The emperor still has no clothes, and that’s a big part of why over 25 million Americans are unemployed or under-employed. (According to the Business Desk, that’s how many Americans say they want but can’t find a full-time job.) Meanwhile, according to the U.S. Department of Labor, 3.9 million jobs were vacant in September.
HR executives have a special term for this 6:1 market advantage when they’re trying to fill jobs today: They call it a “talent shortage.”
Gimme a break.
Human resources executives run around in their corporate offices with their eyes closed, throwing billions of dollars at applicant tracking systems (ATSes) and job boards like Taleo, Monster.com and LinkedIn, and they pretend no one can see they are dancing in circles buck naked. HR keeps talking about a talent shortage, but the only talent shortage is in the HR offices. HR executives need to learn how to match up the 3.9 million vacancies with some of the 25 million under-employed.
What’s going on? The economy is certainly one factor, but businesses, the media and the federal government continue to ignore the structural problems in our employment system. I’ll tell you what I think the main problems are.
Companies Don’t Hire Anymore
Employers don’t do their own hiring, and that’s the number one problem. They outsource their competitive edge (recruiting and hiring) to third parties like Taleo, Kenexa, LinkedIn, Monster.com and CareerBuilder. Monster and LinkedIn alone sucked almost $2 billion out of the employment system in 2012. These vendors offer little more than trivial technologies and cheap string-search routines masquerading as “algorithms” for finding “hidden talent” and “matching people to jobs.”
HR executives are spending billions on those systems, so why are almost 4 million jobs vacant? Because these vendors sell databases — not recruiting, not headhunting, not jobs, not hires and not matchmaking.
Chosen excerpts by Job Market Monitor. Read the whole story at