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The recruiting processes for large companies are time-consuming, costly, and inefficient. On average, once a job position is open, it takes weeks before candidates are invited for interviews. The average recruiter spends only 6 seconds reviewing a resume, and only 17% read cover letters. This ineffective process of crafting a CV and cover letter is becoming an outdated impractical tool to depict the suitable applicant.
With technology disruptors such as Scoringline, a talent acquisition and pre-screening software, and Cocoon, a Tinder-like job-matching tool, traditional recruitment is facing inevitable change. Although HR managers may resist this disruption, due to the novelty of these digital processes, the benefits counter the limitations. Besides saving 50% of the company’s time and expanding the company’s pool of candidates, an automatic scoring ranks employees based on position requirements, which substitutes the CV-sorting process. Additionally, candidates have the opportunity to properly display their skills and motivation. With Cocoon, a major advantage is its fee. On average, companies pay €500 per month to use the software, giving them access to an unlimited amount of applicants. The user can also instantly show interest for multiple positions by swiping on the app, saving time and effort.
The use of these technologies reflect the long-tail concept, as applicants are exposed to numerous smaller companies that were previously unknown to them. Now, applicants are more likely to apply to “niche” companies instead of well-known ones. In addition, the network-based value creation concept is also followed, where the informal collaboration between companies and Scoringline/Cocoon provide skills and resources that can supply products/services for an extensive demand. Companies that adopt these tools gain access to a broader pool of applicants, stored in databases that are filtered to find the suitable fit. Value is created, as there are more users on the platforms. Finally, following the newly vulnerable market concept, this market is attractive for new potential entrants, as the search for new employees is a continuous process. Innovative recruiting methods are constantly in demand. Moreover, the market is highly vulnerable, as there are no dominant players. The platform has no restrictions, and customers are facing the same/similar problem, so any firm can join. Costs to enter are also low for firms, in comparison to traditional methods. A profound difference exists in profitability across firms, as fees depend on the size of the firm and the amount of employees selected. As early adopters, startups will need to find a way to reduce opportunities for new entrants by “locking” the market, and stand out from the competitors that exist.
80% of recruitments are done almost instantly without enough qualitative consideration, and hiring the wrong person can be expensive. These technologies don’t only enable firms to recruit more efficiently, they also give smaller companies the opportunity to be exposed. To conclude, current recruiting platforms are becoming outdated and inefficient, and the adoption of digitalized platforms is thus necessary to implement in order to continue employing successful candidates in a practical manner.
Sources:
- https://en.scoringline.com
- https://cocoonapp.co
- http://www.longtail.com/about.html
- http://www.forbes.com/sites/icims/2016/05/16/the-real-cost-of-a-poor-hire/#727067aa242f
- https://www.youtube.com/watch?v=syxej7VUKI8
- http://www.eremedia.com/ere/why-you-cant-get-a-job-recruiting-explained-by-the-numbers/
- https://www.theladders.com/career-advice/you-only-get-6-seconds-of-fame-make-it-count/
https://en.scoringline.comhttps://cocoonapp.cohttp://www.longtail.com/about.htmlhttp://www.forbes.com/sites/icims/2016/05/16/the-real-cost-of-a-poor-hire/#727067aa242fhttps://www.youtube.com/watch?v=syxej7VUKI8http://www.eremedia.com/ere/why-you-cant-get-a-job-recruiting-explained-by-the-numbers/https://www.theladders.com/career-advice/you-only-get-6-seconds-of-fame-make-it-count/
Team 17
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- Giovanni Nigris – 383900
- Katarina Wessel Rodahl – 368949
- Sven Ullern – 367004
