Why Employment Gaps Are Not a Deal Breaker

It is a tough labour market out there. Since workers in certain sectors quit their jobs in droves in 2021, employers have continued to face difficulty filling open roles and managing high levels of turnover.

But calling this a blanket “workforce shortage” might be misleading. Yes, it is true that millions of workers have left their jobs for many reasons since the start of the pandemic, but there is also more to the story. As per a recent study approximately 86% of employees in India will resign in the next 6 months (mostly managers). The worst affected industries are anticipated to be the technology and telecoms industries. Talent migration is the most talked about topic right now due to overall work pressure and work-life balance concerns. These potential workers form a largely untapped talent pool at a moment when many industries are expanding and struggling to hire. According to the 2021 India Skills Report, as many as 45.9% of youth are considered employable in 2021. The overall trend is looking promising for graduating students and therefore availability of employable students is high, around 40% of employable talent in the age group of 18-21 years.

So what is causing this disconnect between employers eager to find workers and workers eager to find employment?

Jobseekers with barriers are often left behind

As per a recent poll by TechGig, 78% of tech professionals agreed that a gap in employment history may cost them their dream job in the future. This situation is particularly true of the IT sector in India. Recruiters in homegrown IT firms like TCS, Infosys, Tech Mahindra, HCL, Wipro, etc. take the employment gap very seriously, and if not addressed tactically, it becomes the biggest roadblock in the job path of a tech professional. Here is the catch: this barrier is irrelevant to a qualified jobseeker’s ability to do good work. CMIE data showed that more than half of the 90 crore Indians of legal working age have stopped looking for a job due to their frustration of not being able to find a job. The overall labour participation rate also fell between 2017 and 2022 from 46% to 40%. During this time, about 2.1 crore workers left work, while 9% of people who were eligible for work found employment. According to the CMIE, 90 crore people are currently employable in India, but more than 45 crore of them have given up on looking for work.

Consider the example of long-term unemployment. According to Peter Cappelli, Director of the Center for Human Resources at the Wharton Business School, “Employers are reluctant to hire the unemployed, despite no good evidence that the long-term unemployed cannot step back in and be productive again.” 

In a report sponsored by Indeed's Leadership Connect program, Cappelli cites multiple studies conducted in the US that show “when otherwise identical resumes are sent to employers, candidates who have been unemployed long-term get far fewer call-backs and interviews.”

There are some jobseekers who may have unique skills and experiences but are overlooked as they have been out of the job market due to pandemic or maternity/paternity break. So how can employers reach potential candidates who are currently outside of the labour force? The first step is to drop negative assumptions about employment gaps, especially given the difficulties many workers have experienced during COVID-19. Instead, start by rethinking to identify more inclusive, objective ways to source and screen candidates. 

Do not screen out quality candidates

First, assess how stringent your job requirements are. Job descriptions with a long list of desired skills can deter otherwise qualified candidates from applying. Similarly, minimum years of experience or education requirements can be arbitrary indicators of ability that tend to favour applicants with traditional backgrounds. And jobseekers with barriers may have skills to offer but not the “right” experience or education listed in the job description — and are, therefore, commonly screened out early in the application process.

Here are a few ways to minimise the “screen out” mentality in recruiting:

• Reduce job descriptions to include only the skills critical for the role. 
• Remove minimum education requirements that are not absolutely necessary.
• Ask for “level of experience” rather than “years of experience”.
• Do not reject applicants outright due to gaps in their employment history.
• Practice fair-chance hiring by removing the criminal record disclosure box from your job applications.

Screen them in instead

Now that you have removed any unnecessary requirements for the role, you can take your inclusive recruitment efforts a step further by “screening in” quality talent. Think about the skills required for your role. What transferable skills can attract candidates with diverse experiences and backgrounds? What parts of this role can be taught?

Rethinking employment gaps to build more inclusive hiring practices

The COVID-19 pandemic pushed employment gaps into the mainstream as lakhs of Indians lost their jobs due to the economic crisis and closure of several business entities. This displaced workforce is keen to find a suitable position as post-pandemic businesses are rehiring. It is time to forget outdated assumptions about jobseekers who have been outside of the labour force, whether for a few months or much longer. According to the managing director of CMIE, Mr. Mahesh Vyas, “These are disappointed people. As these disappointed people stop looking for jobs, they get classified as 'out of the labour force' and do not get counted in the unemployment rate. But their exit causes a fall in the unemployment rate, the problem of unemployment has grown substantially since that time. Many feel angry about the time they invested in education and job searches.”

At Indeed, we encourage employers to minimise the “screen out” mentality. Take a closer look at job requirements and remove anything unnecessary for the role. Instead, focus on skills-based hiring to provide objective data on what a candidate can do.

By removing the stigma associated with long-term unemployment and designing a recruiting process that minimises bias and “screens in” quality candidates, employers will access a more inclusive and expansive talent pool — and gain a competitive edge in this increasingly competitive labour market.