Technology of the Week – LinkedIn disrupting the Recruitment Industry (Group 47)

6

October

2017

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Over the years, the influence of technology has increased substantially within almost every industry. Within the recruitment industry, LinkedIn has been an enormous game changer.

History

Recruitment is “the process of finding and hiring the best-qualified candidate for a job opening” (BusinessDictionary.com, 2017). Throughout history the way people were recruited changed: from word-of-mouth in the beginning to newspaper advertisements and posters around the 1800s. Agencies only started mediating between professionals and employers in 1940. Fifty years later, in 2004, recruitment went online and job boards appeared.

Technology has already had a big influence in a short amount of time in these past few years, however, one of the major disruptions happened when LinkedIn entered the market.

LinkedIn

LinkedIn started as a social network designed to connect professionals and allow them to use these connections to reach personal business goals. It later evolved into a mediated platform with three customer segments. Using the Eisenmann model (Eisenmann, Parker, & van Alstyne, 2008) this results in the following parties:

  1. Professionals and companies.
    • This side is subsidised with free accounts and the option to choose a premium account to increase recruitment chances.
  2. Recruiters
    • This is the demand side as they pay for access to the Talent Solutions or for premium recruiting products.

The platform provider is LinkedIn. They govern the interactions within the two-sided market and maintains the platform. The platform sponsor is, since 2016, Microsoft (Lunden, 2016).

The key to LinkedIn’s success lies in its network effects: the more people are in the network, the more valuable the network is to all participants. This means there are positive same-side network effects when more professionals join. Cross-side network effects cause recruiters and advertisers to benefit too.

LinkedIn also increased the efficiency, transparency, digital searchability and available online data of resumes (even of those not currently looking for a job), enabling recruiters to find a perfect match much quicker than before (LinkedIn Talent Solutions, 2016). The result is that recruiting through social networking websites is experienced as more cost effective than traditional forms of hiring (Miryala, 2015). Companies have recorded decreases of costs by more than 90% when recruiting via LinkedIn (Hull, 2017).

LinkedIn could not be a game changer without having a relevant size. Today, the platform has over 500 million users (Darrow, 2017). On the recruiter’s side of the industry, Jobvite (2011) shows that 87% of the employers use LinkedIn for social recruiting because of the more efficient matching thanks to big data analytics and more reliable resumes because of public transparency.

Future

The opinions are divided on what the future holds for this industry. Some believe machine learning can take over, others believe humans will always be needed. Eisenmann (2008) predicts that LinkedIn will become interoperable and start licensing to other recruitment firms and start sponsorships with, for example, Facebook and Google.

http://https://www.youtube.com/watch?v=jHgWRT1TJY0&feature=youtu.be

References

Alstyne, Parker and Choudary. (2016). Pipelines, Platforms, and the New Rules of Strategy. Harvard Business Review April 2016.

Balogh, G. (2017). iPhone X – A touch of life. [online] I.ytimg.com. Available at: https://i.ytimg.com/vi/aI5b0iRoIys/maxresdefault.jpg [Accessed 6 Oct. 2017].

Bersin, J. (2017). Forbes Welcome. [online] Forbes.com. Available at: https://www.forbes.com/sites/joshbersin/2012/02/12/linkedin-is-disrupting-the-corporate-recruiting-market/#65f52926462f [Accessed 6 Oct. 2017].

BusinessDictionary.com. (2017). What is recruitment?. [online] Available at: http://www.businessdictionary.com/definition/recruitment.html [Accessed 28 Sep. 2017].

BusinessModel.Guru (2016). LinkedIn Business Model Canvas Case Study. [online] YouTube. Available at: https://www.youtube.com/watch?v=kATI72tpknI [Accessed 6 Oct. 2017].

Darrow, B. (2017). LinkedIn Claims Half a Billion Users. [online] Fortune. Available at: http://fortune.com/2017/04/24/linkedin-users/ [Accessed 5 Oct. 2017].

Eisenmann, T., Parker, G. and Van Alstyne, M. (2008). Opening Platforms: How, When and Why?. SSRN Electronic Journal.

Hull, J. (2017). 50% reduction on recruitment costs: how social media became my best friend. [online] Hrmagazine.co.uk. Available at: http://www.hrmagazine.co.uk/article-details/50-reduction-on-recruitment-costs-how-social-media-became-my-best-friend [Accessed 28 Sep. 2017].

Jobvite. (2011). Jobvite Index Shows Hiring Patterns in LinkedIn, Facebook and Twitter – Jobvite. [online] Available at: https://www.jobvite.com/jobvite-news-and-reports/jobvite-index-shows-hiring-patterns-in-linkedin-facebook-twitter/ [Accessed 28 Sep. 2017].

LinkedIn (2017). A Brief History of LinkedIn. [online] Ourstory.linkedin.com. Available at: https://ourstory.linkedin.com/ [Accessed 6 Oct. 2017].

LinkedIn Talent Solutions (2016). The role of HR has evolved. Meet the 21st century HR Leader. [online] YouTube. Available at: https://www.youtube.com/watch?v=ukmC6F0JvQw [Accessed 6 Oct. 2017].

Miryala, D. (2015). Trends, Challenges & Innovations in Management. 1st ed. Zenon Academic Publishing, 2013, p.55.

Singlepoint (2017). Vodafone Facebook image. [online] Singlepoint.ie. Available at: http://www.singlepoint.ie/singlepoint2/wp-content/uploads/2017/01/vodafone_fb_image.jpg [Accessed 6 Oct. 2017]

Traynor, D. (2012). Surviving & Thriving in Two-Sided Markets – Inside Intercom. [online] Inside Intercom. Available at: https://blog.intercom.com/surviving-thriving-in-two-sided-markets/ [Accessed 22 Sep. 2017].

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Will it become ‘Made in Internet’ instead of ‘Made in China’?

30

September

2017

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How can we prepare ourselves for the future of Artificial Intelligence (AI)? According to Jack Ma, founder and chairman of Alibaba, we have to change the way we teach otherwise the future generation will lose their jobs.

Despite the fact AI has a lot of advantages – for instance increase of productivity, lower costs and more precision – we are still concerned about the fact that AI will exceed human intelligence and supplant us as the dominant species on Earth. In the last 200 years, manufacturing brought jobs. (Bundy, 2016) But today, because of AI, manufacturing is no longer the main engine of creating jobs. Products that, for example, were made in China will only be made by the Internet in the future.

Preparation time has started

To benefit from the advances in productivity brought by AI, we will need to reallocate to new types of jobs. If new jobs are not created, workers are likely to remain locked in their previous jobs or become unemployed. (Frey, 2017) According to Jack Ma, the new technology will destroy bunch of jobs, but it will also create plenty of jobs and the service industry will be the largest engine of the job creation. However, the current approach to education is not preparing today’s youth for the realities of tomorrow’s work. We have to teach them to be very, very innovative and very creative. (Ma, 2017)

Adaption will create jobs

In consequence of AI, a distinct wave of job displacement will almost certainly occur. New technologies in areas like AI and robotics will both create some totally new jobs in the digital technology area and, through productivity gains, generate additional wealth and spending that will support additional jobs of existing kinds, primarily in services sectors that are less easy to automate. (Wilson et al., 2017)

In my point of view, the future will be automated excessive, but human interference is still crucial. Humans are the best watchdogs for upholding norms of human values and morals. What do you think the future will look like according to the labour market?

References:

Bundy, A., 2016. Review of “Preparing for the Future of Artificial Intelligence”.

Frey, C.B., 2017. The Future of Jobs and Growth: Making the Digital Revolution Work for the Many.

Futurism. (2017). Jack Ma: the way we teach is going to make our kids lose jobs. [online] Available at: https://futurism.com/jack-ma-the-way-we-teach-is-going-to-make-our-kids-lose-jobs/ [Accessed 25 Sep. 2017].

Horowitz, J. (2017). Jack Ma: We need to stop training our kids for manufacturing jobs. [online] CNNMoney. Available at: http://money.cnn.com/2017/09/20/technology/jack-ma-artificial-intelligence-bloomberg-conference/index.html [Accessed 25 Sep. 2017].

Wilson, H.J., Daugherty, P. & Bianzino, N. 2017, “The Jobs That Artificial Intelligence Will Create”, MIT Sloan Management Review, vol. 58, no. 4, pp. 14-17.

 

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Help! My therapist is a robot

24

September

2017

4.92/5 (76)

Imagine you have an appointment with your therapist; you enter the consulting room, you look up, and look right into two bright glowing robot eyes. How likely is it that a robot will be the future therapist?

ELIZA, your first therapist chatbot

The first therapist chatbot named ELIZA is actually already fifty years old. She was created in the 1960s by Joseph Weizenbaum at the MIT’S Artificial Intelligence Lab. ELIZA is a primitive natural language system that uses pattern matching to parody a Rogation psychotherapist whose main method is to make a patient feel relieved by sharing their problems with a listener. ELIZA is not able to think as a human being, she simply uses linguistic tricks to keep the conversation initiative needed to ensure that the patient is the one who is answering questions and explaining or extending their previous statement. For instance, the word ‘sad’ prompts the reply ‘I am sorry to hear you are sad’. (Rzepka & Araki, 2015) Some people would believe they were talking to a real empathic person. In spite of that, giving advice to a person suffering from mental conditions can go wrong, and the task becomes a moral dilemma.

The next ELIZAs

Since ELIZA, there have been a lot of improvements in computer therapy. There are virtual human agents now that aim to initiate user engagement, increase awareness of symptoms and treatments for users who may be reluctant to talk to a traditional counsellor. (Cameron et al., 2017) Virtual help agents are even counseling Syrian refugees. Can these virtual human agents improve on human therapists? According to Alison Darcy (2017) there is a lot of noise in human relationships. Noise is the fear of being judged. Would people share more if they could talk to an anonymous algorithm?

The moral dilemma

Chatbots can create another option for users who do not want to receive face-to-face treatment, however there are many ethical aspects to consider. Building an empathetic chatbot is a risky place, what if the chatbot provides incorrect or apathetic responses? In my opinion, we should not risk the mental health of human beings yet. For now chatbots can be used to cure loneliness or just as a listener. However, maybe in the future, we will look in those bright glowing robot eyes!

References:

Cameron, G., Cameron, D., Megaw, G., Bond, R., Mulvenna, M., O’Neil, S., Armour, C. and McTear, M., (2017). Towards a chatbot for digital counselling.

Molteni, M. (2017). The Chatbot Therapist Will See You Now. [online] WIRED. Available at: https://www.wired.com/2017/06/facebook-messenger-woebot-chatbot-therapist/ [Accessed 24 Sep. 2017].

Romeo, N., (2017). The Chatbot Will See You Now. [online] The New Yorker. Available at: https://www.newyorker.com/tech/elements/the-chatbot-will-see-you-now [Accessed 24 Sep. 2017].

Rzepka, R. and Araki, K., (2015). ELIZA fifty years later: An automatic therapist using bottom-up and top-down approaches. In Machine Medical Ethics (pp. 257-272). Springer International Publishing.

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