How AI is revolutionizing the hiring process for organizations

In a remote working environment, it has become extremely critical to manage attrition and build a more tenured and high-performing workforce. Recruiters are looking for ways to hire better talent faster and in a more cost-efficient manner.

The pandemic has also prompted organizations to accelerate the pace of adopting new-age HR technology and discover unique ways of leveraging its potential. The process of recruitment today looks radically different from what it was a year ago.

In a recently conducted study with our primary industry contacts, 60% of CEOs were concerned about acquiring the right talent. An increasing percentage of talent acquisition leaders are using automated hiring solutions to improve the quality of hiring. These new capabilities are creating a wave of innovation and are increasingly being recognized as game changers for talent and people services. Recently, a global FMCG leveraged Artificial Intelligence (AI) algorithms to launch a digital recruitment program that used gamification to screen candidates. The process helped evaluate a higher number of candidates across various parameters such as their aptitude, risk appetite, ability to manage uncertainty, potential to innovate, learning agility and ability to deliver results. It helped the organization look past the resume and eliminated unconscious bias from its hiring process. The algorithms helped filter candidates, enabling the recruitment team to save both time and cost, while making the talent attraction process more fun and engaging for the job applicants.

Benefits of AI in the recruitment process

Organizations are increasingly using AI based digital hiring solutions to identify, assess and recommend profiles that stay and perform in a role. By running multiple advanced statistical tools on existing talent data, both of current employees and alumni, organizations can build predictive talent profiles that stay longer and perform better in their respective cultural contexts. AI based solutions can aid in integrating the hiring algorithm and assessments into hiring process and automatically align interview processes. 

Diversity is increasingly becoming of paramount importance for a lot of organizations. The digital hiring solutions can deploy algorithms to identify right-fit candidates from multiple sourcing channels and connect with passive candidates to expand the pool. To ensure easy integration with the existing systems, these AI powered digital accelerators provide flexibility by being easily deployed on-cloud. Digitizing the hiring process significantly enhances the candidate experience and improves HR and business process efficiencies.

AI based digital hiring solutions are aiding organizations to anticipate future needs, enhance the candidate’s experience, determine the cost of a bad hire, reduce the hiring speed, administrative tasks, cost and most importantly reduce the attrition. This can aid the organization to streamline the process for the hiring teams and create a visible impact on the bottom line in the near term with reduced attrition.

Sustainability of the solution

In these changing times, the hiring algorithm can be recalibrated at regular intervals to ensure sustainability. AI powered digital accelerators seamlessly integrate the algorithm and standard operating procedures for new hires into the organization’s enterprise management system. The algorithms are coded to be dynamic, and hence auto upgrade every time new data gets updated making the system self-reliant.

Revolutionize your organization’s hiring process with AI

Leveraging new advanced technologies can provide a holistic solution to widen your sourcing network, reduce time to profile and deepen the precision making your hiring decisions more strategic and less operational.

• Advance analytics can be leveraged to provide precision in defining who to hire w.r.t a profile that stays longer and performs better in your cultural context
• Robotics and chatbots can enable bridging the gap to address data inaccuracy problem
• Machine learning can ensure sustainability of the solution by learning and upgrading it in a dynamic environment
• Application Programming Interface (API) can widen sourcing channels 

Success story

Now let us envision the impact of automation in the recruitment of a life insurance company based out of India. The insurance company was on a high growth trajectory, hence frontline sales productivity and reduced attrition became a board mandate, as it had a direct impact on revenue generation. However, initially the annualized attrition was over 100% leading to a productivity loss of INR 130 million.

The life insurance company was extremely keen to look for a solution to reduce its attrition, improve productivity and consecutively its bottom line. The organization leveraged the AI recruitment solution and adopted a two-step approach:

• It leveraged a predictive hiring algorithm by running 20 to 30 variables attrition data architecture across over 2,000 employee data points that provided model prediction accuracy with dynamic algorithm to help identify right-fit candidates
• To help integrate it with the existing HR management system, the solution was enabled for on-ground implementation, adoption and sustenance

Implementing the solution led to a reduction in the attrition by 18%, an increase in new hire productivity improvement by 15% and a saving in savings from attrition reduction in INR 180 million.

On ground implementation of the digital hiring solution is the key to ensure adoption. Enabling a software as a service is just the first step. It is critical for the HR and talent acquisition team to partner with an expert who provides end-to-end services to ensure the solution is used to realize all benefits and drive ownership.

The reimagined HR function needs to find a balance between traditional competencies – such as coordination, risk and compliance – whilst expanding new capabilities for the creation of long-term business value.

On that note, I would like to leave you with a thought-provoking quote from Andrew Ng, Intelligent Automation pioneer, “Just as electricity transformed almost everything 100 years ago, today I actually have a hard time thinking of an industry that I don’t think AI will transform in the next several years.”