Recruitment in 2017: The Digital Diversity Dilemma

Digital is disrupting everything and this includes the recruitment process. Some corporates are going so far as to remove the academic requirements as entry criteria to rely more thoroughly on their own tools to assess talent. What are the unintended consequences though? And how do we find the value amidst the noise?

 

 

http://www.ey.com/uk/en/newsroom/news-releases/15-08-03—ey-transforms-its-recruitment-selection-process-for-graduates-undergraduates-and-school-leavers

Back in 2003 when I was applying for one particular graduate role, I had a conversation with the HR lead about psychometric tests where I gave my opinion; 1) that you could learn them and most companies used a small range of suppliers (after a few, my marks were awesome, mostly because I’d seen them before) and 2) they are ignoring a range of skills and abilities that you can’t test with a online paper with some people who fail, who might be great.

Her response at the time was something I hadn’t thought of namely; we get enough applicants so that we could take a random 10%, interview them and get enough quality people for the job. The psychometric tests were there to apply some marginal value to whittling down to a manageable number. Having made it though to the last round myself following 4 tests, 3 interviews and a 3 day assessment centre, I discovered they had a quota of 8 people from the 10 that had made it that far.  This was of scant consolation given my finishing position of 9th.

In the subsequent years, the process I don’t believe has become more personal. There are interviews conducted online using webcams, various assessment centres, interviews and a range of new tests. Digital has enabled much more to be done in the process with less human intervention. From engaging quite closely with the graduate process in particular for a consulting firm, I arrived at the end of the process for the assessment centres and the interviews. Over the years, I’ve not noticed any obvious change in the type of candidate.

Except one.

I think there has been a decrease in graduate candidates from  poorer backgrounds and I have seen a definite trend towards private schooled and very polished graduates. This is no disrespect to some of the excellent grads I’ve worked with but I wonder whether we’d profit from looking at a better social mix.  Now, I don’t want to speak to wider socio-economic trends or education  but as regards just the process itself.

Here are some things to think about;

1)     The digital process – Digital allows for a range of new tests, tools and processes to be delivered/off shored and analysed to bring some analytics to the overall process. This now includes recorded webcam interviews, Skype interviews etc.  The polish which looks good in that process is actually taught in private schools. These kids arrive at University already better prepared for the type of interview process which is increasingly prevalent. I am guilty myself of being impressed by graduates who deliver a nice presentation but even before the grads get to the interview stage, many have been removed from the process. In the early 2000’s there was a trend towards removing dates of birth and photos on CVs to make for a supposedly fairer judgement. The new process essentially doubles down on the original problem by bringing how people look right to the start.

 2)     Academic scores – can actually be a leveller. Your exams are the same for everyone so there is some balance in the scoring. It’s easy to say that exams are not the only thing and that all the extra work is important but the hierarchy of needs for less well-off students is that they spend 25 hrs a week working at a shop and then the rest on their studies.  Is this recognised in the same way as 5 hours of charity work a week would be? For students working every summer full time to save a bit of money vs 3 months on a volunteer charity program in Africa; is there a fair assessment of value? If you remove the scores as a main driver of selection, do you actually make it less fair for some?

 3)     EQ vs IQ –  I’ve written before about the rise of EQ as a core skill vs IQ as the main marker of value. The combination of this plus Digital is why I think companies are looking to remove academics as the gatekeeper of selection. You could essential allow every university student in the country to apply for 1 job if you have enough intelligence and analysis going into the process. A big AI engine could run through the applications and pick out the best people. However, your fit with the culture, your opinions and way of presenting them, and your approach to innovation and creativity are increasingly important. How ready are the tools and the AI to be able to apply those criteria? And even more so, if we are explicitly looking for more diversity of thought. How can that be built into the tool?

 All in all, recruitment faces the same challenges as with anything in Digital Transformation which is to make sure that Digital supports and enables in the first instance and as the technology progresses, you give away more of the qualitative measuring to the AI.

As soon as you measure something, people will find a way to try and game the system. Private schools know that employers like charity work so the pupils are obliged as part of their lives to do charity work (and are assisted in the process). Google constantly change their algorithms not necessary to make them better but because people work out how to get their positioning higher.

The highest position in the search always goes to the people paying the most, the richest not necessarily the best. We need to make sure that’s not the future for recruitment.

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PS as a bonus,  if you consider recruitment as a CRM process here’s where it might be going.

No touch recruitment –  AI searches online information Social Media, LinkedIn etc and just selects the candidates without anything process at all. You get an IM on LinkedIn offering you a job on a 3 month probation – it doesn’t work out, no harm no foul.

The High School Draft  – ignore university all together, pick candidates out of high school NBA style, sponsor training for them as university modules across a range of universities and training centres. Get the best candidates before anyone else.

Customer experience; the Japanese way: Hyper-specialisation and what Kanazawa’s tiny, tiny whisky bar might mean for the future.

The Japanese know you have to be authentic, you have to have knowledge if you want to look like you care and you have to respect the crowd.

People naturally want to be a little different, they want to feel special or be special. As the world is getting more connected it’s actually becoming more homogenous. Teenagers internationally are all taking selfies, using social media and shopping at Zara. Whether you are in Beijing or Brisbane, you are going to be doing a lot of the same thing.

At the same time, you might all be using Facebook in the same way but you can link with people with really specific interests and ideas. The old fashioned equivalent is the difference between a city like London and a city like Brisbane. In London, you can find from amongst the 9 million people, a Star Wars absinthe bar with enough people who like Star Wars and absinthe, to be able to fill it. In Brisbane, you are more likely to see a range of different people in the casino or in the RSL; every taste in blended into something which is more generic and more middle of the road.

As regards products, services and experiences for customers; the progression is towards wanting the Star Wars Absinthe bar experience even though you live in Brisbane.  How do you build your service and product catalogue to meet that demand?

To do that, we can look to the land of the rising sun for advice.

I was recently in Japan on holiday (and it’s great) and we visited a town on the west coast called Kanazawa. (Until recently a 4hr trip from Toyko before the launch of the new bullet train service.) The town was busy because of their huge annual Oktoberfest celebrations (you haven’t lived until you’ve seen organised Japanese conga lines to oompa music). In this town was a bar called Machrihanish https://tabelog.com/en/ishikawa/A1701/A170101/17000104/ . It is named after a very small town in Scotland with a lovely golf course but it is obscure for Scotland never mind a town in Japan.

Anyone who has been to Japan will notice the incredible range of small bars and restaurants with really specific themes, you’ll see tiny shops selling unusual things. Even if you haven’t been to Japan you’ll have seen their levels of super-fandom and you will also have seen how most crazes- Pokemon, cosplay, tamaguchi etc tend to start over there. It’s a remarkable place to look at customer experience.

But why……how do they approach things in Japan?

You have to be small and specific – with so many people in Japan, you have to differentiate yourself to stand out. People are actively looking for things which are unusual and special. People look for experiences which are away from the mass market whilst at the same time everyone buys commoditised products like iPhones etc. Japan has an amazing dichotomy whereby for some things, everybody is the same and for others, hugely different. The owner of the Machrihanish hadn’t named his bar the Scottish Bar or even the Edinburgh tavern. He went to the depths of something unusual and specific to create an experience.

The logic is, you have to go the whole way to create authenticity and therefore engage people in your product.

Consulting bit

The capability exists for us to use digital to enable the build of these specific products, services and experiences but to what extent do we do so. We also have the capability to understand what are the small and specific things that will interest our customers. As an example in an Australian context; why not produce an insurance product very specific to surfers – bundle up life, car, travel insurance into one experience product which pays out double for surfing related claims.  You have to support the product by showing authenticity by knowing what a surfer really needs from an insurance product. (see design thinking, empathy interviews, CX design). However, specific insights if they are applied generically aren’t that helpful. E.g. the product and the service need to be specific enough to take advantage. I can tell you right now that customers like transparency, simplicity, speed, personalisation and accuracy but that’s not enough for a customer experience strategy.

Knowledge and attention to detail – If you are going for small and specific you really have to look like you understand or you lose the authenticity and the credibility.  My bar in Kanazawa had real menus in it from the clubhouse at St Andrews, it had pictures of golf clubs in Scotland which were put in alphabetical order on the wall. I ordered a whisky and tried to explain it was from the most southern distillery in Scotland. The owner then explained in some detail how there were five further south and I had missed the Mull of Kintyre (a common mistake he said). He then explained how he was a member of St Andrews golf club (showed me his membership card) and described the relative difference between the types of seaweed on the west coast (no joke).

Consulting bit

If you look like you care about something, you have to understand it as it takes a differentiating factor into one of advantage. For the insurance company selling the surfing product, if it looks like a gimmick it will be treated as such. If you hired even one surf expert, he/she could manage the whole case load regardless of where the people are located. If it’s popular and you need more, then great.

The impact is on how you design your service (operating model to handle the traffic). The design in the fabric of your CRM is how to create better routing to your operations. A first line AI engine (with the surfing add-on dude?), 2nd line service to Brad from Bondi or even a sales discussion via Skype at the beach (surfing tinder). It’s an old tactic powered by new technology.

Crowd power – recognise the power of changing demand and waves of interest. The power of social media can generate hype in an incredibly short space of time with the capability in the background to build things quickly (consider the immediate and overwhelming supply of fidget spinners). When I was in Tokyo, I saw a huge line for a tiny food stall and then about an hour later I saw another one. The reason; both were selling Maine Lobster rolls which was the ‘big thing’. My guess would be that it’s no longer the case and everyone is eating ‘Haggis balls’ or something. The capacity for people to wait for something ‘hip’, the speed of change and the scale of demand was remarkable. Just as soon as it came though, it would be gone so if you were a lobster roll only specialist you would be stuffed. (pun intended)

Consulting bit

Any time lag in meeting the demand or any inflexibility in being able to scale would have represented a huge loss in potential revenue. The local McDonaldsshu wasn’t selling lobster rolls because it couldn’t get there quickly enough. They were nonetheless doing some good trade in their usual fare. What you need then is the ability to have that two-speed business where you can maintain your core but you give yourself the capacity to change to meet specific needs which might come quickly from nowhere.

Where I’ve seen Japan mentioned, it’s not usually in the terms of it being a leader in customer experience it’s usually about efficiency, manufacturing, knowledge, accuracy, product design and creation. However, it’s possibly because they think about the latter ones so that they can deliver the former.

Arigato gozaimasu

See more blogs from Keith Logan san @ www.thecorporatefuturist.com