Pacific B usiness R eview (International)

A Refereed Monthly International Journal of Management Indexed With Web of Science(ESCI)
ISSN: 0974-438X(P)
Impact factor (SJIF):8.603
RNI No.:RAJENG/2016/70346
Postal Reg. No.: RJ/UD/29-136/2017-2019
Editorial Board

Prof. B. P. Sharma
(Principal Editor in Chief)

Prof. Dipin Mathur
(Consultative Editor)

Dr. Khushbu Agarwal
(Editor in Chief)

A Refereed Monthly International Journal of Management

The Role of Artificial Intelligence in Organizations for Recruitment Process: A Review

 

Divya Jyoti Thakur

 Assistant Professor

School of Business Management and Commerce.

IEC University,

Baddi Solan, HP. INDIA.

Email- divya.minhas1331@gmail.com

 

Dr. Sakshi Sharma

Assistant Professor and HOD

Faculty of Management Studies

ICFAI University,

Baddi Solan, HP. INDIA.

 

 

 

Abstract

Artificial Intelligence is a new buzzword in the corporate world. AI in recruitment is revolutionizing the entire recruitment process. It is breaking the monotony in the recruitment process, for instance, making phone calls, screening resumes; short listing candidates and replying to them are all getting automated. Thus, the aim of the present study is to understand the role of AI in recruitment. The study also examines various AI tools used in recruitment. Finally, the study presents the benefits and challenges of using AI in recruitment.

Keywords: Artificial Intelligence (AI), Recruitment Process, Human Resource Management


INTRODUCTION


Artificial Intelligence and Recruitment

Recruiting is one of the toughest issues businesses face today (Seseri, 2018). Recruiting the right candidate is crucial for every organization. The traditional recruitment process required human intervention at every step i.e., from sourcing candidates, screening resumes, conducting interviews, making final hiring decisions and documentation. Due to human involvement the process was very time consuming and even vulnerable to errors.  Neeraj Sanan, CMO of Spire Technologies states that the entire recruitment process in India takes in excess of 125 days (Sharma, 2017).

AI is a new buzzword in the corporate world. AI in recruitment is revolutionizing the entire recruitment process. It is an upcoming area which can reduce and even remove time consuming activities involved in the recruitment process.AI is a game changer in the job market today as organizations grapple with the twin challenges of cost and time to identify, attract and engage talent (Sharma, 2017). AI can change the way in which recruiters discover and hire talent. It is empowering recruiters to become smarter and more efficient by reinventing the hiring process (Ally, 2017). AI is performing the mainstream activities in recruitment such as sorting through a large number of resumes or social media profiles to find the right fit for the job, analyzing vocal tone or facial expressions of the candidates in video interviews, and keeping applicants updated of their hiring status (Zielinski, 2007). 

In a global trend survey by TCS (2017) across North America, Europe, Asia-Pacific and Latin America found that 84% of the companies use AI in one or the other aspects of their businesses. The survey found that on an average the companies spent 70 million dollars on technology that support AI initiatives. Companies are using technology from sorting resumes to final interviews and follow up. Through AI systems, the managers can be assured that the hiring process will be a success and would result in hiring of right candidates. It is breaking the monotony in the recruitment process, for instance, making phone calls, screening resumes; short listing candidates and replying to them are all getting automated. Beyond assisting the recruiters in preliminary rounds, AI also judges the analytical skills and psycho-emotional traits of candidates.  It uses techniques such as machine learning, sentiment analysis to learn, troubleshoot and problem solving. Prasad Rajappan, MD, ZingHR states that AI has revolutionized the entire recruitment process by applying complex mathematical models on sound HR domain expertise and established HR models to predict the success of a candidate (Sharma, 2017).  It can curb biases such as sexual orientation, religion, political affiliations of the candidate and thus can improve overall candidate experience.

ARTIFICIAL INTELLIGENCE TOOLS USED IN RECRUITMENT

Some of the tools of AI widely being used in recruitment are: Arya, My recruiting assistant (Mya), Olivia, Pomato and Recruiting Artificial Intelligence (RAI). Arya is a sourcing platform that improves talent acquisition processes through the use of predictive analysis, machine learning and behaviour pattern analysis. It scans through job descriptions, identifies skills and experience required and then automatically sources talent from various sources


(Walshe & Lakin, n.d.).  Mya initiates a conversation with the candidate after they apply in the website of an organization. After the completions of the conversation, Mya sends a scorecard and the transcript to the applicant tracking system. It then schedules an interview with the candidate. The software automates the candidate communication process by providing candidates with up-to-date feedback and guidance through the entire recruitment process (Walshe & Lakin, n.d.). Olivia is another recruiting assistant like Mya and Arya. It starts a conversation with the candidate who shows interest in a position. Pomato performs over 200,000 computations on a candidate’s resume. Thereafter, it gives a visual picture of the candidate to determine if they will be a good fit or not (Clayton, 2017). RAI reduces the level of manual labor involved in recruiting by automating the steps required to find and make initial contact with the candidates. It is a conversational tool possessing the ability to have discussions like humans (Clayton, 2017).

BENEFITS OF ARTIFICIAL INTELLIGENCE IN RECRUITMENT

Faster time to hire, improved quality of hire, and real time skill set testing and evaluations are some of the benefits of AI in recruitment (Ally, 2017). Saving cost and time, talent mapping, quality hiring, reduced turnover, productive workforce and reduced biases are some of the benefits of AI (Raviprolu, 2017).  AI can lead to better job-candidate matching. Machines can be programmed to screen a large number of candidates while taking into account more detailed information. This gives each candidate a  chance to be considered and evaluated based on their entire resume rather than a screening which can be limited to job tiles, names of the organization, or start and end dates. AI improves the sourcing capabilities of the organizations. It can review thousands of resumes in short duration. Sourcing such huge amount of data is physically and cognitively not possible for a HR recruiter. Thus, AI sort through the entire candidate data and provides a higher quality pool of candidates.  AI can reduce biases in recruitment.  Humans’ opinions can be subjective. Therefore, AI by objectively matching candidates to the job positions can reduces the amount of bias in the recruitment process. 50 to 60 percent of recruitment process can be led by Artificial Intelligence solutions (Sharma, 2017). AI model helps eliminate interview bias and improvises the efficiency of the entire recruitment process by over 80 per cent (Sharma, 2017).

CHALLENGES OF ARTIFICIAL INTELLIGENCE IN RECRUITMENT

Although AI can automate the entire process of recruitment, it isn’t perfect. A machine cannot make a real connection. Thus, AI suffers from various disadvantages such as lack of human touch and difficulty in dealing with human beings (Raviprolu, 2017).  AI also requires learning new tools and techniques proficiently.  Therefore, organizations need to train the individuals to acquaint them with the new techniques. Another limitation of AI is it may not understand certain phrases, words, signals and language that can be understood by humans.

 

 

CONCLUSION

HR managers are expected to contribute to the strategy planning of the organization. However, the managers are mostly overburdened with the administrative tasks. These tasks are time consuming and thus keep HR professionals from achieving larger goals.  AI provides solution to the problem by reducing the amount of time required in talent acquisition. Tools mentioned in the papers such as Mya, Olivia are can reduce the administrative burden on HR professionals. AI can make the recruitment process more efficient and less time consuming. AI is transforming the role of the recruiter. It is allowing HR professionals to be more strategic. Recruiters who will be able to leverage the technology will be rewarded with benefits like quality hiring, reduced turnover and productive workforce.

REFERENCES

Ally (2017). Is Artificial Intelligence really the future of recruiting? Accessed from https://medium.com/my-ally/is-artificial-intelligence-really-the-future-of-recruiting-aa55d5cb0f8d [March 13, 2018]

Clayton, J. (2017). The Five: Artificial intelligence tools that everyone should watch. Accessed from http://recruitingtools.com/artificial-intelligence-recruiting-tools/ [March 13, 2018]

Global Trend Survey (2017). Accessed from http://sites.tcs.com/artificial-intelligence/wp-content/uploads/TCS-GTS-how-AI-elevating-performance-global-companies.pdf [April 9, 2018]

Raviprolu, A. (2017). Role of Artificial Intelligence in Recruitment. International Journal of Engineering Technology, Management and Applied Science, 5(4), 115-117.

Seseri, R. (2018, Jan 29). How AI is changing the game for recruiting. Accessed from https://www.forbes.com [April 16, 2018]

Sharma, R. (February 9,2017). AI ming to attract talent. Accessed from http://www.business-standard.com/article/specials/ai-ming-to-attract-talent-117020801449_1.html [April17, 2018]

Walshe, F. & Lakin, T. (n.d.). Robot revolution: automation and robotics in recruitment. Accessed from https://www.robertwalters.com/content/dam/resource-solutions/Files/Resource-Solutions-Robot-Revolution.pdf [April 18, 2018]

Zielinski, D. (2017). Recruiting gets smart thanks to Artificial Intelligence. Accessed from https://www.shrm.org [April 17, 2018]