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“It’s not a faith in technology. It’s a faith in people”, is a quote from Steve Jobs that typified the late Apple boss’ crystal clear prescience. There are a number of factors currently shaping the world of work, but perhaps the biggest of these trends is the impact of automation – a study by Centre for Cities found that it could displace up to three million British jobs by 2030.
Article by Jon Addison, Head of Talent Solutions – LinkedIn UK
In a world constantly on the move, it’s increasingly difficult to develop long-lasting strategies and the necessity for agile workforce planning has never been higher, meaning it’s more important than ever for HR teams to have their finger on the pulse when it comes to any new workforce trends, as there a myriad of unstoppable forces continue to shape the world of work. Perhaps the biggest of these trends is the impact of automation. On top of this, as readers will be only too aware, businesses are facing growing skills gaps, which are manifesting in different regions and industries across Europe – Open University found these skills gaps could cost British businesses more than £2 billion a year. We’re yet to see to what extent this will impact recruitment businesses, but in my view, the use of AI and automation will continue to power recruiting tools, automating the sourcing, and improving the pre-selection processes for recruiters. It will let recruiters focus on quality candidates, as well as the interview process itself, and look closer for cultural fit and potential.
Another unavoidable challenge is the huge growth in independent work. This section of the workforce tends to have different priorities for what they want out of a job, which has led to a number of organisations reassessing their talent strategies in order to attract them. According to estimates from McKinsey, independent workers already make up 20 to 30 percent of the working age population across the US and EU-15, which means it’s likely that many more businesses will have to follow suit and adapt to accommodate this style of working. Again, with a rise of independent work, contractors and flexible workforce, this is one of the points to take into consideration. Now, if all this wasn’t enough to contend with – it doesn’t help that the market is noisier than ever. While advances in technology have opened up access to jobs and candidates, these innovations have proved to be a double-edged sword, as both HR teams and candidates alike are faced with increased competition and an overload of information. However, it’s not all doom and gloom. There are certainly seismic changes happening, but there are still plenty of opportunities for HR to thrive in this new talent landscape. For HR teams working in such a noisy, fast-paced market, data is a super power. In fact, our recent survey showed that more than 8,000 global hiring managers for its annual Global Recruiting Trends report, and found that nearly two-fifths (38 percent) see data as one of the most important factors in the hiring process – and 79 percent are likely to be using data in their hiring process within the next two years.
Why is data becoming so important? Well, when it comes to sourcing potential candidates, it’s no longer just knowing who’s done what or who lives where. Data can be used to identify those who have already thought about working for an organisation, or those who are passionate about a particular industry. It can also hold the answers on who might work well within a certain team, and which workers are open to relocating. Having aggregated data on the movements, skills, and employment history of the workforce it can also help you identify new pools of talent and learn how to attract them. For example, when it comes to independent workers, our data found those involved in flexible work switch between industries more than those in traditional employment. By being armed with insights on which industries these workers switch between, HR teams can feel confident to expand the pool of people they’re approaching with opportunities. Data like this can prove especially important in areas with skills shortages. For example, Australian-based software development company, Atlassian, realised they needed to start sourcing from an international talent pool to keep up with their recruitment goals. Using data, the company was able to pinpoint key European markets where the supply of tech talent exceeded the demand. By using this data, alongside data showing what these targets wanted out of a career, Atlassian were able to run effective, targeted online campaigns to find the right talent, kick off the relocation conversation and ultimately meet their hiring goals.
“Data alone isn’t a super power, it’s the ability to use it in a way that helps form strategic decisions that makes it truly powerful. For teams without the capacity to analyse the data available, it can be overwhelming”
Data isn’t just important for the talent acquisition process either, it can be vital when it comes to retaining employees too. Global insights company, Nielsen, tapped into its data to understand why it was losing talent. To drill down into the reasons behind talent attrition, they opened up five years’ worth of people data in a spreadsheet and identified the factors that most highly correlated with talent attrition. They found that employees who had been promoted, or moved laterally across the business, within the last two years were far less likely to leave. This was a game changer, and led to a shift in how the company operated – with managers focusing on making it as easy as possible for employees to pursue internal job opportunities. Another bonus was that the company could use this data identify potential “at-risk” employees, and proactively put new opportunities in front of them. Data alone isn’t a super power, it’s the ability to use it in a way that helps form strategic decisions that makes it truly powerful. For teams without the capacity to analyse the data available, it can be overwhelming.
This is why we’ll increasingly see AI incorporated into HR strategies – systems that can predict hiring outcomes and make smarter decisions on behalf of hiring managers. The Global Recruiting Trends report, showed that more than a quarter (28 percent) of UK hiring managers think AI is the most important trend for 2018 – helping them source, screen and nurture candidates – saving time and helping removing any human bias. Some HR departments have already been successfully introducing AI to their teams, and it can be a lifeline for companies who have to process an extremely high volume of applications. When Unilever introduced new screening tools, it cut the time it takes to hire by 75 percent. It used to take them between four to six months to narrow down 250,000 student applications to a few hundred hires. Now, the process starts with a quick mobile-enabled application form, and those who meet the standard requirements then go to a gamified assessment. Applicants who get a score within the top third are then invited to advance to the video interview stage – with an algorithm tasked to assess each video against certain criteria. Finally, the last stage is a Day in the Life Of Discovery Centre where candidates can get a real feel for what it means to work at Unilever.
Another great example of AI in use during the recruitment process is Vodafone, who use AI-powered software to screen video interviews. Instead of recruiters individually reviewing each video, an algorithm is able to assess candidate suitability across 15,000 different dimensions. These dimensions cover an astonishing range of criteria, including body language and speech cadence. After passing the initial video interview stage, candidates are then invited to in-person interviews – where they can get a better sense of the team they’d be working in, and what it would be like to work for the company. There’s no doubt that the world of work is changing at a rapid rate. Over the coming years, HR teams will find themselves increasingly relying on data to predict upcoming challenges and identify new opportunities. And to cope with the sheer amount of data available, it will be AI and automation powering recruiting tools and helping HR teams find the right talent and develop informed strategies. Embracing the benefits that these innovations can bring will help HR teams to get an edge on the competition – and stay at the top of their game.
