Soon a great resume might not be enough to get you hired at some banks. Big banks like Morgan Stanley and Goldman Sachs may soon be using technology to determine whether or not someone is a good hire (according to the Wall Street Journal).
Here’s why tech for hiring purposes makes sense.
More Than Experience
Hiring someone that doesn’t perform well can cost a company a lot of money, and this is what big companies with a lot of money are trying to avoid. So how can technology help out? It’s all about customized algorithms. So how does a company that develops algorithms manage to determine what makes a good employee for one company and a bad employee for another?
It all begins with something called a ‘corporate fingerprint.’ A corporate fingerprint is essentially the characteristics that make the major and productive players in a corporation tick. What those people do, what traits they share, and how they behave are what a company should look for in potential employees.
By interviewing successful employees within a company, technology companies that develop algorithms can determine what a new hire needs to have in order to be a lucrative hire. The companies developing these algorithms are charging big banks thousands of dollars to create a fingerprint and then an algorithm.
Determining Good Hires
After an algorithm has been created for a specific business or bank, the company that develops those algorithms then tests potential hires in the same manner. Hires can take an online test or provide a short video. Algorithm companies can then look at these videos or answers to questions and see whether or not potential hires have the same traits as successful employees that are already part of a company.
So what traits are companies looking for? It’s more than just education. It’s how a person sits, acts, moves, answers questions - it’s a complex undertaking but one that will be highly effective. Banks no longer want to take a chance on employees that don’t work out. It’s just too costly.
Battle of the Drones
It might seem like selecting employees that think, act, and behave like each other would create an office full of drones - and, therefore, an office that does not come up with truly original ideas. But these algorithms can be used in different ways too. Let’s say, for the sake of dreaming, that a company that develops hiring algorithms decides to study the traits of someone very successful in life like Steve Jobs.
Jobs’s specific traits could then be applied to new hires, so a company could look for hires that are more like Steve Jobs - not necessarily like the most successful guy in the company. It all depends, too, on what position a company is trying to fill. Creative teams are not going to have the same traits as bankers.
Using algorithms to determine the best hires a company can make is a really interesting way to determine who will be the best fit for a company. Right now, big banks are the only ones with enough money to use this hiring method, but I’m betting other companies won’t be too far behind.