4 Reasons Why Your Hiring Software Is Missing Top Talent

November 4th, 2021

You cannot afford to make a hiring mistake, especially if you are hiring for a senior-level role. Hiring software is one of the many resources employers use to assess candidates. It can be used to match skills and qualifications and eliminate candidates from contention in the early stages of the hiring process.

However, no recruiting tactic is perfect. If you solely rely on a single hiring strategy, you could be making hiring mistakes without even knowing it. Case in point, a recent report from Harvard Business School, Hidden Workers: Untapped Talent, has found that automated hiring systems have had a negative impact on US employers’ ability to find top talent. Canadian employers using ATS and other recruiting software are likely facing similar challenges.

why hiring software is missing talent

“…software is used by employers to filter job applicants but is mistakenly rejecting millions of viable candidates, say the study’s authors. It’s contributing to the problem of ‘hidden workers’ — individuals who are able and willing to work, but remain locked out of jobs by structural problems in the labor market,” says James Vincent on The Verge.

Just what you need, right? Another potential barrier to finding talent in an already competitive and challenging marketplace.

“The exact mechanics of how automated software mistakenly reject candidates are varied, but generally stem from the use of overly-simplistic criteria to divide ‘good’ and ‘bad’ applicants,” adds Vincent.

“For example, some systems automatically reject candidates with gaps of longer than six months in their employment history, without ever asking the cause of this absence. It might be due to pregnancy, because they were caring for an ill family member, or simply because of difficulty finding a job in a recession.”

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4 Reasons Your Hiring Software Is Missing Top Talent

  • You rely on it too much: You cannot “set it and forget it.” Relying too heavily on ATS without reviewing its performance regularly could cost you top talent. It should be one of many tools you use to assess candidates, not the only one.
  • Over-simplification: Many hiring software systems are black and white. If a candidate is missing one skill or qualification, they may be disqualified, even if they are a good candidate otherwise. There is a lack of interpretation as to why something may be missing from their candidacy.
  • Lack of customization: Your software is not customized to meet the specific needs of your business or industry. There can be a lot of nuances from one company to another. Using a general software program cannot address them properly.
  • Improper filters: How you set the assessment filters will shape the candidate pool. If you make a mistake or do not adjust filters on a job-by-job basis, you increase the odds of the software rejecting qualified candidates.

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IQ PARTNERS is an Executive Search & Recruitment firm supporting clients across the country. We help companies hire better, hire less & retain more. We have specialist teams of recruiters in Executive Search / Board & C-Suite, Technology, Media, Digital & Marketing, Accounting & Finance, Financial Services & Insurance, Cannabis, Startup, Data Science, Consumer, eCommerce & Retail, Operations & HR, Manufacturing, Supply Chain & Engineering, Legal & Professional Services, Pharmaceutical & Life Sciences, Non-Profit & Sustainability, and Sales. Click here to view current job openings and to register with us.

Claire McConnachie

Claire is a Director, Client Services with IQ PARTNERS as well as our sales division SalesForce Search. Claire specializes in identifying and connecting with the top sales performers across a number of industries, including SaaS, AI/Artificial Intelligence & Machine Learning, FinTech, Legal Tech & Marketing Tech.

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