Ai in recruitment

Equity, Efficiency and Happy Candidates: How AI is Changing the Recruitment Landscape

Published: 29 May 2023
Author: Recruiter On Demand

In today’s competitive employment market, recruitment processes need to be slick, efficient and, of course, find the best matches for any given role.  AI offers powerful tools to do all that – from eliminating bias to increasing candidate satisfaction and quickly identifying eligible candidates. And it helps to make the process more efficient, ultimately making it more cost-effective. 

Many businesses are already putting AI to play in their recruitment processes (think Amazon, Nestlé and Unilever). According to the Society of Human Resource Management, 88% of companies globally already use AI in some way for HR.   

But it is no silver bullet. At least not yet. We take a look at the pros and cons of introducing AI into your hiring process. 

Part 1: What does AI bring to the table?

Nearly 67% of HR professionals believe that AI has many benefits and a positive impact on the recruitment process. Here are some of the reasons why.

Saves time and money
AI automates some of the more cumbersome parts of the recruitment process, making it faster and less expensive. That could be screening CVs, scheduling interviews (and even conducting them), or running behavioural and skills assessments.

Quickly identifies eligible applicants
AI tools can rattle through large volumes of CVs quickly, sifting out those whose skill sets match the job requirements. Not only that, it can source potential candidates who may not have made an application but could be a great fit – as well as analyse a candidate’s social media and online behaviour. That’s a potent way to identify great candidates, swiftly.   

Eliminates human biases (or at least limits them)
One of the biggest benefits of AI in recruitment is the opportunity to remove human biases – because it can be far more objective than we are. How does it work? Well, AI focuses solely on skill sets and candidate experiences. Unlike humans, it won’t, for example, be subconsciously influenced by the colour of someone’s hair or the font they’ve used on their CV. Removing bias will help to create and support a more diverse workforce.

Delivers data-driven insights to enhance the hiring process
Using data and stats to inform hiring decisions makes the recruitment process more efficient and cost-effective. AI can empower recruiters with new insights and information. It does this by analysing data to shine a light on issues such as:

  •         where budgets are going awry
  •         specific process areas that could be streamlined
  •         benchmarking and tracking the time-to-hire.

Increases candidate satisfaction
95% of HR professionals think that AI could help with the application process for candidates. That might include eliminating biases to make a more even playing field, prompt communication through the use of chatbots, and speeding up the recruitment process. 

And that’s important because a happy candidate is more likely to stick around for an offer, rather than getting snapped up by another company. They’re also more likely to become an ambassador for your company – great for boosting your employer branding.

Typing on a laptop

Part 2: Where does AI fall down?

So far, so good. But there are also some drawbacks to be aware of when applying AI to hiring processes.   

Reinforcing bias, unintentionally
There’s a danger that AI will learn and reproduce any unintentional bias. A well-known example of this was Amazon’s use of AI in its hiring process, which learnt that historically women had been discriminated against. Amazon had to scrap using the system as it had learnt to be sexist.

Keeping data private and secure
AI can process data on an unprecedented scale. That could be a threat to keeping data private and secure. So before introducing any new AI project, it’s important to make sure it’s compliant with laws and regulations, including GDPR.

Insufficient openness in AI algorithms
AI algorithms are mysterious and complex – only really understood by a few. That’s why it’s crucial to be transparent about how data is being used to make decisions. Knowing how the systems do this will help stakeholders to trust the systems and build confidence in them.

Balancing the use of AI with human judgment and intuition
AI algorithms are all well and good, but at the end of the day, humans are human. The way we respond to each other is complicated and largely subconscious. It’s often indefinable qualities that can make a team gel, or disconnect. Human judgment and intuition go a long way and still needs to be a key element of the recruitment equation.  

 

Colleagues discussing coding

Part 3: How will AI affect recruitment in the future

As AI tech continues to advance, we’ll see even more innovative solutions in the recruitment space. We might see:  

More tailored and targeted recruitment techniques using chatbots and virtual assistants
We’re likely to have even more AI-powered chatbots helping candidates with applications, giving feedback on applications, or virtual assistants managing the whole selection process. 

Predictive analytics are being used more to find top prospects
This can help identify skills and characteristics essential for a specific role, from vast candidate pools. And by analysing an applicant’s social media presence, can help to make great fits with a company’s culture.

Recruiters and HR professionals may lose their jobs
Tidio found that 77% of HR professionals believe that soon people won’t have to be involved in the recruitment process at all. How likely that is is debatable. Because at the end of the day, the connection between two humans – that is core to recruitment – can never be replicated by AI.

The upshot

AI is a game changer. It’s already shifting the recruitment landscape, helping to make it more efficient, effective and fair. But as we’ve seen, there are also drawbacks.

It is evolving and will continue to do so. That’s part of its very nature. So it’s crucial for companies using AI to recruit to be conscious not only of new advances, but the ethical implications they bring. 

That way firms can intelligently incorporate AI into a recruitment strategy, and reap the benefits.

 

Get in touch

At Recruiter on Demand, we understand just how important it is to run a swift and smooth hiring process. We work as part of your recruitment team to hire the best candidates for your company and pride ourselves on our expertise and efficiency.