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The national talent and leadership manager at Ray White has slammed the role of traditional recruiters as outdated, out of touch and no longer effective in properly identifying talent.
Speaking at the not-for-profit Institute of Managers and Leaders masterclass session in Sydney yesterday, Ray White’s top recruiter, Simon Power, said that the current recruitment approach of leaders was “deficient and outdated”.
Mr Power told the masterclass session, called Leading from the Middle, that the assessment process has changed.
“The old method of relying on résumés and interviews to determine candidate fit is no longer sufficient to identify the appropriate person for the position.”
Mr Power said that the impact of poor hiring decisions has “deep financial impacts” on a business.
He also warned that, given the increased prevalence of AI in the industry, computerised recruitment was likely in the foreseeable future.
“Predictive hiring, metadata analysis and intelligent algorithms will soon be all commonplace in recruitment. This has the potential to make our hiring more efficient,” Mr Power said.
“Smart leaders are already preparing by implementing recruitment practices that are based around quantitative data collection.”
Mr Power said that it is important to keep pace with progress.
“Times are changing. The way we recruit and select staff has evolved, and as leaders, we must evolve to meet the market. Without the right people in place, your organisation’s potential and your ability to lead effectively will diminish.
“The purpose of every leader is to maximise team results and efficiencies. We commonly refer to this as developing a high-performing team.”
Mr Power said that the importance of having the right people in the right positions should not be overlooked.
“The financial impacts of poor hiring decisions have been well documented,” the top recruiter said.
“A study conducted by Workplace Info Australia noted that the actual cost of hiring can be more than 50 per cent of a new employee’s salary. Furthermore, in a study conducted by the Australia Business Review, it was revealed a bad hire can cost an organisation up to 2.5 times the salary of the employee.
“As leaders, this is something that we must not only be aware of, but actively seek to minimise by making informed hiring decisions.”
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