AI in Recruitment: Embracing the Shift Toward Digitization in HR

You might’ve noticed that AI in recruitment has been a hot topic lately, and with good reason. Traditional recruiting methods fail to secure the right talent, leading to mismatches that cost organizations time, money, and morale (Chen, 2023). Artificial Intelligence is, however, rapidly revolutionizing every process along the value chain, including, and most notably in, HR. Indeed, professionals and scholars alike think (Black & Van Esch, 2020) that AI-enabled recruiting methods have advanced to the point that managers who ignore them or procrastinate their utilization do so at their own peril. Why is AI so important to HR? Let’s find out! Come join us as we explore how AI can help recruiters find the right talent and contribute to the organization’s goals.

Why AI in Recruitment Matters: “Digital Recruitment 3.0”

Today, more than 50% of companies are investing in AI technologies to streamline their HR processes. This is what some (Chen, 2023) call “Digital Recruiting 3:0” and began to become more widely embraced in 2018.

Reducing administrative burden

The data shows several benefits associated with AI, including the first and most notable: relieving HR professionals from the heavy administrative burden. Recruiters spend hours on repetitive tasks like sorting through resumes and scheduling interviews.

AI can handle these activities, allowing recruiters to focus on what they do best: building relationships and understanding candidates. AI tools help recruiters filter out unqualified applicants, leaving a list of people who meet the job criteria.

But the benefits continue beyond there.

Creating a More User-Friendly Experience

Chatbots and virtual assistants can be very helpful in the early stages of recruitment. These technologies can handle tasks like answering frequently asked questions, scheduling interviews, and, in general, providing relevant information to candidates.  These tools generally improve the hiring process experience while saving the HR professional time.

Candidates like interacting with AI because, among other things, they perceive it as novel, empowering, and convenient (Black & Van Esch, 2020). Candidates also like that AI is easy to use and generally see it as applicable (Horodyski, 2023).

Personalized support provides a more seamless candidate experience, which improves engagement and satisfaction and enhances the brand’s perception. At the end of the day, that’s a win-win for everyone.

Enhanced Candidate Sourcing

AI-powered platforms can trawl the internet for possible applicants who aren’t actively looking for work but might be an excellent fit for a specific position. These platforms thoroughly examine internet profiles, social media presence, and previous job performance to compile a comprehensive list of possible hiring. This proactive strategy greatly expands the talent pool and helps companies fund passionate individuals who share the company’s vision.

AI And Diversity

AI relies on algorithms to analyze resumes and assess candidate fit based on skills, experiences, and cultural alignment. That means AI speeds up the hiring process and helps reduce biases, ensuring a more diverse and inclusive workforce.

Indeed, traditional hiring practices have been known to perpetuate and support bias, leading to a homogeneous workforce. However, AI can help mitigate this problem in several ways.

Unbiased Screening

AI tools can be programmed to ignore certain variables (in this case, demographic information). Age, gender, or ethnicity can be ruled out while focusing solely on qualifications and experience.

Enhanced Outreach

AI can also identify underrepresented groups in various industries. It can also suggest outreach strategies to tap into diverse talent, such as creating more inclusive job postings. Outreach programs can ultimately contribute to a more diverse workforce.

Johnson & Johnson is a real-life example. Changing the language on Textio in the job opportunity portion of the job description increased female new hires by 13% (Black & Van Esch, 2020).

Achieving ‘Fit’ Through AI in Recruitment

AI has proven successful (Chen, 2023) in identifying talent and hiring those who meet the job requirements (people-job fit) and organizational requirements (person-organization fit).

Companies usually achieve fit through an AI-powered assessment, which can take many forms, such as interviews or games.

Unilever is an example. The company successfully used a neuroscience-based game to assess the candidate’s skills, capabilities, and personality (Black & Van Esch, 2020).

Performance Outcomes

AI can also predict a candidate’s performance based on variables like the person’s history and experience. For instance, AI can analyze a candidate’s past work performance, educational background, and even social media activity to predict how they might perform in a given role. The data allows a more precise match between the candidate and the company’s needs, resulting in higher retention rates (and ultimately lower turnover).

An example is L’Oreal. It used an AI-enabled interview tool from Mya Systems that asked candidates specific questions to single out high-performing employees (Black & Van Esch, 2020). The AI tool then analyzed the vocabulary used in the answers and sentence structure to identify the top candidates before the HR professionals made the final decision.

Continuous Feedback with AI in Recruitment

AI can also support continuous feedback mechanisms. Managers can, for instance, track employee performance and provide insights on areas for improvement. Armed with this information, a culture of growth and development emerges, ensuring motivated and engaged employees.

An example of this Tech Wave is an IT and consulting firm. The company implemented an AI-driven feedback system that resulted in a 14.9% increase in employee productivity. The end result was a revitalized workforce where team members felt valued.

AI as A New Era of Recruitment

Evidence and practice show that traditional recruiting methods are no longer viable. Branded as “outdated, onerous and time-consuming” (Ayoub, 2023) by professionals, AI is an alternative tool to help streamline the recruitment and selection process.

This doesn’t mean the human element is eliminated entirely. However, the outcomes associated with using AI allow HR professionals to do their jobs more efficiently and quickly. As AI continues to revolutionize recruitment, it is especially effective in identifying mission-driven talent—those who align with your organization’s values and purpose. Learn more about the power of mission-driven hiring and how it can transform your recruitment strategy in our guide on Mission-Driven Hiring in 2024.

So, are you ready to let AI help you find the talent that aligns with your mission? Don’t wait! Sign up for our services with MissionHires today! MissionHires is a leading provider of AI-powered recruitment solutions, enabling companies to effortlessly discover purpose-driven talent. Don’t allow recruitment challenges to hinder your progress. Explore how we can revamp your hiring strategy today!

References
Chen, Z. (2023). Collaboration among recruiters and artificial intelligence: removing human prejudices in employment. Cognitive Technology Work, 135-149.

Black, J.S. & van Esch, P. (2020. AI-enabled recruiting: What is it and how should a manager use it?. Business Horizons, 63, 215-226.

Horodyski, P. (2023). Applicants’ perception of artificial intelligence in the recruitment process. Computers in Human Behavior, 11. Retrieved: Source