Published on 11-04-2018
War for talents, artificial intelligence and cultural fit – the HR world is currently undergoing a paradigm shift unlike any other since the Industrial Revolution. The important question is where the corporate culture positions itself within this changing climate. CompanyMatch published a new white paper on this topic where we explore this issue in-depth. Download it now!
Recruitment 3.0: The current situation
The term “War for Talents” probably belongs to the Top 10 most used terms of every recruiter. Unfortunately, this does not come from nothing: In 2030, Germany could be missing up to three million skilled workers. The rest of Europe is experiencing a similar lack of skilled personnel. The demographic change is one of the main reason for this change – our society is getting older and older. The ongoing digitization will further aggravate this competition in the global job market. Specific occupations will become less important or are entirely substituted by new technologies. Expect, however, expect that the digitization will generate more jobs than ever. A current study of the German Institute of economy supports this statement by showing that more digitalized companies are more likely to increase their employer count.
Not only our society but also the job search, in general, is experiencing a shift. According to the motto “Mobile is the new black” are an increasing amount of candidates requesting a mobile-friendly application process. A study conducted by the job portal Absolventa shows that 53% of job seekers would prefer to apply directly with their mobile device if companies would offer this service. In the eyes of 60% of the candidates, an employer is perceived as less attractive if there is no or only little mobile optimisation. In the future, the job search will therefore continuously more online, more specifically mobile. Offering a smooth and easy application process will become an inevitable selection criterion for candidates picking a new employer. And remember – the competition is only one click away.
Recruitment 4.0: The effects of digitalisation
The age of the digitalisation has already begun. Countless new recruiting methods and technologies conquer HR sector and create innovative ways to source suitable candidate for open positions – more efficiently than ever before. Self-learning software solutions and optimized application methods, as well as new employer branding tactics, are just a few examples of the countless new possibilities.
The use of artificial intelligence (AI), e.g. in the form of chatbots, is already very popular. According to the latest Deloitte Trend Report, 38% of participating employers currently use AI in their recruiting process. However, it is expected that over 62% will integrate it into their processes by the end of 2018.
The advantages of intelligent software solutions are diverse:
- Huge time and cost savings for HR professionals, through faster and more efficient analysis of data and candidate information
- Improved Candidate Experience by answering questions and solving problems in real time
- Recruitment bias based on skin colour religion, gender etc. can be significantly minimized
But also new application channels and tactics win in popularity. One-click applications, for example, enable candidates to submit their CV, motivational letter and other relevant documents with only one click via a job platform like LinkedIn. Although this procedure isn’t integrated by a lot of companies today, the future forecast shows that it will hold foot in recruiting 4.0. One of the major criticism of one-click applications is that application loses their individual touch. More than 6 out of 10 companies think that using this tool results in having fewer data about the candidate. That is why tools like this need to be combined with other measurement tools, such as the CompanyMatch, to add a cultural perspective to the application.
This is leading us directly to the following question:
Where is the place of corporate culture within this digital world?
We think that corporate culture will be more important than ever before in today’s changing recruitment world, especially in the field of employer branding as well as in determining the Cultural Fit of candidates. According to a LinkedIn study, 66% of the interviewed candidates consider the corporate culture as a key feature during their job search. The definition of a modern but simultaneous authentic corporate culture can be achieved in various ways. However, it is not only important to establish a clear corporate culture on paper, but also to communicate it actively – both externally and internally – with employees as well as candidates. A discrepancy between written and lived culture needs to be avoided by all means. This can only be achieved if the individual culture of employees matches that of the company. In other words, in a digital world, the Cultural Fit is becoming increasingly relevant.
Social Recruiting? Employer Branding? Cultural Fit? Find out more about those topics in the complete edition of the new CompanyMatch white paper “Corporate Culture in a Digital World”. Please do fill out the form to start the free download.