4 Signs Your Company Needs AI Recruiting Software
Did you know that 24% of businesses use artificial intelligence (AI) recruiting software? Many recruiters and hiring managers have discovered the benefits of using AI to enhance their recruiting process in the employment market. But how do you know if your business is ready to include the software into your business?
If you’re struggling to find great talent or just feel like your old software and procedures are outdated, it might be time to upgrade with the power of AI.
Keep reading for five other signs that you would benefit from using AI for your talent acquisition process.
1. You’re Relying on Job Boards Too Much
Do you find that you go straight to job boards whenever you have a new job opening? While posting great job descriptions on the right board can be beneficial, it shouldn’t be your only strategy for finding candidates.
There’s no guarantee that the right candidate will see it and apply, and you’re only attracting passive candidates. Many more active candidates might be an excellent fit for the position, but you won’t recruit them by just posting a job opening they’re not even looking for.
Some companies may only use the job board strategy because they have too many unorganized candidates’ resumes. It could take hours to search through them, and it’s easier for them to get fresh candidates for the specific job opportunity.
However, when you post a job opening, you’ll get hundreds of applications and resumes that you will need to go through and screen. If you don’t have a good way to organize them and search through them, it can be overwhelming and challenging.
If you’re not getting the job seekers you want and don’t have time to screen all your candidates, try using AI recruitment software. This will save you time on screening candidates, and the software will download and organize all of the resumes so that you can spend your time focusing on other essential tasks.
AI software can analyze candidates’ applications and organize them based on their skills and qualifications. Then, you can view the list of the most qualified candidates and see who would be a better fit for the position. You won’t have to go through hundreds of irrelevant resumes.
2. You Have a Lot of Data
If you have compiled an extensive data set over time, AI would be the perfect solution to help you manage it. AI feeds off of data because it needs it to learn. It analyzes the data to recognize patterns and perform simple tasks. However, the algorithm will need a large amount of data to learn from to function.
There’s no set amount of data that your AI algorithm needs to learn how to properly function, but the more there is, the better. However, you need to make sure that you have good, quality data. This might be one of the biggest challenges.
While you can scrape the Internet for data, that’s just data available on the public domain. Your private data is more valuable to use for AI.
To ensure that your data is clean and easy for the AI algorithm to understand, you’ll want to have your data formatted in the same way. AI can’t generalize the data like a human can find different spellings of something and realize it’s the same thing. AI would see the different spellings and think it’s multiple other objects, hurting predictions.
When storing your data, save all of it in the same format. For example, if you’re downloading resumes, download them in PDF form. Some algorithms will be able to sort through any document, but it’ll be much easier for AI to do it if they are all structured the same.
You’ll also need to use data that is current. Get rid of all your old data that is irrelevant or has gaps. If there are gaps, analyze the missing values or manually add data to fill in the gaps. If you can understand why the data is missing, this will make it easier for you to fill in the gaps.
If your data falls under these critical criteria, then you would benefit from having AI implemented into your hiring process.
3. You Already Use Automation
90% of businesses already use automation, but did you know that AI could enhance it and make it more efficient? Because AI can read and analyze data, it’s excellent at performing specific tasks that are pattern-oriented.
However, before you can use an AI solution, you need to ensure that you have enough data to allow the AI to assist with automation.
To start with, you’ll need to think about what processes you already have automated. For example, in the recruiting process, you might want to automate some stages that don’t need the human touch of a recruiter.
For example, you can use AI to schedule interviews with candidates. You could use it as a chatbot to engage with candidates and update them on the recruitment process. Recruiter.com’s AI recruiting tool allows you to use data to source candidates depending on what keywords and skills you’re searching for.
When those candidates are identified, the tool will send optimized and automated emails to candidates you think would be a good match. By automating this stage of the recruitment process, recruiters can get back to doing what they love: creating connections with potential candidates.
4. You Need to Save on Hiring Costs
According to a recent report, the cost of hiring has gone up. In 2021, it cost $4,425 to hire a non-executive level employee. For an executive-level employee, it could cost $14,936 to hire them.
What does this mean for businesses? Recruiter.com expects that these increased hiring costs and a more significant churn will cause an increase of $50 billion in hiring costs.
“In 2018, with 150 million employees in the US economy, the average employee turnover rate was 22%. This resulted in 5.8 million people being hired monthly at an average cost of $4,129 per hire for a total monthly hiring cost of $24 billion. This percentage was increasing already in 2019 as people were leaving jobs more frequently.
“However, this number will be even higher according to the macro changes in the economy discussed earlier. An increase in turnover to 28% or greater would mean that over 33 million people are hired each year.
“With the 2019 average cost per hire at $4,425, that means the US will see a $50 billion increase in hiring costs in 2022.”
Some businesses might be hesitant to invest in AI recruiting software because they want to ensure that the investment will pay off. If you’re going to see a positive ROI, you’ll need to choose an AI solution that makes sense for your business. You shouldn’t just invest in any AI solution without first thinking about how it might fit into your business.
When you focus on the ROI, you’ll prevent yourself from spending money on a tool that won’t add any value or help you save on hiring costs. You’ll want to consider how much revenue the AI recruiting tools will help you generate (or save), if it will give you a data advantage, and if the strategy makes sense for your business.
When an AI recruiting tool can help you save money, it can solve a real problem that is depleting your recruiting resources. For example, if recruiters are spending too much time sourcing candidates, investing in Recruiter.com’s AI tool might benefit your business so that you don’t have to spend money to hire more recruiters.
You’ll also want to make sure that you’re using good data. Are you going to use an AI system that uses your data? Where does the data come from? Ask this question when you’re shopping around.
Lastly, figure out if other businesses are using this type of AI. If you see that AI can help other companies be successful, it might be beneficial to your company.
Is Your Business Ready to Implement AI Recruiting Software?
If your business shows any of the signs listed above, you might want to start searching for the perfect AI solution. However, keep in mind that not every AI solution will benefit your business. The data is the most critical part because it relies on algorithms. If you choose a company that feeds the algorithm insufficient data, it won’t help you much.
Don’t get swept up in the trend of using AI because it’s new. Do your research and vet the program before you invest. This will ensure that you have a good ROI on your software.
If you’re not sure where to start, check out our AI software! We have software that recruiting teams can easily use, or we can manage it for you! We can use machine learning to source the best candidates and send a list of them directly to your email. When you identify the best candidates, we can send automated and optimized sequence emails to recruit them.
If you’re interested in learning more about how the best AI recruiting software can fit into your company’s hiring teams process, contact us today!
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