HRdotcom Future of AI Automation and Recruitment Technologies 2023 24 Research Report All Sponsors Final
HRdotcom Future of AI Automation and Recruitment Technologies 2023 24 Research Report All Sponsors Final
Sponsored by
CONTENTS
Executive Summary
3
Recruitment Outcomes
33
Key Takeaways
50
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Executive Summary
Technology and talent acquisition have long been inexorably
intertwined, to the point where no job seeker today could
About the Survey
conceivably look for a job without relying on some form of “HR.com’s Future of AI,
dedicated recruiting platform or point solution. And, even if they Automation and Recruitment
were to find one, they’d also find it pretty much impossible to Technologies 2023” survey ran
apply for that role without touching enterprise talent technology. from August to October of 2023.
We gathered 222 complete
The bottom line is that talent acquisition (TA) processes and and partial responses from
HR professionals in virtually
policies are largely subservient to the features and functionalities
every industry. Respondents
of whatever existing tech stack an employer happens to have.
were located around the world,
Recruitment tech influences and informs every element of the but predominately from North
hiring process from application to onboarding. Even how we America.
manage and measure the recruiting function is largely driven by
whatever software and SaaS-based solutions we’ve implemented.
The participants represented a
broad cross-section of employees
It’s been said that job search success has long been determined by workforce size, ranging from
not by what you know but by who you know. But today’s 100 to over 20,000 employees.
proprietary algorithms for sourcing, screening, and selection Over two-thirds of responding
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So, how much bang are recruiters getting for their buck? Are
we better at addressing even relatively niche issues such as
accurately measuring the quality and cost of hire – or even
correctly attributing the source of hire, for that matter? Those are
some of the questions we’ve tried to answer in this year’s Future
of AI, Automation and Recruitment Technologies.
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Our Major Research Findings
Major
Finding 1 Only a minority of organizations say their current TA technology stack
does a good job of improving their recruiting capabilities.
Major
Finding 2 Organizations continue to struggle with successfully measuring talent
acquisition, though some feel they excel in this area.
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●● The area where recruiters feel least successful is in the area of
cost per hire, where a mere 18% say they are above average or
excellent. We think that the inability to calculate the cost in what’s
essentially one of the larger cost centers in business should
be the cause of some concern, particularly when it comes to
measuring TA-related ROI or P&L impact.
Major
Finding 3 Job boards aren’t dead but they’re diversifying.
●● The way employers fill jobs might have undergone some seismic
shifts in the past few years, but the way they advertise them
remains effectively stuck in the status quo. Employers have been
slow to adopt programmatic advertising, with only 18% reporting
that they currently advertise jobs using one or more programmatic
platforms, choosing instead to “post and pray,” even if those
prayers are rarely answered in today’s tight talent market.
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Major
Finding 4 Most organizations take at least 61 days to fill open positions and many
of them take 90 days or more.
●● The average time to fill currently sits at around 30 days for entry-
level hires and about twice that for mid-level jobs (manager and
below), with the range topping out at around 60 days.
Major
Finding 5 AI remains the exception rather than the rule in TA, and many recruiters
see risks, but organizations with more effective TA technologies are also
more likely to use AI.
Recruitment tech leaders are those organizations that answered the question "Please
rate your talent acquisition technology stack in terms of its ability to improve the overall
recruitment and hiring capabilities of your organization" as “excellent” or “good.”
Recruitment tech laggards are organizations that answered “below average” or “poor” to
the same question.
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Major
Finding 6 A majority expect recruitment technologies to become more useful over
the next two years, but some remain skeptical of such optimism.
Major
Finding 7 Compared to their laggard counterparts, the recruitment technology
leader organizations:
●● are over three times more likely to rate their average success with
recruitment metrics as above average or excellent
●● are over three times more likely to post jobs to talent communities
●● are over two times more likely to agree or strongly agree that their
job application process is optimized for mobile devices or is device
agnostic
Please note that the findings and recommendations contained in this report are informational only. Nothing in this report should be construed as
constituting legal opinions or advice. Please consult an attorney if you have questions about the legal requirements, rules, or regulations associated
with any content discussed in this report.
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The Use of Talent Acquisition
Technologies
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Survey Statement: Please rate your talent acquisition technology stack
in terms of its ability to improve the overall recruitment and hiring
capabilities of your organization.
0 20 40 60 80 100
In order to understand what differentiates organizations that are satisfied with the efficacy of recruitment
technology used in their organizations from other organizations, we analyzed responses and segmented the
data into two cohorts:
• Recruitment tech leaders: These represent respondents who answered the question "Please rate your talent
acquisition technology stack in terms of its ability to improve the overall recruitment and hiring capabilities
of your organization" as “excellent” or “good.”
• Recruitment tech laggards: Those who answered “below average” or “poor” to the same question.
Correlation does not necessarily indicate causation, of course, but these relationships can provide clues
about possible best practices related to employee retention. In various parts of this report, we report on the
differences between leaders and laggards in terms of recruitment technologies, practices and approaches.
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Definitions of Small,
Finding: Three talent-acquisition-related
Mid-sized and Large technologies are used by more than half of
Organizations the respondents
For the purpose of this report,
large organizations have There are many different talent-acquisition-related technologies but
1,000 or more employees, only three are used by more than half of the respondents:
mid-sized organizations have
100 to 999 employees, and
●● employment hiring platforms
small organizations have 99
or fewer ●● applicant tracking systems (ATS)
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Survey Question: Which of the following talent-acquisition-
related technologies does your organization currently use?
(select all that apply)
0 10 20 30 40 50 60 70 80
Among large organizations, 71% use an ATS, compared to just 63% of mid-sized companies and 51% of small
organizations. Large organizations were less likely, however, to use employment hiring platforms (just 57%)
compared with mid-size (72%) and small (68%) organizations. Meanwhile, small organizations are over twice
as likely (at 15%) as other organizations to say they do not use any recruitment technologies.
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Finding: Recruitment tech leaders use
more than twice as many technologies as
laggards
8
7
7
4
3
3
0
Recruitment tech laggards Recruitment tech leaders
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Finding: Only 11% of respondents say their
ATS surfaces candidates whom they might
not have considered otherwise to a high or
very high extent
Another feature recruiters hope for is that the ATS will surface
candidates whom they might not have considered otherwise. However,
it’s rare for ATSs to excel at this, with only 15% of respondents saying
their ATS surfaces candidates whom they might not have considered
otherwise to a high or very high extent.
Filter out people who might otherwise be 30% 34% 23% 10% 5%
good job candidates
0 20 40 60 80 100
Not at all Low extent Moderate extent High extent Very high extent
Editor’s note: respondents who answered don’t know were removed from the data set. These respondents accounted for 10% of those who responded to
“Surface candidates who you might not have considered otherwise” and 9% for “Filter out people who might otherwise be good job candidates”.
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The Use of Recruitment Metrics
Finding: Only one-fifth say their ability to
measure cost of hire is above average or
excellent
Two of the basic recruitment metrics that leaders will ask for are the
operational ones of “time to fill” and “cost per hire”. Respondents had
a relatively positive view of their success in measuring time to fill, with
39% saying they are above average or excellent and only 21% saying
they are below average or poor.
The results flip when it comes to cost per hire, where only 21% say they
are above average or excellent and 40% say they are below average or
poor. We think this finding should be of concern to HR because the CFO
in particular will focus on this one metric, and it is important to be able
to present it with confidence.
That’s not to say that accurately establishing cost per hire is easy.
There are many hard-to-pin-down variables. For example, determining
cost per hire involves deciding how to account for soft costs such as
the time managers need to spend interviewing. Still, HR should be ready
to provide their best estimate of these soft costs as well as the easier-
to-measure hard costs from, for example, using recruitment agencies.
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Survey Statement: Please rate your organization in terms of its ability to
successfully measure the following. (Operational metrics)
0 20 40 60 80 100
Editor’s note: respondents who answered don’t know were removed from the data set. These respondents accounted for 4% of those who responded to
“Time to fill” and 9% for “Cost per hire."
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Finding: Organizations are more likely to
be poor at measuring candidate experience
than at hiring manager satisfaction
Candidate
7% 17% 39% 24% 13%
experience
0 20 40 60 80 100
Editor’s note: respondents who answered don’t know were removed from the data set. These respondents accounted for 5% of those who responded
to “Hiring manager satisfaction” and 6% for “Candidate experience."
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Finding: One-fifth say they are poor or
below average in measuring quality of hire
0 20 40 60 80 100
Editor’s note: respondents who answered don’t know were removed from the data set. These respondents accounted for 4% of those who responded
to “Quality of hire” and “Retention of new employees."
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Finding: Respondents have the least
confidence in their cost-of-hire metrics
0 5 10 15 20 25 30 35 40
Editor’s note: respondents who answered don’t know were removed from the data set.
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Finding: Recruitment tech leaders are more
than three times as likely as laggards to
rate their success with most recruitment
metrics as above average or excellent
Looking across all six recruitment metrics (cost per hire, time to fill,
candidate experience, hiring manager satisfaction, retention of new
employees, and quality of hire) recruitment tech leaders are at least
twice as likely as laggards to rate their success as above average or
excellent.
58%
Candidate experience 22%
56%
Quality of hire 19%
54%
Retention of new employees
25%
Editor’s note: respondents who answered don’t know were removed from the data set.
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Job Advertising Methods and
Technologies
Finding: Organizations typically use at least
four methods for advertising job postings
●● company website
●● job boards
●● internal postings
●● social media
It makes sense that these are the top four given how long these
technologies have now been around, but we find it surprising to see
how slow recruitment professionals have been to adopt programmatic
advertising. Only 17% do so. Programmatic advertising is, of course,
the use of technology to automate and optimize the online distribution
of job ads across various platforms based on data and algorithms that
match the ads with the most relevant candidates and websites.
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Survey Question: Which of the following ways does your
organization advertise job postings? (select all that apply)
0 20 40 60 80 100
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Finding: Recruitment tech leaders are close
to four times more likely than laggards to
post jobs in talent communities
24%
Programmatic advertising
9%
46%
Talent communities (qualified
candidates not actively seeking work) 12%
87%
Social media
64%
0 20 40 60 80 100
Recruitment tech leaders Recruitment tech laggards
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HRRI Strategic Recommendation
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Finding: Just over half of the respondents
say job boards are among the most
effective means of advertising job postings
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Survey Question: Of the following ways that your organization
advertises job postings, which do you believe are most effective?
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Time to Fill Jobs
Definitions Finding: Typically, it takes much longer to
fill exempt roles than non-exempt positions
Exempt: An individual who
is exempt from the overtime
provisions of the Fair Labor Taking a long time to fill vacancies can be a serious problem for
Standards Act (FLSA) organizations. Not only does it leave work undone, but it also typically
because they are classified leads to an extra burden on the existing employees, and that can lead
as an executive, professional,
to burnout and higher turnover. The worst problems occur in exempt
administrative, or outside
positions where 10% say that, on average, it takes more than 90 days to
sales employee
fill a role and a further 18% say it takes 61 to 90 days.
Non-exempt: An individual
who is not exempt from the It is generally easier to fill non-exempt roles, and most respondents
overtime provisions of the Fair (52%) say on average it takes 30 days or less to fill these vacancies. Of
Labor Standards Act (FLSA) these, 14% have an impressive record of filling non-exempt vacancies in
and may be paid on a salary, 10 days or less. Of course, the question is whether they also prove to be
hourly, or other basis.
quality hires in the long run.
0 20 40 60 80 100
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Differences based on Finding: The more senior the role, the
organizational size longer it takes to fill
Smaller organizations can
typically fill senior roles faster As we would expect, it takes significantly more time to fill senior roles
than can mid-sized and large than more junior ones. More than half of the respondents (57%) say it
ones. The most common time takes more than 60 days to fill senior roles, but only 16% say it takes
to fill for senior jobs is 31-60 this long to fill mid-level positions, and even fewer (8%) say it takes that
days for small organizations long to fill entry-level positions.
versus 61-90 for mid-sized and
large organizations. Of course,
The most common answer on time-to-fill mid-level positions is 31-60
the larger the organization, the
days (selected by 49% of respondents).
greater the spans of control
those jobs will require.
The most common answer on time-to-fill entry-level positions is 11-30
days (selected by 39% of respondents).
Definitions
Entry-level: An entry-level position refers to a job role that typically requires minimal or no prior work
experience and is suitable for recent graduates or individuals new to the job market
Mid-level: A mid-level position refers to a job role that requires a moderate level of experience, skills, and
responsibilities. Mid-level status generally entails answering to an individual of greater seniority while also
holding administrative authority over less senior staff
Senior-level: A senior-level position refers to a job role that demands extensive experience, advanced skills,
and significant responsibilities, often involving managerial or leadership duties within an organization
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Survey Question: What is the average amount of time it takes for
your organization to fill the following types of positions?
(please provide your best estimate)
0 20 40 60 80 100
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Optimizing Recruitment for
Mobile Devices
Differences based on Finding: Just over half of respondents
organizational size agree or strongly agree that their job
Small organizations are application process is optimized for mobile
less likely to agree or devices or is device-agnostic
strongly agree that the
job application process is
optimized for mobile. For The idea of mobile-friendly HR applications is not new, but the use of
small organizations, 41% this technology is still far from universal. Just over half of respondents
are optimized whereas agree or strongly agree that their job application process is optimized
57% of mid-sized and large for mobile devices or is device agnostic. This leaves 47% strongly
organizations are optimized disagreeing, disagreeing, or neither agreeing nor disagreeing that their
for mobile.
job application process is optimized for mobile.
This result shows that it can take a long time for new technologies to
be implemented in organizations.
0 20 40 60 80 100
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Finding: Recruitment tech leaders are more
than twice as likely as laggards to agree
or strongly agree that their job application
process is optimized for mobile devices or
is device-agnostic
Survey Question: The job application process in your organization is optimized for
mobile devices or is device agnostic. (percent responding agree or strongly agree)
74%
80
70
60
50
40 32%
30
20
10
0
Recruitment tech laggards Recruitment tech leaders
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Finding: Less than two-fifths say they have
mobile-accessible career sites
0 10 20 30 40 50 60
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Recruitment Outcomes
Finding: Close to half say that given the
chance, they would rehire 76% or more of
the group hired in the past 12 months
Survey Question: Out of the employees you or your group hired in the
past 12 months, approximately what percentage would you rehire if
you had the chance to do it over again?
60
48%
50
40
30
21%
20 17%
14%
10
0
0-25% 26-50% 51-75% 76-100%
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The Use of AI-Powered Recruitment
Finding: Over a quarter use AI for TA to
some extent
What Is AI?
Before we delve into our findings, we want to briefly explore the
question of what AI actually is. In truth, this is a very broad category
that covers a wide variety of techniques such as:
●● machine learning
●● case-based reasons
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Still, these generative AIs such as LLMs are compelling and easy to
use, providing at least a simulation of human-level intelligence. As
a result, they are increasingly being used by some talent acquisition
professionals and incorporated (along with other AI techniques) into
new platforms and software.
80 73%
70
60
50
40
30 21%
20
10 5%
0
Not at all To some extent To a large extent
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Finding: Recruitment tech leaders are
nearly four times as likely as laggards to
use AI in talent acquisition
Recruitment tech leaders are far ahead of laggards in the use of AI.
Over 10% of recruitment tech leader organizations are using AI to a
large extent and a further 33% use it to some extent. The number of
recruitment tech laggards using AI is much lower: only 11% use AI to
some extent and none use it to a large extent.
In a sign of the times, LinkedIn, the employment-focused social media platform, reported in October 2023,
"To help our customers unlock greater productivity and prioritize the most impactful work, we announced
new AI-powered tools across our recruiting and marketing products today.” The firm is launching AI-related
applications that will reportedly help hirers find qualified candidates more quickly as well as help organizations
to create end-to-end marketing campaigns.
It’s too early to know what the impact of these kinds of applications will be, but it’s clear that providers in this
space will be trying out various new offerings in the coming year in order to discern what’s effective and what
catches the imagination of talent acquisition specialists.
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Survey Question: To what extent does your organization use artificial
intelligence (AI) for the purposes of enhancing talent acquisition?
(percentage responding "to some or large extent")
45%
11%
0 10 20 30 40 50
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Finding: Just over half of respondents see
personalization of the recruitment process
as an important benefit of AI
Still, we think that the top five most widely chosen capabilities are good
guesses about how AI will help the TA function over the next several
years:
●● personalization
●● analysis
●● automation
●● augmentation
●● organization
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Survey Question: From the list below, select the five most important capabilities
of your AI-powered talent acquisition application. (select up to five)
Analyse 45%
Automate 37%
Augment (e.g., enhance recruiter
37%
skills via recommendations)
Organize 37%
Assess 32%
Predict 18%
Diagnose 18%
0 10 20 30 40 50 60
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Finding: The most commonly cited benefit
of AI in recruitment is improved candidate
experience
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Survey Question: Which are the top five benefits of using AI in recruitment
in your organization? (select up to five)
0 10 20 30 40 50
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Finding: The most commonly cited concern
about AI is depersonalization of the
recruitment process
The five top concerns cited about the use of AI in recruitment are:
●● depersonalization,
●● vulnerability to bias
We see a paradox here. On one hand, as we saw above, the most widely
cited AI capability among our respondents is the personalization of
the recruitment process. On the other hand, the most widely cited
concern about using AI for recruitment is the depersonalization of the
recruitment process.
On the other hand, this takes actual people out of the loop for the sake
of greater efficiency. It is personalization without the person. And,
respondents are aware that this could create a true problem if the AI
only frustrates or even offends job candidates.
One concern that is not widely cited is the threat of AI taking recruiter
jobs. Only 15% cite this as among the top five concerns.
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Survey Question: What are the top five concerns with regard to the increase
in usage of AI for recruitment in your organization? (select up to five)
0 10 20 30 40 50
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Finding: A majority cite two strategies for
the successful use of AI in recruitment
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Survey Question: Which are the top five strategies most important to the
successful use of AI in recruitment in your organization? (select up to five)
0 10 20 30 40 50 60
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HRRI Strategic Recommendation
When considering new tools, think about where they are most likely
to reap benefits. Consider both the advantages and areas of concern.
Some possible advantages include greater personalization, better
analytics, improved automation and recruiter skills augmentation.
Some possible areas of concern include depersonalization,
vulnerability to bias, and the concern that some recruiters will “fall
asleep at the wheel” as they over rely on the output of artificial
intelligence.
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Looking Ahead to the Next Two Years
Finding: A majority of organizations are
planning to increase resources/focus on
three broad areas of talent acquisition over
the next two years
Talent acquisition
technologies and tools 7% 21% 42% 29%
0 20 40 60 80 100
Editor’s note: those responding don’t know were removed from the data. They represented 13% of the data for “Online sources used for talent
acquisition”, 14% for “Talent acquisition technologies and tools” and 11% for “Talent acquisition methods and practices”
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Finding: The capability that is most likely
to be important to organizations will be the
candidate's experience
0 10 20 30 40 50 60 70 80
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Finding: Most respondents believe that
recruitment technologies will become more
useful in the next two years
0 10 20 30 40 50 60
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Key Takeaways
1
Use good metrics well. Our research shows a correlation between
Key using metrics and successful usage of recruitment technologies.
Takeaway There are a variety of metrics to use, such as time to fill and/or
time to hire, cost per hire, hiring manager satisfaction, candidate
experience, retention of new employees, and quality of hire. In
every case, metrics need to be well thought out and properly
integrated both with existing processes and current technologies.
Their usage will depend on the organization’s priorities. For
example, an organization that primarily depends on less skilled
employees may emphasize time to hire while one that depends on
primarily on highly skilled employees may focus more on retention
and quality of hire. Whatever metrics are prioritized, they should
provide HR with insights as to which parts of the recruiting process
are effective and which are not. From there, TA professionals can
continuously improve the processes.
Key
Takeaway 2 Pin down what you mean by quality of hire. There are various ways
to assess the quality of hire. Among others, the metrics that can
help HR assess the quality of hire include feedback from hiring
managers, the number of employees who stay a given number
of months, performance ratings, whether the new employee has
the skills listed on the job posting, and an answer to the crucial
question “Given the chance to re-do the process, would you hire
this person again?” Some will depend on subjective elements
and others will be more objective in nature. Look for the right
combination that can shed light on the quality of hire in your
particular organization.
50 HR.com’s Future of AI, Automation and Recruitment Technologies 2023-24 www.hr.com | 877-472-6648 | copyright © HR.com 2023
Key
Takeaway 3 Set ambitious time-to-fill targets. While one should not skimp on
the quality of hire, our data shows that some organizations (13%)
can fill their non-exempt roles in 10 days or less. While this may be
too ambitious for other organizations, reducing time-to-fill could
be a big win in terms of cost savings and greater productivity.
Assess current processes to find out what can be effectively
streamlined, and reach out to peers to find out what they do to
achieve a faster time-to-fill.
4
Adopt best practices when it comes to choosing and
Key implementing TA technologies. Before making a purchase,
Takeaway find out from all the relevant stakeholders the problems they’d
like to solve and what they’d most like to get back from a
new TA technology. Also, work with stakeholders during the
implementation process so as to maximize utility and ease of use
while maintaining privacy and security.
Key
Takeaway 5 Explore fast-evolving AI applications. HR and TA professionals
not only need to understand the potential capabilities of new
technologies but their potential risks as well. However, we believe
that risks should be managed well rather than serve as an excuse
for doing nothing. The companies that do a great job of adopting
the latest technologies may well get a leg up on the competition in
terms of talent recruitment, so most organizations should at the
very least stay informed about this fast-changing landscape.
51 HR.com’s Future of AI, Automation and Recruitment Technologies 2023-24 www.hr.com | 877-472-6648 | copyright © HR.com 2023
Key
Takeaway 6 Make recruitment mobile-friendly. It’s been fifteen years since
the iPhone was launched and since that time many people have
adopted smartphones as their main means of interacting with
the internet. If your job application process does not include
mobile-friendly technology, you may well be missing out on good
talent.
Key
Takeaway 7 Be open to various job advertising methods. One of the findings
of this study is that most organizations need to use several
different means of advertising jobs to find candidates. We
found, for example, that TA technology leaders are considerably
more likely to leverage social media, job aggregators, talent
communities, and programmatic advertising.
8
Consider using a variety of TA technologies rather than relying
Key on just one. We found that TA technology leaders use a greater
Takeaway variety of tools rather than relying solely on one. Although
ATS is indeed most widely cited as an effective recruitment
technology, identify which tools best help your organization
achieve specific goals. Then make strategic decisions based on
those analyses.
Key
Takeaway 9 But don’t rely entirely on technology. Recruitment is a very
people-oriented function. Technologies can help but they can’t
replace skilled recruitment specialists who are capable of
finding and attracting the best job candidates. Organizations
need skilled recruitment professionals in order to make the best
of use TA technologies.
52 HR.com’s Future of AI, Automation and Recruitment Technologies 2023-24 www.hr.com | 877-472-6648 | copyright © HR.com 2023
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