How Artificial Intelligence Drives Automation & Reduce Costs in Recruitment Industry

Unlock the power of AI to transform recruitment from a cost center to a strategic driver of business success.

Recruitment has always been a crucial aspect of business operations, and companies have been employing various methods to find and hire the right talent for centuries.

From placing ads in newspapers to working with recruiting agencies, they have tried everything to attract the best possible candidates.

However, with rapid advancements in technology, the recruitment industry has also undergone a massive change.

In recent years, the rise of artificial intelligence (AI) in particular is notable, as it has come a long way since its inception. In fact, the global market for AI is expected to reach an impressive market growth rate of $521.3 billion by 2028.

Recruitment is just one of the industries that AI has successfully revolutionized. According to a report by Facts & Factors, the global AI recruitment market size is projected to increase to $890.51 million by 2028.

The increase is mainly due to companies adopting AI recruiting tools in their hiring processes.

Today, AI-based recruitment has enabled companies to automate many tedious and time-consuming tasks associated with the hiring process. This automation is rapidly becoming a game-changer in the industry.

So, let’s delve into why and how AI is driving this automation and revolutionizing the recruitment industry as a whole.

Time Is Money - The Cost of Elongated Hiring Processes

Every company focuses on hiring the best workforce to scale and expand its services. But building a team takes a toll on the company’s finances. The human resources department of any organization is in a constant struggle every day to find the best candidates.

From spending hours on end sorting through resumes, scheduling interviews, and conducting background checks, the time to screen employees can sometimes take forever. According to LinkedIn, the average length of a hiring process is 36 days.

Moreover, the costs associated with finding the right candidates are enough to leave a dent in the company’s revenue targets. A Glassdoor study reveals that the average cost of hiring an employee can be as high as $4,000.

Hiring a new employee can be a time-consuming and expensive process, but AI-based automation in recruitment is successfully helping companies combat these problems.

Not only does AI-based recruitment automation help companies reduce costs, but it also reduces the time taken to successfully screen and hire candidates.

With the help of AI, many of the processes involved in recruitment can be easily automated, allowing recruiters to focus on more strategic tasks.

AI-powered automated application tracking tools and resume scoring and ranking can make life easier for recruiters.

The technology can also significantly reduce a recruiter's time spent reviewing nontechnical aspects of candidates, such as communication skills, through the use of virtual reality-based dialogue systems or virtual recruiters.

Unconscious Bias - Improving the Quality of Hires

Unconscious bias is a prominent problem in the recruitment industry, and it can have a significant impact on the hiring process. According to BrightTalk, “79% of HR professionals agree that unconscious bias exists in both recruitment and succession planning decisions."

When we talk about unconscious bias, we’re referring to particular attitudes and stereotypes that people hold about certain groups of people, often without realizing it themselves.

In recruitment, this bias can lead to hiring decisions that are influenced by external factors like age, gender, race, and education level, rather than job-related criteria. At the workplace, it can “stymie diversity, recruiting, promotion, and retention efforts.”

AI-based recruitment tools can offer a potential solution to this problem, as they are designed to minimize bias and promote fair and objective hiring practices. They can also be used to improve the quality of hires.

AI systems also do a much better job of tracking candidates, unlike traditional manual processes.

This is because AI systems can be trained with large datasets to understand ideal candidate traits and can quickly identify the right candidates from a myriad of platforms like GitHub or Quora.

Training and Development - Curating New Recruitment Strategies

The recruitment industry faces several limitations when it comes to training and development. According to a Monster survey, 80% of organizations have expressed that they are having difficulty filling openings due to an ongoing shortage of skills.

This is why companies must prioritize investing in employee development and adapt to the evolving industry landscape to stay competitive and attract top talent. AI-based recruitment can assist them with this by helping curate new recruitment strategies and improve existing ones.

Once the talent needs have been identified, AI can help source potential candidates through AI-generated custom advertisements that target the right candidate pools from across the web. Not only that, but AI can also help companies upskill their current workforce.

AI-powered learning management systems can analyze employee performance data and create customized training plans to help employees improve their skills and knowledge.

AI can help recruiters and companies make important decisions like choosing between getting consulting services or augmenting the existing workforce which will provide additional support and expertise in areas where there may be a skills gap.

AI Is Transforming Recruitment Into a Strategic Driver of Business Success

By leveraging AI, companies can gain a competitive advantage in the industry by attracting top talent and building a more diverse and inclusive workforce.

According to Forbes, at least 55% of companies are invested in recruitment automation as it will enhance efficiency and drive data-driven hiring processes.

However, it is crucial to ensure that AI algorithms are trained on diverse data sets and viewed as a tool to support recruiters rather than replace them.

As the recruitment industry continues to evolve, AI-based automation is set to play an increasingly important role in streamlining the hiring process, reducing costs, and improving the overall quality of hires.

Hence, it is crucial for companies to stay up-to-date with the latest trends and technologies and embrace the power of AI to drive growth and success. Ultimately, AI offers a unique opportunity to transform recruitment from a cost center to a strategic driver of business success.