The traditional resume is a relic of the past, rapidly losing its place in modern hiring processes. For years, resumes have been the cornerstone of job applications, offering a snapshot of a candidate’s skills, experience, and qualifications. However, the rapid rise of new technologies, the prevalence of AI-generated resumes, and the increasing mistrust in traditional application documents have made the resume an outdated tool. Companies are pivoting toward more dynamic, holistic approaches to hiring, such as asynchronous interviews, video evidence, and AI-driven platforms like McCoy.

The Decline of the Resume: Why It’s Becoming Obsolete

1. Fake Resumes and Misinformation:
   One of the major issues plaguing the traditional resume is the increasing frequency of fraudulent claims. According to a 2022 study by Checkster, 78% of recruiters report encountering candidates who falsified information on their resumes, with the most common lies being exaggerated job titles, inflated salaries, and fabricated educational credentials. This growing issue has led employers to question the reliability of resumes as an accurate reflection of a candidate’s qualifications.
2. AI-Generated Resumes:
   The rise of AI tools that can create highly polished resumes is further contributing to the decline of traditional resumes. Tools like ChatGPT and others enable candidates to quickly generate convincing resumes, sometimes with little to no actual experience or qualifications to back them up. In a world where AI can fill in the gaps, the resume has become an unreliable barometer of a person’s true capabilities.
3. Companies Losing Trust in Resumes:
   Hiring managers are increasingly skeptical of resumes as a sole indicator of a candidate’s potential. A 2023 survey by LinkedIn revealed that 62% of hiring managers stated they no longer trust resumes alone to assess a candidate’s suitability for a job. This shift reflects a broader trend in hiring practices, where soft skills, problem-solving abilities, and cultural fit are prioritized over paper qualifications.

What Is Replacing the Resume?

As the resume becomes obsolete, a range of innovative solutions are emerging to replace it in the hiring process.

1. Asynchronous Video Interviews:

Video interviews are not new, but the asynchronous format—where candidates record responses to pre-set questions—is gaining popularity. Companies like HireVue and VidCruiter allow hiring managers to review pre-recorded videos at their convenience. This method not only provides a more comprehensive picture of the candidate’s communication skills but also saves time for both parties.

• Impact: By moving away from traditional resume screenings, employers can assess candidates’ actual communication skills and presence before inviting them to a live interview.

2. Video Evidence of Skills:

In certain fields, particularly in tech and creative industries, candidates are now being asked to submit tangible examples of their work through video or portfolio submissions. For instance, software developers might submit coding challenges that they’ve solved on platforms like GitHub, while graphic designers can present video portfolios showcasing their design process.

• Impact: This method allows employers to assess actual capabilities and job-related skills, providing a more accurate evaluation than a resume ever could.

3. AI-Driven Platforms (McCoy, HireEZ):

Platforms like McCoy and HireEZ use AI to screen candidates, assess their fit for specific roles, and match them with relevant job opportunities. These platforms often consider a much broader set of criteria than a traditional resume, including past projects, social media presence, and even candidate behavior in online interactions.

• Impact: AI-driven platforms enhance hiring efficiency by helping businesses find the best candidates based on data-driven insights, not just what’s written on a piece of paper.

The Hiring Process: How It Will Be Impacted

The shift away from resumes will significantly alter the hiring landscape:

1. More Transparent and Objective Evaluations:
   As employers move toward data-driven platforms and video evidence, hiring decisions will become less reliant on self-reported information and more on observable skills and behaviors. This will lead to more objective hiring processes and reduce biases associated with resume screenings.
2. Longer but More Thorough Hiring Cycles:
   While the initial stages of recruitment may become faster (thanks to AI-driven tools), the overall process might take longer as candidates are asked to submit videos, portfolios, and participate in multiple asynchronous interview rounds. However, the depth of evaluation will likely lead to better matches between employees and employers.
3. Increased Focus on Soft Skills and Cultural Fit:
   With traditional resumes no longer the focal point, companies will place a stronger emphasis on assessing soft skills such as emotional intelligence, communication, and adaptability. Video interviews and AI tools can provide valuable insights into these areas, which are difficult to quantify through a resume alone.

Financial Professionals: Preparing for the Change

For financial professionals, the evolving hiring process presents both challenges and opportunities. Here are some strategies to stay ahead:

1. Build a Strong Digital Presence:
   Given that traditional resumes will no longer be the go-to tool for job seekers, financial professionals should focus on building a robust online portfolio. This might include writing articles on financial trends, sharing case studies, and contributing to industry forums or LinkedIn.
2. Prepare for Video Interviews:
   Asynchronous and live video interviews will become increasingly common. Financial professionals should practice communicating their expertise in a clear, concise, and engaging manner on camera. Recording and reviewing practice responses can help refine these skills.
3. Leverage Data and Analytics:
   Financial professionals should become comfortable with using AI-driven platforms to analyze market trends, client data, and other relevant information. Platforms like McCoy are already using such tools to assess candidates, and proficiency with similar tools will enhance employability in a tech-driven hiring world.
4. Upskill with New Technologies:
   Financial technology is advancing rapidly. Professionals should stay up-to-date with new fintech tools and platforms that incorporate AI and data analytics. This will ensure that they remain competitive in an environment where tech skills are increasingly important.

The Risk of Discrimination: A Double-Edged Sword

While the shift to video and digital portfolios may reduce some forms of bias, it also presents new risks, particularly for non-native English speakers or individuals with thick accents. Studies have shown that candidates with non-native accents often face discrimination in hiring, despite their qualifications. Video evidence, while helpful, could also inadvertently amplify these biases, especially if employers are not trained to evaluate candidates holistically.

Moreover, candidates from underrepresented groups may still face systemic challenges in getting their foot in the door, even with new technologies that aim to level the playing field. It’s essential for companies to provide training for hiring managers to recognize and address these biases, ensuring that the new hiring process is both equitable and effective.

The Future of Hiring: A Timeline

• 2025: Asynchronous video interviews and AI-driven hiring platforms become standard for many industries. Resumes are increasingly viewed as optional, with more companies moving to data-centric tools for evaluating candidates.
• 2027: Video evidence and portfolios replace traditional resumes for most creative and tech-related roles, while financial services firms embrace digital portfolios showcasing quantitative and qualitative achievements.
• 2030: The last remnants of traditional resumes fade away entirely, replaced by dynamic platforms that focus on real-time skills, cultural fit, and the holistic evaluation of a candidate’s qualifications.

The death of the resume is not a death knell for job applicants, but rather a shift toward more transparent, efficient, and skill-based hiring processes. As businesses move away from paper-based qualifications, candidates who adapt by embracing new technologies, showcasing their skills through video and portfolios, and enhancing their digital presence will be well-positioned for success in the future of work. Financial professionals, in particular, must adapt to these changes by staying ahead of technological advancements and focusing on their ability to demonstrate real-world expertise in new, engaging formats. The hiring landscape is changing—it’s time to change with it.