Career Connection: The Psychology Behind Hiring: Why the Hidden Job Market Thrives | AIChE

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Career Connection: The Psychology Behind Hiring: Why the Hidden Job Market Thrives

Career Connections
April
2025

In career management, one of the most common misconceptions job seekers have is that every open role is always publicly posted. This belief leads many to rely solely on online job applications, only to be frustrated with minimal results. In reality, many jobs, especially at the senior level, are filled without being advertised. This “hidden job market,” explored in the February 2025 Career Connection column (p. 26), often leaves job seekers unsure of how to access these opportunities. Psychological factors, such as trust, risk aversion, and decision fatigue, drive the hidden job market. Understanding these drivers can help you leverage them to your advantage.

What is the hidden job market? The hidden job market refers to unadvertised roles filled primarily through internal promotions, employee referrals, and direct recruiter outreach. This dynamic creates a “Catch-22” for job seekers: You need a network to access these hidden roles, but building a network often requires an initial foothold within an industry or company. Unfortunately, few job seekers receive training in networking and relationship-building as part of their career development.

Hiring in general is a gamble. Beyond salary expenses, a bad hire can disrupt teams, lower productivity, and increase turnover. To minimize risk, companies prefer hiring through referrals and internal promotions...

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