DavidI’ve been working in the tech industry pretty much my whole career. I love the challenges and opportunities B2B SaaS companies provide. However, beneath the shiny brands lies a controversial and often frustrating practice: requiring job seekers to complete unpaid assignments as part of the interview process.
As a job seeker (especially in a very tough market), I can't help but question the fairness of this system. Are these assignments truly necessary? Or are they simply a means for companies to extract free labor from desperate candidates?
I hear employers trying to justify an assignment by claiming they want to “assess” whether the candidate possesses the necessary skills for the role. These assignments can vary greatly, from coding a website, writing a 30/60/90 day plan, mapping out an onboarding program, or even asking a graphic artist to create samples for a new logo.
I personally have spent dozens of hours working on different types of assignments depending on the hiring manager and company. To be fair, all but two assignments were in the final round so I felt I had a really good chance of securing the job. Was I ever offer a monetary incentive? No. Did I get any offers? Nope. Did I deliver some solid work which they praised me for and received pro gratis? Absolutely. Was I a little upset after the fact? Sure. Also, to be clear, the monetary amount should be nominal. It’s more of a good gesture showing they respect my time. More on that later.
I can somewhat see the value here but such demand of time and effort from applicants without even guaranteeing they are in the final round or about to receive an offer seems unfair. I’ve also read about some candidates who claim that their ideas were utilized without their consent, and without receiving any recognition or compensation. I’ve felt the same from past assignments. Did I just give them a playbook for free when a consultant would’ve charged a few thousand dollars? How about this. Should candidates have companies sign an NDA to protect their work?
It's time to consider compensating candidates for their time and effort during assignments, leading to a more equitable hiring process.
The Problem: Companies Taking Advantage of Job Seekers
From my experience over the past five months, the current norm in the tech industry often involves half a dozen (or more) interviews, take-home assignments, panel presentations, and a lengthy decision-making process, all without guaranteeing a job offer. In addition, there are gaps of communication from the recruiter which usually means one of two things. They are still pushing other candidates through the process and/or they already extended an offer to someone else.
If you’re their top pick, you’re treated like a king/queen and comms are frequent. But once you lose that #1 position, you’re thrown to the wayside like trash. Now this is a general statement and isn’t always the case. Some recruiters are very good at their jobs but the vast majority aren’t trained properly and flat out suck. They may also be inundated with applicants due to the recent layoffs but they should still figure out a way to respond to candidates who have gotten to the second stage or beyond.
Job hunters are forced to endure this gauntlet, investing time, energy, and resources into a process that offers no compensation or guarantee of success. Meanwhile, recruiters and hiring managers are paid for their time, further increasing the imbalance between employers and candidates.
The Solution: Compensating Candidates for Their Time
Given the challenging job market and the mental and physical strain on job seekers, it's time for companies to consider paying candidates for their time during interviews and assignments. This shift would lead to several benefits:
- Encouraging Efficiency: If candidates are compensated for their time, companies would be more inclined to scrutinize the number of interviews and streamline the hiring process. The finance team would then likely question the necessity of multiple interviews, encouraging a more efficient approach to candidate selection.
- Empowering Hiring Managers: Paying candidates would prompt hiring managers, recruiters, and HR professionals to make decisions more independently, rather than relying on consensus from a large number of people who may not be directly involved in the position.
- Reducing Opportunity Cost: When multiple individuals are involved in the hiring process, it consumes time that could be better spent on their primary job responsibilities. By streamlining interviews, companies can reduce the opportunity cost associated with extensive hiring procedures. I’ve been on both ends of this spectrum. It’s a one hour time commitment for the interviewer (multiply that by X for each additional person) which hurts productivity.
- Demonstrating Appreciation: Providing compensation, even just a nominal amount (like $150), shows candidates that their time and effort are valued. This gesture can foster goodwill and improve the company's reputation among job seekers. It’s more the principle vs the dollar amount which can really go a long way.
- Addressing Exploitation: Compensating candidates for their time and effort would help to mitigate the perception that companies are taking advantage of job seekers by requiring extensive unpaid work during the hiring process.
Just to reiterate, I think the tech industry as a whole needs to reassess its hiring practices and consider compensating candidates for their time and effort during any required assignments. This comes from my personal experience as well as people I’ve spoken with or read about on LinkedIn. Unemployed candidate time is valuable, people. Don’t waste it just to reach your quota.
While I’m on my soap box, another huge issue I see is that most recruiters fail to keep in constant communication with their candidates along the entire journey. Don’t have an update? Just send a quick email letting us know that! Silence usually makes someone fear the worst. When a recruiter sends me a detailed update (good or bad news), I always make sure to say, “Thank you!” because they need to also know it’s helpful.
Ok, back to my final thoughts.
It's time to challenge the status quo and demand a more equitable hiring process. After all, if the tech industry is truly committed to fostering innovation and change, it must first address the very practices that exploit job seekers and perpetuate inequality. By compensating candidates for their time, companies can demonstrate their commitment to fairness and integrity, setting a new standard for the tech job market and beyond.