Five risks of word-of-mouth recruiting and the benefits of digital recruiting tools | Higher

Why word-of-mouth recruiting can hurt your business

In a world where technological advances are continuously reshaping the job market, it is critical for companies to embrace new methods of recruitment. A traditional method that is still widely used is word-of-mouth recruitment. Despite its advantages in the form of personalized recommendations and a certain level of pre-validation, this method carries significant risks that can limit the organization's growth and innovativeness. In this post, we explore the potential dangers of word-of-mouth recruiting and argue for a shift to modern, technology-driven recruiting tools.

Limited talent pool

One of the most prominent risks of word-of-mouth recruiting is its tendency to limit the talent pool. By relying on existing networks, companies can inadvertently create a homogenous workforce that lacks diversity in mindset, background, and experience. This, in turn, can limit creativity, innovation and the organization's ability to adapt to a globalized market.

Unconscious biases

Word-of-mouth recruitment can also reinforce unconscious biases, where decision-makers (unintentionally) favor candidates who are similar to themselves in terms of background, education or personality. This distortion can lead to diversity and inclusion being overshadowed, limiting the company's ability to build an inclusive work culture that promotes diverse perspectives.

Competence match

Although word-of-mouth recruiting can bring forward candidates with strong personal recommendations, there are no guarantees that these candidates' skills will exactly match the specific needs of the vacancy. This can result in costly recruitment errors, where new staff do not perform at the expected level or quickly leave the organization due to a lack of fit.

Why choose digital recruitment tools?

• Objectivity and Fairness: By using algorithms to match candidates based on their skills and experience, we reduce the risk of unconscious bias and promote a fairer selection process.

• Expanded Talent Pool: Digital recruitment makes it possible to reach candidates from a wider geographic and cultural background, enriching the organization's diversity and innovation capacity.

• Competency-based Assessment: Our platform replaces traditional CVs and cover letters with modules that assess candidates' actual competencies and potential, including the use of video questions for a more nuanced candidate assessment.

In an increasingly competitive and globalized world, it is important for companies to rethink traditional recruitment methods. Word-of-mouth recruitment, despite its merits, carries risks that can limit an organization's potential. By adopting modern recruitment tools, companies can ensure a more objective, diverse and skills-based recruitment process. It's time to make a strategic shift today to shape the successful workforce of the future.

Author: Nicklas Wikblad

Reviewer: Moa Jacobsson