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about 2 years ago by Next Generation
How AI is changing the game for recruiting
As in many industries, Artificial Intelligence (AI) is now being used in HR to improve the job search process. According to the recent Deloitte Human Capital Trends report, 38% of companies are now using AI, and over 62% are expected to be using it by the end of the year. It can no longer be ignored by companies in favour of more traditional means.
AI is quickly emerging as a key tool in the toolbox of an HR or hiring manager due to talent scarcity and low employment rates. Research through AI is already proving a success. According to a recent Deloitte Bersin report, the companies that employ AI, predictive data analytics and other forms of technology tools are far more successful than those who don’t. These companies have achieved 18 percent higher revenue and more than 30% greater profit to those that don’t currently use these tools. Some of these tools may include Mya, Arya, Olivia and Pomato.
Besides helping source candidates, AI has also helped eliminate bias in the hiring process. According to Deloitte’s press release on the report, “The practice sharpens the talent acquisition function by using data-driven analytics and digital, cognitive tools to better source and assess candidates and prevent possible misjudgments caused by bias or false logic.” Relying on LinkedIn and other traditional recruiting methods will not cut it anymore as many companies are searching for passive candidates – those people who are already employed by a company but are not actively seeking a new position elsewhere. Even today, most recruiters are still taking the traditional route to source candidates, but that is no longer enough. Here are some ways AI is completely changing the recruitment industry today and how it will have a greater impact going forward.
MAKES SENSE OF SEMANTICS
Artificial intelligence and machine learning tools in recruiting are greatly helping recruiters deal with the time-consuming problem of the semantics in CV examination. For example, when hiring managers are searching for the right fit candidate to fill a Digital Marketing Manager position, the easiest route to take is to search for only those people whose CVs note a past Digital Marketing Manager role as they’d have the relevant experience.
However, the problem with this approach is that in marketing, a variety of titles can mean the same thing which in effect should eliminate a number of qualified candidates whose current job title might be “Senior Digital Marketing Executive”, “Digital Marketing Specialist” or “Digital Marketing Coordinator”. Further, within those job titles, not all candidates will accurately describe their job function as it is worded within their job description, which can often leave even more qualified candidates missing out on a potential opportunity.
FOCUS ON THE HUMAN ELEMENTS
AI and machine learning are helping recruiters and hiring managers to make more informed decisions to help source better candidates, but they’re also freeing up the time to focus on the parts of the jobs that technology can never hope to fill: the human elements. Hiring and recruiting involves a lot more than simply sorting CVS and scheduling interviews for candidates; the process is very much about human interaction – engaging with candidates and connecting with applicants to make the best hire for the company. This interaction ensures that potential candidates are aligned in terms of their experience, their skills their technical expertise along and most importantly their cultural fit.
The time saved by AI and machine learning in finding a pool of candidates can now be spent on developing relationships with top shortlists, which is sure to have a more positive impact on your hiring and recruiting efforts.
MAKE FASTER HIRES
We’ve all been in a situation where the hiring process has dragged on. Unfilled jobs cost money and result in missed opportunities, and the process for finding candidates is often expensive – between the cost of advertising the job, allocating time for interviews, scheduling and assessments, and following up post-interview. Open positions can go unfilled for months for a number of reasons, including poor communication between the HR manager and the department head who is looking to fill a role.
Conversely, companies using artificial intelligence can sit down with HR and hiring managers and run through different scenarios in real time. It also allows them to get feedback from employers and input additional data into the algorithm to further refine the search to the exact type of candidate they want or need. This technology can speed up the process from months to days which is a massive shift away from the more traditional route to sourcing a candidate through job boards,LinkedIn and cold messages/calls.
FILL YOUR PIPELINE
When it comes to hiring, the best approach is to be reactive. Having candidates in your pipeline instead of running ad-hoc searches to find the best-fit person will lead to more successful hires. AI can help identify potential candidates for a role – especially those hard-to-fill positions which can take many months to fill. Bots have the ability to multi-task and scan through thousands of CVs, giving a greater chance of more candidates making their way through your talent pipeline who may have otherwise been overlooked.
However, as good as bots are at automating some of the manual processes, they’re not at a point whereby they fully understand a company to know what candidates are a cultural fit. This technological evolution is growing, but it’s not quite a finished product yet.