This guide serves as a convenient overview, providing an executive summary and definition of what recruiting automation is as well as tips and resources to get you started.
Re·cruit·ing Au·to·ma·tion | rəˈkro͞ot/iNG/ ˌôdəˈmāSH(ə)n/ | noun
Recruiting automation is a category of technology that allows companies to automate recruiting tasks and workflows so they can increase recruiter productivity, accelerate time-to-fill, reduce cost-per-hire and improve the overall talent profile of their organization. Recruiting automation is a subset of Human Capital Management (HCM), a category of enterprise software-as-a-service (SaaS) used by companies to manage all aspects of their workforce.
Recruiting automation enables talent acquisition teams to automate processes that were previously performed manually. These technologies leverage artificial intelligence (AI), machine learning and predictive analytics and can be found at all stages of the hiring process (pre-applicant, during the application process and post-hiring decision).
Recruiting automation technologies are used by companies looking to increase their competitive advantage in hiring. These companies recognize that the “status quo” way of hiring simply doesn’t work as well as it used to in an of age of hyper-competition for top talent. These companies are looking to achieve better results, in a shorter amount of time and often with fewer resources relative to the goals they are trying to achieve.
Examples of recruiting automation technologies can be found throughout the recruiting funnel, from initial candidate sourcing to the final hiring decision. Some of the categories within recruiting automation are as follows:
Companies like Entelo, HiringSolved, Hirtual and others automate the process of identifying and engaging with passive candidates. These companies leverage cutting-edge technology to aggregate and analyze data about candidates’ skills and experience then match them to job opportunities. These solutions also automate candidate outreach and follow-up to increase engagement.
Companies like Mya, Olivia (Paradox), AllyO and others leverage automated chatbot technologies to automate candidate screening, applicant status updates, and other aspects of the candidate experience, helping companies to provide a streamlined, consistent and scalable interface to individuals considering employment opportunities.
Companies like Clara Labs, GoodTime.io, Calendly, and X.ai are automating the scheduling process. These companies offer the promise that one of the most tedious parts of the hiring workflow, scheduling candidates for interviews, can be largely automated via their technology.
An area of tremendous innovation is around evaluation of candidates for employment fit. Companies like HackerRank and TripleByte administer coding tests, helping companies to identify top developers. Companies like Koru and Pymetrics help companies test for non-technical attributes that lead to better hires. HireVue, Convey.IQ and others are allowing for automation through video interviewing. And Checkr and Intelligo are leading vendors in automating background checks.
Companies like Smashfly, Avature, Beamery, PhenomPeople, Yello and others help companies maintain relationships with candidates on an ongoing basis (vs. simply when applicants are in an active interview process).
Once a candidate becomes an applicant for a specific job, applicant tracking systems are used to manage the interview process. Not all ATS software leverages intelligent technology, but the more modern vendors heavily leverage artificial intelligence and machine learning to automate the process and improve both the candidate and recruiter experience.
A newer breed of companies offer the possibility that AI and machine learning can help companies better understand who has applied for their jobs and help them to uncover good fit candidates who might be already present in their ATS or CRM. Some of the companies doing interesting work in this space include RestlessBandit, HiredScore and Volk Science.
Historically low unemployment and an increasing skills gap has led to a war for talent at many of the world’s leading companies. The intensification of the talent wars has led many companies to invest in technology that can help them achieve engage with qualified talent faster.
The sheer amount of information about candidates, from online profiles to inbound resumes, is exceeding the ability of recruiting teams to process. Most recruiters simply don’t have enough time to adequately source, assess and screen candidates. Recruiting automation systems help companies analyze candidate data quickly to help them make better decisions, fast.”
Recruiting automation is not a new idea. People have been talking about how recruiting will be automated for many years. However, until recently the technology did not exist at scale to move the needle on hiring efficiency. Recent advances in artificial intelligence and machine learning and rise of open source software have spurred innovation that makes the promise of more efficient and productive recruiting teams a reality.
Recruiting automation is commonly known for the time savings and efficiency gains it brings to modern recruiting departments. However, recruiting automation can bring numerous other benefits. Chief among those is providing talent leaders with much-needed insight into which recruiting programs are working and which aren’t. In addition, recruiting automation and the accompanying analytics these systems can offer provide talent leaders with the metrics they need to speak confidently to the C-suite about the recruiting team’s impact on the growth of the business.
Recruiting automation technologies excel at eliminating inefficiencies from talent operations. By instituting recruiting automation capabilities, companies can expect to achieve an increase in recruiting staff productivity between 10 and 50 percent1. The biggest boost, of course, will come to companies transitioning from labor-intense or manual recruiting systems or processes.
The average time it takes to fill a given position in the United States is 42 days, according to SHRM’s 2017 Human Capital Benchmarking Report2. Companies who enable recruiting automation reduce time to hire by between 7 and 15 percent, or 4.5 days per role on average. When multiplied by the cost per day of an unfilled position – $500 average3 – and the number of reqs per recruiter per year – 40 average4 – the savings in vacancy costs reaches $90,000 per recruiter per year.
The recruiting automation process helps ensure that all the best-fit candidates were identified and engaged in the recruiting process, resulting in better quality hires and a higher performing organization.
2Society for Human Resource Management’s (SHRM’s) 2017 Human Capital Benchmarking Report
3Calculating the Cost of Vacant Tech Positions, DICE, 2017
4Talent Acquisition: Recruitment and Selection, Society for Human Resource Management, 2016
Recruiting automation means we won’t need recruiters anymore. This is perhaps the most common misconception about recruiting automation. Just as Sales automation didn’t eliminate the need for salespeople and marketing automation didn’t eliminate the need for marketers, recruiting automation won’t eliminate the need for recruiters. If anything, higher-skilled workers like recruiters will benefit from automation as it will make them more productive and productivity gains lead to higher compensation and more empowerment within the organization.Read more
Recruiting automation systems will re-enforce bias in the hiring process. Unfortunately, traditional manual recruiting processes can be fraught with bias (as this University of Chicago study attests). Recruiting automation can help companies to reduce and/or eliminate bias in their hiring processes by alerting them to situations where unconscious bias may be involved. In addition, recruiting automation can help to minimize bias in candidate sourcing systems (e.g., basing a judgment about a candidate on something like their photo on LinkedIn) through anonymization and other techniques that shield a recruiter from non-relevant information.
Recruiting automation systems will be poorly received by recruiters. While the fear of “the robots are coming for our jobs!” is understandable, the reality is that most of the things that will be automated in recruiting are the low-value, tedious and manual tasks that most recruiters don’t enjoy doing. Very few people got into recruiting to manually update spreadsheets, craft intricate Boolean strings to find candidates or go endlessly back and forth with candidates trying to nail down perfect interview times.
When you automate low-level and tedious work, recruiters can spend more time on high-value and more enjoyable work. For many recruiters this means spending more time actually interacting with candidates, focusing on the candidate experience and building their employer brand.
If your team is having trouble hitting goals or scaling the recruiting processes you’ve put in place, it’s time to focus your efforts on developing a recruiting automation strategy.
Below are some good questions to ask yourself when deciding if recruiting automation is the right move for your organization.
At Entelo we’re committed to helping to support this emerging category through educational resources and online community. In addition, we host events on the topic of recruiting automation including the upcoming Recruiting Automation Summit. To talk to an Entelo team member about how our recruiting automation technology can help your team recruit better, contact us here.