A poor match between the skills of workers in a given area and the jobs offered in that area.
This concept - also known as structural imbalance - was hit upon back in the 1970s by a group of economists while they were struggling to understand the reasons behind the consistently high unemployment rates in some European countries.
Job mismatch is on the rise now for a number of reasons that can be boiled down to
- The global nature of modern business
- The accelerated growth and availability of technology
- The increased need for tech-savvy workers because of this accelerated growth
Mismatched hiring has increased since the recession began in 2008 and if you think about it, it's not hard to see why.
Why mismatched hiring is booming
Most new positions have been created in some sectors, while most job loss has been concentrated in others. Two things happened since 2008:
These things in combination result in
- New jobs have been created that never existed before, with titles like Application Support Engineer and C# Software Developer
- 2. Jobs lost during the recession are the more traditional kind - construction and hospitality, for example, suffered severe blows.
- New jobs with different skills doesn't match with the available workforce. This is how we get phenomena like talent poaching.
Stopping mismatched hiring once and for all
Our advice? Slow and steady wins the race. Hold more than one interview for candidates so that you can get to know them better. There's a reason that LinkedIn holds 7 or more interviews.
Be specific in what you need from this employee and this position. Don't leave any room for misunderstanding.
Be prepared to not hire anybody if you can't find the right person. Close enough is not the same as perfect. A recent survey by CareerBuilder found that 43% of bad hires resulted from a perceived need to fill the job quickly.
Thoughts? Feel free to leave us a comment below.