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Companies Need More Workers. Why Do They Reject Millions of Resumés?

By The Wall Street Journal

September 10, 2021

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Software that sorts through job applicants and deletes those it judges unsuitable may be a major reason why some people still can't find jobs, despite massive numbers of available positions. A Harvard Business School study estimated such software systems exclude more than 10 million workers from hiring discussions, and many company leaders acknowledge the software is filtering out good applicants.

The Harvard researchers said 99% of Fortune 500 companies and 75% of 760 polled U.S. employers are using applicant-tracking systems that filter numerous job prospects down to a select group. The algorithms on which such software is based usually rank applicants based on broad criteria, and the more complicated the job description, the more people the software rejects.

Some companies believe the technology can be enhanced to better match candidates to jobs, while others are using less-automated methods to find qualified applicants.

From The Wall Street Journal
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