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When will the resume die?
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Episode 92 has news for 9 December 2024 and Question of the Week, "When will the resume die?"
#RNA #RecruitmentPodcast #RecruitmentNewsAustralia
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Transcript
Impact of AI on Recruitment
00:00:09
Speaker
AI technology has transformed staffing and recruitment, unlocking new levels of productivity and empowering teams to better use their time. But what does the hiring workflow powered by AI look like? Discover how the day in the life of a recruiter is transformed by AI and learn more about Bullhorn's vision for infusing AI everywhere. Visit bullhorn dot.com to see that AI vision in action.
Australia's Economic Challenges
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And this is the news for the 9th of December, 2024. I'm Adil Last.
00:00:38
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National accounts figures released by the ABS last week showed if not for public spending and immigration, the country would be in recession as the economy expanded by a sluggish 0.3% in the September quarter. Outside of the pandemic, this was the worst GDP result since the 1990-91 recession, with GDP down to 0.8% for the year to date compared to the Reserve Bank's forecast of 1.5%.
00:01:06
Speaker
GDP per capita fell for a record seventh consecutive quarter. Government spending continues to be strong, largely due to a 35% rise in defence spending plus higher expenditure on hospitals, road and rail projects. Household spending, the single largest part of the economy, was flat during the quarter and has fallen over the past six months, increasing the likelihood of an interest rate cut in the first half of 2025.
00:01:31
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This contrast provides further evidence of Australia's two-speed economy where the public sector is expanding rapidly while the private sector is moribund. Ahead of Deloitte Access
Addressing Skill Shortages in Australia
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Economics Pradeep Philip quoting in The Age, he said the private sector was being clobbered, with the economy stuck in the mud and spinning its wheels.
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The federal government last week announced its updated core skills occupation list in the hope it will improve the skill shortage impacting the construction sector in particular. Project managers, building inspectors, bricklayers and carpenters are among the trades listed in an effort to help the construction sector. Other eligible jobs among the 456 occupations on the CSOL include yoga instructor, flight attendant, beauty therapist and goat farmer.
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These reforms came into effect last Saturday. A handful of major employment services providers have failed to adequately support Australians with disabilities in the job market, although a large majority of providers were meeting or exceeding minimum standards. In the federal government's first quarterly public report card on the industry released last week, 88 providers were assessed on the disability employment services program in July, with 92% meeting quality expectations and 90% exceeding or meeting effectiveness expectations. One of the biggest job service providers, APM, was rated as requiring improvement on effectiveness, with MAX, GeForce, JobLink+, and Mardek also named as requiring improvement. Around 2.7 million Australians with disability are of working age, figures show. The unemployment rate for people with disability stands at 7.5%.
00:03:19
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The Social Services Minister, Amanda Rishworth, said the new public reporting mechanism would provide greater insight and transparency into the program. While it's great that most providers are meeting expectations, the scorecards give providers, employers and participants, as well as the general public, a very clear picture of what is expected of providers and how they're stacking up, Rishworth said.
Exploitation and Visa Reforms
00:03:42
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findings from the United Nations Special Rapporteur on Contemporary Forms of Slavery include the assessment that temporary migrant workers in Australia are facing disturbing patterns of exploitation from some employers, labour hire companies and migration agents. Professor Tomoya Obakata, who has just concluded an official visit to Australia, said that many workers are victims of deceptive recruitment, underpayment or withholding of wages, excessive deductions,
00:04:10
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and dangerous working conditions. ACTU President Michelle O'Neill is calling on the government to reform a temporary working visa scheme that prevents workers from leaving bad bosses and to blacklist dodgy employers who use migration worker exploitation as a business model.
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Professor Obakata was invited to Australia by the federal government. During his two-week visit, he spent time in all the mainland eastern state capitals, as well as the Riverina district near the border of New South Wales and Victoria. He also held virtual meetings with state and territory authorities and met victims and survivors of contemporary forms of slavery. Professor Obakata will now report his findings to the United Nations.
Rise of Robotics in Manufacturing
00:04:51
Speaker
Robot adoption in factories worldwide continues at high speed with the new global average robot density reaching a record 162 units per 10,000 employees in 2023, more than double the number measured only seven years ago. The Republic of Korea is the world's number one adopter of industrial robots with 1012 robots per 10,000 employees and Singapore is in second place with 770 robots per 10,000 employees.
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According to the report of the World Robotics 2024, which was presented at the International Federation of Robotics, China overtook Germany and Japan last year to rank third, doubling its robot density within four years.
Worker Vulnerability and Underpayment
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New Zealand's Employment Relations Authority find a Kiwi fruit recruitment firm in its Director $100,000 for underpaying three employees over several years. Asad Horticulture Limited, now in liquidation, was ordered to pay $70,000 for breaching minimum employment standards and for not having paid wages and entitlements. At the same time, the sole director and shareholder must pay $30,000 for the same breaches. The labor inspector said the workers were temporary visa holders and as such were vulnerable.
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The debts owed were significant and the company's record keeping breaches were systemic. Under an agreement with the labor inspector, the employees will be paid back a total of $45,000 in wages and entitlements.
Workplace Toxicity Issues
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A recent research report on large US employers found that approximately one in 10 workers experience their workplace culture as toxic, an estimate that aligns with earlier studies. The authors, led by a professor at MIT Sloan School of Business Management,
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then conducted a meta-analysis by aggregating the results of 140 separate studies analyzing the drivers of unethical behavior looking for common findings. Although they focused on different aspects of toxicity such as disrespect, unethical behavior and abusive management, the meta-analysis converged on the same three factors as the most powerful predictors of toxic behavior in the workplace. They were toxic leadership, toxic social norms and poor work design.
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where work design is defined as overall workload and conflicting job demands. Women and racial minorities are more likely to experience their employer's culture as toxic for reasons rooted in discrimination and harassment.
00:07:18
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Employment in the United States rebounded strongly in November with non-farm payrolls increasing by 227,000 last month after the hurricane and strike hit ah October result of only 36,000 job gains. The unemployment rate was up by 0.1% to 4.2% and wages rose by more than forecast.
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Hiring growth was most significant in health care and social assistance, as well as leisure and hospitality and the government sector, while retail trade cut 28,000 jobs.
Trust Issues with HR Departments
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My Perfect Resume's recently released ah HR perception report found that 86% of workers in the United States report being afraid of HR, with 85% hesitating to approach ah HR for work related issues due to concerns about confidentiality and potential repercussions.
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The top reasons employers avoid HR are lack of approachability. 37% of respondents mentioned that ah HR staff were unapproachable, contributing to the reluctance to seek help. Fear of repercussion. 31% of employees feared negative consequences if they raised concerns. And lack of trust in confidentiality. 37% expressed doubt that their issues would remain confidential while 31% preferred handling problems independently or with their manager.
00:08:39
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When survey respondents were asked to share their concerns about HR, the top issues reported included 71% think that ah HR tends to be too involved in office politics, 68% think ah HR focuses on procedures rather than people, 67% agree it's hard to get a timely response from HR. The data also shows that most employees who bring grievances to ah HR are dissatisfied with how the situation is handled with 90% of workers surveyed saying,
00:09:07
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that when they reported an issue to HR, they felt HR didn't adequately address it. Corn Ferry reported fee revenue fell 4.2% year over year and its fiscal second quarter ended the 31st of October to $674 million. us dollars Operating profit rose 41% to $62 million dollars after restructuring charges impacted the corresponding quarter's result last year.
Trends in Recruitment and Resumes
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APAC executive search income was up 9% to $21.5 million. dollars The company has forecast the current quarter's revenue to be slightly higher
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than the Q3 result last year. And that's the news for the 9th of December 2024. I'm Ross Clennett.
00:10:02
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Question of the week is a bit controversial this week. When will the regime die, Ross? Very soon, I hope, Adele. Why do you say that? ah Oh, come on. The resume, it's been around forever in the day. Look at all the ah the problems with it. Firstly, it's self-selecting, like.
00:10:25
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Each person's constructing their own resumes and it's a marketing document. So you select in the stuff you want to put in, you remove the stuff that you don't want or you don't put it in. And if you look at the recent research on people who lie on a resume or don't have a complete and accurate employment history or qualification listing on their resume, it's about a third. So this is a problem.
00:10:55
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People treat it, or hiring managers or recruiters treat it like it's the source of truth. And it's simply not. And I think that's its major problem. And the second major problem, oh, there's many, that as work is changing so quickly, the relevance of what you have done.
00:11:16
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is less important compared to what you can do. And so the resume is something very much rooted in the 20th century. It's not really fit for purpose in the 21st century. Well, I think I disagree with you a little on this one, because like you said, it has been around for a long time. It's a useful document in the recruitment process. I mean, everybody is using ah resume to apply and recruiters are asking for people to apply that way. i I don't think it's going to change much. I think people still need that formal kind of application process, that document that formally tells an employer, yes, I'm interested, and here's why I'm interested. And you mentioned it as a marketing document. Yeah, that's exactly what it is. I think you need to have a marketing document about yourself
00:12:09
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sometimes people aren't their own best marketers. you know They're not selling themselves well. Hopefully this document does that for them. No. AI is going to be much, much better at assessing people's motivation and skills. You look at the rise of online assessment and skills testing.
00:12:29
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It's been around for a long time, but the effectiveness of those sorts of things going to accelerate rapidly. And I'm predicting that many of the major employers are going to scale back the use of resumes over the next, I won't say the next year or two. I don't think that's likely to happen, but I suspect by the time we get to 2035.
00:12:53
Speaker
I suspect that the resume is going to be far less important. It's going to be used a lot less and you're going to find people generally are going to be happier about that because they don't have to keep changing their resume. They can just be assessed on exactly the skills, the competencies and motivations that they have for each job. But you're saying that that people are going to to apply without a document. i mean How will this work for us? I don't understand. How are people going to actually apply for a job? How will employers know that they're interested? How will they be assessed by people? Well, I'm predicting, and certainly this is happening now, but AI enhanced technology will be able to do a far more accurate ah job analysis and understand the actual skills, competencies and motivation that
00:13:46
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drive success in the job and because of that AI will be able to construct appropriately and screen candidates. So I expect that probably 10-15 minute screening tests or case studies or scenarios will be done for many many jobs and the hiring manager or recruiter will have a much more accurate assessment about the candidates ah suitability for the role, then attempting to look at a resume, compare it to a job description and then conduct a very human flawed interview. So where is this happening now? You sound pretty sure about this. So what pockets of the market are you seeing this happening in now?
00:14:28
Speaker
Well, you're seeing volume recruitment is definitely doing this. I spoke about this in one of my blogs. I saw a presentation by McDonald's at the latest ATC, where you're not required for a ah McDonald's store ah job to submit a resume. You simply apply, the bot asks you screening questions, and then if you pass the screening questions, you're booked in for a face-to-face interview with the hiring manager.
00:14:54
Speaker
And I suspect for many volume, in fact, 7-Eleven do exactly the same thing. And I suspect for many volume roles, this is the way it's going very rapidly within two or three years, almost all volume roles will be done that way where you won't be required to submit a resume. A resume may won't be relevant because it'll all be about ah reliability, availability and coachability, clearly for more um significant jobs, jobs requiring qualifications and higher paid jobs, it's not going to go that way rapidly. But I suspect it's probably much closer than most people think the redundancy of the resume for those very senior jobs as well. Alright, I got one more argument for you on this. I got one word for you. Microsoft. and
00:15:43
Speaker
Let me explain, Microsoft owns LinkedIn. Yes. LinkedIn is essentially an online resume, an online employment history profile. True. So I agree, maybe the format might change. You know, obviously we've seen things go from paper-based into, you know, digital applications, into online forms, into something like a LinkedIn platform or where everything is stored centrally around your job history.
00:16:09
Speaker
um on a platform like LinkedIn. And Microsoft own LinkedIn and they've put a huge amount of money in to invest um and and and build out this product and make sure it has relevancy. They're not going to let it die very easily. So four for whatever reason they have around it, they'll keep the resume alive. Microsoft is a reason why the resume won't die.
00:16:32
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well ah Okay, so you absolutely make good points there. I suspect what's going to happen is that a LinkedIn profile will morph into some sort of skills, competency, motivation,
00:16:50
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profile, and it's kind of going that way. Obviously, LinkedIn recommendations, you can get a sense of the person and the impact they've had on other people. You've got the skills endorsements. So it is attempting to distinguish itself from resumes in that way. And I don't think the LinkedIn profile Well, certainly in the foreseeable future be without employment history and without qualifications. But I actually, I think it's a really good point you raise. So I suspect the speed with which AI can integrate
00:17:28
Speaker
within LinkedIn profiles based on Microsoft's investment will probably then be the lead factor in how quickly the resume dies. So I suspect the resume's future is probably tightly tied to how um Microsoft approaches their investment in LinkedIn. And there's certainly, as you kind of alluded to before, there are sectors where it will be really slow moving in this in this area where they won't remove resumes because they want to see you know brand names of employers. They want to see the longevity of how you know long somebody was in a role. um you know There are certain sectors where the companies that you've worked for previously have a huge impact on your future employer's impression of your you know ability to do the job and what you've learned and the training that you've had or exposure to to you know projects or case studies or whatever it may be. you know I'm thinking
00:18:25
Speaker
you know, the legal industry, I'm thinking um education at university level, I'm thinking um accounting, engineering. There are some that just to me stand out as being far more about who you've worked for and what you did there than just the competencies that you bring. I think there's a little more to what's on this document than justice skills. Yeah, I think but ah Hard to disagree with that, certainly those sectors where let's say the brand name of the employer is going to do a lot of heavy lifting in the eyes of the hiring manager. I suspect they're still wanting very much to see that.
00:19:05
Speaker
And probably right at the other end of the scale, the local cafe is not going to have an AI hiring process. They're not going to have LinkedIn. It's still going to be like my son walked in and submitted his resume to someone over the counter at the local cafe, the owner comes out, has a bit of a chat, and then, okay, so what's your availability? Can you do a trial shift? So I suspect it's still going to do some heavy lifting at that end of the market, where it is unskilled, but it's not volume recruitment. um So it could survive in these odd little
00:19:47
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um
00:19:50
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elements of the recruitment market but overall the sooner the resume dies the better and I suspect it's going to die sooner rather than later. Well tell us if you agree with Ross who says it's going to die soon or with me that that says I still think there's a place for a resume may particularly in our formal recruitment process. Tell us if you agree or disagree.
00:20:12
Speaker
I won't say it's dying soon. I'm going to say sooner than later. I think sooner than people think it's going to, because I get people hang on to old habits, but I do think it's um in the history of the resume. We are down to sort of quarter to midnight, I think. Hey, are you liking listening to our podcast, Recruitment News Australia?
00:20:42
Speaker
If you are, it would really help if you could give Ross Kleiner and I a five-star review. On whatever podcast app you listen to it on, please hop onto the review section and give us a review next time you're listening on your favorite episode. And thanks for listening.