On average, every corporate job in America attracts about 250 resumes, according to Glassdoor for Employees. Of those resumes, about four or six people will be called in for the interview, and only one applicant will get the job.
As you probably know, recruiting and the hiring process have become more competitive over the years, and managers have to sort through reams of resumes to identify the best possible candidates. This work takes lots of time, and the stakes are usually high. The cost of bad hires is unacceptable for most companies, even though they happen occasionally.
Artificial intelligence (AI) can help. AI is all the rage in many business sectors, and it’s no different in the areas of Human Resources and recruiting. And contrary to what you may believe, AI has been around for a while in recruiting. Applicant Tracking Systems (ATS) have been used for years to sort through resumes and grade them based on keywords and other data inputs. They are a prime example of how recruiters and HR managers use AI effectively.
As AI continues to improve, there are more opportunities than ever for recruiters to utilize this fantastic tool. AI systems are great at sorting through massive amounts of data and conducting “narrow tasks” you’d likely outsource to another company, assistant, or intern. For this reason, it’s best to think of AI as a support during the hiring process. There are some things AI will do well, and other things are best left for real humans.
We’ll explain some of the key benefits of using AI to improve recruiting, including challenges to watch for and specific ways to utilize AI.
AI Saves a Massive Amount of Time
According to Indeed, the hiring process can take up to an average of 60 days, but usually, the most talented employees are snatched up before that time. One of the key benefits of using AI in recruiting is that it saves enormous time by automating redundant and tedious tasks, like sorting through resumes.
ATS software is an obvious example of AI automating and saving recruiters time, but there are plenty of other examples, too. For instance, some companies use AI-driven chatbots to answer simple candidate questions and even take over initial phone or video screenings. Alexander Mann Solutions is one example of a company that uses AI tech to schedule interviews and send job offers.
But there’s a catch to all this automation, so beware. Using ATS software to screen resumes seems safe, but using AI-enabled tech to interview candidates may be taking it too far. Even people in the AI industry tend to agree that interviews should be done by actual people, not robots. After all, what impression would you get of a company if you were interviewed by an avatar?
AI Can Potentially Remove Bias
Recruiters and hiring managers are often very concerned about their biases in making hiring decisions and for a good reason. Efforts to eliminate bias in hiring have intensified in recent years, and AI may be able to help.
There are AI tools available by companies like Textio that can help recruiters write bias-free job advertisements and descriptions. Pymetrics is another company that uses AI-powered pre-selection software that calculates a job candidate’s potential success if they were hired. The software enables hiring managers to rely more on data to make decisions instead of their gut instincts, where bias may come from.
However, be aware that no AI system is ever really bias-free. Whoever writes the code for the AI, whether you or the software vendor, is likely adding their own bias into the system. Also, many people say that, ultimately, hiring managers should make final hiring decisions, not the AI itself.
AI Improves Search for Candidates
Sometimes the best candidates for the job aren’t the ones who actually responded to job advertisements or sent in their written resumes. Recruiters and hiring managers spend a lot of time sifting through LinkedIn profiles and reaching out to candidates, which is a perfect task that can be automated by AI.
Some AI software can comb through candidate databases, LinkedIn, and other job boards to find suitable candidates you’ll want to reach out to. The AI will then provide recommendations based on parameters you set, saving you a ton of time on a very tedious and time-consuming task.
This is a perfect example of how AI automation can help in the recruiting process, but there are still a few things to consider. Recruitment becomes more efficient with AI, but there’s also greater accountability associated with it. How you manage the data the AI generates and collects may come under scrutiny, so good data handling practices will be essential in the process.
According to a recent study by The Sage Group, about 24% of companies use AI in some form during their hiring process, and another 56% of companies plan to do so over the next year. So, like in many industries, AI is changing how recruiting and hiring are done and, sooner or later, your company will probably try it, too.
The most significant benefit of using AI in recruiting is saving enormous amounts of time by sifting through large stacks of data and giving actionable insights. AI should always support recruiting, though, so remember some of the pitfalls and don’t use AI in instances where it’s better to use humans. AI is changing the recruitment industry in considerable ways, so it’s time for hiring managers to either jump on board or get left behind.