Open hiring is an HR trend from the USA to recruit new employees. The companies offer open positions to everyone and thus dispense with the traditional application process. The approach is not yet as established in Germany as it is in the USA or the Netherlands, but it is also attracting interest here.
Open hiring makes it possible to reach a large pool of suitable people who can be hired quickly when needed. The probability of finding highly motivated staff is greater than in the traditional selection process. Admittedly, there is also a risk of hiring unsuitable staff. However, the argument can be invalidated by the fact that every new employee:goes through a probationary period. If necessary, they are separated again.
What exactly is „Open Hiring“? Explanation, meaning, definition
New employees are hired on the basis of anonymous application forms and without an interview. Social motives have more weight in this selection process than business motives. Everything that gives information about the personality, i.e. name, age, photo, place of birth, remains secret.
Future employers can only evaluate professional qualifications and experience. The design of an application form is also irrelevant, because candidates enter their data into a standardised application form. The anonymised applications can thus be compared very well. Educational level, gender and possible gaps in the CV are now no longer an obstacle to recruitment.
Minimum criteria only apply to legal requirements. Those who are to drive a car or a forklift truck in their future job need an appropriate driving licence. The method simplifies lengthy selection procedures and puts the potential and motivation of candidates in the foreground. In this way, people who would not have a chance on the labour market under other conditions can also be hired. The company itself also benefits from Open Hiring.
The fact that Open Hiring does not discriminate against anyone is a plus point that a company should also communicate. This enhances the company’s image. Because the company focuses on justice, equal opportunities and growth, it even has a direct impact on its environment.
Why should companies choose Open Hiring?
The traditional recruiting process is prone to error. On the one hand, the traditional selection process entails a lot of work for HR departments, and on the other hand, it is riddled with numerous invalid methods. It is very annoying when it turns out after the recruiting process that the company has backed the „wrong horse“ and the employee does not meet expectations. A time-consuming selection process begins again. With Open Hiring, companies can simplify this process.
For which professions is the method suitable?
Open Hiring is not suitable for every profession. The recruiting method works best for simple jobs, such as cleaning, warehousing, call centres or kitchens. All jobs that require many years of training, such as specialist doctors, are not suitable for Open Hiring. The situation is similar for pilots, engineers and IT developers. Craft professions also require qualified training, so the job cannot be done by everyone, even if they show great interest. With the help of additional intelligence tests, the applicant pool could be narrowed down without giving up the new recruiting process.
When does Open Hiring make economic sense?
The method depends on the situation in the labour market. If there is an oversupply of skilled workers, companies can easily fill vacancies with qualified employees. However, the selection process is very time-consuming. Especially for jobs with many applicants, open hiring can speed up the recruitment process. HR departments would then be mainly in charge of maintaining data on people who would be eligible for new positions. This would enable them to provide suitable candidates immediately when they are in demand.
If, on the other hand, the labour market is characterised by a shortage of skilled workers, there is competition between companies. They may even have to fill vacancies with people who do not meet all the desired requirements for the position. In this case, Open Hiring can also make sense for a company: a vacancy can be filled more quickly, and the company also benefits in the area of employer branding. Companies with unusual personnel marketing often have an advantage over the competition today. If, for example, they use untypical advertising measures, Open Hiring can attract a lot of attention and get the company talked about.
What is absolutely necessary in Open Hiring?
In Open Hiring, too, only those applicants should feel addressed who could optimally fill the job. Therefore, a job advertisement must be formulated as concretely as possible.
Applicants should not only recognise themselves in the advertisement, but should also be able to imagine exactly which skills are being sought. The qualities that a candidate must have must also be described in detail. Although the one-click application is becoming more and more popular, it is not meaningful and unnecessarily prolongs the recruiting process. Then Open Hiring can be deliberately used as a small hurdle.
Then it is explicitly desired that candidates put more effort into the cover letter and express their motivation. It is also important to ask for the must-haves in the application form (e.g. fluent German, at least one foreign language, driving licence, etc.). This narrows down the pool of applicants considerably.