According to a Future Market Insights report, the market size of global recruitment automation software will likely touch $660 million by the end of 2032. This report indicates labour shortage and inefficient recruitment hampering growth goals as the significant challenges that organisations will face. Recruitment automation is helping enterprises counter these challenges while gaining benefits such as cost-effectiveness and improving hiring quality through better decisions backed by analytics.
Recruitment is a vital function, tasked with filling the talent gaps with the right people at the right time at the least cost. Not surprisingly, an ET HR World South-East Asia article mentions automation in recruitment as one of the top five hiring trends in 2023.
Let us explore the key drivers of this trend.
Improved hiring efficiency
You can automate your end-to-end hiring process with credible hiring platforms. Whether screening profiles or scheduling and conducting assessments and interviews, recruitment automation can boost your hiring efficiency. It streamlines your processes to reduce hiring time and cost through better communication.
Also, candidate pool tracking becomes easier through automation to approach suitable candidates, if required, at a later stage. You can elevate your virtual onboarding experiences through automated learning management programs for induction training, auto-assigning buddies to new hires, etc.
Catering to Gen Z preferences
According to an article published by the World Economic Forum annual meeting in May 2022, Gen Z constitutes 27% of the workforce in Organisation for Economic Cooperation and Development (OECD) countries.
Many studies indicate a keen Gen Z preference for digital recruitment. One study from Bullhorn found that three-quarters of Gen Z candidates drop out during hiring due to poor processes. The Future Markets Insights report also mentions the Gen Z influence on recruitment automation software. It indicates that 82% of respondents in a survey wanted to complete the recruitment process within two weeks.
Therefore, you must automate your hiring processes to attract Gen Z – the future of the workforce. You can even explore recruitment gamification to elevate candidate experiences. Also, Gen Z is big on DEI and wants organisations to walk the talk on creating inclusive workplaces. AI eliminates biases in the recruitment process to ensure only competency matters in selection.
Improves recruiter productivity and focus
A recent McKinsey article titled ‘What is the future of work’ mentions increased technology adoption to make better decisions as a vital point to strengthen organisational performance in a hybrid world. The Chief Human Resource Officers (CHROs) across US and Europe expect HR elevation through automation. It would help them refocus their time on core HR tasks, such as advising top management.
Complemented by automation, recruiters find the right people in less time from a wider pool at a lesser cost, improving their job satisfaction and productivity. They can spend more time on employee engagement activities to enhance employee retention.
Convenience to candidates and hiring managers
Automation brings convenience to all stakeholders. While candidates get timely responses, hiring managers can easily slot their availability. The system schedules interviews by matching the slots to candidate availability. This approach hastens the process by eliminating lag and reduces drop-out rates.
Cost and time benefits
Automation speeds up hiring with improved quality outcomes, directly impacting a crucial hiring KPI, the cost-per-hire, tracked diligently by most organisations. Automation helps organisations achieve operational efficiency by reducing cost and time to increase productivity and keep the cost-per-hire within reasonable industry benchmarks.
Quality of hire
Remote hiring does have a few challenges, a significant one being candidate malpractices. A recent HirePro study found:
- 30-50% of entry-level candidates cheat in online assessments and interviews
- At the lateral level, it was between 10-25%
- Without proctoring, cheating grew by 80 to 100%
Credible platforms with advanced proctoring capabilities can fraud-proof your recruitment automation to assure the integrity and quality of the hire. Customised job-specific tests help you find the best-suited people for a role, as AI can analyse various aspects of candidate responses to enable better hiring decisions.
Employer brand and candidate experiences
Digitisation is a great way to establish a credible employer brand through elevated candidate experiences. Also, chatbots can guide candidates toward the right roles suiting their profiles, increasing chances of selection. When candidates realise that your organisation values their time, it enhances brand value. They may even share their positive experiences on social media, helping you attract more candidates.
While the benefits are many, automation should not replace humans in hiring. Your HR policies must apply due consideration to verify the selection. Also, recruitment automation must ensure ethical AI usage to maintain objectivity and address potential concerns about systemic biases in AI models. Creating strong policies to bridge the limitations of automation and adding a much-needed human touch balances the hiring process.