Recruitment is dead - long live rectech

A market that fails to change with its customer is doomed. Tom Pickersgill of Broadstone forecasts the shape of the recruitment industry five years from now.

When was the last time you went to a bookshop, or into a bank? For many people the answer will be that those avenues are still in the mix but that they tend to use their computer, smartphone or tablet first. Smart technology means they'll get a more tailored, bespoke offering anyway.

And yet many people in recruitment, a fast-moving industry, still expect their job candidates and clients to behave in the old-school way. Just as the financial industry has been transformed by so-called ‘fintech', we believe that the recruitment industry is about to be disrupted by recruitment technology - or ‘rectech'.

However, the high street still attracts a lot of people putting their job vacancies in shop windows, often the windows of agencies charging them a high premium for the privilege. This will inevitably disappear as the candidates' eyes are drawn away and into more engaging content, which they are finding on the screen of their choice rather than in a traditional retail premises.

There will be three main technological drivers: artificial intelligence (AI), gamification and apps. It's not particularly revolutionary to suggest this; it's a trend that's clearly visible in other markets. More than that, however, the candidate is evolving.

Shifting market

The change is partly because the dynamic of the market has shifted. Finding a job used to be a buyer's market: there were fixed places to go and look for employment (outside trudging the street approaching every possible employer) and the recruitment agency was prime among these.

Until the candidate evolved.

The modern candidate, for even the most basic jobs, is likely to have a smartphone and/or tablet. He or she will be accustomed to using that device as their window onto the world of services and a great deal of retail. They have no incentive to switch back to the bricks and mortar world when it comes to finding a job - in fact, they are likely to hold it against an employer if it won't come to them on their own terms.

Global tech giant Google has responded, launching a new job search experience in the UK in July - Google For Jobs. Instead of trawling through different links on the search engine, there will now be a search box at the top of the page to deliver the most relevant postings for a job seeker's query. This is particularly important as people become more complex in their searches.

There are individuals looking for flexibility and hours that suit their lifestyles instead of a traditional nine-to-five. There is also a rise in demand for supplementary jobs for additional incomes on top of regular employment. For example, people on zero hours or part time contracts may look for additional flexible shifts at evenings or weekends to top up their income and they need a quick and easy way to find job openings and flexible roles.

In short, anybody offering a job that doesn't address the existing candidate rather than pretend it's still the 1990s is going to suffer; and as already mentioned, the technology is changing too. The good news for recruiters is that this makes their job cheaper and more efficient.

Recruitment is dead - long live rectech

A market that fails to change with its customer is doomed. Tom Pickersgill of Broadstone forecasts the shape of the recruitment industry five years from now.

Those in favour, say AI

Artificial Intelligence, when deployed well, is an incredible boost to a business and although it's been slow to embrace the technology, recruitment should be no exception. AI and its less-souped-up cousin, robotic process automation (RPA), will analyse data quickly and accurately, learn behaviours, identify trends and perform repetitive tasks much faster than a human.

AI and RPA can obtain better, faster insights, speed up back office and admin-heavy tasks and customer facing systems as well as identify fraud, irregular transactions and security intrusions. It's often more reliable, more efficient and cheaper than humans carrying out the same tasks, plus it's on 24/7, so enables faster problem solving, lower costs and happier customers. Recruiters and employers are using it for tasks such as interview scheduling, facial recognition, candidate screening, communication and much more.

Gamification is also vital to improve performance; the idea of using ‘the carrot instead of the stick' is proving to be a powerful one. It uses game theory and designs to engage with and motivate individuals, and can support the candidate screening and job application process.

Gaming principles will enhance a person's interest and commitment to a business and include elements such as profile rating, badges awarded for certain performance related milestones, employee of the month schemes, behavioural quizzes, and community engagement. The technique builds meaningful relationships, boosts employee motivation and even supports training and productivity. It brings personalisation and a fun addition to the (often boring and frustrating) recruitment and employment process.

Within recruitment, gamification can speed up the candidate elimination process, as it can test skills such as accuracy, time management, creative thinking and logic. It gives the business a point of difference and creates the impression that it is adopting modern strategies and technology, which is particularly relevant for youth and millennial employment both now and in the future.

As we have established, many candidates use their mobile device to find work but employers can take this one step further by managing the employment process via a personalised app - including timesheet management, payroll systems etc. Apps can discreetly send push notifications that match their profile, enable messaging, and offer urgent vacancies when time is tight or for out of hours requests. This is particularly useful for temporary roles and can reduce time spent calling round and alert available workers to positions.

The future of rectech

Technology, both emerging and existing, continues to disrupt every sector throughout the world, and the need to accept this in recruitment is vital. Employment must evolve to mirror the process that candidates of today expect: flexible, with limited paperwork and efficient timesheets and payroll systems. Digitalisation is at the centre of this.

New and emerging technologies such as artificial intelligence and machine learning, gamification systems and personalised apps are disrupting the sector, enabling businesses and recruiters to manage workforces more effectively, operate more efficiently, reduce labour-intensive tasks and streamline processes. Consequently, a more productive and reliable workforce is inevitable.

The old school model of recruitment may not actually be dead but it's not very well. The newer version is slicker, cheaper and addresses the existing rather than the past market.

Tom Pickersgill is the founder of recruitment firm Broadstone