Real applicants, fake jobs: Why 40% of companies posted mock listings this year

Job seekers put a lot of effort into applying to companies' posted openings. And it turns out some of these positions don't even exist. 

Forty percent of companies posted a fake job listing this year, according to a recent survey from Resume Builder. Of that group, 79% currently have active fake job listings on their sites and other job search platforms. While these companies' intention is to boost interest from talent, the fake recruiting trend could end up being a threat to retention goals instead. 

"Posting fake jobs is not a new thing," says Stacie Haller, chief career adviser at Resume Builder. "For many years, staffing organizations would run jobs all the time so they could build a backlog of prospects ready to reach out to whenever they needed it. But what has been happening lately is taking it to a whole other level."

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Sixty-seven percent of companies posted fake job listings to make it appear the company is open to external talent, according to Resume Builder. Sixty-six percent want it to look like the company is growing, 63% want employees to believe their workload would be alleviated by new workers and 62% so that employees will feel replaceable. And for the most part, it's yielding seemingly favorable results. 

Sixty-eight percent of organizations with fake job postings reported a positive impact on revenue, 65% a positive impact on employee morale and 77% a positive impact on productivity. But can good numbers justify the dubious ethics behind the tactics? Moreover, are the practices even sustainable? Haller doesn't think so. 

"The only explanation for these outcomes is that they're achieving them through fear," she says. "You're making people be more productive by making them scared to lose their jobs. How does that increase productivity or revenue or morale in the long term? I don't see how it can without some kind of negative impact on the employees themselves." 

Still, there seems to be a healthy and beneficial strategy to using fake job postings. Fifty-nine percent of organizations use them to collect resumes and keep them on file for a later date, which could be how an applicant gets their foot in the door. The survey found that oftentimes candidates were interviewed for fake positions, with 39% of respondents indicating that candidates were always contacted.

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"At least the process gave applicants exposure, and if the interview went well and  the organization has a job that's a fit for you in the future, they have the means to get in touch with you," Haller says. "I don't think that's a bad way to run a talent acquisition department, it's just important to be honest about it." 

Inevitably, problems will arise when employees catch on and notice that the jobs are never being filled and their workloads aren't lightening. Then the very strategies put in place to boost productivity, morale and revenue will begin to work against these companies, and they'll likely be left with high turnover rates instead. Haller does, however, believe that as talent gets younger, the trend will reverse itself as new expectations and cultures give way.

"The new generations care more about the world and humanity and mental health issues," she says. "It's my hope that they're also going to prioritize truth telling and that they won't put up with this."