Recruitment technology has moved into the fast lane and has the power to deliver significant benefits to businesses, says Clarico founder Russ Metcalf.
All stages of the hiring process can take advantage of platforms and tools – powered by artificial intelligence – to take the hard work out of recruitment as well as securing the right talent.
There are many advantages to embracing technology when recruiting including less cost, less time spent hiring, a better choice of candidate and, of course, the ideal employee.
Over the past 10 years, recruitment is one area that businesses, particularly the larger ones, consistently use poor processes which results in poor recruits time and time again.
Very few businesses are actually taking advantage of the software tools that could enhance their recruitment. Instead, many organisations persist with outdated and fallible methods that can result in a bad hire, resulting in long-term repercussions.
Research by the UK’s Recruitment and Employment Confederation calculated that the ‘average’ cost of a bad hire was more than £132,000. Potentially of more concern to those in the boardroom, 85 per cent of HR decision makers admitted their business had made a bad hire.
However, many remain blissfully unaware of the financial implications. One in three of the HR decision makers think a bad hire costs the business nothing, while one-in-five don’t know how much it costs.
A bad hire isn’t just about the cost of the salary, but costs associated with training, on-boarding and recruitment. A bad hire performs poorly, which impacts on productivity and team morale. If they are in a management or executive position, then it can impact on an entire team and this can lead to the loss of key staff.
One advantage of using AI is to firstly, broaden the talent pool at your disposal. Instead of being reliant on ‘active’ candidates, who are applying for roles, AI technology can help unearth suitable candidates who are not actively looking for a new role – but who may be suitable for your business.
Businesses that are able to have a talent pool that identifies quality ahead of quantity, will always remain ahead of their competitors and have the upper hand when it comes to recruitment.
This is why automated recruitment has never been more necessary. The argument in favour of using technology has been strengthened by research from a US-based recruitment software developer entelo.
It revealed that filling one single vacancy takes nearly one third of recruitment professionals an average of 13 hours a week, while a similar number spend more than 20 hours!
In the US, is it estimated it costs an average $500 a day for unfilled roles. That’s a significant amount of money to waste.
This explains why companies are investing heavily in recruitment tools – or using third-party recruitment firms to reduce this labour-intensive recruitment pathway. The report from entelo, published in 2018, found that
- 72% agreed automated sourcing would increase their productivity
- 86% will invest in intelligence sourcing software
- 64% will spend on AI-powered recruiting tools
The CEO of entelo claimed there are more than 70 recruitment technologies currently on the market, which is only expected to grow as demand increases. These technologies can undertake a series of tasks to automate the hiring process including:
- Automated job descriptions that use machine learning
- CVs screened using machine learning to highlight suitable candidates
- Automated interview scheduling – enabling recruiters to focus on candidates not processes
- Interview technology – audio and visual – that can analyse candidate voices and use face recognition software during remote interviews
- Email tracking tools for businesses reaching out to passive candidates
These were already identified before the world was hit by the COVID-19 pandemic, which has drastically changed the workplace and how it operates.
What had been a slow process in adoption has been speeded up as result of the pandemic. Organisations that want to hire are not in a position to use ‘traditional’ techniques. Instead, technology – such as Zoom – has been used.
It is a basic step towards businesses using more highly developed platforms, which will resonate more with the Gen Z and Millennial generation, who operate in a more digital world.
They want to apply online and at a time to suit them, not just 9-5 when an office is being staff. They want quick feedback to their application and are undaunted by video communication.
The recruitment journey also has to satisfy the applicant. They don’t want outdated laborious methods. The process also matters to them as much as it should your business.
As Madeline Laurano, co-founder and chief research officer, of Aptitude Research Partners says: “Talent acquisition leaders who invest in analytics and AI will have more success scaling to meet their recruiting demands. Those that arm their teams with the intelligence and automation they need are the ones who will win the war for talent.”
There has never been a more appropriate time to invest in recruitment technology and stay ahead of the competition.