Implementing artificial intelligence for recruiting and HR processes on your mind? Great choice! - Companies love to flaunt the fact that they work with the “top 1% talent” of their industry. It’s an effective marketing tool that assures the customers that their AI solution is being developed by the maestros of the domain. Curious about how artificial intelligence can assist you to find these people for your business? Details ahead!
Your company most likely receives a large number of job applications on a daily basis, so much so that it is impossible for you to thoroughly analyze every one of them manually. Most companies miss out on the opportunity of hiring great employees due to this flawed method of screening applications.Besides, almost every job seeker uses resume templates to make organized and presentable resumes, so most of them might look identical thus increasing the chances of getting overlooked. Even with a dedicated team, your assessment process might be vulnerable to human error. So is there a solution that can help businesses analyze resumes more efficiently so that none of the deserving candidates are overlooked? Of course, there is!
Using artificial intelligence for recruiting and other human resource operations, your company can filter down the most eligible individuals from thousands of applications in no time. AI services such as machine learning and natural language processing are used to train AI models that can automatically assess a candidate’s resume based on the pre-established guidelines of your company.
Using artificial intelligence post-recruitment is also helpful for businesses to understand the employee’s mindset more effectively. From ‘training the recruits in an effective manner’ to ‘acknowledging their efforts by rewarding the top performers of your company’, AI’s analytical capabilities know no boundary. But first, let’s understand how the recruitment and post-recruitment models actually function.
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Difference Between AI in Recruitment & Human Resources
It’s fairly obvious that the use cases for AI recruiting are a subset of the tasks assigned to AI in the entire human resources process. In simple words, AI-based recruitment services can leverage the initial process of screening and onboarding compatible candidates. Whereas, AI in HR can be helpful in enriching the overall experience of an employee within your business. It includes pre-recruitment and post-recruitment processes such as:
- Recruitment and Onboarding
- Employee Training
- Performance Assessment
- Automated payroll processing
- Improve Engagement and other important procedures…
Now, let’s discuss the importance of AI in recruitment and human resource management one by one, starting with the recruitment use cases.
Benefits of Using Artificial Intelligence for Recruitment
The benefits of automated AI algorithms go beyond enabling your business to find the best applicants based on the company's requirements. Here’s a detailed list of benefits that you can reap with the introduction of AI in your recruitment process:
(1) Save Administration Time
Artificial intelligence has significantly spiked the efficiency of the recruitment process by automating core aspects of the hiring process such as resume screening, scheduling interviews, sending follow-up emails, and other administrative tasks. It has enabled businesses to identify eligible job seekers and hire them at faster rates. Previously, recruiters had to spend hours manually analyzing each application to select the best candidates for the next round of interviews. Our developers have mastered the techniques of developing an AI model that can help your business automate its routine tasks with zero risk of manual errors! This can save your business from wasting hours of manual labor, and reduce business costs.
(2) Background Checks
Manual background checks of every individual employee can be a time-consuming task depending on the number of people your company is planning to onboard. Implementing a background check model with the help of AI recruiting software saves a substantial amount of your recruitment team’s time. Which allows the team to spend more resources and focus on the more important aspects of talent acquisition. Furthermore, assisting your company’s HR department to make better hiring decisions based on the core aspects of an employee’s soft and hard skills.
(3) Improved Communication
Leaving a job application unresponded leaves a bitter impression of your company in the eyes of the candidate. Although in most cases it is not intentional from the company’s side. The actual reason behind this ignorance is that the sheer amount of job applications is so high that responding to each one of them after a proper analysis can trap the HR team in an infinite loop. This is why companies using AI for recruitment focus on developing conversational AI chatbots that can be connected to the screening model. The screen model can assess a candidate’s application instantaneously and provide them with a decision for whether they are shortlisted or not. This saves the time of both parties involved in the recruitment process and ensures that none of the candidates are overlooked.
(4) Smooth Onboarding
Onboarding a selected candidate is the last step of the recruitment process and the first step of making the new employee comfortable in your company’s working environment. Having a long and draining onboarding procedure is often frustrating for the fresher, which is bad for the first impression of the company’s operational layout. Instead of asking the employee to submit documents and complete company protocols manually, you can use an AI solution to automatically extract the necessary information from a relevant database.
With the use of artificial intelligence in human resource management operations you can onboard new employees without the hassle of undergoing prolonged paperwork. For example, by training your AI models to evaluate employment forms such as I-9 and W-4, you can retrieve the data that your business needs to keep a record of, without demanding your new joinee’s extra hours. Additionally, you can use these AI models to collect a candidate’s feedback regarding the onboarding experience that can optimize the process further, with streamlined adjustments.
Benefits of Artificial Intelligence in HR - Post Recruitment
You surely need no introduction on how the human resource department has to juggle with the need to maintain a healthy working environment and plan each individual’s growth & the organization’s, in line with their performance. Performing all the trail of tasks associated with these objectives lengthens the list of use cases for AI in HR space. Here’s how AI steps in the process & make the process transparent & efficient:
[1] Effective Employee Training
Hiring an eligible employee is a mammoth investment, as your company has to spend significant time & resources to train the individual with additional skills that they need to calibrate with the workflow of your business. With the use of artificial intelligence in the HR department, managers can assess the strengths and weaknesses of every newly onboarded employee to design personalized training and development programs. This not only provides your company with the best version of their employees but also ensures individual employees’ job satisfaction as they enhance their skill set over time.
According to a survey, 55% of employees preferred to work for a company that uses AI to support their personnel’s career growth. The reason behind this preference is the reliability and capability of an AI model to personally analyze every employee to provide them with an engaging experience that simultaneously boosts their skillset.
[2] Higher Employee Retention
As we discussed in the previous section, job satisfaction is one of the deciding factors for the long-term involvement of an employee with your company. In case the employee is not satisfied with their work environment, they may decide to leave the company which may disrupt the workflow.
To avoid this situation, artificial intelligence in HR solutions is being widely used to retain employees by providing them with added benefits. Predictive analysis models have proved their ability to accurately analyze the change in an employee's working behavior to predict who is more likely to leave the organization while pinpointing at the factors that influence the change. The management team can use this data to identify the root cause & sort out with modifications focused on the specific problem area.
[3] Employee Performance Analysis
Maintaining a productive environment within your work culture is essential for the continuous development of the company, especially with the increasing popularity of ‘remote working’. While some employees are often willing to go the extra mile with their work as long as they know that their efforts will be recognized by the stakeholders, some need constant push to stay on track. With artificial intelligence, you can have an elaborate employee performance analysis report giving a clear picture of individual performance capturing every minute change in hours & quality of deliverables. This way, you can ensure your business and its employees, concerns of both are done justice to.
BinaryFolks’ artificial intelligence solutions for human resource management can help you classify your employees based on their performance reports to:
- Appreciate the top performers with bonuses, promotions, and more responsible tasks to keep them motivated to work every day.
- Address the issues of the underperformers and provide them with additional training and guidance to help them improve gradually.
- Professionally terminate the employees who are unable to keep up with your company’s standards.
[4] Automated Payroll Processing
Artificial intelligence can help big-time in rolling out employees’ paychecks every month. It is even more advantageous if your salary model is partially based on the recruits' monthly performance. Instead of manually calculating the salary of each employee before pushing out the results your HR team can simply execute the AI model on the performance report of the month. The AI can be trained to identify the salary structure of each individual employee and calculate their monthly lump sum.
In addition, the AI model can use services like NLP and machine learning to automatically wire the data to every employee’s account after calculation. This makes the payroll processing system completely autonomous providing the HR department additional time to focus on other important business affairs.
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Challenges with Using Artificial Intelligence for Recruiting
Developing AI solutions has its own forest of complications. Let’s analyze them one by one:
[a] Risk of Bias
Modern unsupervised AI recruiting models are built to simulate the behavior and choices that a regular HR employee makes while screening an application or during the other stages of the recruitment process. To train these models, developers use the business data of the company which may have subtle hints of subconscious bias. It is also important to keep in mind that the dataset should always cover all the classes in equal proportions. In case the business provides raw data with either undersampled or oversampled categories the resultant AI model may show biased results.
[b] Lack of Human Interaction
An AI recruiting tool can surely improve the efficiency of shortlisting potential candidates in the screening process to be selected for interviews. However, these AI models rely on matching keywords in your resumes to match the requirements of the business. This is not the most efficient way of shortlisting the best candidates as this method may fail to identify the latent talents of a potential candidate.
For example, your company is willing to hire a new marketing lead for your business. And the AI resume screening models designed to analyze job applications have criteria set for the applicants to have a marketing degree. Now in this scenario, the AI model may choose marketing freshers for the interview process over a job applicant who has years of marketing experience but has graduated with a different degree. This will lead to improper decision-making.
[c] Cost of Implementation
The initial cost of implementing an AI model can be intimidating to you as a business owner. It consists of quite a handful of important steps all of which require perfection to develop effective AI recruiting software. These steps are:
- Gathering bias-free data for business development
- Designing an elaborate training algorithm that covers all the possible scenarios
- Setting up the appropriate infrastructure for the new AI technology
- Training your employees on how to use the technology
- Maintaining the model's data from time to time to avoid the development of synthetic bias
It may seem to be a laborious process to maintain these AI models but the majority of the above-mentioned points are only a one-time disruption. And provided the long-term returns and cost efficiency that this model will provide your business. It is absolutely worth taking this initial hit, especially when you have a long-term vision for your company’s growth.
[d] Technical Limitations of Employees
There is no point in developing artificial intelligence recruiting software if your workforce cannot capitalize on its potential. Additionally, training these technologies for users from scratch is not an easy task in any way. Companies often make the mistake of designing complicated user interfaces while trying to add every feature that seemed useful to them. The businesses should instead focus on developing user-friendly models that prioritize the major aspects of the business workflow.
BinaryFolks’ AI developers are well-versed in designing user-friendly softwares that are focused on maintaining the simplicity of the UI/UX designs without compromising on features and accessibility. We make sure to design interfaces that feel welcoming, even to users with no technical background.
Things to Keep in Mind While Training the AI Recruitment Model to Avoid Bias
Developing a bias-free AI recruitment model for your business can be tricky as the data provided or the algorithm used to train the AI solutions can have a disproportionate distribution of content across different classes. There are two primary ways in which an AI model acquires these guidelines appropriately.
Firstly, these keywords can be pre-fed to them by a supervisor based on your company’s current skill requirements. Or secondly, the AI model can identify the important assessment features based on the previously selected candidates with the combined effort of technologies such as deep learning and NLP. The implementation of machine learning in recruitment models can further enhance the process by boosting the accuracy and efficiency to inhuman levels.
However, either of these methods individually can be easily biased as the supervisor may fill in the keywords that might be biased towards his personal understanding of the business needs. Whereas the deep learning model may pick up wrong attributes as deciding factors that have nothing to do with the actual skill set of the candidates. A few of these bias factors that need to be addressed appropriately during the training process are:
- Demographic Information: In the modern employment sectors the demographics of an individual are not important to determine their skillset. It is still common when machine learning models pick these attributes as a deciding factor, leading to biased results.
- Sampling Bias: This occurs when the training data set fails to replicate an accurate representation of the population. When one specific group of data is oversampled compared to the other classes the AI solution may be biased toward that class. This leads to the development of an imbalanced AI solution.
- Confirmation Bias: When the employers themselves are biased towards a certain feature within the applications, this bias will reflect in their AI model.
However, being aware of the existence of these biases in itself can reduce their levels by a significant amount. Which is why you should always choose to work with an experienced AI solution development company like BinaryFolks for developing your bias-free AI model.
Artificial Intelligence in Recruitment - Destruction of the Human Resource Industry?
Now a common question that may arise in your mind at this point is - “If I install an AI model and it does all the manual and time-consuming AI tasks for me, does that make my HR team useless?”. The straight and simple answer to this question would be - No, it doesn’t. For the time being, AI recruiting software has very limited use cases in the entire recruiting procedure.
Recruitment of an employee is not just about having matching keywords in the resume. It’s about building a relationship with the candidate, analyzing their personality, assessing their soft skills as thoroughly as the hard skills, and understanding their growth potential with your business. It is only possible to evaluate an individual based on all of these factors combined with the experience and instincts of an experienced hiring manager. Thus the best course of action is to implement these AI technologies with the intent to amplify the efficiency of humans rather than trying to replace them.
BinaryFolks - Your go-to AI Recruitment Software Development Company!
Now that you have the basics of AI in recruitment under control, it’s time to start framing the recruitment model for your business.
(1) Develop Your Personal Digital Hiring Manager With BinaryFolks
At BinaryFolks, we develop AI solutions that can help your business during multiple levels of the recruitment process. It is almost like having an all-in-one hiring manager that can handle all the heavy-duty tasks by itself. These tasks include a diverse spectrum of time-consuming activities - sorting and filtering the job applications based on organizational requirements, and recording & visualizing individual employee performance, to name a few. This way, your HR team can completely focus on the interviews and crucial manual reach outs.
(2) Use BinaryFolks’ Post-Recruitment Services to Enhance the Overall HR Operations of Your Company
The use of artificial intelligence in HR operations such as engagement, compliance, and acknowledgment can enhance your employee's working experience that boosts the retention rates of your company in the long run. At BinaryFolks, we help businesses invest in AI-backed employee assistance programs that include services like personalized learning and virtual coaching. This helps employees build self-confidence as they work towards self-improvement while parallelly transforming themselves into a much more valuable asset for the company.
Additionally AI can be used to analyze the progress of each candidate and help your business to classify the employees based on their productivity levels. Your business’s HR department can use this data to effectively deliver insights to the stakeholders and make internal adjustments according to their instructions.
(3) Automate the Payroll Transfer System of Your Company with our AI-Based Solution Models.
Our developers have hands-on experience in building administrative automation tools that streamline tasks such as automated payroll transfer and customer feedback analysis. Our AI models can accurately analyze the performance of each individual employee and roll out the paychecks accordingly. Our solution models are trained to account for complicated compliance factors such as business regulations and tax laws saving hours worth of labor every month.
Conclusion
Congratulations! You’re now an expert in the applications of artificial intelligence for recruiting and human resource operations. But wait! Before you go out there to revolutionize your company’s services with AI let’s quickly run through the key takeaways!
(a) Leverage the Manual Recruitment Operations of Your Business with Artificial Intelligence Solutions
Artificial Intelligence in recruitment models can enhance your company’s recruitment process as machine learning models can finish the screening of thousands of job applications within minutes. AI services can asses resumes and provide other services with absolute accuracy to ensure that every deserving candidate that applies to your organization gets a shot to prove themselves:
- Save Administration time
- Smooth Onboarding
- Alleviate Bias
- Background Checks
- Paperless Onboarding
- Improved Communication
(b) Use AI Solutions to Enhance Post-Recruitment Activities Just As Efficiently
The potential of AI does not dilute after the recruitment process is over. In fact, artificial intelligence in human resource management can help stakeholders understand the general issues that every new employee has to face in a new organization. By acknowledging these problems your company can make the work environment much more hospitable and comfortable for the new members of your company:
- Higher Employee Retention
- Effective Employee Training
- Employee Performance Analysis
- Automated Payroll Processing
(c) Things to Keep In Mind Before and During the AI Model Development
Developing an AI recruitment model provides a significant boost to the efficiency and accuracy of your company’s hiring process. However, developing an AI model ain’t no easy beans, there are some important factors that need to be addressed before starting your development journey:
- Data Requirements
- Lack of Human Interaction to Spot Underlying Talents
- Cost of Implementation
- Technical Limitations of Employees
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