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Sometimes, as I cover older workers and personal finances, I come across a research report which stops me dead in my tracks. Hidden Workers: Untapped Talent is a report that exposes the dark side of hiring. It's explosive, I would even say.
Hidden Workers: Untapped talent is a 74-page report that was compiled from an Accenture and Harvard Business Schools Project on Management the Future of Work joint study. According to the researchers, there are more 27 million hidden workers in America. These are people who are either unemployed, underemployed, or who work part-time and are eager to be hired for full-time positions. They are hidden from employers, who would benefit from hiring them.
It's hard to believe, but it is true. Employers are now complaining that they cannot find qualified workers to hire.
We were struck by the irony of companies complaining about their inability find talent, while millions are still on the fringes. This led us to search for an explanation, the researchers said. They surveyed more than 8,000 hidden workers in the U.S., U.K., and Germany.
Problem with job seekers: The black hole
One of their main findings was that job seekers rsums are often being ghosted or lost by potential employers.
This is particularly true for those who are over 50 and have taken time off work to care for their families. According to the Rosalynn Carter Institute of Caregivers' national survey, Working While Caring, nearly two-thirds of employed family caregivers had to leave their job due to caregiving obligations.
Read more: The state views age as an asset, and is looking to hire older residents for work
A submitted rsum may not contain the right words to match the job requirements and responsibilities. Employers want everything.
According to Joseph Fuller (Harvard's principal researcher on the study), it is all about what is a desirable-to-have and what is a necessity. Fuller, a Harvard Business School professor of management and cochair of the Project on Managing the Future of Work, said that the system rewards those with marketable credentials.
According to the Hidden Workers survey, 88% of U.S. workers who were questioned believed that employers rejected their applications because they couldn't perform the job they applied for and didn't meet the job requirements.
This is something I hear all the time, and I have personally experienced it.
Problem with applicant tracking systems
Applicant tracking systems (ATS), an automated-hiring system, are denying job consideration to countless applicants. Although this software isn't new, its use has increased in recent years. The technology has been refined to eliminate the hundreds of applications and rsums that employers receive electronically for one open job.
Hidden Workers reports that more than 90% of employers use this screening to rank and filter potential candidates.
Source: Hidden Worker-Worker Survey/Accenture, Harvard Business School
ATS is prone to rejecting applications due to gaps in rsums. This is a problem for many family caregivers, who have had to leave the workforce to care for loved ones during the pandemic.
Researchers found that over the past few decades, people have either dropped out of work altogether or sought part-time employment due to the increasing burden of eldercare and child care.
See: How the COVID Crisis is worsening retirement inequality
Employers are aware that they are missing qualified candidates
The report revealed that employers are only too aware of the things they do here.
Nine out of ten executives who were surveyed claimed that the software they use prevents them from hiring great candidates. This practice prevents more than 10,000,000 workers from ever being interviewed with a human being, according to the study.
Ramona Schindelheim is the editor-in-chief at WorkingNation. She's a non-profit that helps Americans find jobs and keep them employed.
Schindelheim stated that AI-driven screening tools can help employers and hiring managers miss out on potential great employees. For example, there are filters that exclude people with no college degree from the candidate pool. A degree is not the equivalent of a skill. A piece of paper doesn't define your experience as a leader or problem-solver.
These are the qualities that you can only showcase in an interview by sharing examples of how your team solved a problem, created a creative solution, or encouraged and mentored others to reach their full potential.
Doing business is expensive
Schindelheim stated that if you don't even bother to speak to someone who hasn't worked in six months, you may be missing out on everything they have to offer.
Fuller agreed. Fuller stated that employers are willing to accept these automated systems as part of their business model. Although they acknowledge that they cannot hire qualified candidates, they also admit to hiring inept people.
Schindelheim stated that 49% of America's long-term unemployed are over 45 years old. Contrary to this, 35% long-term unemployed job seekers between 16 and 54 years old are long-term.
She explained that these are people who want work but have been unemployed for at least six months. There is already a bias against older workers. An AI-powered applicant screening tool excludes people who haven't worked for six months. This is an automatic pass.
Fuller stated that they believe that older workers who apply for jobs forget that the initial stages of evaluation are not when they write anything that can be seen by a human being.
He said, "Theyre writing something that will be assessed by an not-very smart AI system that is looking to find reasons to winnow down a pile of applicants." He added: Theyre writing something that is going to be assessed by an not-very-smart AI system that is looking for reasons to winnow down the pile of applicants.
Advice for job-seekers older than 50
His advice for older job seekers is: If a job posting requires a skill or experience, mention it in your resume. The job description should be carefully read by applicants. Don't change the phrases in the job description.
See also: 6 tips to help older workers find a job.
Don't worry if you don't have the skill required by the job posting. Fuller suggests looking for online courses or community colleges that offer training. You might also be able to find temporary positions through companies like Adecco or Manpower.
Another resource for help is the AARP Skills Builder for Work website. This online platform helps older workers acquire the skills they need to be hired.
Fuller also suggested that you be open to looking for a job near the one you have just left, but not necessarily better.
I'm not saying don't be ambitious. It is important to be ambitious, especially if you have been out of work for over six months due to COVID or health concerns. It is important to establish expectations about the job you will be qualified for.
Fuller pointed out that waiting for the right job can lead to a greater gap in your employment. This is a vicious circle. You are more likely to stay on the sidelines if you have been there longer.
Also, read: Retirement security was No. 17
Let's end on a positive note. The Hidden Workers report found that companies who purposely hire hidden workers have a 36% lower chance of facing skills and talent shortages than companies that don't hire them.
Employers also reported that former hidden workers have outperformed their peers in six key areas: attitude, work ethic, productivity and quality of work. Engagement, attendance, innovation, productivity and quality are all important evaluative criteria.
Perhaps employers could hire more of these people?
Kerry Hannon is the author Great Pajama Jobs, Your Complete Guide To Working From Home. Her work has included personal finance, retirement, and careers, as well as reporting for USA Today, Forbes, Money, U.S. News & World Report, and USA Today. More than a dozen books have been written by her. Her website is www.kerryhannon.com. Follow her Twitter @kerryhannon
This article was reprinted with permission from NextAvenue.org, Inc. 2021 Twin Cities Public Television, Inc.
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