AI in Hiring Processes

The job market has seen a rapid recovery post-pandemic with 95% of the lost jobs due to COVID being regained. As job growth exceeds even pre-pandemic levels, firms are struggling to evaluate all of the applicants for roles. On average, each corporate job attracts 250 resumes with only an opening for one hire. This is good for companies that receive many qualified applicants to choose from, but it can also mean extensive time needed to properly evaluate them all. Consequently, companies have made advancements with technologies like artificial intelligence (AI) in hiring processes to increase efficiency. Below we outline some of the most important considerations for both HR divisions and prospective candidates. 

The Uses of AI

Artificial intelligence (AI) is a tool used across various industries to automate processes. Computers can often recognize patterns or find specified criteria much faster than humans. As a result, AI has been employed by companies that receive large numbers of applicants for job postings. In addition, a branch of AI called machine learning helps the computer system progressively become better at its task over time. For example, the system may become increasingly skilled at identifying a target applicant over thousands of trial simulations.  

Here are the two most common uses of AI in hiring processes: 

Résumé Screening: When considering that 75 – 88% of applicants for a role are unqualified, it makes even more sense to use an automated process to filter them out. AI and machine learning allow for massive shortlists of candidates to be evaluated based on predetermined criteria. This might include searching for certain keywords, past experiences, education, GPA, and titles. As a result, companies have been able to reduce their cost per screen by 75%. Hiring managers can now devote their limited time to evaluating those who do make it through the screening process, which leads to more qualified hires.  

Notably, companies that use AI resume screening software may also see a 35% reduction in the turnover rate. This is huge for smaller companies that need to be strategic with hiring budgets when the average cost per hire is over $4,000.  

Video Interviews: AI can also be trained to evaluate video interviews, in which candidates are asked the same set of predetermined questions. One of the leading companies in this space is HireVue, which provides talent acquisition departments with information about applicants that tends to transcend traditional data. Candidates will have limited time to view a question and prepare an answer before being recorded. Prep time generally falls between 30 and 60 seconds, and oftentimes candidates only have one or two attempts at the video. This means that responses will be real, for better or worse.  

The AI employed by HireVue evaluates a candidate’s eye contact, body movements, facial expressions, nuances of voice, and keywords used. This allows companies to eliminate or move applicants on to the next round more easily, with HireVue citing a 90% increase in speed of hiring. Some companies that employ HireVue include Bank of America, JP Morgan Chase, Goldman Sachs, and Amazon. 

The Downsides of AI in Hiring Processes

Beyond the obvious fact that a computer can overlook a candidate that a human hiring manager may not, there are a host of potential pitfalls with AI in hiring processes. AI is often praised for being objective and lacking human biases that may discriminate. This, however, may not actually be the case since the software often has access to past hires and thus picks up on previous discriminatory trends. Historically white, male, and ‘ivy-league’ educated industries may see their software perpetuate these past trends by thinking that those are still the appropriate hires. 

HireVue can also be viewed as somewhat dystopian in the sense that a computer is evaluating humans. This may be off putting for candidates who would perform differently in an in-person interview. 

Beating the AI 

As a candidate, learning to surpass artificial intelligence in the hiring process is necessary with its rapid adoption by large companies.  

Here are a few tips to put your best foot forward in any online application: 

Keyword Optimization: Artificial intelligence that screens résumés is often looking for certain keywords or phrases. For example, a consulting position may look for words like “founded,” “analyzed,” or “led,” and phrases might include “created solutions” or “improved efficiency.” Reading the job posting for the key skills that the position is looking for can often be a good start for tailoring a résumé to bypass the AI screening. 

Recording Yourself: Video interviews can often be unnerving for those who are unfamiliar with them. Rather than responding to another person, you are faced with staring at a camera. It’s best to record yourself with practice questions before sitting down for the real deal. This lets you view yourself on screen and determine what looks and sounds best.  

General Tips: When participating in a video interview, it’s important to remember that staring straight at the camera rather than watching yourself will generate a better score from the AI. It’s also key to exhibit natural body language, use a tone of voice that isn’t overenthusiastic or monotone, and wear professional clothing. Finally, remember to research potential questions that the company might ask because you will only have a brief period of time to prepare an answer.  

Conclusion 

As a hiring manager, it’s important to remember the value in evaluating candidates by humans. Cutting costs and improving efficiency are important, but there’s no substitute for a hiring manager’s “gut decision.” A blend of AI and human observation may offer the best balance to shorten a long list while still having human insight for those who make it through. At the end of the day, companies need to hire the best candidate while using the most logical resources, and AI is one of many avenues to consider.