Although relatively unprotected from legal consequences for discrimination, there is one source of candidates that many companies reject outright: the unemployed. While some states, like New Jersey, have moved to create legal protection for the long-term unemployed, most areas of the country don’t consider immediate rejection of unemployed job candidates a form of protected discrimination.
However, many companies also report that it takes them 25 working days on average to fill a new position – 58 working days if the company has more than 5,000 employees[1]. While recruiters complain that there are no good candidates to meet their needs, many companies still place an arbitrary limit on how long a candidate can be unemployed before they’re removed from any consideration for an open role. As a result, many companies are shrinking their talent pool and eliminating numerous skilled candidates before they even get to an interview stage.
Employer Fears
A recent study showed that only 11% of the long-term unemployed had found work within a year, and that employment discrimination plays a major role in keeping people from finding new work – even in states where the economy is expanding and employers are having trouble finding enough employees to fill their new roles[2].
While most workers who are among the long-term unemployed are those who lost their jobs during or since the recession or due to economic problems, companies still hesitate to consider the unemployed for a new position. Even though many of the unemployed did not lose their jobs due to incompetence or individual work-related problems, they’re often out in the cold.
Another concern many employees list when arguing in favor of automatically rejecting those who have been unemployed beyond a certain point is fear of skill erosion – in highly technical fields with fast technology changes, this is a valid concern. As many companies have discovered, though, individuals with strong tech skills don’t stay unemployed for long: the skills gap for the high-tech industry is a true lack of enough qualified talent.
Among the unemployed, however, a different picture can be found. Most of the employees having trouble finding new positions come from sales, service, and blue-collar positions[3] – roles where a skills erosion is unlikely to truly impact their work, and where shortfalls can be quickly compensated for with on-the-job training.
Rethinking Recruiting Strategies
Candidates drawn from the long-term unemployed population can provide an excellent source of hire, and companies that adjust their recruitment strategies to include a broader population of applicants can reap the benefits of a reduced time-to-fill and an engaged, loyal workforce. There are a number of ways companies can change recruiting strategies to include the long-term unemployed while still protecting the organization from the expensive risk of a bad hire.
Once candidates with more unemployment have been added back to the population, organizations should redefine acceptable reasons for termination – as with any other potential hire, a downsizing due to economic concerns is probably not a reflection of the candidate’s skill or dedication, while a firing over theft or similar infractions should raise red flags.
Organizations may also discover hidden benefits by asking potential candidates probing questions. For example, finding out what a long-term unemployed candidate has done to maintain their skills while not working could reveal that they have engaged in skills training, industry-related volunteer work, continued education, or other activities that may help them complete onboarding, become productive more quickly, and bring unique skill sets to your company.
Closing the Skills Gap
As the economy continues to rebound from the recession, unemployment still remains high. Companies looking for innovative solutions to their hiring gap should start thinking outside the box about considering candidates from the long-term unemployed population. Finding new applicant populations can make the difference between a position that is filled within days to one that stays open for weeks or months.
[1] Dice, 2014
[2] Princeton, 2014
[3] ibid
Once candidates with more unemployment have been added back to the population, organizations should redefine acceptable reasons for termination – as with any other potential hire, a downsizing due to economic concerns is probably not a reflection of the candidate’s skill or dedication, while a firing over theft or similar infractions should raise red flags.
Organizations may also discover hidden benefits by asking potential candidates probing questions. For example, finding out what a long-term unemployed candidate has done to maintain their skills while not working could reveal that they have engaged in skills training, industry-related volunteer work, continued education, or other activities that may help them complete onboarding, become productive more quickly, and bring unique skill sets to your company.
Closing the Skills Gap
As the economy continues to rebound from the recession, unemployment still remains high. Companies looking for innovative solutions to their hiring gap should start thinking outside the box about considering candidates from the long-term unemployed population. Finding new applicant populations can make the difference between a position that is filled within days to one that stays open for weeks or months.
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