren’t seasoned enough to understand the hiring process without a strict formula to guide decisions. She also said the less experienced recruiter was more likely to read a cover letter, while the experienced recruiter could tell from a quick résumé scan if there was a match. We heard stories of managers who never see a candidate they like because the manager only sees résumés selected by the screening software, and the inexperienced recruiter. The oft-heard advice to use LinkedIn and approach managers via email is based on the belief that managers don’t see résumés they necessarily like. Apparently, managers will be so relieved to see an interesting résumé, the candidate may be invited for an interview.

Talking with a Recruiter
Armed with some background, I decided to speak to one of my contacts; a senior recruiter with a major, nation-wide company. This recruiter explained how the systems are set up to sync with only the relevant applications. I was surprised to hear about barriers I hadn’t considered: Employers are attempting to recruit expertise at lower salaries (big surprise). In order to produce the right candidate, a parameter may be set for experience or the length of time in a position. For example, a candidate noting more than ten years, the résumé may be rejected. This will eliminate candidates with too much experience, including supervisory experience. This may or may not be about age. My contact reports that it’s about screening out seasoned candidates who expect higher salaries. An inexperienced candidate with a good education and basic skills can be hired for a lower salary, and in time, do as well. In responding to this barrier, some candidates only list the last ten years of their experience and say they entered the work force later in life. The advertisement for a position may state a general business degree requirement even though the system may only accept an MBA and reject a Business Administration degree. A school parameter can be also be specified, for example, to eliminate all but Ivy League schools. It’s easy to see how the résumé details may knock a candidate out of contention.

Does Understanding the System Help?
When I consider the rejections I’ve received, it’s impossible to understand the rationale behind it. As a corporate librarian my experience is not that of a traditional librarian. I am applying for positions I qualify for based on the business research, report writing, presentation work and leadership skills I developed while collaborating with other business units. It could be that my MLIS disqualifies me.

My previous salary is an issue and I also have too much management experience. I learned that many companies set the salary parameters at $50K-70K, $70-$90K and 90K+. I imagine selecting the salary band of $50-$70K would help keep candidates in the running. During the auto hiring process, the candidate cannot leave any field, such as previous salary, or salary required, blank. The salary information is forced, as the system doesn’t allow the user to progress until every box is completed.

I have yet to see an advertised position with salary information included, so I asked my contact whether I should misrepresent my salary and apologize later. I was told that “everyone does it,” that is, misrepresents his or her previous salary. When there is a job offer, usually the time a company will check references, the candidate needs to confess – before the previous employer reveals their salary was actually much higher.

References
Here is more interesting material on this topic and that of BIG DATA that we hear so much about.

KQED has done special reports on automatic hiring that are posted on their website.  www.kqed.org

‘We Can Now Automate Hiring. Is that Good?” Peter Cappelli  12/12/13
http://blogs.hbr.org/2013/12/we-can-now-automate-hiring-is-that-good/

“Why HR Needs to Stop Passing Over the Long-Term Unemployed” Peter Cappelli
http://blogs.hbr.org/2013/08/what-data-show-about-hiring-th/

Why Good People Can’t Get Jobs Peter Cappelli
http://www.worldcat.org/oclc/792880690 (available as an e-book at the San Francisco Public Library)

“Big Data And Hiring: How Software Helps Firms Hire Workers More Efficiently” The Economist, 4/6/12
http://www.economist.com/news/business/21575820-how-software-helps-firms-hire-workers-more-efficiently-robot-recruiters

“Hiring and Big Data: Those Who Could Be Left Behind” Herminia Ibarra, 12/3/13
http://blogs.hbr.org/2013/12/hiring-and-big-data-who-wins/


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