According to some estimates, the cost of recruiting, hiring, and onboarding a single new employee can be up to $240,000. Costs soar even higher if that person turns out to be a poor fit and needs to be replaced. As the talent market has shifted, it’s becoming more and more difficult for companies to find the right person for the job—especially without the help of outside resources. Demand for highly skilled labor is higher than it’s ever been, and companies need ways to ensure they’re not wasting precious time and money by hiring the wrong candidate or taking too long to find the right one.
One of the ways some companies and recruiting firms are doing that is with the assistance of AI software. And so far, early returns on this technology have been quite positive. According to a Deloitte Bersin report, companies that use AI, predictive data analytics, and other technology tools are generally more successful as enterprises than those who don’t. In fact, Bersin’s research indicates that these AI-using companies report 18 percent higher revenues and 30 percent greater profitability as compared to their non-AI-using counterparts. While this accounts for companies using AI in multiple capacities, the results are hard to argue with.
And while it’s still early in the AI game, a 2018 Deloitte Human Capital Trends report shows that 38 percent of companies are already using AI, and 62 percent expect to do so by the end of this year.
So, how exactly is AI helpful in recruiting, and what benefits does it bring to the hiring process that traditional methods simply can’t? It all comes down to saving time, money and energy. Here are 5 ways AI is or will soon be changing the recruiting game.
WRITING THE PERFECT JOB ADVERT
Finding the right job candidate all begins with the right job advertisement. In fact, it’s often the first thing candidates actually see from your company, so it’s important to make that first impression count.
Today, AI technology like Textio can use its algorithms to assess and analyze language patterns in job postings that cause some to fail and others to succeed. Using those keyword terms that make an ideal post, depending on the candidate the company is looking for, the software then suggests language choices that will lead to a more successful placement. Even better is the fact that the software can learn. As the number of analyzed postings, adverts and descriptions increases, so does the accuracy of the language predictions. While there may never be a perfect job advert, AI technology is getting us closer.
SCREENING BEYOND THE RESUME
Except for rare circumstances, the extent of most candidate screenings begins with a resume and extends to a brief phone call. But for the most part, a recruiter or hiring manager has only his/her judgement of a resume to assess whether a job seeker fits the candidate profile. While this is a good start, recruiters know all too well how resumes are an incomplete picture of someone’s skills, achievements, capabilities and most importantly, personality and company fit.
However, AI technology is enhancing screening measures like never before. AI software Harver uses engaging tests to assess candidates on the types of tasks they’ll actually be asked to do on the job. Ansaro goes a bit beyond that to cull all the data and metrics companies have on their employees to build predictive models and personality profiles that help lead them to candidates who fit the company culture and job requirements more accurately.
ELIMINATING TEDIOUS TASKS
Ask any recruiter, and chances are they’ll tell you the worst part of their job is often the most time-consuming—the administrative tasks of screening candidates and scheduling interviews. With the help of AI, recruiters and hiring managers can reduce wasted time by automatically screening obviously unqualified candidates’ resumes using keyword and qualification searches. AI can also help schedule interviews with those qualified candidates with an auto-email interview request service or chat-based program that surprisingly brings a bit more personalization to the process. Not only does this save time for recruiters to focus on more important tasks, it also accelerates the screening process, reduces time-to-hire, and ultimately gives those companies an advantage when competing with other companies for talent.
Gauging candidate interest, emotional intelligence and truthfulness
Knowing whether or not a candidate is being honest during an interview is all part of a recruiter or hiring manager’s job. But, when it comes to gauging emotional intelligence or interest in a position based solely off of a video call, that becomes much more challenging. With the help of emotion recognition software like Affectiva, companies can better assess candidates' emotional intelligence and truthfulness during video interviews by analyzing facial expressions, their word choice, speech rate and vocal tones. Additionally, software such as EngageTalent combines what they call “news data” with workforce data to determine the likelihood that passive candidates—or employed people not actively looking for a job but who may be interested in the right position—might consider accepting a job offer
These types of software not only help recruiters determine if a candidate is being honest and showing genuine interest in a position, but they also help remove human biases, too. If, for example, a recruiter or hiring manager has a favorite candidate prior to a video interview, AI software can help identify whether their judgement is correct or if this individual isn’t all that interested and they’d be better off spending their time with other potential candidates.
Obviously, AI is just one part of the recruitment and hiring equation. It won’t ever eliminate the innate senses and judgements human recruiters possess. At this point, it’s simply a tool companies can use to help them find better candidates and do so more efficiently.
But even though the use of AI software isn’t fully pervasive in the recruiting industry, those companies that wait too long to adopt will risk more than just the prospect of having to play catch up. They’ll also get left behind by missing out on those highly talented candidates that AI software is aiding future-focused companies in finding.