How Technology Is Transforming Work in the AI Recruiting and Hiring segment

????Motivation:?

The integration of modern digital technologies has brought significant improvements to businesses and non-profit organizations in terms of efficiency, productivity, and traceability in the present economy. In recent years, the way employees work has undergone a significant transformation as a result of digital transformation. Advancements in industrial automation, AI recruiting tools, and robotic assistants have changed the way people work across the globe. The use of technology in the workplace has begun to affect the recruitment process, as well. The use of AI tools has enabled recruiters to analyze and process large numbers of resumes, pre-screen candidates based on their skills and experiences, and even conduct virtual interviews. As a result, the criteria used to select candidates for job interviews may have shifted, with algorithms playing a larger role in the decision-making process.

1.??????????????Theoretical background and literature review

Traditionally, the selection of candidates for a job interview was mainly based on the design and content of their resumes, as well as their relevant experience for a specific position. However, this process has evolved with the advancement of technology, particularly in the field of recruitment. The integration of AI tools in the recruitment process has allowed recruiters to easily access and evaluate a larger pool of candidates from various locations and backgrounds. The use of these tools has become increasingly popular, especially with the simultaneous occurrence of digital transformation, globalization, and recent pandemics which have accelerated the use of remote hiring methods. As a result, the criteria used to select candidates for job interviews may have expanded to include additional factors such as their suitability for remote work, digital skills, and other qualifications.

“Organizations are increasingly using AI-enabled technology and tools in their recruiting processes. However, little is known about how job candidates view AI-enabled job application systems and whether those views influence the likelihood that they will apply for jobs in such cases. Our research finds that attitudes toward AI use in the job application process in general, and attitudes toward organizations that use AI in the job application process, are strongly related to the intent of prospective employees to apply for jobs at those organizations that have AI-enabled job application processes. Given the growing use of AI technology and tools in candidate recruitment and given that organizations primarily select from and offer jobs to those who have completed the job application process, a better understanding of what influences candidates’ reactions to AI-enabled recruiting could provide valuable insights into how organizations can more effectively manage those activities.”[1]

“From a practical standpoint, before organizations can hire, onboard or optimize performance from their targeted human capital, they first must recruit and select them. Recruiting is primarily concerned with determining the desired candidate pool, attracting candidates, and getting them to apply for open positions.”2

2.??????????????Research questions:

-????????????????Which recruitment model is preferred by companies: traditional or AI driven?

-????????????????Which recruitment model is preferred by employees: traditional or AI driven?

-????????????????Who benefits from the preferred model??

3.??????????????Research hypotheses:

-????????????????Companies are the big beneficiaries of AI driven recruitment because of large access to large databases, cost efficiency and employee pre-screening opposite to the biggest segment of employees who develop anxiety over this recruitment model.

-????????????????The AI selection success factor applied on a very large database of candidates is the key driver for companies to choose AI recruitment.

4.??????????????Research design:

4.1?????????The research project starts with an analysis on available literature on the following aspects:

-????????????????Benefits of AI recruitment for companies?

-????????????????Candidate reactions to AI‐enabled recruiting, both positive and negative

-????????????????Direct attractiveness of AI‐enabled technology and tools during recruiting?

-????????????????Indirect attractiveness of AI‐enabled technology and tools during recruiting

4.2?????????To analyze the multiple factors that sum up the conclusion, a cross-sectional design will be used on a group of 50 adults, aged from 24-40, both sexes, active on the work market and a smaller group of 12 human resources specialists, representatives of companies who are actively hiring. The sectors being addressed are skilled labor. The convenience sample is set for a minimum of 60% (27 employees and 7 human resource specialists). The questionnaire will be distributed electronically to enable a fast response from all participants.

4.3?????????The survey data will be analyzed with IBM SPSS?

4.4?????????A report will be available one month from the start of the surveying process.

5.??????????????Methods:

5.1???????????A 6 items questionnaire was developed for employees, measuring: intent to engage, AI driven organization attractiveness, motivation, novelty, trust and discomfort (anxiety). Each question has a variable number of answers. (from 2 to 6). Example: Trust: yes/no. For multiple level effects, the rating varies from 1: unlikely to 6: most likely. The measurements were made though the use of and adapted scale measurement.?

5.2?????????A 6 items questionnaire was developed for companies, measuring mainly the interest in AI recruitment, and the main 5 benefits of AI recruitment, measuring their importance from 1-5 (no importance – highly important).

5.3?????????An adapted scale measurement therefore was used also for employees and companies. This measurement contained wording modifications to compare the choices of both sample groups. Collected data will be analyzed through IBM SPSS and Excel statistical formulas (small number of subjects).

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8.a. Anticipated findings:

·???????????????Companies:

The analysis of the research outcome is expected to show that companies prefer AI-driven recruitment due to its ability to provide access to a large pool of candidates. This is considered the primary motivation for companies to adopt this method of recruitment. The second most influential factor in companies' decision to shift towards AI-driven recruitment is the quality of candidates accessed through this method, which is mainly derived from the large pool of candidates available. Thirdly, companies consider the relevance of candidates to the open positions as an important aspect. The fourth most important aspect is the possibility to pre-screen potential candidates through the scanning of their social media profiles and activity, criminal records, and other aspects that were not identifiable without research. The fifth factor in the order of importance is the cost-efficiency obtained from the use of AI tools.?

The study found that companies only see positive factors in the AI recruitment process.

·???????????????Employees:

The analysis of the outcome will show that employees are still divided almost equally???between being open to apply for companies that use AI recruitment processes.?

Half of the sample group is the early adopter type, who had seen more advantages, in order of importance: organization attractiveness, novelty, trust, motivation, intent to engage.?

The other half of the sample group is reluctant to apply or participate to AI recruitment process, or anxious about the process. In cases where willingness to engage exists, anxiety was the most important factor, followed by discomfort.

????????????Other relevant aspects that the questionnaires are expected to find:

-????????????????Younger candidates are more open to apply to digitally prone companies

-????????????????Men and women applicants are almost equal in numbers

6.??????????????Conclusions

-????????????????Companies will invest in digital transformation also in the segment of AI recruitment due to many reasons: cost, efficiency, effectiveness.

-????????????????The rise of importance in human capital can be matched by the technological advances that enable recruiters to access a global roster.

-????????????????Employees from the millennial generation onwards may have an advantage today because their education also had a digital dimension.

-????????????????There will be a lot of novelty development in terms of preparing candidates for the digital era, in all aspects, including recruitment

-????????????????Globalization of the workforce, diversity, and transparency on the recruitment processes, will be beneficial factors for private but also private institutions.

-????????????????The limitation of corruption in recruitment processes will be more feasible due to the transparency factor.

-????????????????Humans will have to digitally transform for the new technological era.

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7.??????????????Limitation:

This is an initial study, developed in Romania, on Romanian employees, and on international companies that have offices in Romania. Further research will be needed to deep-dive into all analysis. Also, as digital transformation is only at its beginning, recurrent research will provide actual data in the future.

[1]?1Patrick van Esch?· J. Stewart Black?· Denni Arli?(2020)?Job candidates’ reactions to AI‐Enabled job application processes?pp. 119-130,?AI and Ethics, Springer

2Breaugh, J.A.: Employee recruitment: current knowledge and important areas of future research. Human. Res. Manag. Rev. 18(3), 103–118 (2008)