Hiring talent has been a tough row to hoe in 2022: Seven out of 10 executives stated they receive too few applicants, most of whom are underqualified. Actually, business leaders have been wrestling with the same challenge for the last four years, and we can anticipate the talent shortage continuing throughout 2023.
It's because employees have made their New Year's resolutions—they want to explore unconventional ways of working, acquire new skills, and thrive in the gig economy. And they're pretty decisive—65% of employees are seeking a new job actively or passively. Consequently, it's becoming even trickier for companies to tackle the talent shortage.
It's not all gloom and doom, though—making tech-powered hiring strategies your secret weapon will enable you to make quick but informed decisions, secure top candidates, and build your dream team in 2023. Let’s jump right into how.
Actions speak louder than words, so harness the power of VR
Gone are the days when recruiters asked, "Tell me about a time when you managed a conflict," and listened to the most cliche drawn-out interview responses. Nowadays, advancing virtual reality (VR) technology allows both job seekers and companies to see how they'd perform in high-pressure situations.
For example, MGM Resorts, the owner of world-famous casinos such as the Bellagio and MGM Grand in Las Vegas, joined forces with Strivr to enable potential employees to try out their jobs in VR. This way, job seekers can see whether the role is what they expected before accepting an offer.
Furthermore, from advertising fees to staff time to training fees, several variables go into calculating the cost of replacing a bad hire, and the total amount is astronomical—-companies can overspend up to $240,000 in recruitment. Since work simulations can provide more insight into a candidate's abilities than a cover letter or CV, businesses can make more informed decisions, saving them time and thousands of dollars in the process.
Depending on the remote hiring practices, budget, and goals, organizations can easily hire simulation engineers to recreate realistic job tasks from scratch.
Use AI wisely and responsibly
Given that, on average, 118 people apply for the same vacancy, companies look to artificial intelligence (AI) solutions to reduce the time and money spent reviewing resumes—this isn't breaking news. What decision-makers must know is that throwing AI at the wall and hoping something will stick isn’t the solution to finding your company's next superstar—the marriage of AI and human intelligence is key to hiring top talent.
First and foremost, start by educating yourself and your team on cognitive biases such as the like-me effect, which is the tendency to favor a person who is similar to us. Learning more about the like-me effect can prevent individuals from hiring a candidate with similar backgrounds or interests. And whenever you open a new role, set clear expectations and review your job descriptions so that AI-driven tools can better assist you in selecting the best candidates without bias and discrimination.
Second, it's wise to know about various AI solutions. Black box AI, for instance, is an AI system that helps to identify patterns, but it doesn't let companies or other interested parties see the operations and inputs. When recruiters can't view or understand the results, they can make biased decisions and ruin fair and equal consideration.
The good news is that advancing technology allows AI-powered platforms to develop better strategies, such as Explainable AI. This interpretable AI system empowers recruiters and company leaders to see the rationale behind AI algorithms, making it easier to detect bias and other gaps in data.
Provide blockchain payments in a bid to lure employees
The hyperconnected world empowers businesses to find talent across the globe, but with an increasingly distributed workforce, it's getting more challenging to manage payrolls with efficiency. Plus, expensive transaction fees and painful waiting periods are major deterrents for both companies and employees. This is where cryptocurrencies come into play.
Bitcoin and Ethereum trades might be the first thing that comes to mind when talking about crypto, but the use of cryptocurrencies goes beyond that: Digital money can be a powerful tool for HR professionals to avoid the expenses of cross-border payroll and speed up all financial transactions.
Paying employees on time conveys the message that you appreciate their contributions. This, in return, will prevent employee dissatisfaction and make your team members want to stay in their jobs long-term.
Furthermore, blockchain payments can help to attract talent from countries that are experiencing hyperinflation, such as Turkey or parts of Africa, or have a history of financial instability. To illustrate this, 74% of Latin Americans are more likely to conduct businesses that accept crypto, as they can use cryptocurrencies as a hedge against local currency instability.
Admittedly, the value of cryptocurrencies goes up or down in a matter of seconds. If you can't stomach volatility, stablecoins are a safer bet as their value is tied to an outside asset, such as the US dollar or gold, to stabilize the price. Therefore, neither companies nor recipients won't lose money during a transaction—employees can receive the payment in real-time, then convert cryptocurrency into the currency they want.
Before dipping your toes in the water of blockchain payments, make sure to do your own research and find out the legal conditions for cryptocurrencies in your country.
Wrapping up
As the talent shortage shows no signs of slowing down, business leaders had better make ''design more tech-driven hiring strategies'' one of their New Year's resolutions in 2023. The results will be rewarding: Business leaders who take an innovative approach to overcome the talent shortage challenges can start filling their meeting rooms with engaged and skilled employees, leading to the long-term growth and success of the company.