Why Online Talent Platforms Are The Future Of Hiring

Online talent platforms are transforming hiring by helping to quickly connect jobseekers with opportunities that match their needs. In fact, by the year 2025, online talent platforms could potentially add $2.7 trillion to the global GDP.How exactly can online talent platforms provide that much value to the business world? And perhaps more importantly, how should that influence your company’s hiring processes? Some important takeaways from the McKinsey report:

• Online talent platforms could potentially help 230 million unemployed workers find a new job more quickly by matching them with relevant opportunities. Of this number, up to 60 million people could find job openings that are more closely suited to their unique skills.
• College students stand to benefit from the increasing ubiquity of online platforms because digital platforms increase the transparency of  in-demand skills. This can enable students to make more informed education choices with their desired careers in mind. This ensures that more of the workforce is better qualified for their desired jobs, and are hired more quickly, reducing unemployment and  underemployment rates for recent college graduates. [https://www.washingtonpost.com/news/grade-point/wp/2016/05/02/graduating...
• Online talent platforms could dramatically decrease the operating costs of hiring new employees. According to the report, “The adoption of [online talent platforms] could increase the output of companies by up to 9 percent and reduce the cost of recruiting talent and of human resources generally by as much as 7 percent.” [http://www.mckinsey.com/global-themes/employment-and-growth/connecting-talent-with-opportunity-in-the-digital-age] So not only can these platforms reduce the costs associated with hiring new talent, they can also increase companies’ output by helping improve worker productivity.

However, the shift to online talent solutions is not without risk. There are several negative factors that could arise as a result of adopting digital platforms. Some talent platforms, including applicant tracking systems (ATS), focus on screening out candidates instead of identifying the top applicants. This “weeding out” approach could lead to companies overlooking candidates that could be a great fit for them. Online platforms can also depersonalize the hiring process by focusing too heavily on metrics and grading scales, rather than truly connecting candidates with companies so hiring teams can really get a picture of their skills and motivations.

Perhaps the biggest drawback of some online talent platforms is that they can cause you to lose sight of what the hiring process is truly about: determining the skills, motivations, and fit of job candidates. People are more than then keywords, resume buzzwords, or scores on personality tests.  

Embracing digital talent platforms will help drive the world marketplace, add trillions to the global economy, and connects scores of people with their dream jobs quickly and efficiently. However, it’s imperative that the online talent platform you choose optimizes your hiring process to help you target and attract the best candidates for your open positions. If you carefully select the right platform, you will find yourself at the forefront of a global revolution that will help your company transform its hiring processes.