IMPRESSIONS || December 2022

IIM ROHTAK

2022

Reinventing Hiring with the use of AI

What makes a business successful?

Although the intuitive answer might be its products and services, the true answer is “employees” that are involved in the creation and implementation of these deliverables Thus, hiring a perfect fit employee and creating the better working ecosystem for them becomes the crucial task of the management. In addition to finding it challenging to choose the correct skill set candidates from the vast pool of applicants, businesses also invest a large amount of time and money on this procedure which could have been diverted on other better things. Three of the problems faced in recruitment process is as follows:

Time constraints: With limited time at hand, a HR manager may find it difficult to analyse each job application individually. He may filter out resumes based on his own criteria and prejudices, creating a risk for the firm of missing out on the required talent.

Poor diversity: Traditional recruiting procedures depended on subjectivity as it relied on human judgement Human decision-making is susceptible to many influences that might be outside the scope of the required job role A prejudiced recruiter may encourage a workforce devoid of variety and with similar working methods, ideas and attitudes.

Time costs: According to the Robert Half UK report from 2016, HR managers in the UK invested an average of 27.6 days filling open positions at their businesses of which 4.77 were spent only on examining each job applicant's resume. The survey compiled response from 200 interviews of Senior HR directors. 54% of them agreed on losing the talent due to this long and inefficient hiring process.

Adoption of AI in HR

What is AI? Artificial Intelligence is a set of computer-based algorithms that can solve problem and make decisions with human-like intelligence and capabilities

The adoption of AI in the HR department by the organisations has been accelerated by the rapid pace of technological advancement, the rising demand for highly educated and competent workers, increasing need to ease the strain on business operations in hiring and the economic advantages of adopting human resource management software.

Why are HRs preferring AI?

AI solutions have the potential to significantly reduce the time required of HR professionals, allowing them to focus on more important tasks. Data management and payroll administration are two examples of critical transactional tasks that take a lot of time and can be made more efficient using AI-powered software. It assists management in finding events and observations in the database that do not fit a specific pattern, identifying employees who are highly susceptible to attrition, observing employee patterns and behaviours and using predictive analysis to suggest career paths and potential training programmes.

Functions of AI in HRM

Round the clock virtual assistance

Using AI, companies can setup chatbots that can handle employee queries without any human intervention required at any given time. With the help of these chatbots, users may engage in personalised discussions in a natural and human-like manner. HR executives may also be able to identify underlying trends by using data from these chatbots. For e.g., if there are multiple queries about the same issue, HR leaders can act before it becomes a full blown issue. Chatbots can come handy at the recruitment and on boarding process, wherein all the applying candidates’ queries can be handled at faster rate. Chatbot market is expected to grow at rate of 23.2% between 2016-25 reaching $1.2 billion in size. The chatbot market revenue will increase at CAGR 30.7% in period 2018-27 reaching $454 in revenue size.Speeding up the Talent Acquisition process

Candidate screening requires a lot of man hours and is a time-consuming operation. A typical firm either invests a lot of time in processing the multitude of incoming resumes or adopt ineffective measures. For instance, the six-second thumb rule for screening resumes involves a high possibility of being plagued by manual fatigue and errors. Typical hiring process:

To tackle this problem, companies use Applicant Tracking Systems (ATS) to filter and screen the CVs of candidates who best meet the expectations of recruiters. AI also assists in reducing human bias when shortlisting prospects. L’Oréal that hires 5,000 people from a pool of 2 million candidates uses a Chabot called Mya5 for evaluating and filtering prospective recruits. According to its Chief Digital Officer, Mr. Niilesh Bhoite, while a human recruiter took 45 minutes for scheduling and phone interview, a bot completed the same task in 4-5 minutes, thus, saving 40 minutes per CV. On an average, he mentioned, saving 45 days in a six month period for his UK HR department using the bot. It also helped company finding right cultural fit employees.

•As per report, 4946 of Fortune 500 companie use ATS for candidate CV screening

Identifying employee trends

AI can provide insights from the data gathered by staff analytics team, helping management identify skill gaps and creating effective training programmes that are tailored to the needs of individual employees. It can also find possible bottlenecks and predict employee trends. By continuously monitoring staff engagement and performance levels, AI can aid with employee retention. Adopting analytics in HR can improve employee relations, eliminate hiring bias, improve attrition management and identify performance determinants. Automation of mundane tasks

HR automation reduces the time and effort needed to manage repetitive human resources procedures by automating them and streamlining document-intensive tasks. Monotonous administrative activities, such as workforce and payroll management, correspondences, document submissions, evaluation and managing compliance can be taken care of by artificial intelligence.

Employee data security

Every organisation has a database filled with personal banking and other confidential details about every employee. And if there is a data breach, the organisation could suffer major repercussions.

Cyber threat data can be gathered, analysed and processed by intelligent AI security programmes, which can then react quickly and in real-time.

Risks of employing AI in HR

Biased data

AI algorithms are trained on data collected from present employees and previously successful candidates to look for correlations between the cultural fit, job role, and people skills. This methodology can sometime backfire. For example, in 2018, Amazon scrapped its AI-recruiting tool7 as it was found that the AI favoured men candidates over woman. Data feed to such systems need to be always supervised and assessed for the reliability and accuracy of the data.

Inconsistent outcomes

Because AI runs on its self on making decisions, even a small change in data can lead to drastic variance from the desired output. Also, due to its fast processing speed, it is frequently challenging to comprehend how screening judgements are made. It's not always best to conduct analysis on a computer. Sometimes, even programming errors may cause data to be interpreted incorrectly or incorrect criteria to be used when sorting candidates.

Incorrect AI techniques

Certain businesses rely on video interview and audio scan analysis tools to make a recruitment decision. AI technology may incorrectly perceive certain regional and non-native accents or cultural expressions, which could result in prejudice in recruiting decisions. Another example will be of resumes of candidates that have genuine gap on their CVs. Such CVs might get outright rejected in resume screening process without getting any chance to explain their gap or to display their skillset.

Missing the right fit

While the AI works as a matchmaker in hiring people that have necessary skill for the job, the human recruiters conducts deep research to understand the company culture, its position and market orientation and then searches for candidates with the best fit. Recruiters can use their intuition and decades of knowledge in finding candidates whereas AI only works on its historical data to derive a best possible outcome. AI might not always be able to identify significant links in a candidate's prior work that might suggest they could be a key candidate.

Missing the outliers

ATS algorithms loaded with predetermined criteria won’t be able to think outside the box when it comes to hiring. Corporates using ATS will miss the opportunity to hire highly talented individuals who do not meet the ATS criteria as their resumes will not be selected. Conversely, it will hire the people with necessary skills but might not be the best fit.

Lack of human understanding

AI is unable to observe or assess human emotion or take into consideration how emotion influences behaviour. It only screens people based on hard skills. Personality and emotional quotient two of the primary things in human beings are being overlooked by AI in the recruitment process. This may result in poor hiring and performance evaluation procedures.

Missing human connect in Chatbots

Even with so much advancement in technology, intelligent bots cannot replace the natural human conversations. Biggest drawback with chatbots is that they are not embedded with emotions. Customers expect empathy when they are frustrated with a brand or company, especially when there is a problem. One of the major drawbacks of chatbots is that they may struggle to assist when a customer's question is unclear or too detailed. If a customer asks a question that is not from its general list of question, the bot is likely to become confused and either go around in circles while attempting to understand the question

(often to no avail) or simply leave them hanging without providing an answer. In either situation, customers won't have a positive experience, and your business' reputation could suffer.

High costs of Chatbots

Including everything from the general design to the creation and integration of data analysis tools like machine learning, the cost of custom chatbot development might range from $5,000 to $80,0008. Additionally, to ensure that chatbots are providing customers with latest and accurate information and correctly portraying client’s business, they need to be optimised frequently. Hence, regular and meticulous maintenance become necessary to prevent leaving gaps in the chatbot interface. This further adds to the maintenance costs of the chatbot AI.

Conclusion

Increasing adoption of AI in HR is a clear sign of industry accepting it into its daily operations. On the perk side, AI automates many administrative and customer support tasks giving manages more time to focus on value added tasks. Even with much of tech development, the system still has many flaws. Biased candidate hiring process, inefficient virtual assistants and lack of human touch to name a few flaws. The cost of development and maintenance of AI bots remains high with no much significant return on investment in sight.

Risks involved in using AI can be mitigated by inputting robust data sets to the algorithm. Special care must be taken to evaluate, assess and continuously update those data sets to avoid any anomalies. AI must always be equipped with comprehensive and latest information before making a decision.

Final Thought

AI-based HR interventions have the potential to significantly increase employee output and assist HR managers in improving employee performance and experience. AI-powered HR solutions can assess, forecast, and assist key stakeholders in making decisions.

Being said that, AI still cannot replace the humans in decision making. Humans can make decision based on emotional quotient and intuition which AI cannot. AI has high data processing speed. It can scan thousands of resumes in one click for which a human may take days if not weeks. Thus, we see the drawback of one system is strong point of another. The only way going forward seems to be a World where humans and AI bots working together as co-dependents on each other when working on HR as a whole.

-Siddhesh Patankar SIMSREE, Mumbai

Artificial intelligence (AI) has the potential to revolutionize the way companies hire and manage their employees. By automating certain tasks and providing insights and recommendations, AI can help companies to make more informed and effective hiring decisions.

One way in which AI can be used in hiring is through the use of virtual assistants or chatbots. These tools can handle initial job inquiries and screen applicants based on their qualifications and fit for the role. This can help companies to save time and resources by automating the initial stages of the hiring process.

AI can also be used to analyse resumes and job applications to identify patterns and characteristics that may be indicative of success in a particular role. For example, an AI system may be able to identify certain skills or experiences that are commonly found in successful candidates for a particular job. This can help companies to narrow down their candidate pool and focus on the most promising candidates.

In addition to these applications, AI can also be used to optimize the interview process. For example, AI-powered tools can be used to conduct virtual interviews, allowing companies to assess candidates remotely. These tools can also provide recommendations for questions to ask and areas to focus on during the interview, based on the specific needs and goals of the company.

Overall, AI has the potential to significantly improve the hiring process for companies. By automating certain tasks, providing insights and recommendations, and optimizing the interview process, AI can help companies to make more informed and effective hiring decisions.

There are several advantages to using artificial intelligence (AI) in the hiring process:

·Improved efficiency: AI-powered tools can help to streamline and automate various aspects of the hiring process, including screening resumes, scheduling interviews, and conducting initial assessments. This can save time and resources for companies, allowing them to focus on more high-level tasks.

·Increased objectivity: AI can help to reduce the potential for bias in the hiring process by providing data-driven insights and recommendations. By relying on objective data rather than subjective opinions, companies can make more informed and objective hiring decisions.

·Enhanced candidate experience: AI-powered tools can provide a more efficient and convenient experience for candidates. For example, virtual assistants and chatbots can handle initial job inquiries and provide information to candidates in real-time, improving the candidate experience.

·Improved retention: By using AI to match candidates with job opportunities based on their skills and experience, companies can increase the chances of success for both the company and the candidate. This can lead to improved retention and engagement, as employees are more likely to be successful in roles that are wellsuited to their skills and interests.

·Enhanced performance: By using AI to assess candidates' skills and potential, companies can make more informed hiring decisions and increase the chances of hiring top talent. This can lead to improved performance and productivity within the company.

The use of AI in the hiring process has the potential to provide significant benefits for companies, including improved efficiency, increased objectivity, enhanced candidate experience, improved retention, and enhanced performance.

While there are several advantages to using artificial intelligence (AI) in the hiring process, there are also some potential disadvantages to consider:

·Limited understanding of context: AI-powered tools may not be able to fully understand the context in which a candidate's skills and experiences were gained. This can lead to a potential mismatch between the candidate's skills and the requirements of the role.

·Potential for bias: While AI can help to reduce the potential for bias in the hiring process,

it is important to recognize that the data used to train AI systems can be biased. If the data used to train an AI system is biased, the system may produce biased results.

·Loss of personal interaction: Using AI to automate certain aspects of the hiring process can reduce the amount of personal interaction between candidates and hiring managers. This may make it more difficult for candidates to fully showcase their skills and personality.

·Potential for job loss: The use of AI in the hiring process may result in some job loss, as certain tasks are automated. This could potentially lead to concerns about the impact on employment levels and job security.

·Lack of transparency: Some candidates may be concerned about the lack of transparency in the hiring process when AI is involved. It may be difficult for candidates to understand how AI-powered tools are being used to assess their qualifications and fit for a particular role.

Overall, while the use of AI in the hiring process can provide several advantages, it is important for companies to carefully consider the potential disadvantages and take steps to address them. This may include ensuring that AI systems are trained on diverse and representative data, and providing transparency and communication about the use of AI in the hiring process.

How can companies leverage AI to reinvent their hiring process?

There are several ways in which companies can use artificial intelligence (AI) to reinvent their hiring processes and improve the efficiency and effectiveness of their recruitment efforts. Here are a few examples:

1.Use AI to automate initial stages of the hiring process: Companies can use AIpowered tools, such as virtual assistants or chatbots, to handle initial job inquiries and screen candidates based on their qualifications and fit for the role. This can help companies to save time and resources by automating the initial stages of the hiring process.

2.Analyse resumes and job applications with AI: AI can be used to analyse resumes and job applications to identify patterns and characteristics that may be indicative of success in a particular role. This can help companies to narrow down their candidate pool and focus on the most promising candidates.

1.Conduct virtual interviews with AI: AI-powered tools can be used to conduct virtual interviews, allowing companies to assess candidates remotely. These tools can also provide recommendations for questions to ask and areas to focus on during the interview, based on the specific needs and goals of the company.

2.Use AI to optimize the recruitment process: Companies can use AI to optimize various aspects of the recruitment process, including sourcing candidates, managing applicant tracking systems, and analysing data to identify trends and patterns. By using AI to streamline and optimize these processes, companies can improve the efficiency and effectiveness of their recruitment efforts. Overall, AI has the potential to significantly improve the hiring process for companies. By automating certain tasks, providing insights and recommendations, and optimizing the interview process, AI can help companies to make more informed and effective hiring decisions.

How HireVue is using AI to reinvent their hiring process? One example of a company that is using AI to reinvent its hiring process is HireVue, a recruitment technology company. HireVue's AI-powered platform uses video and data analytics to assess job candidates based on their behaviour, language, and facial expressions. The platform allows companies to conduct virtual interviews with candidates, and provides insights and recommendations based on the candidates' responses.

HireVue's platform is designed to help companies make more informed and objective hiring decisions by providing data-driven insights and reducing the potential for bias. The platform has been used by companies in a variety of industries, including financial services, healthcare, and technology.

n addition to its AI-powered platform, HireVue also offers a range of other recruitment technology solutions, including assessments and skills tests, candidate relationship management tools, and onboarding solutions. By offering a comprehensive suite of recruitment technology solutions, HireVue aims to help companies streamline and optimize their hiring processes.Overall, HireVue is a prime example of a company using AI to reinvent the hiring process and improve the efficiency and effectiveness of the recruitment process. By using data analytics and machine learning to assess job candidates, HireVue is helping companies to make more informed and objective hiring decisions.

Future of Reinventing hiring with the use of AI:

The use of artificial intelligence (AI) in hiring is likely to continue to evolve and grow in the future. As AI technology becomes more advanced and sophisticated, it is likely to be used in increasingly innovative and effective ways to streamline and optimize the recruitment process.

One potential future development is the use of AI to assess candidates' soft skills and personality traits. Currently, many companies rely on traditional methods, such as interviews and reference checks, to assess these qualities. However, AIpowered tools that use machine learning and data analytics to assess candidates' non-technical skills could provide a more objective and data-driven approach.

Another potential development is the use of AI to match candidates with job opportunities based on their skills, experience, and career goals. By analysing data from resumes, job applications, and other sources, AI-powered tools could help companies to identify the best fit for a particular role, potentially increasing the chances of success for both the company and the candidate.

Finally, it is possible that AI could be used to create personalized career development plans for employees based on their skills and career goals. By providing tailored development plans and opportunities, companies could help

employees to grow and advance within the organization, potentially increasing retention and engagement.

Overall, the future of AI in hiring is likely to be driven by the ability of AI-powered tools to provide more accurate and data-driven insights into candidates' skills and potential. As these tools become more sophisticated, they are likely to play an increasingly important role in the recruitment and development of talent.

-Shreeya Chourasia

JBIMS

Human resource management is a complex and important field. It involves the strategic placement and selection of employees, developing a system for measuring employee performance, andmanaging personnel resources to best meet the needs of the business. Given the complex nature of human resources management, there are a lot of different opinions and viewpoints onthe subject. Listedbelow are some of the most commoncriticisms of HRM.

In many businesses, the HR department is viewed with skepticism and distrust. It is not uncommon for HR professionals to be the target of criticism in the workplace. It is often argued that the HR team plays too large of a role in the organization's dayto- day operations and that it gets in the way of the "real work" of the business. Another common criticism of HR is that it is overly bureaucratic and that the employees are afraid to express theiropinions or concerns to the department because they could be punished in some way for doing so. Another major complaint against HR is that it is very difficult to get information from the department about the organization's hiring and firing processes. Many people feel that HR should be more involved in the daily operations of the business in orderto help employees reach their full potential.

AI technology is becoming increasingly popular in the hiring process. AI-powered tools can now be used to automate mundane tasks associated with the recruitment process such as CV screening, candidate engagement and pre-employment assessments.

AI can also be used to identify the best candidates for a job opening. AI-enabled software can be used to detect personality traits and skills that are relevant to the job opening, as well as potential cultural fit with the team. AI can also be used to automate the entire recruitment process. AI-powered software can be used to track the progress of applications and automatically alert the recruiter when a certain stage has been completed. This can significantly reduce the amount of time spent on the recruitment process.

AI-powered chatbots can also be used to engage candidates and provide them with useful information about the job opening, the company and its culture. This helps to build trust and give candidates a better understanding of what to expect from the recruitment process. Overall, AI can significantly improve the hiring process, making it more efficient, cost-effective and effective.

Reinventing hiring with the use of AI

It's no secret that the global economy is changing rapidly, and with it comes a need for new talent. Unfortunately, the traditional hiring process is outdated and often difficult to scale. But there's a better way to do it - by implementing artificial intelligence into the process.

How AI can help

The first step is to eliminate bias from the recruiting process. The problem with relying solely on humans is that they're not perfect. They're easily influenced by factors like gender, age, race, and culture, which all lead to unconscious bias in the hiring decision. AI doesn't suffer from these biases and can analyze a candidate's skills and experience in an objective way without personal judgment getting in the way. This improves efficiency by allowing recruiters to spend more time vetting candidates and making more informed decisions.

Another benefit of AI is that it increases diversity in the workplace. This is incredibly important for organizations that want to attract and retain top talent. When companies don't embrace diversity and inclusion, they miss out on key talent that might otherwise be overlooked. However, by using AI to remove bias from the recruiting process, they're able to attract more qualified applicants from diverse backgrounds who will bring fresh perspectives and ideas to the table.

The Challenges of AI

*While AI provides many benefits, there are some challenges associated with it as well. For example, it can be difficult to implement an AI solution because of the complexity of the data involved.

It can also be costly and time-consuming to train the AI system to recognize certain patterns and make accurate predictions. Another challenge is the fact that the technology is still in its early stages and can't replace human judgment entirely. There will always be some level of bias in the results since machines don't understand the concept of fairness and objectivity the same way humans do. Despite these challenges, I think that AI can be a valuable part of the recruiting process as long as it's used correctly. Over time, the technology will become more effective at predicting job performance and become increasingly adept at filtering out unqualified candidates. I think using AI to recruit employees is a great idea as long as we implement it in the right way. As long as we allow the AI to make decisions based on data and statistical analysis rather than relying on our subjective opinions, I think it has the potential to greatly improve the recruitment process and ultimately help us find better candidates for our jobs. So in my opinion, I don't think there's any harm in using AI in our recruitment efforts as long as we're careful to ensure that the results are completely objective and accurate. We shouldn't let the technology make decisions for us or use it to make any hiring decisions that we ourselves wouldn't be comfortable making. Instead, we should use the data generated by the AI systems to help us make more informed hiring decisions and identify the most qualified candidates for our company.The current hiring process is time consuming and can be confusing for both candidates and employers. A recent study found that hiring managers spend an average of 7 minutes reviewing a resume. This translates to a loss of potential productivity as recruiters are spending a significant amount of time screening applicants and sorting through resumes to find the perfect candidate. Furthermore, it is becoming increasingly difficult for employers to source qualified job candidates as the job market continues to be flooded with hundreds of applications for each open position. In order to overcome these challenges, many organizations are turning to artificial intelligence (AI) to streamline the hiring process.

According to a recent study, organizations that use AI to hire employees are 50% more likely to fill vacancies than those that do not. [2] In addition, AI can help streamline the hiring process and reduce costs associated with recruitment efforts. For example, it can be used to identify and rank top candidates based on resume metrics such as education, work experience, and professional achievements. It can also be used to conduct pre-screening interviews and identify candidates who would be a good fit for a particular role. As a result, organizations can make more informed decisions and quickly fill the open positions in their organization. Below, we discuss some of the ways that AI is being used to streamline the recruiting process.

AI is being used to automate tasks such as scheduling interviews and background checks in order to streamline the hiring process. For example, some companies are using chatbots to communicate with potential candidates and schedule job interviews. Chatbots can be integrated into the company’s recruitment website or social media profiles to engage candidates and make the application process more convenient. They can also store resumes of qualified candidates for future reference. Companies can also use bots to conduct initial phone screenings with candidates and conduct online background checks to verify that the information provided on the candidate’s resume is accurate.[3] By automating these routine tasks, recruiters can spend more time screening and interviewing qualified candidates to find the best fit for their organization. While AI can definitely be helpful when it comes to streamlining the recruiting process, it is still in its early stages of development. It cannot replace the human element involved in the hiring process and should be interpreted only as a useful tool to complement the traditional recruiting process. In the future, it is likely that AI will be incorporated into all stages of the recruitment process from job posting to onboarding new employees.

Hiring managers are quickly realizing that using AI in the hiring process can help them make better hiring decisions and fill open positions more quickly. However, there are several challenges associated with implementing an AI-based recruitment solution in an organization. The first challenge is determining how to choose the right AI software for their needs. Different solutions target different markets and can be used in different ways. Therefore, make sure the company has a great team in place that can help you succeed. Furthermore, ensure that the team has experienced individuals who specialize in different areas such as recruitment, compensation & benefits, training & development, etc. Having a solid team is one of the primary requirements for business success so youshould take theirtime to evaluate your options before choosing one companyover another.

As technologycontinues to evolve, HR teams must stay up-to-date on the latest training and development tools to ensure their employees are receiving the best possible experience. With the right training and development resources, HR teams can provide employees with the skills and knowledge they need to succeed and grow in their careers.HR teams should also focus on buildingpositive relationships with their employees to ensure that they are engaged and productive in their roles. By utilizing the right resources an taking the time to build strong relationships, HR teams can ensure that their company is well-positioned for success. In conclusion, HR professionals are responsible for a wide variety of tasks, from recruitment to employee relations. With the right strategies and tools, HR professionals can ensure that their organization is hiring the right people and providing the right benefitsand support to their employees. By keeping up with trends in the HR field and staying up to date on best practices, HR professionals can ensure that their organization is well-prepared to handle any HR challenges that arise.

-Sai Rama Prasanth K Woxsen School of Business (WSB), Hyderabad