The Hiring Paradigm Shift: Embracing AI in Recruitment.

If you look at hiring from the “30,000-foot?view”, it is still difficult to find applicable candidate insights, browse through hundreds of thousands of resumes, and most importantly, select the right talent for any given position. This is especially true for larger organizations that receive thousands, if not millions, of CVs / resumes every year! To aid with these HR headaches, companies are now opting for a way out by investing in AI and automation. In fact, Predictive Hire ?launched a report showing that 55% of companies were increasing their investment in recruitment automation in 2022.

Does automation help attract top talent?

At the end of the day, companies looking to attract top talent cannot risk a negative reputation for ghosting candidates or offering a bad recruiting experience since they need skilled people to be interested enough to join. Given this context, company's HR departments are outsourcing their recruitment to specialised BPO providers, Recruitment Process Outsourcing (RPOs) who specialize in this very field.... and now AI has started to transform RPOs to provide even more streamlined experiences for both candidates and hiring managers. Specifically, artificial intelligence is helping RPO providers create a win-win scenario for candidates and recruiters. In this article, I will explain exactly how.

So,?how is AI helping RPOs?

Candidate experience, always first. For starters, AI can assist candidates in refining their resumes by comprehending the specific job descriptions they are targeting and subsequently optimizing the content for a better identification. There are chatbots that interact with candidates in real time during their applications to lend support. In addition, AI can aid in the creation of tailored cover letters that include unique insights about the role and the company, giving a more personalized touch to the application. Intelligent code can expose job openings that align closely with a candidate's skills and qualifications, making the job search more efficient. Once the candidate has applied, AI-powered tools can offer invaluable support by sending reminders and ensuring candidates remain punctual for scheduled interviews. The end result? A great recruitment experience.

Clear advantages for Hiring Managers and Recruiters.

Hiring managers and recruiters can also greatly benefit from the impact of AI in Recruitment Process Outsourcing. The most value-add comes from two key elements: sourcing and hiring.

But wait, what are the drawbacks of AI in recruiting?

AI offers transformative potential to automate routine tasks, increase efficiency in the hiring process, and improve the quality of hires. However, while AI promises significant benefits, it also presents challenges such as potential job losses or even biases in recruitment. Does it mean we are taking the "human" or personal touch out of the process? What would the candidate think about their resume being matched or scored by AI?

"Getting a better, shinier tool that’s faster and more expansive doesn’t relieve you of the burden of thinking things through."

In a recent McKinsey talk ?between Bill Schaninger with McKinsey Technology Council chair Lareina Yee, the participants discussed that generative AI, which learns from historical data, carries the risk of perpetuating existing biases since historical data can reflect societal biases of the past. For example, in recruitment, using sports, like lacrosse or basketball as a examples of being team player, might favor certain demographics over others, unintentionally amplifying bias.

Challenges should not deter RPO providers from integrating AI into their operations. They should be viewed as opportunities to differentiate themselves, innovate, and offer AI-powered solutions. Predictive analytics can forecast future talent needs accurately, AI algorithms can enhance candidate sourcing and screening, and chatbot engagement can improve candidate experience. And to add further realism, virtual reality (VR) can create immersive onboarding experiences, setting a new standard for the industry.

Final thoughts:

AI doesn't mean totally eliminating human interaction from the recruitment process - I don't believe anyone is advocating for this, as personal interaction can tell you so much about an individual. However, RPO providers that truly embrace AI will not only thrive but also redefine the industry's standards. They will move from being vendors to trusted and strategic partners, capable of providing more efficient, personalized, and exceptional recruitment results for their clients.?This is the potential future of the RPO industry, and arguably those that fail to adapt may struggle to survive.