Just like self-driving cars and chatbots, AI is revolutionising menial tasks. Although it’s seemingly slightly less glamorous on the surface, AI is having the same impact on the world of recruitment. ATS – Applicant tracking system – which you may of heard when researching resume tips is the main change the industry has seen. Recruiting has always been painfully time-consuming for big companies, and it’s getting worse with applications rising. Companies like Lynx Pro seek to take the weight off the shoulders of companies by finding the right talent a specialised job. Of course, turning to AI is a big help when there’s such a large talent pool.
If you think of how many resumes an investment bank receives for a graduate scheme, it’s likely 10 times more than you’re imagining. On average, companies receive around 75 resumes per position, but for highly sought after firms and positions, this can run into thousands. To give an idea of how much this scales to, Google receives 2 million applications per year. That’s 33,333 hours if a firm spends 1 minute examining each CV, or in other words, 7 weeks of full-time work for 100 members of staff. That’s a lot of wasted time and money.
With applications increasing each year, recruiters are turning more and more towards ways to automate this screening process. However, given that around 80% of job applications are unqualified, removing these from the crop seems to be manageable for AI to achieve within their tracking systems, and greatly refine the application pool. The effectiveness of such systems are leveraging the fact that resumes are always structured in the same way, and so standardising and operationalising the data becomes easier – it’s a matter of scanning for keywords.
Given the improvement in collecting and analysing HR data over the years, the quality of a hire has become a major KPI. With the help of such data, and given AI’s prowess in finding patterns, being able to improve the quality of a company’s hire seems to be where the focus is heading. This, of course, will not just lead to better performance for the company, but may result in helping naturally allocate workers to their more suited roles where they’ll be happier.
One of the greatest benefits that AI will bring to capitalism in general, is the removal of unconscious bias. Discrimination hurts both the workforce as well as the quality of hire for firms. Luckily, software is uncompromising unbiased. Culture, background, gender, sexuality, religion, appearance and so on will not factor in the classification models that will rule out potential hires. This helps further ensure the best fit for the job is genuinely the best fit, and is not just ticking the subconscious, superficial boxes.
Lastly, the PR of a company will remain further intact through AI recruitment. One of the largest complaints among graduates is that they apply for 50, or even 100 jobs and they hear about 7 rejections and get called into 1 interview. What about the other 92 companies? This can lead to a genuine lack of custom and certainly put them off applying in the future, purely because of how disrespectful it feels (many applications takes hours). An automated recruitment process and chatbot service can engage future employees better, and fully serve every candidate’s wishes to hear prompt updates on their application process.