According to McKinsey, automation could accelerate the productivity of the global economy by between 0.8 and 1.4% of the global GDP annually. While this sounds great for the global economy, it’s estimated that up to 30% of current work activities could be displaced by 2030 due to AI and automation. The types of jobs that are most at risk for displacement by AI technology include:
The research is clear. Automation and its bigger brother AI, are going to have an impact on all jobs and recruiting is absolutely no different. While many companies are embracing this change and moving forward with integrating automation and AI into their recruitment processes, other companies, perhaps driven by fear, are shying away from the benefits artificial intelligence can bring.
Unfortunately, this isn’t sustainable. A sustainable business is one that consistently delivers and helps realize customer value by taking and spending no more than 30% of the dollar value created for that customer. In order to keep recruitment and talent acquisition squarely in the space of value-producer (as opposed to its more traditional role as cost-center, a far harder place to get budget), smart recruiters, especially those with high-volume recruiting requirements, are embracing these new technologies.Explore how #automation and #AI improve efficiency in the #recruiting space in this article from @ApplywithAllyO. Click To Tweet
AI-enabled recruiting automation is exactly a business of that kind, and the mere business economics stemming from customer value will drive enough investment into ventures enabling it, such that AI automated recruitment will become the de facto, at least in high-volume hiring.
Automation makes sense in high-volume hiring because it takes repeatable, administrative tasks and…automates them. Artificial Intelligence makes sense in high-volume hiring because it can learn from its interactions with various programs and people and processes and find even greater efficiencies.
The current challenge in numbers:
90% prospects drop off looking at job ads because under 20% of applicants never hear back. Those numbers are astonishing even with a normal applicant flow. When you are looking at a high-volume situation, the amount of candidates you aren’t reaching becomes astronomical.
Efficiency #1: AI-enabled recruiting can create an instant connection with the candidate, from answering their questions in real-time (often when recruiters themselves can’t be on the clock) to helping find open interview slots in the hiring manager’s calendar. AI can also give updates on the status of an application or guide the candidate to another option if they’re not well-suited to the opening.
From those who take the leap, 60% further drop off while filling the application, given how tedious and mobile unfriendly job applications typically are.
Efficiency #2: AI-enabled recruiting can help reduce application abandonment by gradually capturing information from candidates and syncing it into your ATS. In the end, you have a comprehensive profile of the candidate without the exhausting application process. An added bonus is that recruitment chatbots (a key feature in AI-enabled recruitment processes) speak to the applicant in a conversational format, which is how they’re used to communicating in their everyday lives, making the chances of them giving additional information higher.
Thanks to 1-click-apply from job boards, recruiters (who are already overburdened with 40+ requisitions) find less than 10% of the applicants to be interviewable.
Efficiency #3: Artificial intelligence learns as it goes who will be a good fit for individual roles and cultures. In high-volume recruiting, where the majority of the roles are quite similar, this efficiency is doubled and even quadrupled depending on the number of roles.
Recruiters spend 80% of their time on administrative tasks like screening, following up, and scheduling.
Efficiency #4: Automation and AI-enabled recruiting processes reduce time spent on administrative tasks significantly, freeing up time for more strategic planning, job requirement adjustment, recruitment marketing, onboarding and creating more efficient and effective candidate experience.
Net, out of a 1000 prospects who could have been applicants, only 6 make it to interviews, primarily because a 95%+ drop off because of the poor trade-off between the effort entailed in applying vs the lack in confidence in hearing back in time.#A.I. enabled #RecruitingAutomation can directly save companies $70 per interview, while improving time-to-hire and #CandidateExperience. Learn more in this article from @ApplywithAllyO. Click To Tweet
All of these efficiencies combined to create an incredible yield for recruiters and talent acquisition pros looking to create additional space and time in their processes. It makes an inherently inefficient process, much more so.
On the other hand, AI enabled recruitment automation bumps up this conversion to 4x, with 25 interviews yielding from the same 1000 prospects. This happens because of two primary reasons:
AI-Enabled Recruiting at a Career Fair
Today if you had 1000 people walk up to your booth at a career fair and you gave them a pamphlet to go apply online, less than 50 of them really would submit the application (and if they did, they’d probably apply to 10 more companies at the fair).
Instead, if you had each of them text a number right then, you capture each of their cell numbers with the first text, 90%+ stay engaged through a definitive endpoint with the AI recruiter, and a majority of interviews can happen that very afternoon.
Benefits of AI Automated Recruiting
In other words, AI enabled recruiting automation can directly save companies $70 per interview, while improving time-to-hire, candidate experience, and giving time to hiring managers to focus on revenue capture.
The U.S. has ~85M high volume workers (including school hires) who typically exhibit a turnover of around 70%, and it takes 3 interviews to make a hire. This means the value capture opportunity in the U.S. High Volume Recruitment industry alone is greater than $10B, and if the vendors took ~30% of it as their revenue, they would be over 2x more valuable than the heavily commoditized Applicant Tracking System (ATS) market.
This is why you see investors pumping millions into such technologies, which means whether the large incumbents ignore, build, or buy such technologies, AI automated high-volume recruitment is bound to happen, potentially within the next 5 years.
AllyO is an AI technology company founded a simple mission – make recruiting delightful and efficient for everyone. It addresses the traditional inefficiencies of lost applicants and conversions due to poor candidate experience, high cost of recruiting due to overburdening of menial tasks on hiring teams, and lack of visibility and control for HR leadership. It utilizes deep workflow conversational AI to fully automate end to end recruiting workflow by intelligently engaging via texting over mobile and web. AllyO is used by Fortune 500 enterprises that have experienced 2-6X increase in applicant capture and conversion rate, 91% application completion rate, and over 50% reduction in cost and time to hire. AllyO is backed by leading investors such as Google, Randstad, Bain Capital Ventures and Cervin Ventures.
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