How the Recruitment Market Works: Past, Present, and Future

The world of recruitment is something that can be traced back to ancient civilizations. The industry has an excellent reputation for embracing technology and has dramatically evolved over the last 50 years. Although recruitment began in our analog past, it remains relevant in a digital age. But more than a few cracks are starting to appear.

Before we can understand how to remove inefficiencies from modern recruitment, it’s important to look back at just how far we have come in a relatively short space of time. Only by learning the lessons from our past can we begin to improve and build a new future for the recruitment industry.

The Past

To understand the history of recruitment, you need to go back to World War II and a time when ordinary workers, out of sheer love of country, left their jobs to become soldiers. As a result, huge gaps opened across the employment landscape. This was the moment that the first recruitment agencies began to appear and advertise vacancies for roles left behind by those who were performing their military duty.

As the war came to an end, recruitment agencies continued to evolve and quickly played a major part in helping war veterans back into the workplace. Many of the soldiers had also acquired a wide range of new skills during their time away. As the country entered the 1950s, the importance of the resume emerged as a shorthand method for candidates to showcase their personal profiles and appropriate skill sets to prospective employers.

When searching for work, candidates would increasingly check bulletin boards or local newspapers. The recruitment process continued to be heavily reliant on word of mouth. However, a large influx of paper applications quickly became challenging to sort through on a regular basis. Eventually, a wide range of technologies paved the way for candidate databases that would transform the recruitment industry and enable a faster and more efficient method of finding the right people for the job.

Fast forward to nineties, and the arrival of the internet enabled recruiters to free themselves from the shackles of traditional thinking and navigate towards the uncharted digital waters of the global online community. Monster Jobs first arrived on the scene in 1994, and this was the moment that tech provided recruiters with a game-changing moment of serving customers globally.

However, this was only the beginning, as social media soon arrived on the scene. A new platform called LinkedIn was on a mission to unite employers and candidates. A new era of recruitment was on the horizon.

The Present

Here in 2018, it’s incredibly difficult to imagine recruiters or job candidates successfully navigating the employment landscape without the use of a computer, smartphone or tablet, and an always-online Internet connection. But it hasn’t always been this way.

For example, between 1990 and 2000, 22 percent of applications were submitted via email or online. By 2014, this figure had risen dramatically to 90 percent. But in our new digital era, 97 percent of job seekers now pursue their career opportunities online. A brave new world of career sites, mobile apps, and social media responsible for digitizing the world of recruitment has developed.

Although recruitment has undoubtedly evolved over the years, there is still a lot of work that needs to be done to remove inefficiencies and weaknesses from the traditional employment process. Sure, recruiters are now armed with a list of tech-based tools like keyword search, but the inconvenient truth is that they seldom lead to candidates of better quality.

It’s incredibly easy to fall back to traditional job fairs and cold-calling potential candidates or businesses looking for talent. But the reality is that the best candidates are often happily working for other companies. Equally, more and more companies are choosing to promote internally. In doing so, many are also unwittingly preventing diversity of thought and better-qualified candidates from entering their business.

Why? Because it can be notoriously costly to recruit externally. After being burned one too many times from the costs of a bad hire, many companies are reluctant to risk making an expensive mistake again. There is an increasing number of pain points that need to be removed to restore faith back in the industry.

From advertising for a position and wading through unsuitable applicants to paying recruiters a finder’s fee and the time-consuming due diligence process required to bring somebody new into the company, something needs to change. Some would argue that it already has.

How Trends Are Reshaping the Recruitment Industry

The most valuable asset of any organization is the employees and the intelligence that they bring to the workplace. But the workplace itself has been redefined. The days of checking into the same office and sitting at a desk every day until it’s time to retire and receiving a watch for being loyal are long gone, and this is no bad thing.

A full-time employee is expensive. The seat, desk, computer, lighting, and heating all cost money, not to mention the management costs of 1–2–1 meetings or out-of-date appraisal systems that provide little in terms of value or motivation to either party. Meanwhile, employees don’t want to be tied to a desk for the rest of their lives when advances in technology have made it possible to work from home or indeed any location.

There are countless examples of successful businesses that are run entirely by remote teams in multiple time zones. Staff members complete all tasks with minimal supervision and in many cases ahead of schedule. But they are not constrained to traditional office hours and can fit their world around their home schedule, rather than the other way around.

Although tech buzzwords such as blockchain, artificial intelligence, and machine learning are dominating most of the headlines, it’s understanding the role that innovation plays in change that is quite revealing.

Innovative leaders are currently focused first and foremost on identifying inefficiencies in the recruitment industry. Why? Only by understanding the frustration and friction points that have been accepted and those factors that most annoy recruiters can you begin to leverage technology to implement meaningful change. But what trends are emerging as a result of this proactive mindset?

Whereas traditional companies are held back by their own cumbersome processes, there is an increasing number of tech start-ups entering the recruitment arena that are leveraging emerging technologies. In a digital era where change is the new currency, startups have the freedom and agility not only to disrupt the old way of doing things but to transform as well as improve how the industry operates.

In a saturated market, it is already critical for recruitment agencies and employers to understand why and how these new technologies are game-changers and capitalize on trends to remain relevant to their clients in a highly fragmented market. One such technology is the blockchain, but we are only just beginning to grasp how it can transform multiple industries.

Sure, most people think of financial services or FinTech when they think of the blockchain and could be forgiven for not immediately associating it with recruitment. But that could soon change. We all accept that people exaggerate their skills on their profiles and resumes and they rarely reflect an accurate image of an individual. Although previous generations have accepted this, tech is finally helping us do something about it.

Imagine a genuine comprehensive resume where all the candidate’s qualifications, experience, and references have all been verified and stored on a blockchain. Bringing much-needed trust and transparency into a new candidate-centric marketplace is just the first of many huge improvements that could reshape the employment landscape.

Technology trends are predictably paving the way for a new future, but it is individuals that embrace change who will quickly benefit by riding the wave. Ultimately, these new technologies will create a candidate-centric marketplace that works more efficiently and effectively for all stakeholders in the process.

The Future of Recruitment

Try to envision a future of recruitment where talented job seekers and companies collaborate seamlessly and transact in crypto. A new reputation system for employees that is trustworthy and immutable because it is stored on the blockchain. A new way of hiring that ensures that companies can quickly assess and hire the best talent, without needing to screen aggressively and interview clients.

Our mission at ChronoBank is to eliminate traditional recruitment market inefficiencies and revolutionize the short-term recruitment of real-world professions. We make any kind of work available on -demand — paid per hour or per day — and go far beyond streamlining recruitment, payroll, and benefits.

The ultimate goal is to disintermediate the recruitment industry, removing the middlemen and the points of control (and failure) that make it so inefficient. The status quo is preserved through obscurity, gatekeepers, and the artificial barriers to entry that they pose. Transparency in our core software is our answer to these issues and an essential element of our approach.

With LaborX we plan to create a leading blockchain-based job marketplace. By connecting companies and job seekers, they can transact quickly, safely, and easily in crypto. Using LaborX, job seekers can also maximize their hourly rate, avoid payment delays and disputes, and work from anywhere in the world.

Businesses also benefit because of our proprietary reputation system, which grades and immutably records performance on the blockchain, saving these businesses from a costly screening process. Companies also gain access to a new generation of workers and resources that were previously unavailable.

Whether it be digital nomads, crypto evangelists, or the unbanked populations from the developing world, technology is bringing the global community closer together. By also removing intermediaries from the process, we are also able to lower platform fees dramatically.

For example. LaborX’s 1 percent commission on payments looks incredibly attractive when compared to the 5 to 10 percent from traditional platforms, which could result in a savings of $450 per month per user. Essentially, ChronoBank is much more than another online recruiting service. It’s an ecosystem built on the decentralized Ethereum blockchain and a host of powerful smart contract applications.

Whether you are a candidate looking for a new role, a business owner, HR manager, or recruiter looking for the best talent: Don’t you think it’s time for a change? Or are you happy to put up with the same problems and frustrations with recruitment and carry on experiencing the same frustrations?

If you would like to gain access or be a part of a new and rapidly growing labor pool where you can work with digital nomads located all around the world without any payment friction, visit ChronoBank now to learn more about how we are transforming the recruitment industry.

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