Ethical AI in hiring makes good business sense
By quickly and efficiently analyzing large volumes of data, AI significantly reduces the time spent recruiting great potential candidates.
Since the pandemic, more companies have been incorporating automated artificial intelligence and machine learning-based platforms to assist with the screening and hiring of employees. According to a recent study from The Sage Group, 24% of businesses have started using AI for acquiring talent, with 56% of managers planning to adopt these technologies over the next year. AI can augment the recruiting process by automating time-consuming recruiting and hiring tasks to more accurately identify the right candidates for a position, ensuring diverse and fair selections and reducing bias in the workplace—a common goal businesses are looking to achieve.
Hiring teams face a great deal of pressure these days to hire for business growth while simultaneously keeping up with rising turnover rates, which can have a costly impact on the business. A broad estimate shows the average cost per hire is just over $4,000 per employee and the cost of turnover is even higher at approximately one-fifth of an employee’s annual salary). With the ability to efficiently analyze large volumes of data instantaneously, AI significantly reduces the time spent finding and recruiting great potential candidates. Intelligent hiring platforms integrate AI, automation and predictive analytics with pre-hire assessments and a range of interviewing tools to identify qualified candidates with more precision and increase hiring efficiency and quality of hire. Using AI in candidate assessments can help identify those who are likely to be a turnover risk.
Related: Using artificial intelligence for the employee benefits journey
How does this work? AI is fueled by data, and the more information an AI-based platform has, the better it will be at delivering results based on that data. Due to its machine learning capabilities, AI looks for patterns in data, and makes assumptions based on its findings. Therefore, in recruiting and hiring, AI can be trained to look for a job candidate’s skills and competencies to determine that person’s potential for a particular role. It can find statistical correlations between the applicant’s characteristics and the various skills required of the open position to determine the applicant’s success rate, as opposed to focusing on past experience or “culture fit” (i.e., similar characteristics, qualities and interests)—traditional methods that may lead to bias.
Interview advancements through science and technology
As in many industries, AI is not meant to replace the human aspect of hiring and talent acquisition, but it has the ability to improve many aspects of the process. This is especially the case when it comes to conducting and assessing interviews. Interviewing in itself is often a long and drawn-out process with many different steps. Using AI to suggest job specific interview questions to recruiters, for instance, increases objectivity and fairness as well as consistency and speed. Having structured interview questions that have been proven and tested by science improves the experience for both hiring teams and candidates.
Whether an interview is conducted on-demand, via text or phone, on video, or in person, asking questions consistent with and focused on factors directly related to job success is more efficient for hiring teams—and more ethical—since candidates are assessed specifically based on their responses related to the position. AI is also helpful in quantifying the data; interview responses can be automatically and objectively scored against job-relevant competencies – again, ensuring fair selections and mitigating bias.
Virtual hiring tools and AI-driven interviews can make the entire hiring process more meaningful for candidates too through more frequent and timely communication on behalf of the hiring organization, and more opportunities for candidates to express themselves in their own words directly related to the role. No one likes long, burdensome hiring processes. AI can increasingly help to shorten the experience while simultaneously ensuring the results are even more predictive of new hire success.
AI in question
For all the benefits of AI in hiring, however, the technology is also vulnerable to bias. If AI-based tools are not designed or implemented properly, they can end up magnifying bias. To prevent this, developers must be thoughtful about the data they use to build algorithms. Even then, the results of algorithmic tools must be monitored regularly to ensure they do not cause unanticipated outcomes.
For the power of AI technology to be fully realized, it must be carefully harnessed and intentionally applied. That means only objective information should be built into algorithms so hiring teams can focus only on characteristics relevant to job success. When this is done, recruiters and hiring teams can create an inclusive hiring process and improve diversity. Having visibility into how data is collected and used, and monitoring the models for any new deviations and making adjustments as needed, is key to this technology’s long-term success.
Because of the potential bias in AI, we’re seeing new regulations arise. New York just passed legislation that aims to limit the discriminatory use of AI technology in the recruiting and hiring process. The White House Office of Science and Technology Policy is exploring a bill of rights containing principles to guard against the dangers of AI, while globally, the United Nations Educational, Scientific and Cultural Organization (UNESCO) has created recommendations on the ethics of AI. This is good news for the AI hiring industry. Considering the significant benefits that AI can provide recruiting and hiring teams, having legal requirements to ensure ethical procedures for AI development and regular testing and monitoring for biases is worthwhile.
When done right, AI can lead to ethical hiring and a more diverse workforce. It can promote fair screening, interviewing and assessments, and can highlight when unconscious human biases exist, helping employers actively address it. It can also ensure a business identifies the best-fit talent, which puts the right people in the right jobs. This increases job satisfaction and decreases churn. Machines can’t explain their decision-making—it’s the humans behind the technology who need to ensure AI in hiring can be trusted.
Eric Sydell is executive vice president of innovation at Modern Hire.
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