Resume screening is still the most time-consuming part of recruiting: screening resumes is estimated to take up to 23 hours for just one hire.
When a job opening receives 250 resumes on average and 75% to 88% of them are unqualified, it’s no wonder the majority of talent acquisition leaders still find the hardest part of recruitment is screening the right candidates from a large applicant pool.
Compounding the problem, a recent survey of talent acquisition leaders found that 56% will increase their hiring volume next year, but 66% of recruiting teams will either stay the same size or shrink.
In 2019, “doing more with less” will depend on a recruiter’s ability to figure out how and where to effectively automate their workflow.
Advances in recruitment technology have added automation to candidate sourcing with recruitment marketing and to candidate interviewing with video interviews. However, technological innovations to address the biggest pain point in recruiting—screening resumes—has been frustratingly absent until recently.
The time spent on screening resumes often takes up the largest portion of time-to-fill. With today’s competitive candidate-driven talent market, top talent only stays on the market for 10 days on average.
To help you solve the biggest bottleneck in recruiting, we created this how-to guide on resume screening and how technology is changing how recruiters screen candidates.
Resume screening is the process of determining whether a candidate is qualified for a role based his or her education, experience, and other information captured on their resume.
In a nutshell, it’s a form of pattern matching between a job’s requirements and the qualifications of a candidate based on their resume.
The goal of screening resumes is to decide whether to move a candidate forward – usually onto an interview – or to reject them.
Screening resumes usually involves a three-step process based on the role’s minimum and preferred qualifications. Both types of qualifications should be related to on-the-job performance and are ideally captured in the job description.
These qualifications can include:
Minimum qualifications are the mandatory qualifications that a candidate must meet to be able to do the job. A simple example of a minimum qualification is whether the candidate is legally able to work in the country.
These types of qualifications are often considered knockouts because either the candidate has it and can move forward or they don’t and gets screened out of the process.
Candidates that meet the minimum qualifications move onto the second step of screening resumes.
Preferred qualifications are non-mandatory characteristics that would make someone a stronger candidate for the job. A common example of a preferred qualification is whether the candidate has prior related work experience.
These types of qualifications are often called nice-to-haves and are generally more qualitative than minimum qualifications (e.g. strong communication skills).
Candidates that meet both the minimum and preferred qualifications move onto the shortlisting step of resume screening.
Deciding which candidates gets shortlisted for the interview phase depends on your recruiting needs.
For high volume recruitment, generally all candidates that meet the minimum qualifications move forward to the interview process. For low volume recruitment, generally only the top few candidates that meet both the minimum and preferred qualifications receive an interview.
You can determine how many candidates you should shortlist using your recruitment conversion rates.
Based on recruiting data, the average recruitment conversion rates are:
That means for every 100 candidates you screen, you need to shortlist 12 of them to interview, two of them will receive an offer, and one candidate will accept to result in one successful hire.
The important thing to remember is that your screening process is applied consistently and objectively across all resumes.
According to a recent survey of talent acquisition leaders, the most important recruiting KPI is quality of hire followed by time to fill.
Both quality of hire and time to fill are influenced by your resume screening process.
The biggest challenge of screening resumes by far is volume.
The number of resumes received is one of the biggest factors that increases time to fill. An average job opening receives 250 resumes and up to 88% of them are considered unqualified. This means a recruiter can spend up to 23 hours screening resumes for a single hire.
The usual solution for the volume problem is using an Applicant Tracking System (ATS). An ATS is a must-have software for recruitment and talent acquisition departments, because it organizes all the resumes received for each role.
An ATS usually allows for some measure of automating resume screening through keyword matches or knockout questions.
However, an ATS has some well known weaknesses.
For example, an ATS can screen in a candidate as a false positive based on keyword stuffing or screen out a candidate as a false negative because he or she doesn’t meet the keyword filters but has strong qualifications otherwise.
60% of talent acquisition leaders’ top recruiting KPI is quality of hire:
While an ATS may be effective for reducing resume volume, traditional ATS software isn’t designed to measure quality of hire. Because an ATS doesn’t have a way to learn which candidates who went on to become successful and unsuccessful employees, it can’t improve its screening function.
An ATS’s limited functionality means recruiters need different software tools help them achieve their most important KPIs including quality of hire.
Designed to meet the needs of recruiters that current technology can’t solve, a new class of recruiting technology called AI for recruitment has arrived.
AI for recruiting is an emerging category of HR technology designed to reduce — or even remove — time-consuming, administrative activities like manually screening resumes.
The best AI software is designed to integrate seamlessly with your current recruiting stack so it doesn’t disrupt your workflow nor the candidate workflow.
Industry experts predict this type of automation technology will transform the recruiting function.
Any area of recruiting where distinct inputs and outputs occur – like screening, sourcing and assessments – will largely become automated.
This type of software is designed to integrate with an ATS to automate the resume screening process. This is a prime example of how AI is changing the recruiter role by automating a time-consuming, repetitive task that most recruiters feel is a waste of their time and talent.
Screening software that uses AI learns the job qualifications based on its description and learns what good candidates look like based on your historical hiring decisions.
The AI analyzes your existing resume database to learn which candidates moved on to become successful and unsuccessful employees based on their performance and tenure.
The software then applies the knowledge it learned about employees’ experience, skills, and other qualifications to automatically screen, rank, and grade new candidates from A to D or Red, Yellow, and Green.
AI screening software can also enrich candidates’ resumes by using public data sources about their prior employers as well as their public social media profiles.
Automation helps solve the two major challenges recruiters experience with resume screening: volume and quality of hire.
AI for resume screening can handle massive volumes of data. In fact, AI requires a lot of data in order to make accurate recommendations about which candidates to move forward to the next stage.
This means AI screening software is most valuable for high volume recruitment such as retail sales or customer service roles.
The time you save screening resumes can be used in more valuable ways, whether it’s sourcing, engaging, or interviewing candidates to help determine how well they’ll fit in the job and company culture.
Automated resume screening increases quality of hire by reducing false positives because candidates can’t trick the ATS through keyword stuffing. It also reduces false negatives because candidates with good qualifications no longer slip through the keyword filters.
AI screening software learns how to predict quality of hire because it’s able to analyze your historical hiring decisions as well as learn from your current hiring decisions.
Companies that have adopted AI software in their recruiting have seen their performance increase by 20% and their turnover decrease by 35%.
Be sure to bookmark this post to answer all of your screening questions!
Looking for an effective recruiting solution? Try our resume screening software!
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