Human resources departments are increasingly using technology to help reduce hiring costs, according to new research from human resources management company HireVue.
The company's analysis showed that financial pressures and changing candidate expectations are causing a major shift in recruitment strategies at businesses across the UK.
Economic constraints, according to the report, have forced nearly half of companies to cut their hiring budgets in the past 12 months. To offset this, around a third said they had increased technology budgets in the hope of streamlining processes, targeting candidates more effectively and ultimately finding cost savings.
Meanwhile, to fill vacancies and avoid external recruitment fees, 44% are promoting from within and more than half said they are actively seeking to attract and retain mature workers.
“This strategy not only saves recruiting costs, but also builds employee engagement and loyalty,” said Tom Cornell, senior A/O psychologist at HireVue.
“By embracing mature workers and internal mobility, companies can access a broader talent pool, create a more diverse workforce and gain a competitive advantage in a highly competitive labor market.”
According to the report, more than half of HR professionals believe automation significantly optimizes efficiency so candidates can be hired quickly, and half say it reduces tedious manual tasks.
Nearly half (45%) of respondents specifically highlighted the benefits of artificial intelligence (AI) tools to streamline hiring processes. The study noted that technology has dramatically improved efficiency and automated traditionally laborious tasks.
However, caution is advised, according to the report. The use of AI recruiting tools has caused problems in the past. Amazon was forced to remove automated recruiting tools in 2018 after they were found to discriminate against female candidates.
Because he had been trained on previously successful CVs – which mostly came from men – he learned for himself that male candidates were preferable to women and downgraded CVs if he found words like “from women”, penalizing graduates of exclusively women's universities.
More recently, Workday's AI-based hiring system faced criticism after it was found to have discriminated against an applicant based on race, age and mental health.
The HireVue report warned of these risks and recommended that those using AI in recruitment should ensure they have auditable and explainable processes that allow them to demonstrate fairness.
The firm also recommended that HR professionals ensure they comply with regulatory requirements around privacy and security.
Only 34% of organizations surveyed by HireVue said they have an internal team dedicated to assessing compliance for such products, and only two in ten said they have sent requests to vendors for compliance documentation. More than a quarter have done nothing.
“When asked how confident they are that their current suppliers can meet AI standards, more than half of them said they were confident,” the report says.
“To mitigate risks, companies should conduct thorough assessments of the vendors they are interested in, ensuring they follow ethical AI practices, regularly audit algorithms, and prioritize safety and fairness at all times.”
