Artificial intelligence (AI) technologies have become an essential component of the recruitment process, particularly at the early stages when grabbing candidates’ attention, targeting the best prospects, and making a good impression are extremely important.
However, a recent report by Phenom found that AI implementation is still lacking in many large corporations. The 2021 State of Candidate Experience benchmark report found that most Fortune 500 companies are not taking advantage of AI to streamline the hiring process and personalize the candidate-recruiter interaction.
The study also reveals that 93% of the Fortune 500 companies surveyed scored poorly in AI use. In addition, 91% of respondents did not have a recruitment chatbot, a software that can interact with job seekers to enhance candidate engagement and conversion. The report's results suggest that businesses miss out on the benefits of AI technology in the recruitment process.
One of AI’s contributions to the recruitment world is effective decision-making through predictive analysis. AI will crawl the web to find profiles of candidates who may seem like a good fit for the organization. It makes these predictions based on millions of data points. Intelligence screening software is another useful AI-powered tool that automates the resume screening process. The software analyzes candidate profiles to determine how fit they are for the job opening.
Recruiter chatbots provide real-time interaction by asking candidates questions and providing feedback and updates. For example, the AI chatbot technology of Wade & Wendy is available around the clock to chat with candidates. The chatbot will analyze the job description and produce a role-specific chat to inform and evaluate the talent pool. It will then submit only the most qualified, interested, and available talent.
The usefulness of AI chatbots has been recognized as a crucial component of recruiting. PandoLogic, a programmatic recruitment advertising platform, recently acquired Wade & Wendy. PandoLogic’s primary offering is pandoIQ, a software that automates and optimizes job ad placements. Combining pandoIQ with Wade & Wendy’s AI can help deliver a more personalized application and candidate experience.
Around 52% of talent acquisition leaders say finding the right candidate from a massive applicant pool is the hardest part of recruitment. This is where AI can help by automating repetitive tasks. Since the Phenom report found that most companies are not taking advantage of AI, incorporating this technology in talent acquisition gives employers a competitive edge. Here are some of the most significant benefits of AI use.
One of the most time-consuming parts of recruiting is manually screening resumes, especially when the vast majority are unqualified for the role. Screening resumes and selecting candidates for interviews can take up an estimated 13 hours per week of a recruiter’s time, all for a single role. AI can automate many high-volume tasks, including resume screening, enabling recruiters to spend more time focusing on other duties. This automation helps reduce the time-to-hire, meaning organizations are less likely to miss out on the best talent.
AI enables recruiters to tap into a broad talent pool to source candidates from online career boards, social media, and agencies. The technology can also identify passive candidates, which comprises 70% of the global workforce and is considered one of the most sought-after prospects.
A study by Entelo found that 98% of talent teams say passive candidates are an essential source of hire. This group is also 120% more likely to make a substantial impact. Another lucrative demographic is former applicants. AI has the ability to sift through a company’s resume database to identify former applicants qualified for the current job opening.
AI can source through more information from internal and external talent pools at a much more rapid rate than people can manually, resulting in the ability to reach the best candidates faster. AI sourcing tools can parse through millions of online profiles and save recruiters up to three hours per day on research.
While AI-powered technology greatly benefits talent acquisition teams, it also enhances the candidate experience. Statistics show that a negative candidate experience can have repercussions. According to the Phenom study, over 70% of job seekers who had a negative experience would share it on employer review sites. Similarly, 83% say they would change their mind about a company they liked due to negative experiences.
Candidates’ bad experiences may be due to the lack of response or communication from recruiters. In fact, 81% of job seekers say that employers who communicate status updates improve the candidate experience. And 42% of human resources professionals believe improving the candidate experience is a top priority.
AI recruitment chatbots can automate the majority of the recruiting process by interacting with job prospects. It is able to answer questions, verify qualifications, and update applicants throughout the hiring process. With the technology automating several tasks, recruiters can also focus on creating a positive experience for candidates during the hiring process.
The lack of AI use among large corporations is holding them back from finding quality candidates, automating tasks to free up time for recruiters, and improving the candidate experience. AI software such as chatbots and intelligent screening are able to help companies shorten the time-to-hire and ensure they obtain talented prospects before their competitors.