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How Outdated Hiring Practices Can Derail Your Recruitment Efforts – ReadWrite

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Sanjoe Jose


Too often, recruitment departments are sidelined as simply a call center or cost function of a business, with the sole purpose of getting people to attend interviews and accept offers. This attitude and practice couldn’t be further from the truth, as quality hiring provides the foundations for cohesive and successful teams. Many companies stick to old hiring processes, which often prevent their recruiters from getting their hands on top talent.

Outdated Hiring Practices Can Derail Your Recruitment Efforts

This year, an astonishing 82% of US employers are planning to hire new people. Yet, recruiters still face an uphill struggle to find the right fit: 61% of recruiters say that their biggest challenge is finding qualified experienced hires. It’s time for businesses holding onto outdated hiring practices to scrap them completely—and start seeing recruitment as the strategic function it is.

Though, of course, getting rid of outdated practices means replacing them with new ones. There are four core areas where hiring needs innovative, new solutions: talent discovery, candidate experience, data and reporting, and talent decision making.

Let’s dive into which age-old practices should be resigned to the history books, and how companies can leverage technology to strategically drive their hiring efforts.

The Right Tools to Power Top Talent Discovery

Many recruiters are still manually searching for quality candidates on job boards, but it’s difficult for them to be an expert in all the job roles they are expected to fill.

A lack of understanding of the position on the recruiter’s part leads to missing out on good candidates.

For example, if potential candidates don’t use the exact keywords that the recruiter is searching for, they might slip through the cracks.

Here’s where technology can help. AI-powered resume screening tools can parse through resumes, use past data on successful hires, identify the top applicants, and put them through to the next stage of the hiring process.

Getting to the next stage boosts the potential for recruiters to find the best candidates, as they are no longer relying on their own intuition—they have the historical data of hundreds if not thousands of applicants to rely on.

How to reduce the chance of bias

One crucial thing to note here is that to minimize the chance of bias, it’s important to keep track of any tendencies that might emerge as a result of skewed data and adjust the algorithm accordingly. We all remember Amazon’s sexist recruitment tool and how that turned out.

Candidate Experience: From Disjointed to Seamless

Candidate experience has never been more critical than in the virtual realm. And with 80% of respondents to our Remote Hiring Trends 2021 survey saying their interviewing and hiring process is now fully remote, this means stepping away from disjointed technology experiences and building a seamless funnel for candidates.

The truth may be harsh, but it’s important to hear: Organizations that are still using multiple recruitment management systems and interviewing tools neglect their candidate experience.

In dealing with all of these different platforms at different stages of the hiring funnel, candidates often get confused and disillusioned with the sheer number of platforms they’re grappling with.

The applicant might interact with the applicant tracking system to submit the application, complete an assessment on a separate tool, take the video interview on Zoom or Google Meet, and manage communications via email.

Now the recruiter’s multiple tools

Meanwhile, on the other side, the recruiter is also forced to deal with multiple tools and switch between platforms to gather information, inevitably impacting efficiency in the process. Having this data strewn across different platforms makes it more difficult to locate, and can result in recruiters missing it completely.

The answer here is simple: Organizations that invest in an all-in-one platform that takes care of everything.

An all-in-one platform is going to save you a ton of money in the end. You want your platform tool to take you from screening to interviewing. You will set yourself and your company apart from your peers when it comes to candidate experience while making life significantly easier for hiring teams too.

These tools can automate the process from one stage to the next.

For example, they can automatically schedule an interview for someone who passed the skills assessment or automatically sends an offer email to someone who was successful in their final interview.

Not to mention, adopting a single tool allows companies to curate the online environment to match their own branding, which is crucial for consistency and professionalism in the candidate’s eyes.

Organizations that adopt whitelabel recruitment platforms can create a more accurate image of their company in the absence of a physical workplace to visit.

Data is King — for Recruiters Too

The reality is the majority of recruiters do not have access to comprehensive data insights to drive decision-making. And that needs to change.

Recruitment often gets short-changed when it comes to investing in data and reporting technologies.

There has historically been a lack of emphasis on leveraging data insights within the function to drive strategic decisions, unlike other departments like Sales or Marketing, which are equipped with such technological capabilities as standard.

However, data and reporting are crucial for successful hiring, and the often sidelined business function of recruitment shouldn’t be left out of the data revolution.

Actionable insights can drive recruitment decisions.

Consider the time an average candidate spends in the hiring funnel. Look at the rate of high-quality candidates from various sources and all the data about the candidate. Each step in the information process takes time. Look at your application form conversion rates — and each candidate experience scores.

Armed with these insights, recruiters will be able to determine the success of their hiring efforts.

You’ll want to ensure they are reaching diverse groups, evaluate their candidate experience, and more. Especially given the importance of diversity and inclusion (one of Monster’s key hiring trends for 2021), companies must leverage data insights to support these efforts.

Remove the Bias in Talent Decision Making

Humans are inherently subjective beings—and the same goes for recruiters, no matter how fair they determine themselves to be. This, in turn, means that decisions made in large part based on interviews are ultimately subjective.

There are several different unconscious biases that the interviewer could exhibit in that process. Unconscious biases can include:

  • affinity bias (when you prefer people who share qualities with you or someone you like).
  • attribution bias (our flawed ability to assess the reasons for certain behaviors)
  • conformity bias (allowing your views to be swayed by others).

Unknowingly, recruiters often take a pass on qualified applicants and take on unfit ones, all because of their internal biases.

What’s more, much of the data on candidate interview performance is not captured and used holistically and assessed objectively to make decisions. Rather it exists in bits and pieces across platforms and documents, further convoluting the process.

Behavioral insights

AI-powered interview platforms can provide objective behavioral insights to recruiters during video interviews and fairly assess candidates’ soft skills and learnability.

These tools augment the human decision-making power as they highlight areas where the interviewer’s judgment may be biased.

Advanced AI platforms can evaluate interviewer performance, providing data on time spent on each interview topic, the time the interviewer spent talking vs. the candidate, or whether or not inappropriate questions were asked.

All of this enables the interviewer to identify gaps in their approach and drive their performance.

Conclusion

It’s time for recruitment departments to leave age-old practices at the door and embrace technology to advance strategic hiring. With the growth of virtual hiring and remote work showing no sign of abating, what better time to start than now?

Sanjoe Jose

CEO at Talview

Sanjoe Jose, CEO of Talview. Sanjoe is passionate about building technologies that help make hiring faster and easier. Talview is working on cutting-edge AI technology that accelerates the speed of hiring since 2012. Sanjoe is also a well-known speaker in HR Technology, especially in using Artificial Intelligence and Machine Learning-based tools in building world-class teams in organizations.

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Fintech Kennek raises $12.5M seed round to digitize lending

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Google eyed for $2 billion Anthropic deal after major Amazon play


London-based fintech startup Kennek has raised $12.5 million in seed funding to expand its lending operating system.

According to an Oct. 10 tech.eu report, the round was led by HV Capital and included participation from Dutch Founders Fund, AlbionVC, FFVC, Plug & Play Ventures, and Syndicate One. Kennek offers software-as-a-service tools to help non-bank lenders streamline their operations using open banking, open finance, and payments.

The platform aims to automate time-consuming manual tasks and consolidate fragmented data to simplify lending. Xavier De Pauw, founder of Kennek said:

“Until kennek, lenders had to devote countless hours to menial operational tasks and deal with jumbled and hard-coded data – which makes every other part of lending a headache. As former lenders ourselves, we lived and breathed these frustrations, and built kennek to make them a thing of the past.”

The company said the latest funding round was oversubscribed and closed quickly despite the challenging fundraising environment. The new capital will be used to expand Kennek’s engineering team and strengthen its market position in the UK while exploring expansion into other European markets. Barbod Namini, Partner at lead investor HV Capital, commented on the investment:

“Kennek has developed an ambitious and genuinely unique proposition which we think can be the foundation of the entire alternative lending space. […] It is a complicated market and a solution that brings together all information and stakeholders onto a single platform is highly compelling for both lenders & the ecosystem as a whole.”

The fintech lending space has grown rapidly in recent years, but many lenders still rely on legacy systems and manual processes that limit efficiency and scalability. Kennek aims to leverage open banking and data integration to provide lenders with a more streamlined, automated lending experience.

The seed funding will allow the London-based startup to continue developing its platform and expanding its team to meet demand from non-bank lenders looking to digitize operations. Kennek’s focus on the UK and Europe also comes amid rising adoption of open banking and open finance in the regions.

Featured Image Credit: Photo from Kennek.io; Thank you!

Radek Zielinski

Radek Zielinski is an experienced technology and financial journalist with a passion for cybersecurity and futurology.

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Fortune 500’s race for generative AI breakthroughs

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Deanna Ritchie


As excitement around generative AI grows, Fortune 500 companies, including Goldman Sachs, are carefully examining the possible applications of this technology. A recent survey of U.S. executives indicated that 60% believe generative AI will substantially impact their businesses in the long term. However, they anticipate a one to two-year timeframe before implementing their initial solutions. This optimism stems from the potential of generative AI to revolutionize various aspects of businesses, from enhancing customer experiences to optimizing internal processes. In the short term, companies will likely focus on pilot projects and experimentation, gradually integrating generative AI into their operations as they witness its positive influence on efficiency and profitability.

Goldman Sachs’ Cautious Approach to Implementing Generative AI

In a recent interview, Goldman Sachs CIO Marco Argenti revealed that the firm has not yet implemented any generative AI use cases. Instead, the company focuses on experimentation and setting high standards before adopting the technology. Argenti recognized the desire for outcomes in areas like developer and operational efficiency but emphasized ensuring precision before putting experimental AI use cases into production.

According to Argenti, striking the right balance between driving innovation and maintaining accuracy is crucial for successfully integrating generative AI within the firm. Goldman Sachs intends to continue exploring this emerging technology’s potential benefits and applications while diligently assessing risks to ensure it meets the company’s stringent quality standards.

One possible application for Goldman Sachs is in software development, where the company has observed a 20-40% productivity increase during its trials. The goal is for 1,000 developers to utilize generative AI tools by year’s end. However, Argenti emphasized that a well-defined expectation of return on investment is necessary before fully integrating generative AI into production.

To achieve this, the company plans to implement a systematic and strategic approach to adopting generative AI, ensuring that it complements and enhances the skills of its developers. Additionally, Goldman Sachs intends to evaluate the long-term impact of generative AI on their software development processes and the overall quality of the applications being developed.

Goldman Sachs’ approach to AI implementation goes beyond merely executing models. The firm has created a platform encompassing technical, legal, and compliance assessments to filter out improper content and keep track of all interactions. This comprehensive system ensures seamless integration of artificial intelligence in operations while adhering to regulatory standards and maintaining client confidentiality. Moreover, the platform continuously improves and adapts its algorithms, allowing Goldman Sachs to stay at the forefront of technology and offer its clients the most efficient and secure services.

Featured Image Credit: Photo by Google DeepMind; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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UK seizes web3 opportunity simplifying crypto regulations

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Deanna Ritchie


As Web3 companies increasingly consider leaving the United States due to regulatory ambiguity, the United Kingdom must simplify its cryptocurrency regulations to attract these businesses. The conservative think tank Policy Exchange recently released a report detailing ten suggestions for improving Web3 regulation in the country. Among the recommendations are reducing liability for token holders in decentralized autonomous organizations (DAOs) and encouraging the Financial Conduct Authority (FCA) to adopt alternative Know Your Customer (KYC) methodologies, such as digital identities and blockchain analytics tools. These suggestions aim to position the UK as a hub for Web3 innovation and attract blockchain-based businesses looking for a more conducive regulatory environment.

Streamlining Cryptocurrency Regulations for Innovation

To make it easier for emerging Web3 companies to navigate existing legal frameworks and contribute to the UK’s digital economy growth, the government must streamline cryptocurrency regulations and adopt forward-looking approaches. By making the regulatory landscape clear and straightforward, the UK can create an environment that fosters innovation, growth, and competitiveness in the global fintech industry.

The Policy Exchange report also recommends not weakening self-hosted wallets or treating proof-of-stake (PoS) services as financial services. This approach aims to protect the fundamental principles of decentralization and user autonomy while strongly emphasizing security and regulatory compliance. By doing so, the UK can nurture an environment that encourages innovation and the continued growth of blockchain technology.

Despite recent strict measures by UK authorities, such as His Majesty’s Treasury and the FCA, toward the digital assets sector, the proposed changes in the Policy Exchange report strive to make the UK a more attractive location for Web3 enterprises. By adopting these suggestions, the UK can demonstrate its commitment to fostering innovation in the rapidly evolving blockchain and cryptocurrency industries while ensuring a robust and transparent regulatory environment.

The ongoing uncertainty surrounding cryptocurrency regulations in various countries has prompted Web3 companies to explore alternative jurisdictions with more precise legal frameworks. As the United States grapples with regulatory ambiguity, the United Kingdom can position itself as a hub for Web3 innovation by simplifying and streamlining its cryptocurrency regulations.

Featured Image Credit: Photo by Jonathan Borba; Pexels; Thank you!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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