Enterprise tech is “hot” for the right reasons.
The barriers to entry, once the sole domain of the tech behemoths, are diminishing, and it is now cheaper than ever to build software that can be accessed by anyone, from any place, at anytime.
One industry that is ripe for innovation is the human resources sector, and more specifically, the recruiting part of it. In a recent survey conducted by SilkRoad on the State of Talent Management, only 38 percent of companies reported that their HR systems were fully automated.
The good news is that the declining barriers to entry and the increasing comfort with SaaS, is leading to a range of innovative solutions across the HR spectrum. One in particular that is reaching a tipping point is video interviewing.
Until now, neither the technology nor the market has really been ready for it on a widespread scale. Here are 6 reasons why that has now changed (in no particular order):
1. The challenge is selection, not sourcing
It has never been easier to source talent. LinkedIn, Twitter and Facebook have made us hyper connected, meaning that there are no longer any barriers to “getting in touch.” Because it is so easy, candidates are able to seek out employers and submit their CVs to anyone at the click of a button, often resulting in resume overload.
Employers are equally able to cast the net wide and directly target anyone that might fit the bill. The recruitment challenge therefore becomes one of selection rather than sourcing.
2. The mobile & contingent workforces are here to stay
No matter what Marissa Mayer has to say about the matter, technology has fundamentally changed the way we work. It allows people with different skills, in different locations to collaborate on projects in a way that has never been possible before.
Assuming teams need to be in the same place limits the talent pool dramatically and stifles diversity. According to forecasts from a recent PwC report on the future of talent mobility, by 2020 the average number of mobile employees in large organizations is expected to increase to 50 percent. Traditional methods of recruitment and staffing will prove too costly in such an environment.
3. Cost-per-hire IS relevant
I have read a series of articles recently that suggest companies should neither focus on, or even track, the cost-per-hire.
In case you haven’t noticed, top line growth is a little harder to come by these days and CEOs are under increasing pressure to deliver healthy profits. Research from Koncept Analytics estimates that the worldwide recruitment market could reach $369 billion next year, which means there is a lot of room to be more efficient.
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4. Candidates are comfortable using video
Skype, Facetime, YouTube, GoToMeeting video is now an integral part of our every day lives.
Unlike five years ago, video cameras are everywhere (in your laptop, tablet, smartphone) and the quality is largely pretty good. Rather than flying to another state for a job interview that might not work out, candidates are able to be interviewed remotely, saving time and cost for both parties.
Candidates also are given the opportunity to convey more about themselves from the outset and potentially standout in the process.
5. The cloud facilitates greater collaboration
The cloud has allowed us to store content remotely and provide users with 24 hour access to it. This creates tremendous operating efficiencies for hiring managers, as well the ability to more effectively collaborate on the candidate assessment & selection process.
Rather than interview one candidate after another and attempt to recount the takeaways weeks or even months later, a hiring manager (or recruiter), can build a digital interview, share it with many candidates, and review the applications as many times as they like. They can also invite other co-workers or colleagues to review the interviews and provide their feedback in a structured and transparent manner.
6. It improves decision making and leads to better hires!
Building a digital interview forces companies to think more about their interview questions, what attributes they value most, and their company branding. Making hiring decisions when you are able to see all candidates in one place allows you to make individual decisions with reference to the whole, which improves diversity and overall hiring outcomes.
Finally, being able to collectively review and rate candidate interviews means you are far more likely to hire someone that is a better fit with the company’s overall culture.