Why Hiring is Broken and How To Fix It With Toggl Hire | Toggl Blog
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Why Hiring is Broken and How To Fix It With Toggl Hire

Marit Martin Marit Martin Last Updated:

This is a guest post from Toggl Hire’s co-founder – the tool that has helped us to find high-quality candidates for all our positions.

At the start of 2018, the average cost to hire a new employee is about $4,000, which is an all-time high. It is more critical than ever to know you have the right hire from the very start. If you hire a new employee and invest time and money in them, only to find out they’re a bad fit after a short while, it’s thousands of dollars down the drain.

If you think that the key to solving this issue is to make the application process more rigorous and detailed, think again. When filling out a job application, 60% of potential candidates will quit during the process, simply because it took too long to complete.

The application should be long enough to provide meaningful information about the candidate, but also short enough to keep them excited about working with you. It’s difficult to strike this balance, no matter how skilled your HR team may be.

The hiring process needs to be efficient, but also enjoyable for the candidate. If you get this part right, it pays dividends beyond the initial hiring stages – 15% of candidates who had a positive hiring experience state that they will put more effort into their new job.

At Toggl Hire, we made it our mission to eliminate the old way of how recruiting is done. The days of posting on a job board and hoping that great candidates will miraculously show up are long gone.

The way people look for work has changed. Unfortunately, the way we hire new people into the workforce has not.

We are desperately hoping to achieve good results using the same methods HR teams have been using for decades now.

Ever since Monster was launched in 1994, the process has been the same. You post an open position on a job board, cross your fingers and pray that the best talent will stumble upon your ad. If this sounds inefficient to you – you’re not alone.

Today’s hiring practices are perfect for a world which does not exist anymore.

Unemployment rates are getting lower across nations, and the number of open positions is increasing at the same time. In USA alone, there were 181,000 job openings available for each month in 2017.

Hiring skilled workers has never been more difficult, and if we continue using the same methods, things aren’t looking too good for the future either.

Having unfilled positions gets pretty expensive for companies in the long run. On the other hand, hiring the wrong person just to fill the position can also make a huge dent in your budget.

Between not hiring at all and hiring the wrong person, today’s recruitment often comes down to choosing the lesser of two evils.

As a tool to hire new people, we came to hate the resume. And we’re not exaggerating either, hate is the proper word to use here.

Here are some of the reasons why.

Reason #1: Resumes are slow. It will take you an average of 27 work days to make a new hire. From getting a resume sent in, to reviewing it, testing the candidate, calling them in for an interview, it’s a long process. If you work in a fast-paced industry such as IT, this is time you cannot afford to waste.

If you’re still not convinced, contrast this with the fact that the best candidates for any given position are gone off the market in just 10 days.

Reason #2: Resumes are biased. Before glancing at work experience of a certain candidate, you will take a look at their name, age, photo and gender. In an ideal world, none of these things would have influence on who gets the job.

Unfortunately, a lot of hiring decisions revolve around these factors instead of what really matters – how well candidates perform in the workplace. 

Reason #3: Resumes are horrible at showing real-world skill. What do people mean when they say a resume is impressive? Most times, it’s a long list of references, and the candidate worked for reputable companies in similar positions.

However, an impressive resume cannot tell you how the candidate performed in these roles. This is a double-edged sword because you may end up surprised with the skills of someone you hire – both positively and negatively.

What’s more, sometimes a candidate with very little formal experience has much better skills than someone who performed badly in multiple companies.

Reason #4: Resumes are a pain to send in. If you really want the best candidates for your job opening, you will have to go beyond those who are unemployed at that moment and actively looking for a job.

Research has confirmed that 75% of all employed professionals are passive candidates. This means that ¾ of all employees out there would be willing to switch teams if offered a better opportunity. However, as they are passively looking, they won’t be too crazy about sending in their resume.

Introducing Toggl Hire – hiring tool that brings you quality leads. 

Toggl Hire was launched in 2015 as an internal hiring tool for Toggl Track and Toggl Plan. Initially designed as a simple WordPress plugin for help within the company, it is now a full-blown app.

Toggl Hire is the platform to design tests and quizzes with real-world skills questions for your potential employees as a first-pass filter. 

We were blown away by how effective it was for us and decided to share it with the world. We realized that we could contribute to solving a problem that has been wasting time and money for employers and employees worldwide.

Instead of looking at resumes, we looked at real-life practical experience, and we made some incredible hiring choices. This is what we wish to do for you as well.

1) Toggl Hire makes the hiring process quicker.

Candidates no longer have to send in resumes (LinkedIn or Github profile is enough), and you don’t have to waste time going through them to figure out if the applicant is qualified. A simple test will filter out the least competent candidates at the very start, saving incredible amounts of time. 

In our experience, 95% of applicants do not qualify for the job, meaning we can identify the top 5% of talent in seconds.

2) Toggl Hire values qualification first and foremost.

Anyone can write a resume and fake a list of references. Faking a real-world skills test is a whole different story. Toggl Hire helps you understand how good applicants really are at the job you require them to do.

3) Toggl Hire makes it easy to apply for passive candidates.

If someone’s not looking for a job, they won’t be going on job boards, and they certainly won’t be eager to tidy up their resume and send it in.

If you can’t bring the candidates to a job board, bring the job board to the candidates. 

However, they won’t be able to resist an attractive quiz – especially if you wrap it up as a challenge. The key to attracting those who are just browsing is in the placement of the job opening. 

👆 Simply place your Toggl Hire test on social media channels such as Facebook and watch the applications roll in.

4) Toggl Hire removes the bias from hiring.

If a candidate takes your test, all you can focus on is their skills and knowledge, which is the main criterion to pass the first screening filter. If you want, you won’t find out their name, age, gender, ethnicity, religion, etc. until later in the hiring process.

How Do You Get Started With Toggl Hire?

If you want to take Toggl Hire for a test drive, you can create a free account and give it a go. We have a free forever plan, allowing you to look for one employee at a time.

Don’t take our word for it – try it out and you’ll be amazed at the amount of time and money you saved for yourself and your company.

If you’re as excited as we are for the future of hiring, keep your eyes peeled on Toggl Hire.

Stay tuned.

Create a free Toggl Hire account and join us in the future of hiring.

Read more: The Toggl Guide to Working from Home

Marit Martin

Developers fear her for a good reason: she’s tough and demanding. Though she’s worked as a project manager for the best part of her life, Marit is also crazy about good design and modern art.

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