Every hiring team is asking the same question: is this candidate the right person for the job? This should be a fairly simple question to answer, but after the resume review and the interview are over, it’s become pretty clear that humans don’t always have the best intuition. Although we sometimes do get it right, sometimes just isn’t enough. Bad hires are hugely expensive for any organization of any size. Tony Hsieh, the CEO Zappos has estimated that bad hires cost the company “well over $1 million.” The US Department of Labor has estimated that a bad hire can cost a company at least 30 percent of that employee’s first-year earnings.
While many companies are feeling pressure to scale and expand quickly, no company can afford to absorb these losses, especially when you factor in the time and energy your current employees will expend hiring and training them.
Ineffective hiring techniques hurt your chances of finding great hires in numerous ways. Not only will you miss great applicants, or let qualified candidates get lost in the shuffle, bad hiring techniques can also translate into bad candidate experiences, meaning that you may be losing great candidates to competitors just because your hiring process was tedious or confusing.
LinkedIn Talent Solutions found that a shocking 83 percent of applicants said a negative interview experience changed their opinion about a role or a company they had once thought of positively. Not only can a bad experience influence a candidate but a good experience can have an even stronger reaction: 87 percent of respondents to LinkedIn said that a good interview experience improved their opinion of a company they had previously doubted.
When an unstructured and unreliable hiring process leaves candidates feeling confused, frustrated, or even disappointed, this can damage both our hiring outcomes and your company’s reputation. One study found that 72 percent of candidates who had a poor hiring experience shared that experience publicly on sites like Glassdoor.
So how can you leverage the best in people analytics to create a hiring system that consistently yields great hires while also maintaining a positive candidate experience? The answer lies in the careful calibration of human intuition and machine learning. While our “gut instincts” are often wrong, good HR teams are able to combine those human reactions with great data and software that guide hiring decisions but don’t dictate them.
For companies of any size, in any sector, the key to consistently successful hiring isn’t automation alone: it’s structure throughout the process and alignment at every level of the team from executives to managers and recruiters. Software can help combine these crucial components, ensuring teams are guided by the same principles and priorities so that candidates have uniform, positive experiences. Software can also stitch machine learning and AI tools into every step so they become an intuitive part of the process, instead of a cumbersome addition.
Although AI has mostly been used during resume review, this technology can and should be expanded to rest of the process, guiding how managers draft job descriptions so that they are accurate, communicate the most important aspects of the position, and will appeal to a wide range of candidates, ensuring your applicants represent the full pool of potential talent that can succeed in this role.
AI can also help continually guide HR teams back to the qualities and capacities that matter most to this position. That can mean helping interviewers create questions that are relevant, behavior-based, and consistent with other interviewers so that every candidate has a consistent experience. It can also mean scoring candidates so that HR teams can see, without a doubt, which applicants are qualified and why.
Whether you are a Fortune 100 powerhouse or a nimble and growing startup, whether you are looking for a C-Suite executive or a daring creative, your needs remain the same: find great candidates with proven abilities to succeed and convince them to work for you and not your competitor. While the objectives are clear, the task is herculean. With the structure, support, and guidance of AI hiring technologies, HR professionals are finally fully empowered to create meaningful interviews, build positive relationships with candidates, and make great decisions and find the perfect hire every time.