‘Hidden Workers’ Could Be Key To Unlocking Labour Shortages - Report

A report from Accenture and Harvard Business School has found that better utilisation of ‘hidden workers’ could significantly alleviate labour shortages.

Hidden workers are those who’s capacity to work is currently underutilised. It includes people working part time jobs and willing to work full-time; unemployed but seeking employment; and, those who are currently not working but could under the right circumstances.

According to Stats NZ the ‘underutilised workforce’ made up approximately 9.2 percent of New Zealand’s total labour force as of September last year.

Tenielle Colussi, Talent & Organisation Practice Lead for Accenture Australia New Zealand, says the skilled labour shortage will continue to be a significant global issue post-pandemic, and New Zealand is not immune.

“Our report found that 69 per cent of business leaders globally believe the quality of candidates is less than what their organisation needs to be successful in the future.”

Yet, millions of people want to work and possess the skills employers seek – if companies could only find them.

“The report discovered that stripping job descriptions to the core skills necessary for a role, and using inclusive metrics to filter candidates by these essential qualities, can open the door to an entire population of underutilised workers ready for a more fulfilling job.
 

“With onboarding processes tailored to support this often-overlooked candidate stream, businesses can tap into a hidden section of workers that have the qualities they are searching for and begin to fill their stables again.”

Testing positive for potential

Many companies add on new skills and experience preferences to job descriptions, rather than rebooting them from scratch. This means job descriptions contain many out of date, less relevant attributes to the actual job.

“Now could be time for a refresh. Focus on a limited list of ‘must have’ skills and experiences that correlate to performance in the role” says Colussi.

“The same should be applied to an applicant tracking software (ATS) or revenue management system (RMS).

“We also found companies could benefit from shifting from ‘negative’ to ‘affirmative’ filters when assessing applications. Instead of excluding workers due to variables such as gaps in employment history, using inclusive logic such as skill requirements that are essential to the role could be more efficient to access the right talent.”

“Additionally, new metrics can be established for evaluating talent acquisition that put skills development at the heart of measuring worker contribution. The current system emphasises and rewards reduced cost. This is a narrow metric which is ignorant to successes in the development of new hires.”

Treat candidates like customers

84 per cent of hidden workers surveyed by Accenture said they find the application phase difficult. To encourage applications, organisations should apply a user experience (UX) lens for recruitment and onboarding processes.

The report recommends that skills and credentials should be accessible at the beginning of an application, and the application process timetable and decision-making criteria should also be clear to candidates. Prioritising social workers or part-time recruiters could also increase inclusion of hidden workers not captured by job postings previously.

Colussi said an important advantage of the hidden worker pool is the diverse talent pool it offers to employers.

“The name ‘hidden workers’ suggests many unknowns, but basic knowledge of the reasons behind worker underutilisation can be an employer’s strength.

“Recruiters may target sub-populations of hidden workers best suited to the work of the organisation. Part-timers ready to re-enter full time work could be well-suited to an organisation using a flexible work schedule, as it will help them reintegrate smoothly.

“By focusing on specific sub-groups, companies can customise investment in training and maximise the rate at which hidden workers become productive. HR, supervisors, and co-workers will then more easily understand these worker’s needs.

“Building intimate knowledge and experience with select segments of the workforce allows companies to develop relationships with community organisations or social agencies. This will put the company in better stead to address legal or administrative issues related to employment from that category of hidden workers.”

Bring in the lifeboat; workers are better on the ship

The report also recommends that in their recruitment of hidden workers, companies should not treat it as a corporate social responsibility exercise. As with all recruitment, return on investment should remain the primary rationale for decision making.

“Attaching a special recruitment status to a group of workers is acknowledging that the company’s routine recruiting processes are failing to access that population. This may undermine the legitimacy of the hidden worker’s employment, by signalling that the ordinary metrics to assess candidates are being waived.”

“Changing a recruiting framework to access hidden workers does not require that they are assigned a status separate to their colleagues. In fact, the altered conditions which encourage a hidden worker to enter employment may garner better ROI than conventionally hired staff.”

The report suggests it is worthwhile companies enlist a senior leader to champion and monitor this evolution of hiring practices.

“Hiring hidden workers is a strategic response for addressing a pressing challenge in New Zealand—filling the ever-widening skills and labour gap,” says Colussi.

“Making hidden workers integral to a company’s talent management strategy by reforming the relevant human resource policies will require ongoing sponsorship and oversight, but we’ve found it could be a beneficial change to secure an organisation’s future.”

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