The Future of Computerized Hiring.

Recruitable Design Team

In recent years, there has been a major shift in the way companies hire new employees. Rather than relying solely on human recruiters and hiring managers, more and more businesses are turning to artificial intelligence and automated systems to screen applicants and make hiring decisions. This transition towards computerized hiring has major implications for job seekers and the labor market as a whole.

The Rise of Automated Hiring Systems

According to a 2019 survey by HR analyst Josh Bersin, nearly two-thirds of large companies now use some form of AI for recruitment. This includes screening software that can quickly read and analyze resumes, online assessments and skills tests, video interviews analyzed by algorithms, and chatbots that can engage applicants in natural conversation. Major tech firms leading the way include IBM, SAP, Oracle, and Ideal.

Proponents argue automated systems help remove human bias from the hiring process. By using data and machine learning, the systems can focus solely on skills, experience, and aptitude when evaluating candidates. This promotes diversity and gives those from underrepresented backgrounds an equal opportunity. Ideal estimates their AI technology can screen resumes 60% faster than humans. The technology also reduces costs, as businesses require fewer HR staff when AI shoulders the screening burden. HireVue, for example, says their video analysis can reduce time-to-hire by 30%.

Some key Facts on automated hiring:

• According to Ideal, 60% of recruiters use AI to screen resumes before human review
• HireVue estimates their video analysis can reduce time-to-hire by 30%
• A survey found that 67% of candidates are open to automated video interviews
• AI assessments by Pymetrics resulted in a 12% increase in diversity hires for a major tech company
• Blind auditions in orchestras increased female musicians by 20–40% by reducing gender bias

The Downsides of Automation

However, automated hiring also comes with considerable risks. AI programs are only as unbiased as the data they are trained on. As machine learning relies on discovering patterns in existing information, historic biases around race, gender, age, and social class can be perpetuated. This could lead to certain groups continuing to be discriminated against.

There are also concerns that important soft skills like communication, empathy, and creativity will be overlooked by algorithms focused purely on keywords and numbers. While AI can quickly parse a high volume of applications, it may miss strong candidates who are poorly matched on paper. A survey found that 67% of candidates are open to automated video interviews, but many still appreciate personal touches like customized feedback that AI cannot provide.

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The Importance of Human Oversight

Experts emphasize that the solution is not eliminating AI from hiring altogether, but rather combining automated systems with human oversight. As Harvard Business Review notes, AI should be used to handle repetitive, low-level tasks like screening, freeing up recruiters to spend time on the high-value work of building relationships with candidates.

Just as pilots use autopilot to aid flying but still control takeoffs and landings, HR staff need to monitor automated hiring decisions. This ensures algorithms do not develop unfair biases and that the unique needs of the company are accounted for. AI lacks human contextual judgment.

Companies should also communicate openly with candidates so they understand when and how technology is being used. Transparency helps maintain a positive applicant experience. Candidates appreciate knowing whether they are interacting with a human or bot, so they can set appropriate expectations.

More examples of AI’s impact:

• Unilever used AI to analyze facial expressions and language in video interviews, then saw a 16% increase in candidate diversity
• Harver estimates their automated recruiting platform saves 15 hours of recruiter time per candidate
• Hiring platform Mya can screen up to 500 resumes per hour and conduct 1,800 virtual interviews in a week

The Impact on the Labor Market

Looking ahead, AI and automation will reshape the jobs landscape. Workers whose skills can be replicated by technology will face declining prospects. Positions involving unpredictable tasks and human interaction will become more valuable.

There will be escalating pressure on candidates to gain technical skills that AI cannot yet match. This includes advanced critical thinking, creativity, collaboration, and the ability to rapidly learn. Workers will also need to be adaptable as the technology evolves.

Meanwhile, the shrinking need for labor-intensive hiring and recruiting could impact HR roles. Companies are estimated to save 4–7 hours of human recruiting time per hire using automation. Many HR tasks will shift from operational to managing AI systems.

For displaced workers, new opportunities may emerge in training AI tools. Machine learning through algorithms still requires human input and supervision. Companies will need workers to spot flaws, adjust programs, and continuously improve the technology.

However, challenges remain. Only 38% of workers believe AI will have a positive impact on their job search process. To stay competitive, North American companies plan to increase HR tech budgets by 45% to upgrade to more advanced automation. But if implementations are too rapid or lack transparency, they risk alienating the very people meant to benefit.

The bottom line is that computerized hiring is poised to expand dramatically. Job seekers will have to prove themselves skilled in ways that machines cannot replicate. At the same time, recruiters and companies must ensure humanity and ethics guide the algorithms in making important decisions that impact people’s lives. With responsible implementation, AI hiring can benefit both workers and businesses. But keeping humans involved will be crucial.

The rise of automated hiring technology has the potential to make the recruitment process more efficient and fair but also runs the risk of perpetuating biases and overlooking the human element. To maximize the benefits while minimizing the pitfalls, companies should strategically incorporate AI as an enhancement tool rather than an outright replacement for human decision-making. With the right balance of technology and human oversight, computerized hiring could improve outcomes for businesses and job seekers alike. The extent to which workers adapt their skills and embrace new tech will determine their success in the evolving labor landscape.