Unemployment, Talent Scarcity or Incompetent HR?

The official reported unemployment rate is 7.20, but actual rates are much higher.  Nick Corcodilos makes the argument that the "talent shortage" reported by HR managers is really because they have set up impossible job requirements coupled with a reliance on applicant tracking systems (ATSes) and job boards like Taleo, Monster.com and LinkedIn, that screen out everybody, then HR reports they can't find the right person and the job doesn't get filled.

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.

What Is Going On

Here's the simple truth: Unemployment is made in America by employers who have given up control over their competitive edge -- recruiting and hiring -- to a handful of database jockeys who are funded by HR executives, who in turn have no idea how to recruit or hire themselves.

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."

Employers Don't Know How to Recruit

Here's how human resources departments across America "recruit." They put impossible mixes of keywords about jobs into a computer. They press a button and pay billions of dollars for a chance that Prince Charming will materialize on their computer displays. When the prince fails to appear, they double their bets and keep gambling. (Last year, companies polled said just 1.3 percent of their hires came from Monster.com and 1.2 percent from CareerBuilder. See "Is LinkedIn Cheating Employers and Job Seekers Alike?")

The Employment System Vendors Are Lying

The big job boards and the ATSes tell employers that sophisticated database technology will find the perfect hire.

• "Don't settle for teaching a good worker anything about doing a job. Hire only the perfect fit!"
• "We make that possible when you use more keywords for a job!"
• "The database handles it all!"

When matches fail to appear, these vendors blame "the talent shortage" and contend that job seekers lack the specific skills employers need.
Except that's a lie. Job descriptions heavily larded with keywords make it virtually impossible to find acceptable candidates. Wharton researcher Peter Cappelli tells about an employer that got 25,000 applicants for a routine engineering position. The ATS rejected every single one of them. Every day that an impossible job requisition remains unfilled, the employment system vendors make more money while companies keep advertising for the perfect hires.

Employers Have No Business Plan

Employers claim job applicants lack the requisite skills and talents for today's jobs. But in "Why Good People Can't Get Jobs," Peter Cappelli reports that they are wrong. The quality of the American worker pool has not diminished. Rather, American companies:

• Don't want to pay market value to hire the right workers.
• Don't want to train talented workers to do a new job.
• Are content to keep using ATSes that don't get the job done.

America Counts Jobs, Not Profitable Work

The federal government tracks the number of people who have jobs and the number of vacant jobs. But tallying jobs to assess the economy is like counting chickens before they hatch. The federal government has no idea which jobs or which work is actually profitable and contributing to a healthy economy.
It's no secret that the weekly employment figures are questionable and misleading. The definitions of jobs and "who is employed" are so manipulated that no one knows what is going on.

People Must Stop Begging for Jobs

It's time for people to stop thinking about jobs, and high time to start thinking about how -- and where -- they can create profit.
For example, if I run a company, I'll hire you to do work -- if it pays off more than what I pay you to do it. Today, few employers know which jobs actually pay off. That's why you need to know how to walk into a manager's office and demonstrate, hands down, how you will contribute profit to the manager's business. That's right: Be smarter than the manager about his own business. Stop begging for jobs. Start offering profit.

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