Saturday, December 21, 2024

“Ghost jobs” are on the rise

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Americans looking for jobs are falling victim to “ghost jobs,” a recent survey has found.

A June study by Resume Builder has found that three in 10 job listings posted online are for roles that don’t actually exist or that the company has no real intention of hiring for. The survey interviewed hiring managers from nearly 650 companies to assess how widespread fake job postings are and whether hiring managers believe it an acceptable practice.

Overall, 39 percent of hiring managers surveyed reported that their company posted a fake job in the past year. And these hiring managers said the idea to post fake job listings was most likely to originate from human resources (37 percent); senior management (29 percent); executives (25 percent); investors (5 percent); or consultants (4 percent).

Photo-illustration by Newsweek

“It’s a concerning scenario, particularly when these misleading postings originate from HR departments—the very entities entrusted with shaping accurate perceptions of their organizations,” Stacie Haller, Resume Builder’s chief career adviser, said. “Whether it’s to create an illusion of company expansion or to foster a sense of replaceability among employees, such practices are not acceptable.”

Among the companies that posted ghost jobs in the past year, approximately 26 percent posted up to three fake job listings; 19 percent posted five; 19 percent posted 10; 11 percent posted 50; 10 percent posted 25; and 13 percent posted 75 or more.

These fake job listings covered all levels of employment. The survey found that 63 percent were for entry-level roles; 68 percent for mid-level roles; 53 percent were for senior-level roles; and 45 percent and executive-level roles.

“Employers posting fake or ‘ghost’ job listings online is a disturbing trend and growing problem in the job market,” Haller said. “This highly unethical tactic can impact job seekers’ perceptions and organizational trust.”

Describing the tactics as deplorable, Haller said companies are failing to foster an environment of trust and honesty that would benefit not only employees “but also contributes to the long-term success and reputation of organizations.”

However, the survey also found that posting fake job listings has some benefits. Of the 649 companies taking part in the research, 68 percent said it had a positive impact on revenue, as well as increasing employee morale in 65 percent of companies. It also found that 77 percent reported boosted productivity when fake job postings were active.

“Fake job listings can prove to be informative if an organization is looking to gauge the labor market in a particular area or for a specific skill set,” organizational psychologist and founder of IA Business Advisors Brian Smith told Newsweek.

“In some cases, companies might use them to understand the competition or the availability of talent. Despite this, the potential negative impact on job seekers and company reputation outweighs any informational benefit.”

Still, the prospect of posting ghost jobs doesn’t bother around seven in 10 hiring managers, with the research finding that 43 percent of hiring managers believe it is definitely acceptable, while 27 percent think it is probably OK. On the other end of the scale, 20 percent probably don’t consider it acceptable, and 10 percent think the practice is in no way justifiable.

Other research has indicated there are further reasons for putting up ghost job postings. In 2023, Clarify Capital surveyed 1,000 hiring managers in October 2023 and discovered that 50 percent of them posted roles to keep a warm talent pool “at the ready” for future hiring.