How AI is transforming recruitment and hiring
In the recent past, one of the hottest trends in HR technology has been the use of Artificial Intelligence (AI) in facilitating processes and decision-making. Many organizations now are leveraging AI to improve the efficiency of their employee engagement, recruitment, performance management, workforce management, succession planning processes, and other processes as well. AI is particularly well-suited for these roles, and it helps HR professionals to focus on complex issues, and leave mundane tasks to be performed by technology.
Although there are many potential use cases of AI, organizations are approaching it with caution and taking one step at a time. A survey conducted by Gartner indicates that 23 percent of organizations who were using some form of AI were doing so in the HR and recruiting domain. Other successful implementations of AI focus on intelligent automation for increased efficiency and assisting users of HR systems or platforms. For organizations looking to use AI in their HR, here are some trends that can be useful in understanding how to deploy such intelligent technologies to improve existing hiring processes:
Talent acquisition: Automation of processes on multiple fronts is a real game-changer in active recruitment. These can be end-to-end, right from writing the perfect job description (JD) for an open position to even conducting video-based interviews. A poorly-constructed JD that is not attractive may not get the required interest from the right candidates. However, there are several tools that can help you draft the perfect JD. These are usually of two kinds; an online assistant that can help you improve the JD in real-time, while it is being written, or one wherein you can feed an existing JD into a tool that will give you recommendations on how to make the JD more effective.
Resume scouting: Traditionally the recruiter is the person who sources the resume from various sources. This is a time-consuming process, and is also prone to human errors. There are many tools available today that can match your job description to resumes on recruitment portals and help you build a database of the most relevant candidates. These AI-powered tools use pattern matching algorithms to make sure the resume is a close match to that of the job description. They typically use AI and pattern matching algorithms to match resumes to job descriptions.
For example, if the recruiter is looking for a marketing professional with 3-5 years of experience with a salary of Rs 12, 00,000 per annum who stays within 10 km of their office, the standard search may throw up 30 candidates. However, using AI, the software is capable of suggesting that if the experience desired is increased to 6 years and the salary to Rs 15, 00,000, there would be 50 candidates ideal for the profile. This data is useful to recruiters who need to understand where to get the maximum best-suited candidates from. This results in the elimination of manual efforts and a significant reduction in the number of unsuitable candidates, thus improving the process.
Video-based interviews: Certain HR-tech solution companies have also come up with video-based interviewing, wherein in-built facial recognition AI technology is used. The software analyzes the facial expressions and reaction of the candidate and then gives a report such as whether the candidate was getting prompted by someone else or the candidate appeared to be telling the truth, etc. Such tools also gauge other features like communication skills, body language, and confidence, thus, helping the recruiter make an informed decision.
Multifunctional chatbots: Chatbots are increasingly being utilized for various HR operations ranging from talent acquisition to guaranteeing employee satisfaction. In terms of the recruitment process, these bots not only address basic queries that a potential employee might have, but also collect standard information from candidates about their skills and competencies. Some of them can even carry out primary interviews of candidates and evaluate them based on specific keywords. This is particularly advantageous as it not just saves time but also lets HR professionals conduct the further rounds of interview with better nuanced information about the candidate.
Today, chatbots even conduct interactive employee training sessions, outputs of which have been noticed to be far more interesting than traditional training methods. They can also disburse information regarding detailed company processes, particularly to newer recruits, provide new employees with performance-based feedback instantly, thereby ensuring higher employee satisfaction.
Predictive analytics: While most HR workspaces conventionally collect large amounts of data, the truth is that it is not utilized to its full potential. AI is adept at swiftly analyzing massive amounts of data, identifying patterns and drawing conclusions, much faster and more accurately than manually possible by humans. This can help HR in making recommendations based on predictive analytics, which are highly useful in increasing employee retention rates, rolling out the better selection and evaluation processes, etc.
The changing needs and demands of the industry have forced organizations to adopt these practices and three in five HR leaders believe that if HR functions are not modernized in time, there exists a danger of becoming irrelevant in the sector. Having said that, most HR personnel are still wary of AI-related developments primarily because they believe it requires immense knowledge and technical skills to equip themselves with the necessary expertise needed to incorporate these applications and practices in their daily functioning. There also exists a fear of this automation, ultimately leading to loss of jobs.
However, it is important to remember that AI-powered software and applications cannot entirely replace the human component in the HR process. If anything, they can improve the overall effectiveness and help the industry move one step closer to what is considered to be the future of HR.