EXCITING NEWS – Corporate Job Bank is now a part of Masis Staffing Solutions!

You will be redirected to the Masis Job Board to browse available jobs and apply online through the CJB Avondale and Tempe branches.

Should AI Help Make Hiring Decisions? 66% of Americans Say They Won’t Apply

Even after years of developing AI, it’s still too early for this technology to penetrate all industries. It has gained popularity as more companies find different ways to use it in their processes. However, it’s not the same with talent acquisition.

Although AI can bring numerous benefits, many concerns still surround it. According to a study by the Pew Research Center, 66% of job applicants won’t even apply if their potential employer is using AI in their decision-making process.¹

AI is here to stay, and it will develop. So, instead of going against it, employers should find ways to mitigate risks and utilize this tool in their processes.

 

The Benefits of AI Usage in Recruitment

The prevalence of AI is not just a trend. It has brought countless innovative solutions to businesses and changed how hiring decisions are made. Here are some of the benefits of using AI in recruitment:

 

1. Efficient Candidate Sourcing

Finding the right talent in today’s competitive job market can be challenging. Instead of spending money on promoting job posts on different websites, you can use AI to streamline your process.

AI can swiftly scan through repositories of professional profiles across multiple platforms using its algorithms. This makes sourcing candidates based on your preference in skills, experiences, and qualifications much easier.

Read more: 13 Instances of Harnessing AI to Streamline Repetitive Tasks

 

2. Quick Resume Screening

When you have many candidates sending in their resumes, reviewing them could take up a lot of time and effort from your people. Fortunately, these time-consuming tasks can be automated using AI-powered tools.

AI tools can analyze resumes quicker than humans. Based on keywords, it can identify the candidates who fit your criteria. From relevant experiences to expertise, an adequately programmed AI tool can help you screen professionals using their resumes alone.

 

3. Effective Candidate Matching

The hiring process is more than just filling roles. Instead, it’s about finding the perfect fit for your organization. Aside from screening resumes, advanced algorithms can match candidates to your preferences and requirements.

This innovative design allows companies to find the right professional depending on the job requirements, expertise, and abilities. This makes it easier and faster for your company to find the best hire among all the professionals who applied.

 

Drawbacks of Using AI for Hiring Decisions

Even with its benefits, we can’t deny the challenges and risks of AI to both employers and employees. Based on the same survey, a staggering 71% of Americans resist using AI in making final recruitment decisions. This is a huge number compared to the 7% who gave their support.

This overwhelming difference highlights the biggest drawback of using AI—a lack of trust in AI systems. It shows the public’s skepticism and unease toward AI’s involvement in critical processes like talent acquisition. After all, it’s someone’s career we’re talking about.

What causes the reluctance in the first place? The following are some of the main reasons behind the skepticism:

 

1. Fear of Discrimination

One of the biggest concerns surrounding AI is the fear of discrimination. Although many advertise AI can eliminate human bias, it can still discriminate against individuals based on the historical data used to program it.

Suppose the data you used for your AI systems includes biases against specific ethnic groups. Unintentionally, your tool might discriminate against these groups and perpetuate biases.

Read more: Women in Manufacturing: A Catalyst for Growth

 

2. Lack of Transparency

AI algorithms can provide decisions based on analyzed data. However, those choices don’t usually come with explanations. This creates a lack of clarity about how the outcomes are made—often calling AI “black boxes.”

Imagine a candidate rejected for an ideal role. Yet, you can’t provide any reasons. This can be a frustrating experience for applicants. It could even lead to mistrust or a bad reputation for your business.

 

3. Distrust in Technology

Despite the benefits of AI, some professionals are still skeptical about AI-driven solutions. According to a study by Authority Hacker, around 55% of American workers are concerned about job security because of technology.² Fueled by concerns about job displacement and biased AI decisions, many professionals are still reluctant to join companies that use AI.

 

4. Data Privacy Concerns

AI recruiting relies heavily on collecting and processing large volumes of candidate information. This creates a significant data privacy concern since professionals are unaware of where their information is used.

Especially for companies that have no data privacy policies in place, candidates may become apprehensive about participating in the hiring process. This is driven by their fear of potential misuse or unauthorized access.

 

5. Inability to Assess Context

Although AI excels at analyzing large datasets, it can’t understand nuanced contextual factors that can impact decisions. For example, people with career gaps may automatically be rejected by AI. On the other hand, a hiring manager would ask for an explanation first.

Other factors, like non-traditional skill development methods, can be overlooked or misunderstood by AI algorithms. This lowers your chances of finding the right fit since the number of potential candidates is limited by AI.

 

Striking a Balance between Human Judgement and AI Assistance

While the concerns surrounding AI use in the hiring process are valid, you might miss out on opportunities. Instead of completely dismissing AI tools, find the balance between human judgment and AI assistance. So, who should make the actual hiring decision?

By leveraging AI for the initial screening and analysis of applicants, the hiring process becomes more efficient and scalable. However, human expertise should remain integral to the final evaluation and decisions.

Artificial intelligence can provide valuable insights and recommendations. However, experienced human professionals are better equipped to assess nuanced factors like cultural fit and long-term potential. This combined approach harnesses the strengths of both AI and human judgment.

Human involvement also allows transparency. Candidates can seek explanations and provide additional context, which AI may overlook. AI should not be considered a final solution to recruitment. Instead, view it as a tool that can help enhance processes—not replace it.

 

Best Practices for Responsible Use of AI in Hiring

To help you find the right balance between using AI and your human resources, here are the best practices you can follow:

 

1. Regularly Audit Algorithms

Conduct regular audits of your AI algorithms used in the hiring process. Assess their performance and identify potential biases. Thoroughly review your AI tools, from their design to the insights they produce.

 

2. Be Transparent with AI Usage

The best way to attract people despite their reluctance about technology is to be transparent about its function in your recruitment process. This includes how your algorithms are developed, designed, and applied throughout the candidate experience.

 

3. Establish an Inclusive and Fair Design

As an employer, make sure the datasets you use implementing AI algorithms are inclusive. Train your systems on data that represents diverse groups of people. This will help create fair and just opportunities for all applicants.

 

4. Maintain Human Oversight

While AI can augment decision-making in recruitment, human oversight is essential to ensure accountability. To do this, maintain a human-in-the-loop approach. Maintain human resources, recruiters, and hiring managers in the process. Allow them to validate AI-generated recommendations before making final hiring decisions.

 

5. Implement Data Privacy Protection

Protect your candidates’ privacy. Implement robust measures to safeguard their information. Ensure your policies also adhere to relevant regulations and standards like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA).

 

6. Gather Feedback from Stakeholders

Whether from job applicants or recruiters, understanding their experience with AI recruitment can help you develop your recruiting process. Gather insights on their experiences and concerns. Actively listen to their suggestions and incorporate them when enhancing your hiring operations.

 

7. Continuously Improve the Hiring Process

Embrace a culture of continuous learning and improvement. Leverage data and predictive analytics to analyze performance matrix. Never settle for simple AI implementation. Consider asking questions and use them to develop your AI hiring.

 

EFFECTIVELY IMPLEMENT AI WITH CORPORATE JOB BANK

Founded in 1985, Corporate Job Bank is motivated to match talented individuals with opportunities available in your company. Using our experiences and expertise, we are confident that we can help you achieve the perfect balance of AI and human touch.

Contact us today to learn more about our services!

 

References

  1. Rainie, Lee, et al. “AI in Hiring and Evaluating Workers: What Americans Think.” Pew Research Center, 20 Apr. 2023, www.pewresearch.org/internet/2023/04/20/ai-in-hiring-and-evaluating-workers-what-americans-think/.
  2. Webster, Mark. “Survey Reveals: 55% of U.S. Workers Have Job Security Concerns.” Authority Hacker, 15 Apr. 2024, www.authorityhacker.com/job-security-survey/.

Get in touch