6 Ways AI Tools are Making Hiring Faster and Fairer in 2023
Several things have changed post-2020. Companies are increasingly adopting remote and hybrid work settings, and virtual meetings and interviews are becoming more common.
As a result, the qualities and requirements necessary for success in the workplace and during the hiring process have shifted. Employers can no longer afford lengthy onboarding and upskilling processes for new employees.
This is why HR managers are seeking new ways to screen for the most qualified candidates.
Organizations are now adopting skill-centric hiring and newer assessment tools to accommodate these requirements. And AI (artificial intelligence) happens to be one of the many tools at play.
This article explores the different ways in which AI tools help with hiring.
But first, a refresher.
What is AI in Hiring?
AI in hiring refers to using AI tools at any stage of your hiring process, from prospecting to salary negotiation. By utilizing AI in talent sourcing, you can screen and recruit candidates, and even predict which candidates will go through.
While you may already have processes and tools that do the job for you. Using AI, you can become an elite HR manager as your resource management and decision-making skills will become impeccable.
Here’s what Mike Ross, CEO of Jobvite, has to say:
“AI is going to make hiring more efficient and cost-effective. It's going to help us automate tasks that are currently done manually, freeing up our time to focus on more strategic initiatives.”
The earliest use of AI in the hiring process can be found in applicant tracking systems (ATS) to optimize mundane activities. With additional updates, AI tools may soon be able to accurately predict future resource allocation and utilization.
6 Ways in Which AI Tools Help With Hiring
Here are a few ways AI tools can help in hiring.
Streamlining Resume Screening
AI tools can extract relevant information from resumes and match them to job requirements.
Instead of manually screening each resume, recruiters can upload several resumes into the tool. You can extract the specific information of interest and get parsed data within seconds, skipping the total mundane data entry.
This process saves time, reduces human error, and helps recruiters quickly identify the most qualified candidates.
Image via RChilli
These tools are also capable of generating a list of top candidates, ensuring only the most relevant candidates are prioritized.
Resume screening becomes less biased when you prioritize skills and qualifications over demographics. It ensures a fair ranking system for all applicants based on the job requirements.
AI-powered resume parsing software are becoming faster and more accurate. They can be integrated into your existing software or website for greater utility. One such software is Sovren.
Image via Sovren
Enhancing Candidate Sourcing
Recruiters and HR teams now utilize AI to improve their sourcing and hiring processes. With AI tools, they can analyze candidate profiles and portfolios more effectively to find the best matches quickly.
Candidate qualification for a role is based on dynamic fit scores that offer extensive insights into their resumes.
This expands the candidate pool and promotes diversity in the hiring process, ensuring all candidates are evaluated fairly and objectively.
AI resume parsers are trained with millions of keywords commonly associated with specific positions. Because of this, they can easily spot resume and employment gaps or incompetence.
These AI-driven talent acquisition platforms are transforming how companies source candidates and making recruitment more efficient.
Conducting Efficient Interviews
Nowadays, AI-powered virtual interview platforms are changing how companies conduct interviews. These platforms use AI to analyze facial expressions and language patterns for fair and objective candidate evaluation.
Image via Talview
And in scenarios where interviews may take a considerate portion of firms’ resources, AI expedites the processes.
That's not all.
AI tools can also automate the interview scheduling process, eliminating scheduling delays common with the process.
According to a study by the HR Research Institute, 75% of recruiters believe that automating schedules improves the quality of hire.
Typically, top applicants are in contact with multiple potential employers. This’s why the efficiency of your interview process is critical.
It can either be the reason you land the best candidate or miss out on them. No in-betweens.
With automated hiring, companies:
- Are in a better position to hire top talents
- And have more time dedicated to keeping employees motivated.
Assessing Candidate Skills and Abilities
Recruiters often face challenges in accurately assessing the skills required to succeed in technical roles. To address this issue, companies are turning to AI-powered solutions for more objective skill assessment and evaluation.
This can be in the form of automated coding interviews, risk appetite assessments, or workplace simulations. These assessments utilize gamified and modeled scenarios to evaluate candidate abilities, enabling recruiters to make objective evaluations.
As a result, companies can manage business expenses while still maintaining the integrity of the hiring process.
Addressing Bias and Promoting Fairness
Minimizing unconscious bias in job descriptions and language is extremely important in hiring. AI plays a crucial role in identifying such issues and suggesting inclusive and gender-free language in job postings.
Another critical aspect is ensuring fairness in AI algorithms and models. Companies should conduct thorough audits and tests on their AI models. This can eliminate any biases in the system and ensure a level playing field for all candidates.
Audits and monitoring of AI models are regular and continuous processes. They help make adjustments as companies’ hiring demands change and foster an environment where candidates are treated without prejudice.
Improving Decision-Making with Predictive Analytics
What if recruiters could somehow predict which candidates will be the best fit for a company and reduce adaptation time?
This is becoming a reality as companies are adopting predictive analytics to determine candidates’ performance and success rates. By leveraging AI tools, you gain valuable insights that help you know which applicants to prioritize, speeding up hiring decisions.
Predictive analytics forms the core of data-driven insights in hiring. Recruiters feed the model various metrics, such as cost per hire, time-to-hire, source of hire, and reasons candidates discontinue application.
AI analyzes this data, empowering HR teams to make necessary adjustments to their hiring models and optimize employee spending.
HR teams now utilize predictive analytics to help you attract and retain top talent.
How?
With tools like Hirize, you can predict how long your top employees are likely to stay.
This saves hiring resources and allows HR managers to ensure a stable, productive, and experienced workforce. According to Attrock, you can improve employee productivity by following the right practices such as setting clear goals, clear communication, encouraging them, and providing training.
Here’s a snapshot of Hirize—a resume parsing solution that helps make hiring more efficient.
Image via Hirize
Tips to Ensure Fair Hiring
Hiring is as intricate as it is simple. From job posting to the tools used throughout the hiring process, you need to audit your talent acquisition strategy.
To optimize your hiring process, you need to:
- Write an inclusive job description
- Clearly communicate your evaluation and hiring policies
- Adopt the blind hiring technique and focus only on competencies
- Diversify the recruiting department
- Conduct skill assessments
Satisfying these conditions further reduces the chance of having a biased evaluation process.
Looking Ahead: The Future of AI in Hiring
We have explored how AI tools assist the hiring process and the new possibilities they bring. However, it's essential to consider the drawbacks that come with these advancements.
Let's take a closer look at them.
Ethical and Responsible AI Use
Ethical considerations are a recurring theme when using AI tools in hiring. While AI-powered chatbot platform can provide valuable insights and efficiencies, your expert opinion remains crucial in ensuring unbiased assessments.
It’s true that your expertise compensates for potential limitations or biases in the AI system’, resulting in a fairer comprehensive evaluation.
However, when using AI tools, it is essential to prioritize transparency and data privacy. Take the necessary steps to ensure proper data management.
You should input candidates’ data into AI systems and platforms only after taking their express consent.
This ensures that candidates are familiar with the evaluation procedure and that you will prioritize their data privacy and protection.
Challenges and Limitations of AI
While AI tools have transformed the hiring process, it’s crucial to address the limitations of their use. Only focusing on the AI element of hiring is not sufficient.
That’s why you must balance both worlds for fairer hiring practices.
Human oversight and involvement play a vital role in the hiring process, even with the integration of AI tools. Experienced recruiters possess valuable expertise and intuition to utilize these tools effectively.
Companies can achieve better hiring outcomes by combining the power of AI prediction with the insights and judgment of human recruiters.
Continuous learning and improvement of AI systems are necessary to ensure that AI tools are effective in the hiring process. As new data becomes available, companies can train AI algorithms to enhance accuracy and reduce biases.
Conclusion
From streamlining resume screening to assessing candidate skills and abilities, AI transforms how companies approach talent acquisition. Recruiters can now make more informed hiring decisions and save time on mundane tasks using AI.
However, you must use AI tools ethically and responsibly to ensure that all candidates are evaluated fairly.
Communicate clearly with applicants and take necessary steps to comply with data privacy and protection policies. By doing so, you can build trust with candidates, retain top talent and achieve your hiring goals.
Author Bio - Reena Aggarwal
Reena is Director of Operations and Sales at Attrock, a result-driven digital marketing company. With 10+ years of sales and operations experience in the field of e-commerce and digital marketing, she is quite an industry expert. She is a people person and considers the human resources as the most valuable asset of a company. In her free time, you would find her spending quality time with her brilliant, almost teenage daughter and watching her grow in this digital, fast-paced era.
