Goldman Sachs Just Changed The Rules of Hiring…for Everyone
Last month Goldman Sachs, a global banking giant, released news about a change in their hiring policies. This probably doesn’t sound very eventful, to put it mildly, and might hardly affect anyone outside Goldman Sachs, or those hoping to get in. And yet, it may be a watershed moment for the recruitment and HR functions across the board.
Essentially, Goldman Sachs has overhauled its recruiting process by shifting away from elite schools. That’s right! An elite financial institution is moving away from elite graduates, a match that would otherwise be considered made in heaven, and could even be considered tradition. It goes without saying that a step away from such a tradition must have been necessitated by grave circumstances and promises to shake up the entire process of recruitment.
Analysts feel the reasons behind this move are to do with the fact that even a prestigious company like Goldman Sachs sees many of their college hires leave within two years. This points to an inherent mismatch between the goals of the company and some of its people, people who might have been hired by their predecessors from the same institutes. And this is not unique to Goldman Sachs.
So what would this new process look like, and what does it mean for hiring?
1. Sourcing will become multi-channel – Goldman Sachs currently get almost half their annual recruits from elite schools, which comes to almost 1250. By choosing to go after a wider pool they hope to groom employees who are a better fit within the company, not just better educated. This will also bring more economic and geographic diversity, which in turn strengthens any company’s domain expertise. If they had not done this, having a set of sources for hiring talent and rarely diverging from it will eventually lead to unpredictability (the opposite of why you would do it). To get the best people companies will have to look for them everywhere, that is, all over the Internet, in addition to graduate schools. Offline and online will have to converge.
2. Technology will change the interface of HR – One of the new steps added to Goldman Sachs’ hiring process is a compulsory video interview. Candidates will record their responses to a fixed set of questions, which will then be evaluated by a company person who can be in a different location. This not only removes geographic restrictions on hiring, but also eliminates any biases that might creep in at these early stage interactions. Casting a wide net will mean a lot more filtration will be needed to narrow your field down to just the right candidates. Efficiencies will have to be built in to handle this extra load. This is where technology will play a far bigger role than ever before. Goldman Sachs will take the help of resume scanning technology to look for keywords that are good measures of a candidate’s fit and intent for the company (similar to MeraJob’s SmartProfiles™). They may even try personality testing for an even more balanced and unbiased evaluation of candidates.
3. Workplaces will see the value of diversity – Despite much progress, the road ahead for inclusiveness is still a long one. Workplaces often tend to underrepresent minorities (of all types – gender, religion, race, etc.) and unknowingly damage their own competitiveness. People of different experiences bring lateral thought and enable a wider understanding of the market, something that is a high priority for most multi-national and internet businesses. By limiting their channels of recruitment, inadvertent biases would have crept into Goldman Sachs, such as those of economic privilege (since only wealthier families can afford top colleges). In a country like India, the social tapestry is so intricate and ingrained that industries like BPO, BFSI, many SMEs, and almost anything else that requires interpersonal interaction, can no longer afford to have a myopic outlook. Diversity of in-house talent will always strengthen and never weaken. By adopting HR technology, such as the current wave of job portals like MeraJob have built, a leap is taken towards achieving this goal.
As we can see, even in India, where the jobs marketplace is markedly different from the USA and other developed countries, there are lessons from this. Sourcing from different channels, using technology to screen for actual job-ready skills, and nurturing these employees will be the practices adopted by businesses eager to tap into this new hiring model. The government’s timely and ambitious Skill India mission is another sign of things to come, wherein the focus is on creating a pool of skilled workers to cut out the exclusionary model of graduate school recruitment.
MeraJob had identified the shape of things to come over 4 years ago when we created, what we consider to be, a job portal 2.0 – the newer and better way of hiring through HR technology. Our candidates create SmartProfiles™, which are enhanced infographic resumes, making an easily searchable database, and offering employers different grades of pre-screening features. To find more candidates to sign up we use multiple channels, including email, social media, campus outreach, and more. To complete our 360° approach we also create self-improvement content for candidates to help them improve their job-relevant communication and productivity skills.
So, if you want to bring the same high performance to your recruitment as industry leaders are doing, become an agent of change with us today. Sign up with MeraJob or write to us at email@example.com and we’ll tell you how our hiring products are at the forefront of bringing these benefits to companies and show you how to make the most of our technology.
Read more about Goldman Sach’s transformation in the hiring process: The Path From Harvard and Yale to Goldman Sachs Just Changed.
You may like to read this
Indu Wadhwa February 11, 2016
One Stop Solution For Frontline Jobs
We are currently witnessing a technology explosion all around us. Technology is significantly impacting the way work is done in the organizations. A lot of systems and processes are being automated fully or partially, the quality of human interface is enhancing and the speed of delivery of...
MeraJob September 18, 2016
4 Tips to Retain Millennial Employees
According to Gallup Research Center’s report on ‘How Millennials Work and Live’, 71% of millennial employees are either not engaged or actively disengaged at work. It has been well-established that a high turnover rate is invariably a huge expense incurred by the company. Incidentally, the dam...