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Recruit for Potential NOT Experience for Entry Level Jobs! Here's Why:
April 16, 2021
The current job market is fickle. There are millions of open positions, 7.4 million vacancies in the U.S. alone [1]; however, few candidates are ideally qualified to fill them. At the same time, in U.S., 16.6 million people are searching for jobs* [2]. There is obviously a massive disconnect between employers and job seekers. The root of the problem is that employers are hiring based exclusively on experience. A contributing factor to this issue is the popularized use of an Applicant Tracking System, a software program that scans resumes for the exact experience relating to the job posting. The sole examination of qualifications is an approach that is clearly not working based on the disparity between the number of open positions versus the number of job seekers. Many entry-level job posts today ask for years of experience in the field. Understandably, employers want employees who know exactly what to do and are ready to hit the ground running, however, having this gatekeeping on top of a higher education degree requirement is the wrong approach. It will result in recruiting of ill-fitting workers. The reality is that great workers who have the perfect resume and lots of experience in a field will not settle for an entry-level position and pay. When it comes to hiring for entry-level positions, recruiters should employ a different approach to traditional experience matching. Recruiting for potential is the ideal solution.
Recruiting for potential will provide your company with many benefits. Often employees who lack experience can be secured at a lower starting salary. They will be grateful for the chance to prove themselves, work harder and stay longer. And you can train them to do the job exactly how you want versus having to break their old habits. When it comes to entry-level positions, hiring for potential is cheaper and more effective than hiring for experience [3]. Investing in "last-mile training" or upskilling in the onboarding process to get new hires up to par with the technical skills and business knowledge required to do the job is a worthwhile investment. Not only does upskilling foster loyalty and build on the gratitude they already have, but it also builds community, drives retention, productivity, and performance.
What should recruiters look for when recruiting for potential? Recruiters should look for candidates who are an excellent company culture fit. A great culture fit is an underrated qualification. This is the single most crucial aspect of hiring for entry-level positions and beyond. If an employee is aligned with the company's culture, they will thrive. An employee could love a fast-paced start-up environment that fosters hypergrowth or feel more comfortable at a slower-paced, established company environment that deals with long game methodical goals. They could fit with a culture that embraces teamwork rather than strict independence. Culture fit matter because a person who thrives on a team where they have the ability to bounce ideas off of coworkers, talk things through and draw inspiration from collaboration, can be incredibly successful and an essential asset in certain companies where that trait is valued; however, they could feel very isolated and uninspired in a company where independence is a necessary and valuable quality.
Another important aspect of potential is passion. If an employee has an intense passion for a company's mission and the work they would do every day, a desire to learn about the field, and goals that the job can help fulfill, they will work hard every day and become an incredible asset to the company. Companies can harness this passion by employing workforce training in the onboarding of employees. Upskilling and company culture are closely related. 41% of CEOs say upskilling has been "very effective" in building a stronger company culture and empowering employee engagement [4]. Those that are eager to learn and improve will be the best fit for your company. An employee who loves where they work, what they do, and wants to learn and grow in their role is better than an employee who does not have the drive but has the experience to do the job without training.
Financially speaking, recruiting for potential and then upskilling is a no-brainer. Upskilling improves the employee experience, and according to an MIT study, companies who provide that experience are 25% more profitable than companies who don't [5]. A strong upskilling and onboarding process will also improve new-hire retention, which can account for immense savings. According to Brandon Hall Group research, new-hire retention and productivity will improve by 82% and 70%, respectively. Conversely, companies with weak onboarding programs are more likely to lose new hires in the first year of employment [6].
A passionate employee will work harder and produce more than an employee who does not have that drive. Also, a new hire with no experience can be brought on in an "apprenticeship" or contract capacity. Their pay reflects that status, and until it is clear they are a good fit for the company, they successfully learned or are clearly capable of learning the required skills, and they are performing their job at the proper caliber. At which point, the employee is promoted to a regular starting salary and job title. This promotion will foster loyalty and show the employee that the company believes in them, contributing to heightened performance, revenue, and retention. This also allows your company to avoid costly side effects of ill-fitting employees.
Arte Nathan, founder of The Arte of Motivation, a human resources advisory service says, "The cost of a bad hire is always extensive. Most companies don't know the full cost of the turnover, so, they don't apply the resources upfront to avoid it. If you make a bad hire, there is a ripple effect among all who work for you, your product and your product quality" [7]. For an entry-level position, turnover can cost 50% of the salary [8]. When an employee turns out to be a poor fit the costs can add up. Some of these costs are recruitment advertising fees and staff time, relocation and training fees for replacement hires, the negative impact on team performance, the disruption to incomplete projects, lost customers, recruiting service fees, weakened employer brand, and even litigation fees [9]. Culture becomes important for turnover rates because nearly 1 in 10 ill-fitting employees either quit or let go because of a mismatch with the company brand or culture [10].
Without interviewing candidates with the goal of identifying whether they have the passion, motivation, or traits consistent with the company culture, turnover rates will remain high. Interviews designed to identify if candidates will be a company fit rather than focusing on their skills and experience will help determine if they demonstrate behaviors consistent with company values. Companies recognize recruiting for potential rather than experience, and then upskilling will allow them to fill positions and do it with employees who are loyal and eager to learn. This will help companies overcome key obstacles to growth.
How Can Your Company Launch a Workforce Training Program to Develop Culture Fit Employees Easily and Quickly?
Employees recruited for potential rather than experience will need upskilling. A way to provide this service to your employees easily and quickly is to partner with a company that delivers custom-branded online learning platforms and content. This will enable you to provide world-class education to your employees and develop a strong employee skill base. It will position your company and employees for growth in the future
An online learning platform should include these key features:
Custom branded platform with turnkey courses on content specific to your company and workforce needs
A.I. integration and advanced data analytics for the best learning experience and insights
Easy to use platform requiring no training to use
Engaging features for increased retention and community building
Recruiting for potential is the smartest way to fill entry-level jobs at your company and build an excellent company culture. Not all online learning platforms are the same, so it is important to pick the best one in the market to set your company up for success.
Amesite Offers a Single, Easy to Use, Scalable Solution
Launch a system that fosters employee's potential, upskills them expertly, builds loyalty, drives retention, and increases revenue.
Amesite is a high-tech AI-powered online learning platform. We specialize in scalable, custom branded online learning environments and content curation to meet employer's unique workforce training needs.
Amesite's online learning platform is the key to upskilling your workforces and providing professional development and career advancement opportunities for your employees. Leveraging workforce training can result in benefits like increased employee loyalty and performance—a win-win for your company and your employees.
Amesite's high-tech AI-powered online learning environment is custom-branded to each specific company to build brand loyalty and meet the unique needs of the employer and their employees. We have subject matter experts who design innovative and custom content for courses that provide excellent value to your employees. A host of self-paced, highly engaging, and intuitive courses can be ready for your company in as little as 30 days.
With Amesite, you can:
Deploy a fully managed custom branded enterprise learning platform plus customized courses that enable you to deliver job-specific certifications quickly and efficiently for your staff.
Attract and keep employees engaged with social media-inspired interface design and the most up-to-date content.
Build employee networks that improve your organization's success and help build company culture.
Use A.I. and machine learning to identify trends and make informed decisions while upskilling your teams with comprehensive data analytics and customizable dashboards.
Amesite creates outstanding learning experiences delivered on its advanced platform, providing an excellent user experience for employees. Using A.I. and advanced analytics to provide fresh content keeps learners engaged. These experiences deepen employee's interest in subjects important to their company's goals. Amesite's unparalleled retention rate in the enterprise sector is 100%.
Let Amesite help your company upskill your newly recruited employees today! Request a Demo!
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*Per the U.S. Bureau of Labor Statistics: 9.7 million people labeled "unemployed" and included in the labor force, and 6.9 million who currently want a job but were unable to take one in the 4 weeks prior, removing them from the official labor force unemployed statistic, totaling 16.6 million people searching for employment [11].
