How AI-based solutions will make hiring scalable and cost-efficient in the future

By Sujatha Kumaraswamy, CEO, MeritTrac

Online hiring is gradually taking over traditional in-person interviews. The pandemic and its ramifications impacted a few talent acquisition teams, while increasing the pressure and expectation on others. Remote work, onboarding and recruiting virtually have become the new standard. The recruitment industry has been under a lot of pressure to swiftly close the talent gap. The gap was a result of the sector’s tremendous digital revolution as there were millions of displaced job seekers and new graduates.

With the pandemic intensifying the pace of digital transformation across almost all industries, companies of all sizes have been forced to accelerate their digital plans. The same can be said of the recruiting industry, which has been using technology to improve and reinvent the learning process. With the COVID-19 pandemic, this has been sped up at a dramatic pace. In an increasingly digital environment, recruitment, like every other business, is changing as a result of technology improvements. The Sage report showed that 24% of businesses had begun to use AI for talent acquisition, with 56% of managers planning to implement automated technologies within the next year.

The task of keeping track of and categorizing large-scale recruitment data generated by a a big number of applicants is difficult. Many organizations struggled to come up with an effective and well-structured recruitment strategy that would account for and address all these issues at the same time. As a result, stakeholders had trouble making good, data-driven recruiting and development decisions. Furthermore, existing systems had flaws such as a lack of centralized visibility to manage evaluation processes, a lack of departmental collaboration, and so on. When it comes to hiring and evaluating people, these criteria and constraints are crucial.

The entire process of screening, interviewing, and onboarding employees is not only physically demanding but also financially draining. Organizations employ a lot of manpower in the recruitment process which costs them money and time, but AI based solutions have come to the rescue. Recruiters benefit from technology-driven exams since they eliminate some of the time- consuming manual processes.

Advanced and automated solutions that can administer assessments, organize interviews, and provide candidates with regular updates throughout the process can now be used to find and filter candidates. It takes ample time to go through thousands of resumes but by AI powered tools make it easier to filter, shortlist and select the most apt candidates for your organizations. The technology can swiftly scan many resumes and reduce the candidate pool to those who are most likely to thrive and add value to the organization. Recruiters can see an immediate return on investment by using AI. According to a case study conducted by Alorica, after introducing chatbots into their recruitment process, the company saved over 1,200 person-hours, cut their cost-per-hire by 84 percent, and
interviewed roughly 3,000 candidates instead of the average 966. Leading worldwide organizations have reaped the benefits of AI recruitment software, lowering their cost-per-hire by nearly 30%.

So far, a comprehensive assessment environment that can bring together the disparate pieces of the hiring process has been lacking. Thus, an AI-based recruitment revolution powered by next-generation technology will enable organisations to develop an efficient workforce, improve the quality of decision-making processes, and play a critical role in the development of new business processes and ideas.