According to the recent Harvard Business School report, Hidden Workers: Untapped Talent, millions of qualified candidates are being screened out by Applicant Tracking Systems – the very systems that are supposed to keep hiring practices equitable.
The three primary categories that “hidden workers” fall into are those who are underemployed (often working one or more part-time roles), those who have employment gaps, and those who have been out of the workforce but are interested in returning (under the right circumstances). In the U.S. this amounts to more than 27 million people.
The report showed that a majority of this hidden workforce is interested in finding work, with those who identify as long-term unemployed applying for more than 44 positions over the past five years. Of those 44+ job applications, they received an average of 1.2 job offers – a pretty discouraging rate of return for their job search investment.
Applicant Tracking Systems (ATS) are designed to make the recruiting process more efficient and are used by 99% of Fortune 500 companies. These same systems are one of the primary roadblocks to connecting with the hidden workforce. For instance, an applicant with an employment gap of more than six months could equate to that candidate’s resume immediately being screened out by the ATS – even though the applicant might fit every single job requirement.
Applicants are doing their part to try to fit the job requirements. The Harvard Business School report found that 48% of the hidden workforce invested in increasing their digital skills to become more employable and more than 40% took on internships or unpaid roles to gain experience; 41% obtained additional technical qualifications and expanded their transferrable skills; 32% pursued additional education and 27% learned a new language. The biggest challenge they cited was knowing what education or training employers prioritized.
This untapped pool of talent is the solution employers need to stay competitive in the current labor shortage. And statistics show that the majority of these workers possess relevant skills, experience, and are ready to re-enter the workforce. The question is, will employers put in the effort and resources to change their current hiring practices and to seek out these hidden candidates?
For more insights into the hidden talent pool, read the full Harvard Business School report: Hidden Workers: Untapped Talent.
Fuller, J., Raman, M., Sage-Gavin, E., Hines, K., et al (September 2021). Hidden
Workers: Untapped Talent. Published by Harvard Business School Project on Managing the Future of
Work and Accenture.