GeneralHr Library

Are HR departments worth the cost?

Source | LinkedIn : By Nishant Bhajaria

America has 5.8 million open jobs – an all-time high.  

We remain, however, an economy replete with contradictions. Even as many workers are still unemployed or underemployed, employers are struggling to find qualified candidates for well-paying jobs.

A friend who is the VP of Engineering told me that whenever he posts jobs for full-stack engineers, he gets resumes but very few of them meet his qualifications.

In some cases, folks are under qualified, while others represent a poor fit, while some make it to his desk just because some terminology was common between the resume and the job description.

“What is the point of having a human resources department when I have to spend so much time finding people?” he asked.

Rather than just blaming HR, it is important to realize that the recruitment process has changed significantly over the last decade.

Anecdotally speaking, after my first job, I have been not been hired once via a company’s HR department.

The initial contact, understanding the actual position and a hiring decision all took place between me and someone directly on the team. HR played the part of setting up my interviews, negotiating pay (sometimes), conducting background checks and other logistical details.

Most of my friends, much like 70-80% of Americans, land their jobs by networking.

In other words, HR has become a catalyst rather than creator in the employment business.

There are several reasons why this has occurred. 

First, over the last decade the labor market has changed in several small ways, all of which have collectively made the HR job much harder.

As the Great Recession ended, there was a need for workers to fill jobs that opened up after a significant period of retrenchment. This created a pressure of volume in finding enough qualified candidates.

Concurrently, changes in social media, mobile technology, financial regulation, health care legislation and the increasingly global nature of business changed the kinds of skills employers look for in workers.

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