AI For Recruiting:

A Definitive Guide For HR Professionals

Since the ATS, recruiters have leveraged technology to make their jobs easier, faster, and better. Today, the dominant theme in HR technology is AI for recruiting.

AI for recruiting is an emerging category of HR technology designed to reduce — or even remove — time-consuming activities like manually screening resumes.

Screening resumes efficiently and time-effectively still remains the biggest challenge in talent acquisition: 52% of talent acquisition leaders say the hardest part of recruitment is identifying the right candidates from a large applicant pool.

According to a survey of talent acquisition leaders, 56% say their hiring volume will increase this year, but 66% of recruiting teams will either stay the same size or contract.

52%

of Talent Acquisition leaders say the hardest part of recruitment is screening candidates from a large applicant pool

This means that recruiters are being tasked to do more with less.

In 2017, finding top talent will depend on a recruiter’s ability to intelligently automate their workflow.

To help you better understand this new field of artificial intelligence for recruiting, we created this definitive guide for HR professionals on how AI can automate your workflow to more effectively engage, screen, and assess candidates.

Watch our 2-minute video on Ideal’s AI below:

Section 1

What is AI for recruiting?

AI for recruiting is the application of artificial intelligence, such as the learning or problem-solving that a computer can do, to the recruitment function.

This new technology is designed to streamline or automate some part of the recruiting workflow, especially repetitive, high-volume tasks.

For example, software that applies machine learning to resumes to auto-screen candidates or software that conducts sentiment analysis on job descriptions to identify potentially biased language.

Any area of recruiting where distinct inputs and outputs occur – like screening, sourcing and assessments – will largely become automated.

-Katrina Kibben, Randstad

 

Section 2

The benefits of using AI for recruiters

1. Saving recruiters’ time by automating high-volume tasks

Talent acquisition leaders report that their hiring volume will increase next year but their recruiting teams will remain the same size or even contract. This means recruiters will be expected to become more efficient by “doing more with less.”

Manually screening resumes is still the most time-consuming part of recruiting, especially when 75% to 88% of the resumes received for a role are unqualified. Screening resumes and shortlisting candidates to interview is estimated to take 23 hours of a recruiter’s time for a single hire.

AI for recruiting represents a boon for recruiters if it can successfully automate time-consuming, repetitive tasks such as screening resumes or scheduling interviews with candidates.

The best AI-powered technology will be designed to not only automate a part of your workflow but to integrate seamlessly with your current recruiting stack so it doesn’t disrupt your workflow.

As a bonus, speeding up these parts of recruiting through automation reduces time-to-hire, which means you’ll be less likely to lose the best talent to faster moving competitors.

2. Improving quality of hire through standardized job matching

Quality of hire used to be a bit of a recruiting KPI black box due to an inability to close the data loop (i.e., measuring what happens to the candidates after they get hired).

As HR data has become easier to collect, access, and analyze over the years, quality of hire has become recruiting’s top KPI.

The promise of AI for improving quality of hire lies in its ability to use data to standardize the matching between candidates’ experience, knowledge, and skills and the requirements of the job.

This improvement in job matching is predicted to lead to happier, more productive employees who are less likely to turnover.

Early results are extremely promising. Early adopter companies using AI-powered recruiting software have seen their cost per screen reduced by 75%, their revenue per employee improve by 4%, and their turnover decrease by 35%.

 

Your benefits


  • Save 23 hours
    per hire

  • No disruption to your workflow

  • Reduce cost per screen by 75%

Your organization’s benefits


  • 35% decrease in turnover

  • 20% increase in performance

  • 4% increase in revenue per employee

The positive part of this is that we can standardize our processes to better and more objectively assess a candidate’s ability and skills while removing the inherent biases found throughout the sourcing and selection process.

-Katrina Kibben, Randstad

 

Section 3

The challenges of applying AI in recruiting

1. AI requires a lot of data

In general, AI requires a lot of data to learn how to accurately mimic human intelligence.

For example, AI that uses machine learning needs a lot of data to learn how to screen resumes as accurately as a human recruiter. This can mean several hundreds to several thousands of resumes for a specific role.

2. AI can learn human biases

AI for recruiting promises to reduce unconscious bias by ignoring information such as a candidate’s age, gender, and race. However, AI is trained to find patterns in previous behavior.

That means that any human bias that may already be in your recruiting process – even if it’s unconscious – can be learned by AI.

To avoid replicating any biases that may already exist, make sure the AI software vendor you use is aware of these issues and has taken steps to remove clear patterns of potential bias (e.g., only hiring graduates from a certain college).

3. Skepticism of new technology

HR professionals are often bombarded with the latest and greatest trend that disappears just as quickly.

Understandably, recruiting and talent acquisition leaders can be skeptical of any technology that promises to make their jobs easier. They want to be sure that any software that will automate one of their work tasks is going to be able to do as good of a job as they can.

Section 4

Innovations in AI for recruiting

AI for recruiting has several potential applications for automating high-volume, repetitive tasks such as resume screening and pre-qualifying candidates.

1. Intelligent screening software

Intelligent screening software automates resume screening by using AI (i.e., machine learning) on your existing resume database.

The software learns which candidates moved on to become successful and unsuccessful employees based on their performance, tenure, and turnover rates.

Specifically, it learns what existing employees’ experience, skills, and other qualities are and applies this knowledge to new applicants in order to automatically rank, grade, and shortlist the strongest candidates.

The software can also enrich candidates’ resumes by using public data sources about their prior employers as well as their public social media profiles.

Intelligent screening software that automates resume screening represents a massive opportunity for recruiters because it integrates with your existing ATS, which means it doesn’t disrupt your workflow, the candidate workflow, and requires minimal IT support.

2. Recruiter chatbots

Recruiter chatbots are currently being tested to provide real-time interaction to candidates by asking questions based on the job requirements and providing feedback, updates, and next-step suggestions.

AI-powered chatbots have a lot of potential to improve the candidate experience.

58% of job seekers say they have a negative impression of a company if didn’t hear back from the company after submitting an application, whereas 67% of job seekers have a positive impression of a company if they receive consistent updates throughout the application process.

3. Digitized interviews

Online interview software has been available for a while, but today’s technology claims to use AI to assess candidates’ word choices, speech patterns, and facial expressions to assess his or her fit to

Section 5

How AI will change the recruiter role

Industry experts believe the future of AI for recruiting is Augmented Intelligence.

Augmented intelligence is the belief that you cannot fully replace human capabilities through technology. Instead, augmented intelligence suggests we should look to create technology to enhance human aptitude and efficiency.

Augmented Intelligence, rather than totally replacing people at work will be used to make them more effective. I think this may be the best use of AI for HR.

-Michael Haberman, HR Consultant

 

The ability to use augmented AI to automate repetitive, administrative tasks will be extremely valuable. There are 3 main ways this technology will change the role of the recruiter:

  • Recruiters will be able to conduct proactive strategic hiring rather than spend most of their time with reactive backfilling.
  • Recruiters will have more time to spend with candidates in-person to build relationships and help determine culture fit.
  • Recruiters will able to close the loop with hiring managers as AI allows them to use data to show recruiting KPIs including quality of hire.

If recruiters and companies can learn to pair themselves with a specific AI, they can train it to understand a particular corporate mission and culture—so that recruiters feel like they leverage these chatbots and other similar technology as extensions of their teams, not as replacements for them.

-Dan Finnigan, CEO of Jobvite

 

Section 6

A summary of using AI in recruiting

 

  • AI for recruiting is the application of artificial intelligence to the recruitment function that is designed to streamline or automate some part of the recruiting workflow, especially repetitive high-volume tasks.
  • The main benefits of using AI include saving recruiters’ time by automating high-volume tasks and improving quality of hire through standardized job matching.
  • The major challenges of using AI for recruiting include requiring a lot of data, the potential to learn human biases, and skepticism of new technology by HR professionals.
  • The innovations in AI for recruiting are intelligent screening software that automates resume screening, recruiter chatbots that engage candidates in real-time, and digitized interviews that help assess a candidate’s fit.
  • AI will change the recruiter role through augmented intelligence which will allow recruiters to become more proactive in their hiring, help determine a candidate’s culture fit, and improve their relationships with hiring managers by using data to measure KPIs such as quality of hire.

AI For Recruiting:

A Definitive Guide For HR Professionals

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