According to a new report from McKinsey, the war for talent never ended. However, we still face record numbers of unemployment and overflowing applicant pools. For HR managers looking to stay ahead of the talent shortage, the long-term unemployed – those who have been out of work for 27 weeks or more – should not be overlooked. This segment is comprised of nearly 5.7 million people of whom 45 percent are aged 55+, double the amount of younger unemployed. In addition, more than half of the long-term unemployed are educated beyond high school. These candidates, while stigmatized for their long period out of work, represent an untapped viable workforce.
With just a few adjustments to your recruiting and assessment strategies, you’ll find that the long-term unemployed make for a competitive candidate.
Recruiting: When reviewing resumes, a change of perspective is needed here, and may soon be required by law. While evaluating a long-term unemployed candidate, you’ll need to look past gaps in employment. In fact, many states have already banned job ads that discriminate against the unemployed and they may soon be a protected class.
Additionally, the government extended tax breaks for those who hired the long-term unemployed in 2010 with an additional benefit this year for companies who retained those very workers. And, the President’s American Job Act proposes a tax credit of up to $4,000 for hiring workers who have been looking for a job for over six months. This gives companies an additional reason to rethink long-term unemployed candidates as tax credits can help offset onboarding and training costs.
Transferable Skills Assessment: Many long-term unemployed workers are applying for jobs that fall under new industries or positions than they’ve previously held. This doesn’t mean they aren’t qualified, it just means HR needs to take a closer look at what transferable skills they bring to the table. Being able to identify how these skills are relevant to your position is imperative when evaluating a long-term unemployed candidate.
Transferable skills can be divided into three areas – working with people, working with things and working with information. The Recruiters Lounge defines them as follows:
- Working with people skills happen when people sell, train, advise and negotiate.
- Working with things skills occur when people repair, operate machinery, sketch, survey, or troubleshoot.
- Working with data/information skills involve budgeting, researching and analyzing.
When reviewing the resume of a long-term unemployed candidate, you’ll need to look deeper into prior jobs held and recent work or volunteer experience. While they may not be up to speed with the latest versions of software or industry regulations, they may score the same, or even higher, on transferable skills testing as currently employed candidates. The majority of the long-term unemployed are at the top of the age bracket and have acquired desirable soft skills from their years in the workforce. While out of work for six months or longer, many have taken to volunteering or consulting to keep their people skills sharp. Others have kept their networks up to date and can bring valuable contacts and resources to your company. Some have even returned to school for training in a new career or to keep their existing skill set current. These activities have kept their skills sets fresh and should not be overlooked in lieu of recent formal work experience.
For positions that require hard skills, i.e. programming, accounting, finance, etc., early assessment of skills is a necessity. You’ll want to take a look at specific knowledge sets, certifications, and education required for your open position. By understanding any potential skills gap early on, you can incorporate training and learning into your development plans. The long-term unemployed are eager to return to the workforce and many are willing to take on additional training to make-up for lost time.
Personalized Onboarding: Once you’ve hired a long-term unemployed candidate, returning to the workforce and adapting to a new corporate culture can be very exciting. With unemployment rates above 8 percent since 2008, many long-term unemployed have not been exposed to recent advancements in the workplace. Internal and external policies and regulations have changed, along with new technologies. With personalized employee portals, you can tailor the onboarding experience to meet the needs of your newly hired long-term unemployed worker. This way, they can get acclimated to your corporate culture, policies and procedures starting on day one.
If your company has hired the long-term unemployed, then you already know that their loyalty, engagement and commitment levels are much higher than currently employed new hires. They are taking advantage of training and learning opportunities to upskill themselves as well as integrating themselves into their new corporate culture. They’re not afraid to work or to work hard. Many are casualties of the down-turn who’ve been forced on the sidelines until the market rebounds. This doesn’t mean they’re not qualified for your open position, it just means you need to look at their skills and experiences through a different lens.
How is your company assessing long-term unemployed candidates?