Exploring the impact of AI on hiring processes in five Areas
In today’s fast-paced business landscape, artificial intelligence (AI) is changing how organisations approach talent acquisition (TA).
In 2024, HR managers, talent acquisition teams, and hiring managers will turn to AI-powered solutions to streamline their hiring processes. Findings by AI-powered talent intelligence company Eightfold show that 92% of HR leaders will increase their use of automation in at least one area of talent acquisition. Recent data from the Pew Research Center found that 60% of companies believe AI will be fundamental in managing talent acquisition. And 65% of recruiters have been utilising AI for recruitment.
AI is becoming an impactful conversation across businesses, and AI is already reshaping HR and talent practices. Here is how AI is reshaping recruitment in five key areas:
1. CV Screening and Shortlisting
The days of sifting through stacks of CVs with only seconds to read them are long gone. In recruitment, companies have for a long time automated their vetting of applications and used applicant tracking systems (ATS) to scan CVs. AI algorithms evaluate CVs, filtering out candidates who don’t meet specific criteria. Whether it’s assessing qualifications, experience, or skills, AI can bring consistency and objectivity. This automated process accelerates shortlisting, enabling recruiters to focus on assessments and interviews.
Yet, according to findings from Intelion Systems' report 'AI Recruit, Intelligent Tomorrow', 67% of hiring decision-makers value AI for its time-saving features, yet 35% express concern about its potential exclusion of candidates with unique skills and experiences.
2. Automated Candidate Sourcing and Precision Candidate Matching
AI-driven algorithms analyse large datasets to identify the most suitable candidates based on skills, experience, and cultural fit. Using AI to search for candidates within a database streamlines the process, helping recruiters identify the best matches. This precision ensures that hiring efforts are targeted and aligned with business needs. AI-driven tools can scan online platforms to identify potential candidates. By analysing job descriptions (JDs) and matching them with suitable candidate profiles, these algorithms save time for HR professionals.
3. Predictive Analytics for Candidate Fit
In recent years, people analytics has been a useful asset to HR teams. AI takes people analytics even further. It can analyse historical data to predict candidate success. Equipping recruiters with data and intelligence around candidate capabilities is powerful. By examining patterns from past hires, AI identifies traits associated with high-performing employees. These insights can guide decision-making, helping recruiters identify candidates who align with the organisation’s culture, values, and job requirements. Data analysis empowers HR managers to make informed decisions. By extracting insights from large datasets, organisations can identify trends, predict candidate success, and optimise their hiring strategies. Predictive analytics can minimise hiring biases, reduce costs, and enhance long-term retention.
Predicting future skills gaps is vital in 2024. According to the World Economic Forum (WEF), half of us need to reskill in the next five years. 76% of HR leaders believe understanding skills and capabilities across their workforce is vital to long-term organisational success. To compete for and retain top talent, there is an opportunity to double down on understanding what people are capable of now and what skills they need to succeed today and tomorrow.
4. Enhancing the Candidate Experience through AI
Chatbots powered by AI can enhance candidate engagement. This can be useful to large businesses with a long hiring cycle, such as graduate recruitment programmes. This real-time engagement can answer queries, schedule interviews, and give feedback. Candidates can get instant responses throughout the application process, improving the candidate experience.
5. Insights into Diversity and Inclusion (DE&I)
AI can uncover hidden biases in recruitment processes. AI can help mitigate unconscious biases in the hiring process by focusing on objective criteria. This promotes diversity and inclusion, ensuring that the best candidates are chosen based on merit. By analysing data, it can reveal disparities related to gender and ethnicity. HR teams and talent acquisition managers can address diversity gaps, and create inclusive job descriptions.
AI in HR
In addition to these areas, firms may use AI in other areas of their HR processes. For example, to:
- Maintain staff records
- Deliver payroll and manage employee benefits
- Distribute employee benefits
- Record employee performance and productivity
- Onboard new starters
The Future of Hiring
Automating routine administrative tasks, such as CV screening and interview scheduling, enables HR professionals to focus on the strategic aspects of talent acquisition. In a competitive recruitment landscape where the demand for skilled talent is high, using AI well can speed up the process.
The future of hiring lies at the intersection of human expertise and AI-driven insights. While AI is reshaping recruitment by optimising efficiency, reducing bias, and enhancing candidate experiences, close attention needs to be paid. HR and hiring are fields that need empathy, understanding, and emotional intelligence (EI). While AI can handle repetitive tasks and analyse vast amounts of data, it cannot comprehend the nuances of human emotions and behaviours. There are risks and challenges associated with replacing human touch with automated algorithms.
Understanding how and when to use AI is essential. The human touch in recruitment is essential for both line managers and candidates. Neglecting this aspect of human interaction can make for a poor candidate experience. By leaving everything to AI, hiring managers could miss out on top talent.
As AI continues to shape the recruitment process, let’s embrace its potential but take time to ensure transparency and ethical use of AI tools. These futuristic tools have a role to play in the recruitment process. At Meraki Talent, we maintain that humans will always be the key to successful hiring.