The company behind the world’s largest job portal says it has a solution to America’s labor shortage: ditch the traditional resume.
Despite the great need for workers, “the hiring process is still resuming, submitting resumes, checking resumes,” said Hisayuki “Deko” Idekoba, CEO of Recruit Holdings Co. of Japan, which runs Indeed.com and Glassdoor. “This is a great opportunity for us to move from the old school resume profile culture to asking: what can you do?”
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By one estimate, the U.S. will enter the tightest job market since the 1950s, and employers are scrambling to fill both white-collar and blue-collar positions as job seekers reassess their priorities after the pandemic. That hiring demand saw revenue more than double at Recruit’s hiring technology division in the quarter that ended in September, earnings figures released this week show. The shares rose more than 80% in 2021, an increase that has made it the fourth-largest company in Japan by market value.
Modern hiring processes must keep up with the times, Idekoba said, and many small and medium-sized businesses are still looking to fill jobs as they did a decade ago. He raises the example of a restaurant that hasn’t updated its job description for a decade. “You need a college degree, why?” I ask. “Forget it!”
Idekoba, who splits his time between Tokyo and Austin, Texas, where Indeed is based, said he recently had to wait 40 minutes at a U.S. restaurant due to a shortage of serving staff.
Instead, Recruit suggests posing questions and assessment tests to job applicants to see if they know how to navigate the specific tasks the job will require. It also stores the responses, so unsuccessful job applicants can use them elsewhere.
For truck drivers, who are “desperately needy” in the US, Recruit has begun offering a chat-based hiring process, according to Idekoba, because drivers spend most of their days on the road and tend to to not having laptops.
Plus, “there are a lot of people who can’t write resumes” or don’t have the skills to fill out one, he said, as well as the problem of the tens of millions of Americans with criminal records. Recruit is expanding its training options to help people write better resumes for the jobs that need them, and aims to use technology to identify skills an applicant might have that could transfer to another area.
Recruit bought Indeed, then a startup, for a billion dollars nearly a decade ago. Idekoba led the unit before being promoted to Recruit’s CEO in April this year. In addition to recruiting and staffing, he manages sites to find properties, used cars, hotel reservations, and restaurants in Japan, where he seeks to expand his software-as-a-service offerings.
Idekoba says Indeed.com now helps double the number of people finding work as it did before the pandemic. “20 hires a minute,” he said, “but we still couldn’t fix” the labor shortage.
© 2021 Bloomberg