The performance of the corporate sector can be attributed in no small measure to the pool of right talent underlying its transformation. This essentially devolves on the growing importance of HR and the challenges facing their efficient execution.
Nearly all of HR professionals believe that AI and robotics can effectively make talent acquisition and retention more streamlined. Screening resumes remains an inalienable part of this process, with shortlisting of candidates taking average recruiter 23 hours for a single hire, especially when 75-88% of the resumes received for a role are ineligible.
According to Dean Stoecker, chair and CEO of the data analytics firm Alteryx, “As the benefits of big data become increasingly obvious, I believe we will start seeing greater adoption of big data in sectors such as HR that have historically proven reticent. Thanks to a broadening analytics culture and self-service analytics systems that enable everybody, regardless of technical knowledge, to understand and decipher big data, I would expect to see even the most qualitative of businesses look to embrace the revolution.”
One of the best examples of AI in recruitment can be derived from international recruitment firm, Alexander Mann Solutions, which tried out several Robotic Process Automation (RPA), to make the recruitment process as efficient, timely and accurate as possible. Their robots DORIS and ISAAC were designed to manage the volumes of filing and scheduling thousands of interviews respectively. The firm found that AI in recruitment is particularly useful where processes such as complex HR forms, on-boarding and others prone to human error are concerned. However, they have also recognized the limitations of AI in cases of ambiguity, change or context, where emotional intelligence of humans is imperative.
According to a new survey by Entelo, about 62% of recruiters are expected to invest in AI-based software in 2018 and about 86% plan to invest in AI-based software for sourcing. The survey found that budgets are gradually being shifted from traditional recruiting channels to automation investments. Organizations are also utilizing the power of AI to match employees with projects that require their specific skills. The Royal Dutch Shell PLC’s machine-learning software is the best example in this case.
Additionally, AI is one of the best ways to prevent bias in hiring. According to a Deloitte Bersin report, the process involves data-driven analytics, digital and cognitive tools that can better source candidates and prevent possible slip-ups caused by false logic or bias. Hence, it is 6 times more likely to engage in data-driven decision-making than low performing teams.
Limitations of AI we cannot ignore
While AI can help the human resource category grow tremendously, it has its downsides. Critics remain anxious that AI software meant to enhance talent management processes could instead allow companies to disseminate established biases in hiring and promotions. It has to be borne in mind that AI doesn’t program itself, and whatever biases the employees or vendors setting up the programs have could show up in those systems as well. Such concerns often creep up as the technology is still in its infancy and most people don’t fully comprehend how AI really works.
Final thoughts
According to talent management company, The Chemistry Group, the latent costs of a wrong hire can amount to anywhere between 4 to 20 times the salary. In such a scenario, AI or Big Data can significantly reduce the amount of time needed to filter out deserving candidates and find the right person for the right roles.
However, human chemistry still has the last word in assessing the personality factors of a candidate.
http://alexandermannsolutions.com/alexander-mann-solutions-live/news-item/the-rise-of-the-ai-recruiter-is-hr-tech-the-next-to-challenge-human-intuition
https://www.entelo.com/press-releases/entelo-recruiting-trends-report-finds-ai-paired-with-automation-wins-the-talent-war/
https://blogs.wsj.com/cio/2017/12/11/the-morning-download-big-companies-give-algorithms-chance-to-manage-people/
https://www2.deloitte.com/insights/us/en/focus/human-capital-trends/2018/introduction.html
https://thechemistrygroup.com/