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Volume 6, Issue 01
February 2005

Hiring for the 21st Century

BY Milt Cotter

 

Workforce productivity is the driving force for success in the 21st century, yet many of today's employers are not realizing the optimal levels of productivity they could be from the Human Resources function. One challenge for today's HR function is to implement a hiring process that will actually improve the overall productivity of the organization's workforce, increase the number of applicants for job openings, and reduce the amount of HR labor in the hiring process; all while hiring more qualified people who become productive more quickly and achieve higher levels of performance. The issue today is how HR can accomplish this task in the most modern, legally compliant, objective, nondiscriminatory and cost-efficient manner possible.

Many organizations have eliminated HR departments entirely--outsourcing payroll, benefits and other HR functions in cost-reduction moves, and, as a result, have increased the HR functions of operating supervisors and managers.

With management placing increasing pressure on HR departments through cost-containment initiatives, it is imperative that those who manage HR functions understand the urgent need to adopt technology to increase the HR productivity.

Federal and state employment reporting requirements further emphasize the need for HR to adopt new technology. For example, the EEOC and other agencies recently established five criteria for distinguishing a job applicant from a job seeker. The five criteria are:

  • An employer must have a job opening
  • The employer makes people aware of the openings
  • The job seeker must express interest in a specific job a specific employer has open
  • The job seeker becomes an applicant if the job seeker meets the minimum requirements for the job
  • The job seeker must follow the employer's procedures for applying for a job
These new reporting regulations require HR departments to differentiate a job seeker from an applicant in order to compile accurate reports for affirmative action and other agencies. Optimal utilization of the Internet, enhanced with advanced software, can improve HR functions with these issues.

Whereas HR departments have traditionally screened and qualified applicants by manually reviewing applications and resumes, newly available software solutions, deployed through the web, can distinguish qualified applicants from job seekers with an automated process of pre-screening questions. Reviewing hundreds of resumes and applications just to identify the few candidates that best fit the position is inefficient at best. Internet screening technology can provide a cost-effective solution to the manual hiring process by eliminating the need to invest human capital. Internet processes also tend to be more objective, avoiding subjective issues such as race, age, sex, national origin and other factors that can affect human bias. Such data can be collected voluntarily from applicants online, yet shielded from recruiters or managers. The data can then be retrieved to produce the EEO-1 reports and for other affirmative action purposes. Behavioral and aptitude testing can also be included in the system to facilitate the selection of the perfect candidate for the job, eliminating HR labor in the hiring and training processes. This automated process greatly enhances the productivity of the HR function, as illustrated by the case study outlined below.

Following is a case study involving a web-based applicant screening system:

An online Employment Center system asked pre-screen questions in regard to minimum job requirements to separate job seekers from applicants, and ranked the applicants based upon their answers. Job seekers who met the minimum qualifications were asked to complete an application, attach a resume and provide other required information, all online.

A ten-month analysis of the use of this system revealed that during this period of time:

The employer's web-based applicant screening system processed approximately 34,500 job seekers.

Of the 34,500 job seekers, 24,182 were screened out by pre-screen questions. (Records were maintained in the event of a future need).

Approximately 10,000 job applicants remained, ranked in order based upon their pre-screen responses; yielding approximately 5,000 qualified applicants chosen for further consideration.

HR personnel were able to collect the applicants' data files automatically, requiring no manual screening. The employer saved almost 2,000 hours of HR department time by utilizing the online Employment Center.

The advent of such systems eliminates the need for paper applications, and the need to sort and file them. With the right software linked to the employer's web site, a job seeker, after completing the online prescreen, can complete the employer's application online as well, and attach a resume. But that's not all. You know those application questions that candidates leave blank? Requiring that the application be complete before the candidate is allowed to proceed with the process eliminates these omissions. And, because the applications have been completed electronically and are available online, the HR department no longer must keep paper files on applicants (and employees, too, for that matter.)

Candidate Resources, Inc. (CRI), www.criw.com, debuted such a system in October 2002. With a patent pending, this system, called the Online Employment Center, is directed specifically toward employers whose goal is to improve HR productivity by spending far less time and money on the applicant recruiting and qualification process, and more time on other HR functions. This system allows organizations to implement an unbiased hiring system, increase applicant flow, and eliminate the paper crush that accompanies traditional manual application and screening systems. Attached is a diagram showing the process utilized by the Employment Center to increase applicant flow and HR productivity.

Many employers, particularly those in retail, distribution, hospitality, and manufacturing industries, have been reluctant to increase applicant flow as doing so would proportionately increase HR labor. HR managers can now advise operational management that such reluctance is no longer necessary. Many users of such software have commented that, in addition to the increased efficiency provided by the system, the process yields superior employees, less turnover, and employees who become productive more quickly than those hired through typical applicant screening systems. Such technology is a boon to HR managers, allowing them to assist their organizations in reaching their goals through the selection of better, more productive employees, while improving the productivity of the HR function and allowing HR to direct critical resources to other important functions needed by the organization.

About the Author: Milt Cotter has spent over 40 years working in the HR arena, including positions in private industry and the U.S. government. He is the author of two books, Understanding Human Behavior and The EEOC and You, and is a former columnist for King Syndicate's "Job Forum." Mr. Cotter currently serves as the President of CRI, a leading provider of technology-based solutions for HR professionals

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