The term “artificial intelligence (AI)” may bring to mind various images, from hyper-intelligent, super-powered robots, to IBM’s question-answer computing system, Watson. Despite the various shades of meaning, the core definition of AI involves computers performing tasks that would normally require human intelligence.
What is the place of artificial intelligence in the talent acquisition world? Hiring the right people will impact your company’s bottom-line for years to come, which makes recruiting the HR function with the most impact on revenue. When used properly, AI-powered talent solutions like Censia can help recruiters make better, more informed decisions to hire the right people.
An AI-powered talent solution, also called talent intelligence, must use high-quality data for the best ROI and deliver immediate insight. These talent intelligence systems should deploy quickly and automatically while building the foundation for predictive analytics and prescriptive modeling. Ultimately, such a system will provide benefits in the short and long term. The following sections discuss what immediate impacts you can expect for your team’s recruitment ROI when using an AI-powered talent solution.
Benefit #1: Reduced Time Spent on Sourcing
The primary goal of “sourcing” is to proactively collect relevant data about qualified candidates, either passive or active job seekers, on social media sites, job boards, or any type of general networking. As you may know, sourcing can take a lot of time–Dice Insights says that tech recruiters reported spending the majority of their workweek, about 30 hours, on sourcing alone in 2018.
AI-powered solutions can significantly save time in this regard. Sourcing is a natural function of a platform like Censia that aggregates data from thousands of places to carefully curate a pool of specific candidates. These pools of candidates can be refined by the likelihood of response to a solicitation, for example, or other characteristics. This time reduction can help make recruiters more productive and able to focus on other important areas of their work, such as interviewing.
Benefit #2: Reduced Recruiting Costs
According to a 2016 report by the Society for Human Resource Management (SHRM), the average cost-per-hire is $4,129. This figure includes the sum of internal recruiting costs and external recruiting costs, divided by the number of hires (all variables referring to the same time period).
The breakdown of such internal and external costs include the following examples:
Internal costs: Internal expenses and organizational costs, such as internal recruiting and sourcing staff’s salaries and benefits, non-labor office costs, etc.
External costs: External recruiting costs that include advertising and marketing expenses, third-party agency fees, sourcing costs, etc.
How will artificial intelligence help reduce the above type of costs? Essentially, AI-powered talent solutions will take the old paradigm of recruiters using keyword search to scour LinkedIn to a new paradigm of modeling ideal candidates using predictive intelligence and automation. This can allow your team to find candidates at scale who fit your organization while optimizing spend.
Benefit #3: Shortened Time to Interview and Fill a Position
SHRM reports that the average time-to-fill a position, from creating a new job opening to hiring someone, is 36 days. Reducing this number can reduce recruiting costs and make the process more efficient. For your organization, it can also make hiring managers more productive and decrease the cost of the vacancy so the company can function at its best.
As an HR leader, you may often have to gauge the factors of efficiency, cost-savings, and quality as you make decisions to maximize ROI—a return on investment that, ultimately, benefits the entire organization. Talent intelligence solutions, like our own platform, Censia, are powered by artificial intelligence to help you make better recruiting decisions. Realizing the immediate benefits of implementing AI-powered, big data solutions on recruiting ROI will help establish your organization as a fierce competitor in the field and lay the groundwork for ongoing, long-term benefits.