Remote Work Imbalance and ATS Overload: Navigating the Post-Pandemic Job Market
The post-pandemic job market is a challenging landscape to navigate, especially with the overload of information and misinformation circulating on platforms like LinkedIn and TikTok. This has led to the emergence of a new industry, where individuals offer courses on how to beat the ATS and avoid being ignored by recruiters. However, the job market has experienced a culmination of factors that has created a perfect storm, making it even more difficult for job seekers.
One of the major factors contributing to this challenge is the macro-economic environment, which has resulted in a larger pool of job seekers. Unfortunately, the layoffs in many companies have disproportionately affected Talent Acquisition teams, leading to a shortage of recruiters to handle the increased volume of applicants. Additionally, advancements in consumer-facing technology, such as Bard and ChatGPT, have further exacerbated this imbalance. These technologies enable applicants to apply to a larger number of jobs, resulting in a massive increase in inbound application volume, sometimes up to 100 times more than before.
Another imbalance is created by the growing desire for remote work. LinkedIn data reveals that the volume of remote jobs, after a steady increase during the pandemic, has settled at 14%. Surprisingly, these remote roles attract a staggering 51% of the total volume of job applications on the platform. In other words, more than half of all applications on LinkedIn are directed at less than a fifth of available roles. Conversely, for in-person roles, there are two open jobs for every one worker, according to the Bureau of Labor Statistics. Thus, if you are applying for remote jobs, you will face eight times the competition compared to applying for an in-person role.
The talent market has always had a signal-to-noise issue, but now it is worse than ever due to the scaled asymmetries. Typically, recruiters expect a 25/75 split in the applicant pool for any given role, where only 25% of applicants meet the minimum requirements. Before the pandemic, there would be around 100 applicants per open role, and recruiters would carefully review the resumes to identify the qualified candidates. After speaking to the qualified applicants, recruiters would narrow down the pool to 5-10 candidates for further consideration.
In the post-pandemic era, these ratios remain the same, but the numbers have skyrocketed. Recruiters now have to sift through hundreds of applications, searching for the 250 most qualified individuals out of potentially 1000 applicants, especially for remote positions. Consequently, there is a high chance that many applications may never be seen.
To manage and store applications, most Talent Acquisition teams rely on Applicant Tracking Systems (ATS). These systems, including popular brands like Taleo and Workday, provide a digital filing cabinet for recruiters to view applicant details. Recruiters typically review a list view that shows applicants’ names, current roles, and current companies. They then click on individual resumes and decide whether to reject the applicant or move them to the next stage. If you do not hear anything at all, it means no one has looked at your resume. If you receive an auto-reject email, it means a human has determined that you are not as qualified as other candidates.
Although the talent acquisition industry is ripe for disruption, it has yet to happen. AI will likely play a role in the future, enhancing the hiring process. However, for now, HR/recruiting functions are often considered cost centers and are last in line for investment. It may take another 2-3 years before even the most forward-thinking employers start using AI to improve the hiring experience.
In the meantime, job seekers can focus on improving the signal-to-noise ratio in their favor. Employee referrals account for approximately 33% of all filled positions, and many organizations have fast-track processes for these applications. Reaching out to your network for a referral from someone already working at the company you are applying to can significantly boost your chances.
While we anticipate the AI revolution in the hiring process, it is clear that the current landscape presents challenges to job seekers. Ensuring your application catches the attention of human recruiters and hiring managers remains crucial. The ultimate goal is to beat the odds and secure the position you desire.
