By Ajay Trehan
The Covid-19 pandemic has disrupted the business, with digital transformation becoming a top priority for organisations. Across the board, enterprises are adopting innovative technologies and systems to meet these digital transformation goals. Technology has not only created new avenues of managing business processes but is also helping enterprises become more agile, customer centric and in-sync with the changing times.
HR management and recruitment processes have also seen dramatic changes with a major work force operating from home. Restrictions on travel and in-person interactions have paved the way for newer solutions based in technology. Hiring and recruitment processes have, consequently, shifted online due to restrictions on mobility and safety concerns. Interestingly, after initial hiccups, enterprises are reporting lowered recruitment process costs, wider access to a more qualified talent pool, higher efficiency in checks and background hiring diligence, and importantly a better candidate onboarding experience. For human resources personnel, digital hiring and onboarding is the most important technological innovation in recent times. In fact, 68% HR professionals feel that the use of better recruiting tools and technology is the way to boost recruiter performance.
Let’s look at the digital transformation trends that are shaping the future of hiring:
Database-driven background checks
Database-driven instant identity checks, education checks, previous employment checks etc. are a good way to start the hiring process. The Covid -19 pandemic has shown that traditional in-person verification can be simplified with the use of technology to a great extent. With more pressure to hire the right people, both cost and time-effectively, many organisations have turned to data to help them make smarter hiring decisions. The use of data analytics and face match technologies, coupled with API-integration with applicant tracking systems, has automated the process of sourcing, resume parsing and employee verification. Data-driven background checks powered by AI are capable of giving ‘yes’ or ‘no’ answers in real time and with efficiency gains of up to 70%.
Skill and competency assessment
As per a study by online talent assessment firm Mercer Mettl, 85% of Indian enterprises used virtual interviewing processes during the pandemic. These online assessment mediums can be further integrated with any company’s hiring and management systems, helping recruiters to streamline the entire process. Cognitive assessments, communications assessments, coding tests, technical or domain assessments are the top areas where hiring has shifted to virtual mediums. In fact, 51% of Indian enterprises reported cost savings, and 47% reported a shortened recruitment cycle due to virtual skill and competency assessments.
Removing human bias in selection of right talent
As per the data shared by Ideal, a recruitment automation software, adoption of AI into the hiring process can save up to 23 hours per hire, reduce hiring costs by up to 75% and lead to 35% decrease in employee turnover and 20% increase in performance. Screening of potential candidates with AI streamlines the repetitive and high-volume recruitment tasks enabling the recruiter to focus on creating more qualitative employee experiences and playing more strategic roles. But AI, if not monitored closely, can reflect the human biases that creep into the system. To prevent AI from discriminating against certain types of applicants, Ethical AI has gained a widespread prominence. By providing only objective data to hiring teams, Ethical AI aims to ensure that the focus is only on characteristics that are relevant to success in a particular job. Moreover, there is an increased focus on separating the experience-based data being used in the hiring process to train future models of job selection and hiring as it encourages bias.
Digital onboarding and remote working
According to a Gartner report, 80% of company leaders plan to allow employees to work remotely at least part of the time. A McKinsey report reveals that we will witness a four to five times increase in remote work. With remote or hybrid working models becoming the new normal, organisations are increasingly investing in end-to-end digital hiring and onboarding solutions that can bring all stakeholders together. From job application to virtual interviews to data-driven verifications to document collection, to rolling out the offer letter to virtual onboarding, organisations are looking to bring it all together through one-stop solutions that create seamless digital onboarding journeys for everyone involved. These solutions are powered by data analytics and an informed AI to tackle the shortcomings of virtual onboarding.
The author is the
Founder & CEO at AuthBridge Research Services.