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Home Business & Finance Entrepreneurship

5 Outdated Hiring Practices You Need to Stop Doing Now todayheadline

March 13, 2025
in Entrepreneurship
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Opinions expressed by Entrepreneur contributors are their own.

Technology has come a long way. Instead of applicants showing up in person in your office, they send their resumes via email. Instead of looking for jobs in newspaper ads, people are most likely to check job platforms.

Many hiring and application strategies have changed in this digital and data-driven world. Some are even nonexistent, like faxing your resumes. However, there are some outdated methods that people still use to this day, even when they don’t make any sense.

Here are some old-school hiring strategies that you need to stop doing now.

1. Requesting cover letters

The purpose of cover letters is for candidates to introduce themselves to the hiring manager. In this information age, a quick Google search or a quick view of someone’s LinkedIn profile can tell you just as much as a cover letter.

Nowadays, only 38% of applicants submit a cover letter, even when the job post requires it — and that number will continue to go down. If you make the cover letter section required in your web form, then a lot of potential applicants will probably just choose not to apply and close the window. And with the advent of ChatGPT, most cover letters will not even accurately reflect applicants’ own personalities and writing styles.

Instead of relying on cover letters, consider more modern ways to assess your candidate’s personality and skills, such as introductory video submissions, skills assessments or a simple answer to a question relevant to the position.

Related: AI Is Changing How Businesses Recruit for Open Roles — and How Candidates Are Gaming the System

2. Asking for a resume when you have a web form

Don’t make it hard for your applicants and have redundant stages in your hiring process. Having a lengthier process may also make the process more complex and uninviting, leading to more barriers for your applicants.

Although having a web form can make it easier for you to parse information to your ATS when resumes have different formats, advocate for a simpler process — applicants will thank you for it. If you need a specific format or information in your applicant’s resume so they can be read by your ATS more easily, then indicate that in your job post.

If only a few followed your instructions, then great. You only need those kinds of candidates anyway.

3. Having more than three rounds of interviews

If you weren’t impressed enough or didn’t learn enough about an applicant during the first or second interview, maybe you’re just bad at interviewing. When setting up your interview process, make sure it’s streamlined — meaning each stage should have specific goals.

Before any interviews, you can send a test to shortlisted candidates to assess their problem-solving ability, skills and basic qualifications. Then, the first interview can focus on cultural fit, work experience and expectations.

The next interview, if necessary, can be reserved for final decision-making. If you have other interview stages after that, then make sure they’re not redundant… but why would you?

4. Caring about years of experience instead of actual skills

About 20 years ago, professional ability was assessed based on their job title and linear moves up the corporate ladder. Now, professional ability is assessed based on their original ideas and actual work that can be seen online.

The nature of work itself has changed following the rise of digital platforms, the gig economy and more. With today’s skills-first approach to hiring, portfolios, case studies and even social media presence can tell a better story than a candidate’s resume.

On my job platform, OysterLink, I’ve seen many hotel managers start out without experience and work their way up by building their skills with hands-on learning. With the changing workforce dynamic, you’re better off focusing on people’s skill sets and potential rather than the length of their resumes.

Related: Why Prioritizing Soft Skills in Hiring is Crucial to the Modern Workplace

5. Offering one-size-fits-all benefits

Only a set of flexible benefits can work for a modern, diverse workforce. You are hiring for a position that would probably attract applicants of all ages at different stages of their lives. Because of this, a one-size-fits-all approach may not … fit all.

Younger employees might be looking for student loan assistance or professional development programs. Those with children might focus on getting health insurance plans, while others planning for the long term might prioritize retirement contributions or savings programs.

You want to make your employees feel safe and secure in their company — enough that they think that your company actually cares. And when you care, they’re more likely to care about their work.

By improving your hiring practices, you also improve the quality of your candidates and new hires. You’d be more likely to hire talent with not just the skills but the mindset you’re looking for. With a modern, streamlined process, you can reduce turnover, save time, adapt and build a team that can grow with your business.

Tags: Cover lettersEmployee ExperienceEmployee Experience & RecruitingGrowing a BusinessHiringHiring Employeeshiring processLeadershipManagementOutdatedpracticesRecruitingResumesstopThought Leaderstodayheadline
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