Across industries, AI is an unstoppable force, and HR is about to meet its strength.
In a recent survey commissioned by Indeed, a staggering 8% of Canadian HR and talent acquisition leaders reported that their teams are not currently utilizing AI tools. As an HR leader, if you’re not using AI, you’re in the obvious minority.
The majority of Canadian HR leaders are crafting job descriptions through AI to match candidates for open roles and automating engagement with job seekers through chatbots. AI is transforming the way HR functions and while it is a useful resource, can it still be human?
To maintain competitive advantage, HR experts like you will need to find ways to maintain the human touch all while reaping AI’s benefits in the hiring process. Here’s how.
AI's Unforeseen Challenges
While AI offers numerous benefits, it also has its share of challenges. HR and talent acquisition experts seem to be aware of its pitfalls.
No more jobs?
HR leaders are a concern that AI may replace jobs. Canadian HR/talent acquisition leaders surveyed are more likely to believe AI will replace more jobs (55%) than create more jobs (31%) within the foreseeable future. While AI has not yet proven capable of completing physical jobs, it can iterate and mimic language models, potentially automating 26% of work tasks in the arts, design, entertainment and sports sectors. Notwithstanding AI, a recent Hiring Lab article alludes to a decline of jobs within the tech, marketing and service industries since last summer of 2023. Job seekers within those realms will need to reskill or adjust to future realities.
Watch out for Data Privacy and Security
Over half of HR (53%) and talent acquisition leaders aged 25-34 expressed concerns about AI compromising data privacy and security in recruiting and hiring when it comes to using AI systems and tools, compared to a third (33%) of those aged 45-54 who said the same. While OpenAI’s use has exploded in recent months, so have the headlines of its use with personal information. Given the spike and interest in generative AI, companies and government departments are issuing guidelines for using generative AI.
Ensuring secure AI systems and tools is crucial for safety and younger HR and talent acquisition leaders are mindful of its perils.
Bias in Recruitment
AI systems can inadvertently perpetuate biases present in the data they are trained on. AI experts are clear: Algorithms are only as good or bad as those responsible for the data it inputs. HR leaders recognize the challenge. Almost 2 in 5 (38%) HR/talent acquisition leaders surveyed are concerned about AI making recruiting more biased when it comes to using AI systems and tools. It is top of mind even for government officials. The Canadian government recently revealed a voluntary code of conduct for the use of advanced generative AI intelligence systems in Canada which includes commitments to transparency and limiting bias.
Given commitments earlier this decade about fairness and inclusivity, HR leaders are conscious that the data may omit fairness and inclusivity in the hiring process.
Impact on Diversity, Equity, Inclusion, and Belonging (DEIB)
Further along bias in recruitment is internal strategies themselves. Survey respondents worry that AI could negatively affect DEIB initiatives, particularly in terms of ethnicity and race. Over a fifth (21%) of HR/talent acquisition leaders surveyed aged 25-34 think AI systems and tools will negatively impact the DEIB area of ethnicity and race in their organization. Canadian HR and talent acquisition leaders were most concerned that AI systems and tools would negatively impact areas related to age, ethnicity/race, religion, people living with disabilities, socioeconomic, LGBTQ+ and gender and gender identity.
AI's Potential Benefits in HR
It’s not all bad. AI has ushered in a new era of efficiency and innovation in HR. In fact, some of these efficiencies are applied in today’s market.
Automating of routine tasks
AI tools are adept at handling repetitive and time-consuming tasks. Canadian HR/talent acquisition leaders surveyed said their team is currently using AI systems and tools to write job descriptions or ads (34%).
In fact, Indeed has recently released an AI job description tool which helps employers pull from an expansive database to generate a job description within seconds. By automating these tasks, HR professionals can free up more time to focus on the human aspect of recruitment.
Improved candidate engagement
Alongside repetitive tasks comes consistent engagement. Candidates often complain that companies are slow to respond during the recruitment process. AI-driven chatbots and communication systems ensure that candidates and employers remain engaged throughout the hiring process. This helps prevent the common issue of candidates feeling ignored or "ghosted."
Remember, external communication still needs a touch of humanity. Make sure the automated messages and communication systems truly reflect the next steps in the hiring process. If your automated messages suggest that candidates will hear from you soon, make good on your word and contact them within a week.
Enhanced decision-making
AI can assist HR leaders in making more informed hiring decisions by analyzing vast amounts of data. This data-driven approach can lead to better candidate matches and potentially expedite the hiring process. For instance, AI can review wages and salaries within a company, promoting pay transparency and ensuring that fair compensation is offered for new roles.
At Indeed, we have accepted that the new world of work will include AI. More than 300 terabytes of data is generated per day on Indeed, based on the 30 million jobs posted and 350 million global monthly Unique Visitors who visit the site. When you post a job, our AI leverages data about every job and job seeker to help you see how many applications you are likely to get, and our AI recommends the right budget to meet your hiring needs.
Our AI also recommends candidates that match your requirements based on information collected from the job seeker such as skills, experience, preferences — before they even see your job. You can choose the candidates that are the best fit and invite them to apply.
We are incorporating even more AI technologies in the coming months to connect employers with quality matches faster.
Preserving the Human Side of HR
While AI offers significant advantages, it is essential to maintain a human touch. Here's how HR professionals can strike the right balance:
Identifying Processes Requiring a Human Touch
Not all aspects of hiring can be automated effectively. HR professionals like yourself should identify processes that require a personal touch and interject before automating them entirely. Perhaps the automated email might need an extra line of copy to help candidates understand your company brand. Perhaps it is best to call successful candidates directly instead of a stale email. Any part of the process which allows you to showcase your company’s brand and personality far outweighs the time saved on repetitive tasks.
Reskilling Workers
HR teams can adapt to AI by reskilling and upskilling employees. A touch of humanity often means recognizing where your internal talent can be utilized to set yourself for success in the future. In a recent Canadian report, “Breaking Down Barriers: For a Fair and Bright Future of Work,” newcomers and Gen Z workers felt that education was a barrier at their work. By using their talent, you can harness the power of AI all while retaining this critical workforce. The Canadian government recently announced that it plans to welcome 500,000 immigrants per year by 2025 and Gen Z will make up 31.5% of the working-age population by 2031. The time is now to capitalize on the shift in trends all while maintaining a competitive edge.
Transparency
Be clear with candidates. If at any point, they are engaging with AI, companies like yours should be transparent. Recently, the Canadian government has put in place policies and guidelines in the use of generative AI. In it, it stipulates that any department which uses generative AI to respond to a citizen, answer questions via a chatbot, create a document or make a decision, should be transparent about using AI. Moving forward, ensure you’re transparent with candidates and job seekers when they’re interacting with an AI platform. It’s good for the job seeker and your employer brand.
We can harness the power of AI
AI has revolutionized HR, offering increased efficiency, better decision-making, and improved candidate engagement. However, its deployment also comes with potential challenges. To ensure that AI benefits HR without sacrificing its humanity, it’s your job to inject as much humanity as you can.
