When it comes to hiring practices, it is argued that the bias against the unemployed is just as prevalent as age discrimination. A 2018 study found that not only does a bias exist against the long-term unemployed (27 weeks or more) but even against those who are newly unemployed or just laid off. Even though many have experienced being unemployed at some point during their career, the groundless bias against unemployed applicants prevails.
In May of 2019, the unemployment rate was at 3.6% in the United States compared to the 13.3% unemployment rate in May 2020. Millions of Americans have lost their jobs in recent months and so now more than ever, the opportunity to improve hiring practices exists.
The longer an individual is unemployed, the harder it is for them to find work. This is because there is a false assumption that if someone has become unemployed, there must be something about the individual that is unemployable. The longer a person remains unemployed, the more they are seen as unmotivated and with outdated skills. These assumptions are all incorrect.
Reasons Why
• Unemployed candidates are viewed as lazy or "out of touch" when it is actually the opposite. Unemployed candidates are often the people brushing up on industry research and updating skills they didn't have time for while employed.
• There are many reasons why a candidate might be unemployed and it has nothing to do with qualifications or ability.
• When hiring someone who is unemployed, you don't have to worry about counter-offers and these candidates can typically start their new job sooner.
• Studies have shown that companies that hire an unemployed candidate experience higher retention rates and are rewarded with a more loyal workforce.
• Consider that a candidate might not have been willing to settle for the first opportunity that came their way. They could be looking for the long-term career that accurately matches their skills. If they applied for your opportunity, they are very serious about it.
• You are only harming your own competitiveness by dismissing completely qualified unemployed applicants for open positions.
How to Make the Change
As an employer, there are things you can do to extinguish the bias against the unemployed:
• Focus only on the skills and qualifications to be successful in the role.
• Document your hiring decisions and evaluate other's hiring decisions.
• Standardize methods for evaluating candidates that can be repeated for any position. It’s more likely that a hiring decision is prejudiced if it’s made under the guise of a ‘bad fit.’
• Create careful and accurate job descriptions.
• Use resume scanning/application screening based on the specific job description.
• Perform a job analysis for every position inside the organization, especially for positions that appear to be in demand, so you can get an accurate feel for the skills being sought.
Conclusion
As an employer, it is okay to ask an applicant about a gap on their resume or why they are currently unemployed. In our experience, more often than not, there are very reasonable explanations. We all must do our part to change the prejudice mindset against the unemployed and it can happen with through better communication.
