A current trend of automatically screening applicants with recruiting software is a double-edged sword for companies that claim they simply can’t find the right talent, says Peter Cappelli, a professor of management and human resources at the University of Pennsylvania’s Wharton School.
HR screening software helps companies sift through the thousands of resumes they may receive, allowing them to filter the documents according to qualifications and keywords. However, at many companies, this software has replaced recruiters, so “applicants rarely talk to anyone, even by email, during the hiring process,” Cappelli notes in his book, “Why Good People Can’t Get Jobs.”
“Human eyes rarely see applicants until the very end of the process,” Cappelli says in a Wharton School publication. “So, we’re trying to push the automation too far. There’s nothing wrong with the automation… but trying to get rid of (certain HR workers) altogether means that we’re relying on the machines to make the decisions.”
The tech industry uses Applicant Tracking Systems (ATS) software, which helps automate numerous HR processes, more so than other industries, says Tom Boyle, director of product marketing for SilkRoad Technology, which sells HR automation software. He told Dice that tech companies and other organizations use ATS not only to help automate and manage the hiring process, but also in numerous other ways including automating job postings to active and passive channels, agency portals, employee referrals, social media, and searching online.
The recession also has caused “employers to be able to be pickier, to get even more specific in the skills they think they can find outside the company and to cut back on training,” Cappelli told the Wall Street Journal. This in turn has made it more difficult for companies to find the right candidates.
And companies that say they can’t find enough qualified candidates? It’s often a company’s overly stringent requirements, low wages and, or, an applicant screening process that is overly-rigid that creates this problem, Cappelli notes.
Why Good People Can’t Get Jobs: Chasing After the ‘Purple Squirrel’ [Knoweldge@Wharton]