Quality of Hire and AI: Top Priorities for Recruiting Teams This Year
While speed was the metric used to measure recruiting success, quality is most desired now and in the future.
The new year is already here, and there are some exciting developments to be aware of. When it comes to hiring and recruitment, hiring managers need to be on top of the trends. With the rise of remote hiring, a focus on the quality of hire (QoH), and artificial intelligence (AI) in the hiring process, the recruitment industry is fast evolving.
Understanding the key trends affecting the recruiting business will allow you to stay ahead of the competition when finding the best talent for your firm. Despite the ups and downs, the job market is expected to remain stable and robust, and the future of work in 2023 offers many opportunities. Even though many experts predict a recession, the unemployment rate will stay low compared to previous economic recessions.
Let us look at the top priorities recruiting teams should address in 2023.
A Renewed Focus on Quality of Hire
The year is shaping up to be the year for HR professionals to abandon the reactionary strategies that were prevalent during the pandemic and refocus on quality hiring techniques that will generate efficiency, effectiveness, engagement, and ethical outcomes. The ultimate indicator of hiring success is often referred to as “Quality of Hire,” which takes into account a new hire’s performance, engagement, and promotability, as well as their likelihood of sticking with the new firm in the long run. It is also the most challenging statistic to reliably assess due to its complexity and the fact that indicators like turnover are frequently only tracked irregularly.
Organizations are focusing on two complementary measures to reduce attrition in 2023.
One is making employees feel more respected, valued, and a part of the company. Companies recognize that QoH and hiring right the first time are vital to creating organizational value. According to a report by Jobvite, 48% of companies already rank it as their top priority.
The skills and competencies needed for most jobs are more complex and urgent nowadays, as digital 21st-century skills become table stakes. According to Gartner, one in three skills required for a job in 2018 has now become obsolete. As businesses transition permanently to hybrid work patterns and the use of intelligent technology, ideal employee profiles now incorporate remote working skills, such as asynchronous communication and the ability to advance work utilizing a wide range of digital tools.
“As our 2023 Trends Report highlights, although chaotic labor conditions are expected to continue throughout the year, more companies are anticipated to make progress in better optimizing their hiring technologies to find best-fit candidates that will have a positive impact on business success and help to increase retention,” said Karin Borchert, CEO of Modern Hire.
See More: Why Measuring Quality of Hire Is Imperative in the War for Talent
More Responsible Use of AI in Hiring
The time has come for AI to be a powerful tool that can efficiently scale up the hiring of quality candidates while reducing the inherent bias of human raters. According to IBM, 42% of businesses use AI globally to improve hiring and HR. That said, it is crucial for recruiting professionals to confirm that the technology they use for interviews and assessments adheres to ethical AI practices. Although there are various ways to incorporate AI into interviewing technology, only careful AI use may improve prediction validity and lessen prejudice.
HR professionals admit that they are not always sure if their hiring technology genuinely uses AI. However, businesses increasingly use automated solutions to evaluate candidates for established competencies and success predictors. More than half of respondents to the 2022 Aptitude Research Talent Acquisition Technology poll by Modern Hire expressed some level of uncertainty about the place of AI in their TA tech stack. That will eventually change. AI has a significant role in the ideal hiring process, but HR professionals must be ready to manage it to avoid any adverse effects carefully. They should also rely on vendors that understand the difference.
Despite the uncertainty in the job market, AI-based hiring tools continue to proliferate, and regulatory organizations are attempting to examine their appropriate usage.
“A key trend we identified in Modern Hire’s 2023 Trends Report is the increased adoption of AI in hiring due to its ability to effectively accelerate quality hiring at scale while minimizing the bias inherent with human evaluations,” said Borchert. She further said, “But not all AI is created equal. AI-powered automation and scoring have been scrutinized by city and state agencies and regulators worldwide for their potential to introduce different types of discrimination into the hiring process. As we highlight in the report, we expect to see more progress around this critical topic this year, with more laws encouraging transparency, fairness, and the protection of individual privacy to help address the confusion, misuse, and uncertainty in the marketplace.”
Chaotic labor conditions will likely continue this year, with several industries and functions rushing for candidates while others lay off talent to hit reset or survive. As businesses strive to understand and optimize their hiring technology, quality of hire, quality of practice, and quality of technology will be the watchwords in 2023.
What do you think are the top priorities for recruiting teams this year to stay ahead of the competition? Share with us on Facebook, Twitter, and LinkedIn.
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