Research and Discoveries
The incorporation of artificial intelligence (AI) in the sourcing and recruiting process (e.g. recruitment technology) has changed hiring strategies. AI is now being used in several HR operations, including attracting qualified employees, training and development, and employee relations management. Recruiters can utilize AI to help handle widespread talent challenges such as connecting recruiters with qualified job candidates, minimizing undesirable employee turnover, and swiftly responding to workplace issues. In my research on this topic, I examined the different types of AI recruiting tools. Machine learning technology is analyzed through a case study on U.S. Xpress Enterprises. In addition, I investigated the advantages and disadvantages of AI in the sourcing and recruiting process. The following three articles are where I researched information for this HRM E-Portfolio. There will be references to the assigned textbook for BUS 342 - Human Resource Management: An Applied Approach 3rd Edition.
The role of a recruiter in a human resource department is especially important because they are responsible for the sourcing and recruiting of qualified candidates that best fit an organization. Recruiters create strategic hiring practices, develop a pool of qualified applicants, review and assess candidate data, screen applicants, and network through social media platforms like LinkedIn and Indeed. One of their main responsibilities is to identify and recruit talent based on the mission and goals of an organization. According to the Forbes article entitled “Is AI The Answer to Recruiting Effectiveness,” “up to 40% of a recruiter’s time can be spent entering data into an ATS or sorting through resumes.” The job of a recruiter can be extremely time-consuming since finding the right candidate for the correct position represents a difficult task. AI recruiting tools are designed to make the talent acquisition process more efficient and eliminate repetitive tasks. Some of the most common AI recruiting tools include intelligent screening software, digitized interviews, and recruiter chatbots.
Examples of AI in Sourcing and Recruiting
"Usage of chatbots as a brand communication channel increased by a whopping 92% since 2019. 24.9% of buyers used chatbots to communicate with businesses in 2020, up from 13% the year before."
- Drift's 2020 State of Conversational Marketing Report
Machine-Learning Technology Case Study
U.S. Xpress Enterprises
In the Wall Street Journal article entitled “Employers, Investors Take Notice of AI Tools to Speed Job Recruitment”, a trucking company called U.S. Xpress Enterprises was analyzed to determine how AI software has improved its talent acquisition process. According to Tennessee-based CPO Amanda Thompson, “U.S. Xpress Enterprises uses conversational AI software to handle most of the early stages of the hiring process, including text exchanges with job applicants.” The AI technology is designed to provide job candidates with consistent updates and replies to questions. Due to Covid-19, the demand for truckers exponentially increased, which made the labor market extremely competitive. Many companies like U.S. Xpress Enterprises are utilizing AI to manage large volumes of applicants and reduce the time-to-hire. Despite making the hiring process more efficient for recruiters, there is concern about bias in AI software and how that might negatively impact job candidates. Steps have been taken to limit potential biases like gender and racial stereotypes in the algorithms and data. An example would be the New York City Council passing a bill that requires a bias audit to be conducted by employers prior to implementing AI technology into their screening process.
Benefits of AI in HR
According to Chapter 5 of Human Resource Management: An Applied Approach, the objective of AI recruiting software is to analyze existing talent data to help clarify the characteristics that make a good hire for a particular position (Phillips 146). AI recruiting tools offer several benefits to recruiters, including the elimination of repetitive tasks and the improvement of the quality of hires. Rather than recruiters spending their time reviewing hundreds of resumes, AI software can search through a substantial pool of data and quickly identify candidates that match the specific criteria of an open job position. The most qualified candidates can then be shortlisted for the next phase of the hiring process. AI software can be especially useful for qualified passive candidates since this group of job seekers is typically the largest among all applicants. Machine learning algorithms also give recruiters insight into valuable candidate data that is often overlooked, and the technology is intended to reduce bias among recruiters through its blind screening feature. By eliminating these repetitive tasks and reducing the time-to-hire, AI is helping recruiters to spend more time on developing new hiring strategies and improving the candidate experience.
Drawbacks of AI in HR
Although there are advantages to AI in HR, the drawbacks are equally as important to analyze since the integration of machine learning algorithms into the talent acquisition process represents quite a controversial topic. Some critics argue that AI recruiting tools are designed to identify patterns and if not monitored correctly, the technology can be subject to potential bias associated with age, gender, and/or race. Chapter 5 of Human Resource Management: An Applied Approach explored how Amazon utilized an AI recruiting tool that was found to have “downgraded the applications of women” compared to men. This is an example of AI in HR not serving its intended purpose, which is to reduce human bias in the hiring process. According to a Harvard Business Review article entitled “Using People Analytics to Build an Equitable Workplace”, “understanding potential mismatches between what you want to measure (e.g., intelligence or ability to learn) and what you actually measure (e.g., performance on scholastic tests) is important in building any people analytics tool, especially when the goal is to build a more diverse workplace.” Another drawback to AI recruiting tools is the amount of data required for the technology to accurately replicate human intelligence. AI recruiting tools are able to identify patterns in resumes and candidate profiles through machine learning algorithms that have essentially “learned” appropriate key performance indicators. If there is not enough data, the accuracy of the AI can be limited. Finally, there is a large amount of skepticism surrounding AI in HR. Some critics believe AI will replace humans in the workplace or eliminate the human aspect of the hiring process. This is the reason why AI in HR continues to be a highly debated subject.
HR Storytellers: Delia Ortiz
"Delia Ortiz explains what it's like to find talent that automated systems might overlook and what it means to give those people a chance at success."
Society for Human Resource Management (SHRM)
Delia Ortiz is a global acquisition hiring manager in mergers and acquisitions for IBM. She explained that recruiting technology based on artificial intelligence serves as a tool that she utilizes in her job. What interested me about this video was the fact that Delia explained the pitfalls of recruiting software. Delia recalled a time when she was experiencing difficulty filling a niche position. All of the candidates that were interviewed did not appear to meld with the role. She described how AI recruiting software analyzes the profiles of job seekers to find certain keywords associated with a position to determine the most qualified candidate. In this particular case, Delia actually reviewed the candidate pool rejected by the AI system. This is where she spotted a job candidate that was not only qualified for the job but offered additional skillsets. Delia utilized this story to describe how humans still play a vital role in the sourcing and recruiting process.