How do companies benefit from ghost jobs

Posting ghost jobs is a controversial practice in the recruitment industry. It refers to the posting of fake job openings by a company to gauge the availability of talent in the job market. The company has no intention of filling the position, but is only seeking to understand the talent landscape in the industry. While some organisations believe this is a useful method to understand the talent market, others argue that it is unethical and can harm the company’s reputation.

Why are ghost jobs posted?

To understand the talent market: One of the main arguments in favour of posting ghost jobs is that it helps companies obtain a fair idea of the talent market. “Frequently, companies advertise job openings that they have no intention of filling to gauge the current state of the job market in terms of the talent supply,” says Sunil Singh, senior HR leader.

“Sometimes employers post ghost jobs they don’t plan to fill just to enter the talent benchmarking,” points out Udbhav Ganjoo, head HR, global operations, Viatris.

To remain competitive: Another benefit is staying competitive in the market in terms of pay scale. “If employers are unaware of the market conditions, they may either overpay or underpay for the job, which is generally, the first consideration,” opines Singh. Therefore, companies can also use the data to benchmark their salaries and benefits against industry standards, ensuring that they remain competitive in the market.

To fill specific roles: There are certain roles that may be a little too complex to fill. “There may be a large-scale hiring requirement or a specific position that is challenging to fill, leading to job postings that stay online for a long time,” points out Ganjoo. While these are not ghost jobs, talented candidates are aware of such positions and the job market. Therefore, companies need to actively seek them out through other means rather than relying solely on job postings.

To measure effectiveness of hiring strategy: This practice also allows employers to determine the level of importance for a specific skill in the current job market. “If only a small number of individuals possess that skill, and the company is receiving an adequate number of applications, it provides an insight into the effectiveness of the current recruitment strategy,” adds Singh.

“If it’s used for every possible job, the exercise will end up resembling the advertising or promotion of products that aren’t available in stock. This will only break the trust of potential candidates, who will then hesitate to apply in the future.”

Sunil Singh, senior HR leader and founder, Mindstream Consulting

To gauge brand perception: It helps understand the sentiment of employees towards the brand. For instance, if there are many individuals with a certain skill actively looking for jobs, but only few are applying to the company posting the job, then it may indicate a negative perception of the company’s brand among job seekers. This gives a fair idea of the overall sentiment towards a company’s brand.

To understand availability of skills: Posting of ghost jobs helps comprehend the supply side of the job market. “It allows employers to identify the availability of a particular skill. If there is a shortage of the required skilled talent, the necessary push can be given to recruitment efforts. Thus, it serves multiple purposes,” points out Singh.

Is posting ghost jobs the ideal way to search for required talent?

Posting fake jobs can have its adverse effects.

Unethical: In Ganjoo’s opinion, “This may give the employers an overview of the talent landscape, but it’s not an ethical practice that can continue for a long time.”

“A better way is to create a database of candidates with similar skill sets and assess competitive talent in the market for critical positions. Companies can also showcase their activities on social media to attract talent.”

Udbhav Ganjoo, head HR, global operations, Viatris

Betrayal: By posting fake job openings, companies can create a negative impression in the minds of potential candidates. “Job seekers may feel betrayed or deceived, leading them to question the company’s honesty and transparency. This, in turn, can even make it harder for the company to attract top talent in the future,” he warns.

Frustration: In addition to the ethical concerns, posting ghost jobs can also be a waste of time for candidates. Job seekers who apply for fake positions are unlikely to receive any response from the company, leaving them feeling frustrated and discouraged. This can lead to a negative impression of the company and spreads negative word-of-mouth that ultimately discourage other candidates from applying for future openings.

Lack of trust: It also creates a sense of fear among the talented employees (in the company), as they’d then wonder if they are being replaced or if there is going to be restructuring. Similarly, “When the existing employees get to know about such ghost postings, it can also shake their trust in the brand. They’d prefer not to refer their friends or relatives to work at the company,” says Ganjoo.

Oversupply: By posting ghost jobs, companies may be creating a false sense of demand for certain skills. This can lead to an oversupply of candidates with those skills, while other areas may remain underserved. This can further widen the skills gap, making it harder for companies to find the right talent for the jobs they need to fill.

What can be done?

While posting such positions can attract some suitable candidates, it’s not the recommended approach.

“A better way is to create a database of candidates with similar skill sets and assess competitive talent in the market for critical positions. Companies can also showcase their activities on social media to attract talent,” suggests Ganjoo.

Not every job seeker will apply to every company. By studying the applications received, companies can obtain a fair idea of the type of people interested in the role(s). However, if the ghost job strategy is overused, it can create a negative perception that the company is only interested in collecting data rather than genuinely hiring. This can damage the brand’s reputation and lead to a loss of trust from potential candidates.

If used correctly, the ghost job strategy can be used to assess the value of the company’s brand, the current market supply of specific skills, and whether the timing is right to recruit. On the other hand, “if it’s used for every possible job, the exercise will end up resembling the advertising or promotion of products that aren’t available in stock. This will only break the trust of potential candidates, who will then hesitate to apply in the future,” concludes Singh.

“Companies should be transparent about the actual jobs they have and post only those. There are other ways to draw talent, but they differ from company to company. Transparency is crucial to attract talent and demonstrate their (companies’) true value,” asserts Ganjoo.