AJ Richichi is the CEO of Sprockets, a hiring platform that connects millions of hourly workers with the world's most influential brands.
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Millions of workers are still missing from the labor force, causing understaffed businesses across the country to increase pay, benefits and flexibility. After all, they just need to get more people to apply, right? New research suggests otherwise.
In the same market where businesses can’t seem to find workers, job seekers report their biggest challenge in finding work is not getting interviews. So is it a lack of applicants or a mismatch in expectations between managers and a workforce that's more likely to "ghost" a potential employer if the hiring process isn't serving them? Let's take a look at what's likely contributing to the rise of ghosting, which is costing companies billions of dollars, and how to circumvent this challenge.
The Twists And Turns That Led Us Here
Ghosting, for those who don’t know, refers to when someone applies to a job but is unresponsive to outreach. It can occur at any point in the hiring process, whether it’s immediately after the application, a phone screen, an interview, an offer letter or even an accepted offer. (One in five “ghosters” have accepted an offer and then ghosted on their very first day.)
1. The Gap Between Job Openings And Job Seekers
The Covid-19 pandemic created an unforgiving labor market for employers, particularly those that rely on the hourly workforce. Between 2021 and 2023, the unemployment rate vacillated from 3.5% to 14.7% and back. Those fluctuations are twice what we see for the average recession, and they both happened within a 36-month period.
There was a major problem, though. For the first time, the number of job openings surpassed the number of unemployed workers. Even if everyone who was unemployed took a job, there wouldn’t be enough of a workforce to keep up with demand.
2. The Introduction Of 'Click-to-Apply' Culture
After the Great Resignation and the Great Reshuffle came the Great Rehiring, with companies becoming desperate for applicants. HR platforms adjusted to the swing with reactionary functionality to remove friction from the application process, including the introduction of one-button apply. It became easier and faster to apply for jobs than double-tapping pictures on Instagram. Almost overnight, people went from applying to three or four jobs in a day to 25 in minutes.
While this drove unprecedented applicant flow, the honeymoon was short-lived. This solution to the labor shortage became a major problem for hiring managers. The need to filter through more résumés than ever before meant managers were unable to identify and contact the ideal candidates quickly enough. By the time they could reach out, the applicants had lost interest or accepted other opportunities.
3. The Shift In Applicants' Expectations
The hourly workforce is primarily made up of Millennials and Gen-Zers, and they want to hear from managers quickly and stay hyper-connected. In a recent poll we conducted at Sprockets, hourly workers emphasized the importance of speed and brevity in the hiring process. The three most important things to them during the hiring process were a fast response after an interview, a fast reply to their application and a quick, easy application process. In fact, 50% of hourly workers said they expect to hear from potential employers within three days, and 11% said they need to be contacted within 24 hours. That puts a lot of pressure on the hiring managers who are overwhelmed by résumés to sift through.
What Employers Can Do About Ghosting
This is a complex problem with cultural, generational and technological implications that cannot be covered in one article (or 10). However, there are early strategies that businesses are taking to mitigate the consequences of ghosting.
1. Train GMs On Proper Phone-Screening Techniques
Nearly one-third of workers in the United States earn less than $15 per hour, and many have sought out second (or even third) jobs in order to make ends meet. That means a lot of applicants could have financial or time barriers to having an in-person interview. So it’s crucial to offer the option for phone or video interviews and train your managers to conduct them properly.
2. Use Notification Tools To Speed Up Communication
When managers constantly have to cover shifts or take on extra duties to deal with being understaffed, it’s no wonder that 82% of applications go unviewed. By the time managers get a chance to log into their applicant tracking system, many applicants have already moved on. Consider adding a tool to your hiring system that notifies managers about applicants and enables them to reach out quickly with minimal effort. This will help ensure that more applications are seen and responded to.
3. Reengage Past Applicants For Future Openings
If hiring managers only convert 3% of their qualified applicant pool into employees, as our research shows, what happens with the other 97%? Many employers would simply move on, then pay job boards for access to new applicants when there's another position to fill. Instead, try leveraging this database of past applicants. You can reengage these individuals and revive interest in your company.
Final Thoughts
While the issue of ghosting shows no sign of going away any time soon, it may be possible to ease the frustration and reduce the toll it takes on your business. Taking steps like implementing these strategies can help bridge the gap in expectations between employers and employees. It won’t be easy, but it will be worth it to create a more effective, equitable hiring process for all.
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