4 benefits of using AI when recruiting

The Human Resource department is not what it used to be, especially after the pandemic’s occurrence in 2020. Companies needed to adapt and rethink how they operate if they wanted to survive the presented challenges.

What used to work and function as the world turned upside down is no longer working today.

Adapting and refocusing talent acquisition is changing since digitalization is further boosted and widely spread. As a result, artificial intelligence applications for recruitment are on the rise, and they bring multiple advantages to companies as they facilitate the work of managers and recruiters.

In the following lines, you can find out what are the exact benefits of AI in recruitment.

Summary (TL;DR)
Covid-19 shifted how many businesses operate, especially with remote working. Also, there are new talent acquisition practices involving AI that bring benefits to companies. They are cutting costs, save time, help recruiters find quality hires, and help hiring be more objective.

Advantages of using AI for hiring

1. Cutting costs

Hiring is a cost activity – there is an associated cost-per-hire which includes the recruiter’s hours spent on attracting, screening, interviewing, and onboarding candidates. However, as AI automates tasks and lets recruiters focus on fewer tasks, costs are reduced.

Not to mention the costs of hiring the wrong candidate! On average, the cost of a bad hire even up to 125% of an employee’s annual salary depending on employee’s position and the impact on the organization and the customer activity. Not only does that cost money, but also the valuable time allocated to the supervision of poorly performing employees and finding a new employee. With the help of AI recruitment, there are more insights available to recruiters as they make a decision for their next hire.

  • The cost of a bad hire accounts for 30% of an employee’s year of income. 30% 30%

2. Finding quality candidates within the application pool

In a previous blog, we mentioned that, on average, one job posting receives around 250 applications (according to a study done by Glassdoor). Among those, only 4-6 candidates are invited to an interview. But before one gets to that point, a good recruiter would ideally need to go through all those resumes and filter for the best match for the job. On top of that, as the size of the business increases, so does the chance of having multiple job positions available. Therefore, more job openings mean more applications to review. Needless to say, this is a time-consuming task that nowadays rarely gets done thoroughly when performed manually. In fact, research indicates that a recruiter spends around 6 seconds in scanning a CV. 6 seconds. Are those enough to get a good idea of the candidate’s qualifications and whether their personality is an excellent addition to the organizational culture? We find this questionable.

Fortunately, there are alternatives in the face of technologies such as an applicant tracking system (ATS) that automates these tasks. With the use of those systems, a recruiter can benefit from speedy identification of potentially suitable candidates for the available job postings. However, a disadvantage to those ATS is that those systems often search on predefined keywords, which can lead to recruiters potentially disregarding qualified candidates.

To avoid that, there are further augmented AI recruitment tools that incorporate more elements for evaluating points when screening applications. For instance, some linguistic application readers are built with 4 variables “in mind” – so that recruiters can see the holistic picture of a candidate.





3. Saving time

As mentioned above, receiving and scanning multiple resumes is a tedious task. It not only takes time, but one can quickly get distracted and miss out on important information about candidates as their fatigue increases. Can it be 6 seconds sufficient to turn down a candidate? Is it a fair chance that each candidate is given?

In the era that we live in, the automation of this type of mundane tasks can be taken from the recruiter’s plate and be done in few short moments. With the use of AI in hiring, irrelevant applications can be filtered, and the most suitable candidates can be highlighted, as some more sophisticated AI-powered recruitment tools also rank those candidates on multiple layers (as we named them earlier “variables”). This means that recruiters can save time screening all CVs and save their energy to review the relevant ones which are showcasing a good potential for the open job position.

4. Reducing subjective gut feeling

The talk about artificial intelligence in recruitment and how it brings or reduces bias is an ongoing debate. In 2018, more than 2 years ago, Amazon had to shut down on their AI recruitment tool as it was built on data that was inducing favouritism towards white male candidates. Since then, much more improvements and research has been made on the topic, and a couple of different scholars prove otherwise: AI in hiring reduces biases. Unlike human recruiters who might subconsciously bring biases in their decision-making towards candidates as they read through applicants solely, AI screens the resume “blindly”. Furthermore, AI recruitment software has no prejudices based on candidates’ name, gender, religion, etc. Can the same be said about recruiters?

In the pursuit of finding out whether candidates’ gender plays a role in selecting the job, the recruitment company Hays conducts a study with more than 1000 recruiters. Half of the recruiters were given a CV with a candidate called Simon, the other half had a candidate with the same qualifications but named Susan. The results showcased that:

    Recruiters with more experience (20+ years on the job)

    were more likely to be biased and only interview Simon (65% compared to 51%)

    Hiring managers in bigger companies (with over 500 employees)

    were more inclined to interview Simon over Susan (62% for Simon than 56% for Susan)

    There is close to no biases

    in organizations smaller than 500 employees


    On top of that, hiring managers share that while their company claims to have diversity and equity as a priority, only 63% of the companies have DEI training and show efforts in that direction.

    Hiring more objectively and aiming to reduce biases while screening resumes and during interviews is a step towards increasing the diversity in companies and, more importantly, seeing candidates for what they are and what they can bring to the enterprise. By employing another set of tools and bringing more eyes to the decision-making, you can be one step closer to that objective effort to hire and find a talent that matches your company.

    Looking to hire more objectively?

    Attracting talent at your doorstep is only half way of the recruitment journey. For the selection phase, there are tools out there that help you set aside your subjective gut feelings and review applications “blindly” – with no candidate demographics to impact your hiring decision. Only the skills, personality, values and culture that matches to your company’s unique preferences.