Companies are now seeing the value of using Artificial Intelligence tools to recruit the best talents. This way, they get better in screening and hiring job candidates, and save on the cost of a poor hire.
In an infographic, video interview software and recruitment platform Hirevue noted that AI has helped humans find the best talent.
Hirevue cited a 2016/2017 research study from Aptitude Research Partners (ARP) on companies engaged in pre-hire assessments. ARP is a research and advisory firm specializing in the technology landscape of human capital management.
It said companies investing in pre-hire assessments experience a four-fold improvement in the quality of new hires. At the same time, they experience a three-fold decline in employee turnover.
Pre-hire assessments offer objectivity in the hiring process and improvement in quality of hire, according to APR.
But according to Hirevue, traditional assessments have been too manual and time-consuming for modern candidates. It said top talents become off the market incredibly quickly.
Moreover, it said traditional assessments can hinder a company’s ability to attract and hire the best talents.
This is where artificial intelligence comes in, Hirevue said. AI is not only fast, so that recruiters won’t miss out on the best candidates. More importantly, AI is objective and consistent.
It said AI is useful in eliminating mistakes associated with poor hires, as well as bad screening and hiring decisions. Hirevue added that computers are more consistent and don’t have bad days, unlike humans.
Since they don’t get tired like humans, computers and AI are the perfect partners of companies to make screening decisions.
Companies using AI in screening and hiring can get better employees, improving performance with an upsell of 30 percent. Moreover, companies using AI can determine job candidates who may commit safety violations, reducing such incidents by 50 percent.
In addition, companies using AI during hiring can reduce turnover of employees, increasing their tenure by 76 percent.
With human frailties, the time of the day where screening and hiring decisions are made may likely impact the results.
There is a stark difference between screening and hiring decisions made in the morning and in the evening, Hirevue said. Decision-making in the morning tends to be slower but more accurate. Meanwhile, decisions made later in the day or closer to evening are quicker but less accurate.
Further, it cited data from non-profit group Talent Board on the use of pre-hire assessments. It said 75 percent of employers have been using some sort of pre-hire assessment for their recruitment initiatives.
Talent Board is focused on elevating, promoting, assessing, and recognizing top-quality candidate experience. This refers to how companies treat job applicants and employment candidates throughout the entire recruitment cycle. Its surveys aim to gather recruiting insights through crowd-sourced candidate impressions.
Mobile recruitment apps such as those from WeRK.ph + Hire.Me assess the cognitive thinking skills of jobseekers.
And since the cost of a bad hire can already be quantifiable, tools like Pearson’s Versant 4 Skills Essential Test further assesses their skills during the hiring process.
Hirevue said speed and accuracy are important in the hiring process. Companies increase the likelihood of ending up with a bad hire if they rely on outdated methods to make decisions.
Based on data from the US Department of Labor, the cost of a bad hire is at least 30 percent of first-year earnings. Additionally, the cost of an unavoidable turnover can be more than 50 percent of annual employee salary.
An employee/bad hire who leaves on the first year of the job entails lost productivity and additional man-hours. That person will conservatively cost a company the equivalent total of around 80 percent of the employees’ annual earning.
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