The struggles to attract and retain talented people is more and more difficult in recent years. The low unemployment rate is only of the factors for this. Today’s candidates have become much more pretentious. They are now not so interested in remuneration as they are gravitating towards companies that have embraced compelling mission statements, and are more focused on positive impact. Recruiters feel the need to improve their games. Artificial intelligence (AI) technologies have become essential tools for improving recruiting efforts.
Strategically expanding andcontextualizing the talent pool
Recruiters have alwaysselected candidates from a very limited talent pool. Considering thatrecruiters spend about 13 hours per week finding candidates for onerole, there are only so many resumes and job applications that they can find inthe limited time. AI’s capacity to rapidly sift through millions of data pointshelps recruiters to rapidly find high-potential candidates. With AI, recruitersare also capable to search into a bigger talent pool to source candidates,including online career boards, social media platforms, and agency databases.
One of the most importantbenefits of using AI for recruiting is the ability to effectively andefficiently identify passive candidates. 70% of the global workforceis comprised of passive candidates. There’s a reason that 98% oftalent teams say that passive candidates are an important source for talentedpeople—passive candidates are 120% more likely to make a strong impression.
AI also has anunprecedented capacity to sift through a company’s existing database of resumesand find former applicants who are qualified for current job offerings and thisis an important source for finding candidates because former applicants havealready expressed interest in the employer and the recruiting can be madeeasier.
Nearlyhalf (44%) of applicants said that they experienced discrimination in thehiring process. Considering that companies with diverse workforces havebigger financially earnings than their less diverse competitors, this is animportant factor to keep in mind.
One of the biggestinhibitors of diversity in the recruiting procedure is the emphasis oncandidate referrals. Talent teams rank employee referrals as the mostimportant source of talent. But prioritizing candidate referrals comes witha cost. Most of all, it manifests in the psychological phenomenon known as the“similarity principle”. This phenomenon is saying that we are more likely tolike people who have beliefs and backgrounds similar to our own. This reducesthe diversity of the candidates.
Reducingconscious and unconscious bias in the hiring operation is important forrecruiters. The majority (85%) of talent acquisition leaders andrecruiters are feeling the pressure to increase diversity but quality stillneeds to be the most important concern. AI tools like Textio helpcompanies find more inclusive job descriptions and the Unbiasify ChromeExtension similarly helps recruiters reduce bias.
In the last few years, chatbots have rapidly infiltrated businesses. After showing their potential to drastically change relationships between businesses and consumers, chatbots also started to be used for the recruiting process. Mya, for example, an AI-powered recruiting platform that automates even up to 75% the recruiting process by answering candidates’ questions, verifying qualifications, and updating applicants. Candidates who engage with Mya have been shown to be more than three times more likely to be contacted by a recruiter.
By using AI, companies can now analyze millions of data points that provide insight into a candidate’s personality and qualifications and construct personalized EVPs that engage them in new ways.
AI can be veryuseful in terms of empowering recruiters to reach new, more lucrativecandidates and in terms of engaging them in the recruiting process. But onlyabout 56% of the candidates think that AI is less biased than humanrecruiters so the effectiveness of AI-powered recruiting technologies should alwaysbe evaluated. Chatbots are also effective only in the initial stages of therecruiting process and not in the closing stages when authentic humanrelationships are important.