For more than 10 years, all sorts of professional systems for staff recruitment have appeared. Artificial intelligence in recruitment has already been developed. Everyone understands what tasks AI helps solve and which routines and errors it relieves, but no one understands how to measure the economic effect of using it.
In other words, companies can calculate how much money AI will cost, but they do not understand ROI or how much money AI will bring or save. Slogans like “close vacancies two times faster with (such and such software)†are just not true.
Misunderstanding what AI gives for recruiting in money leads to companies postponing this investment for years, and during this time a lot is lost as a result. For example, if we talk about companies that offer cheap assignment help and regularly look for writers to work in their team, it is necessary for them to understand how to measure the ROI of AI.
In 2018, there were cases where AI was used in a suboptimal manner, which entailed undesirable effects. One of the most recent examples is that AI was more preferable for men than for women. On the other hand, technologies in the field of recruiting and personnel management are still evolving, and more and more new solutions based on AI are emerging.
I chose three methods for using AI in recruiting which I believe are in trend in 2019.
- Automated search for candidates
- Repeated candidate detection
- Selection of candidates
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Automated search for candidates
The search for talent begins with identifying potential candidates and building a funnel. But even if you know where to find these potential candidates (job sites, social networks, etc.), this can be quite a challenge. The development of AI allows the recruiter to automate the process and expand the search field.
Some AI solutions can analyze more than 300 million profiles in social networks, which even a small army of people could not do. In addition, speaking of time-consuming tasks, technology automation allows you to send personalized messages to candidates to keep them working without the participation of a recruiter.
Repeated candidate detection
Let’s move forward with a candidate a little further along the funnel. Sometimes there are so many profiles in our database that some potentially interesting candidates just remain unnoticed. In today’s competitive labor market, it is especially important not to miss the talents that may be right in front of you.
Instead of spending a lot of time and money searching for new candidates and trying to interest new people in your company, you can contact candidates who already know your business and have shown interest in the past. Some providers use AI technology to rediscover strong candidates who were interested in the company earlier and could be suitable for a new role. The ranking may also include promising profiles that have been forgotten for several months or years.
Selection of candidates
Another interesting way to use AI in recruiting can be found in the selection process for a suitable candidate. Here we also see a shift towards customization of candidate experience. We say “also,†since this individual element is what we see in different HR areas. A good example is employee learning and development (L&D).
Learning and development programs are becoming more and more personalized. Not only in terms of the content of the programs, but also in the way information is delivered to employees (some prefer the computer version, others use their smartphones, etc.). Now AI can be used to study potential preferences; in other words, it becomes possible to truly understand which vacancies and what information your potential candidates are interested in.
This allows you to track the behavior of candidates on your site, and then automatically send them personalized content and messages based on their interests.
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ROI Calculations
For a rough estimate, it is necessary to multiply the income of one employee by 40%. Your chief accountant will certainly agree that this is the way to estimate the incremental profitability of each new employee.
Example: Suppose that the income per employee is $600,000. (For comparison, for General Electrics this number is $400,000, and for Miscosoft, $700,000.) By multiplying by 40%, we get that gross profit is $240,000. With a normal distribution, 25% of the best employees on average bring 25% more profit, i.e. $300,000 per year.
If a recruiter with the help of AI manages to hire 30 people a year, the total profit from these employees will be $7.2 million a year. If he or she hires 30 people who are among the top 25%, the profit will increase to $9 million, for an extra $1.8 million. Since this enterprise requires one-time investments, and the profit is constant, it is easy to calculate that the economic effect will exceed 1000%.
As in the past year, the use of artificial intelligence will become even more common in the field of recruiting. Thus, if you have not used it already, it can be a good time to start exploring various AI options that can help you optimize parts of the hiring process.
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