Today’s process of hiring new employees is inefficient. Approximately 3.32 billion people are employed worldwide, (reference where you received these stats from) with an estimated value of USD$100 trillion, serviced by a USD$700 billion recruitment industry. The scale of recruitment required to serve a market of this size cannot be efficiently managed with outdated and cumbersome systems. Legacy solutions involve too many intermediary players, such as job boards, agencies, and advertisers. The use of such a large number of unintegrated recruitment channels leads to fragmentation and risk for all parties involved. This creates operational friction, candidate segregation, and low-quality outcomes.
The labour market demands greater efficiency in the form of broader interaction between employers and candidates. In the outdated system, when an employer is looking to hire someone, the process often becomes convoluted. Mechanisms with heavy process loads generate numerous hidden costs. Severe fragmentation, candidate leakage, operational friction, and missed opportunities are not the only symptoms of using outdated recruitment methods. Talented individuals are often isolated due to a lack of integration among competing platforms that aim to maximise unique traffic flow. These isolates create unique candidate pools. The obvious question is how candidates and employers can be matched seamlessly and accurately in this dysfunctional network?
Lengthy recruitment processes also lead to candidate leakage; studies show that the average time for professional recruitment can reach 42 days. This is particularly harmful in tighter labour markets, where speed is crucial. Inefficiencies often result in hiring mistakes. The cost of a bad hire can reach up to 30% of the employee’s annual salary. Estimates of the cost of bad hires and loss of productivity underscore the need for more efficient and innovative approaches to hiring and talent adaptation.
Avatr offers such solutions, making the process of hiring personnel more comfortable and effective. Members of our community are undoubtedly aware of the innovative methods our project employs.
We invite you to share in the comments what, in your opinion, the modern recruitment market lacks and how blockchain and talent tokenization can help address these issues.
