Finding skilled candidates has been the top concern for companies for the past four years according to annual LaSalle Network surveys. This year, 71% of employers reported this as their number one hiring challenge.
With an unemployment rate hovering around 3.5%, it is increasingly competitive for companies to find talent. Artificial intelligence (AI) is evolving rapidly and has been adopted by many companies to improve and streamline the hiring process. From sourcing, to screening, to assistance with interviewing and on-boarding, companies rely on new technologies to supplement their recruiting efforts.
LaSalle CEO Tom Gimbel joined WGN Radio to discuss how hiring is impacted by AI. This is the first blog in a three-part series addressing the utilization of artificial intelligence in the hiring process. In our series, we will show the pros and cons of utilizing AI and things to be aware of as you begin implementation.
How is AI is used in hiring?
AI based software can supplement your team’s efforts in nearly every stage of the hiring process, from sourcing qualified candidates, to scanning for and narrowing in on applicants matching certain criteria, and even in automating certain parts of the interviewing and on-boarding process.
According to SHRM, 83% of US employers rely on AI and related technology. Some hiring managers remain hesitant to implement AI in their hiring process, fearing that quality candidates might be wrongfully removed from consideration, however there is always potential for quality candidates to be overlooked. With AI involved, the issue is simply that the mistake would be made by an algorithm rather than a human.
Take for example, a parent posting a need for childcare on a job board. If the parent received 300 applications, AI systems could weed out applicants not in the correct location, without proper transportation and without preferred certifications. That resume pool would be narrowed down to a more manageable number to be assessed by the parent, hopefully resulting in a successful hire. There may have been a candidate or two that were removed from consideration because of errors in computing, but the result is a streamlined hiring process and a quality candidate.
What benefits does AI provide to the hiring process?
According to a study by Oracle, 66% of respondents find higher quality and quantity of candidates is the top benefit of AI in recruitment.
For every job posted, there are many qualified candidates, and it is necessary to narrow the applicant pool. AI ensures the resume and cover letter of an applicant are appropriately matched to a job description before man-hours are invested into an applicant that may not qualify for the position.
Another benefit of utilizing AI in the hiring process is removing subconscious bias. Human decision making involves emotion, even for the most rational individuals. Hiring managers are predisposed to react either positively or negatively to details listed in a resume; for example, an applicant’s name, school or companies they previously worked at. This implies the potential risk of discriminating by gender, race or social factors. By allowing AI to impartially screen resumes and narrow down the candidate pool based on specific search criteria, there is less risk of implicit bias.
How does hiring with AI support impact the company?
In a LinkedIn survey, 67% of hiring managers and recruiters said they embraced the technology because it saves a great deal of time while finding quality candidates. Recruiters tasked with large talent searches can organize, evaluate and communicate with candidates in a more efficient and time sensitive manner.
Through AI advancing automated interactions with candidates, the idea is that recruiters can be more efficient and fill more positions faster. This allows for the recruiter to take on additional responsibilities to further develop a business.
Because talent sourcing with AI is a much quicker process than manual recruitment, the belief is that the candidate experience is improved by talent moving forward in the hiring process faster. This can be seen as a major competitive advantage advantage– companies can get to the offer stage with a candidate faster than its competitors.
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