5 ways through which AI is enhancing Talent Acquisition
The very idea of automated machines that could ‘think’ and ‘reason’ erupted in ancient Greek philosophy in the form of Hephaestus’ ‘Golden Robots’ and Pygmalion’s Galatea. And who could forget modern science fiction and Boris Karloff’s Frankenstein. However, actual theoretical discussions began in early 1940, and the publication of Isaac Asimov’s Three Laws of Robotics in 1951 marked the birth of an idea that would only become economically relevant more than 50 years later.
In 2019, Artificial Intelligence is no longer a concept that sparks fear into the minds of the working class. AI and Machine Learning algorithms have found their way into almost every industry and vertical, as a subsidiary tool that is helping humans become more efficient and productive. Ten years ago, a doctor would take days, if not weeks, to diagnose an illness or diseases after repeated tests and observations. Now, with the access to historical data and AI algorithms to study this data, medical diagnostics has become quicker by over 20x.
Before AI and Machine Learning made its debut in the HR arena in the form of conversational Chatbots powered with NLP (Natural Language Processing) and Cognitive Analytics, it was first utilised in the recruitment segment. Initially, AI aided in candidate assessment by accessing vast amounts of historical data such as job history, team information and performance ratings. And as AI platforms and algorithms became more intelligent over time, its involvement into more complex functions such as compensation forecasting & predicting, administrative affairs and payroll processing started taking shape.
However today, one of the most pressing areas of concern for HR departments is Talent Acquisition.
Despite rumours of a global slowdown, analysts have projected that over 5 million jobs will be created in the IT sector alone, by 2025. Yet, today more than 45% of recruiters globally have stated that they are finding it difficult to hire the right talent. On an average, it now takes close to 27 days to fill a single job opening. Also, more than 77% of recruiters have rescinded offers to candidates after further analysis. And this is costing organisations millions.
So, here’s how AI is reinventing the recruitment process for organisations around the world.
1) Hello Search and Match
The search and match functionality of an AI parser is absolving the HR industry of its primitive methodologies. Before AI, recruiters and hiring personnel would have had to manually go through hundreds, if not thousands, of resumes and applications to sort and shortlist the most ideal candidates for a job.
Now, AI algorithms study the entire job profile to understand the requirements, as well as deduce underlying skills, and then scour through these resumes to isolate ideal candidates. All a hiring manager would have to do is upload the bulk of the resumes onto the platform, and with the click of a button, reduce the clutter to a few profiles that fit the overall job requirements.
2) Scoring and Ranking: Relevance v/s Viability
Even though AI is wading through the clutter to shortlist the most relevant candidates for a job opening, the viability of choosing a candidate depends on a host of other factors. Skills, experience, location, availability, notice periods, salary scale and varying levels of experience in niche projects prove spoilsport in the hiring cycle.
AI algorithms can scan though the entire resume and deduce insights regarding the viability of the candidate, based on the aforementioned factors.
Hence, the AI scores candidate profiles based on pre-determined factors and ranks them accordingly. This has brought down the overall hiring time considerably for HR managers across the globe.
3) Video Interview Analysis
If you’re thinking about Tim Roth and his infamous ‘Lie to Me’ series, you’re on the wrong page.
Market giants like Unilever are using facial based AI’s to process how an applicant contorts or expands his facial expression when given a task. Aspirants can undergo online tests and exams where an AI tracks their facial movements. By observing how the candidate reacts during stressful situations in the exam, the AI can determine underlying traits surrounding the individual’s personality.
This is aiding hiring managers to understand if the candidate can be a good fit in a team, as well as understand subtleties about the candidate’s temperament.
4) Joining Probability Analysis
75% of recruiters have stated that candidates who signed an offer letter have quickly reverted to announce that they have ‘Changed their minds’, whilst in 53% of the cases, it was because the candidate received a better offer.
As the demand for jobs isn’t meeting the supply of skilled labour, competition for talent is at its pivotal highest. Offer dropouts and candidate withdrawals have become a business menace, resulting in millions lost annually.
With the help of AI-powered analytics, algorithms can produce probability scores for candidates to deduce if they will take up the offer or not. This score is determined through a host of factors such as analysis of past employer data and performance reviews.
Joining probability analysis also helps employers understand which all candidates are flight-risks, helping hiring managers to control the level of organisational attrition.
5) Dissolution of the human bias
Even though Talent Acquisition is considered one of the core functions in the HR vertical, are employers even sure that what they’re getting is ‘Talent’? Hiring personnel all over have fallen prey to mammoth claims and falsified experiences, along with their own personal prejudices that correlates to gender, religion and race.
AI removes all the above, as it doesn’t look at the individual but merely at the data representing the candidate. In other words, AI relies solely on the analytical processing of vast datasets, as opposed to individual observations.
Even though HR Tech has proven its mettle in delivering tangible results with respect to talent acquisition, very few companies have adopted AI into their recruitment cycles. And less than 20% of them have any plans of doing so in the future. Yet, the results obtained so far from AI enabled Talent Acquisition has proven itself as the next frontier, as institutions across the globe have noticed reductions in hiring times, millions in cost savings annually and a 2x improvement in sourcing the right candidate for a job opening.
Content Development Specialist at AVR EdGE Networks