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Artificial intelligenceLatest NewsRecruitment & retentionOnline recruitment

How AI can solve application overload

by Kevin Fitzgerald 14 May 2024
by Kevin Fitzgerald 14 May 2024 Shutterstock
Shutterstock

Hiring managers are spending significant time battling through job applications in their search for the ideal candidate. Kevin Fitzgerald explains how AI can speed up time to hire and predict vacancies before they occur.

Hiring should be an enriching experience – meeting new people, evaluating their skills, and possibly extending a promising job offer. Unfortunately, the simplicity of applying for jobs online has transformed this rewarding process into a dispiriting task.

Employment Hero research shows hiring leaders at SMEs are now spending 35 hours on recruitment activities a week. This means the majority of their working week is spent dealing with the admin that comes with finding talent; writing job descriptions, posting job ads, reviewing job applications – all of these things cost time and money.

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Great talent is priceless, so businesses have been hoodwinked into accepting this convoluted, painless experience because “it’ll all be worth it in the end”. This could be true if hiring managers could actually find the talent they want to hire.

Yet recent government data highlights persistently high vacancy rates – 916,000 jobs were unfilled as of March, particularly across retail and hospitality. Businesses aren’t hiring, because they can’t find the right talent.

The traditional recruitment model is broken. I’ll explain how we got into this problem –and the best way out.

Application overload

Have you posted a job ad on LinkedIn recently? No matter how niche the role, you are likely to get hundreds of applications, the vast majority of which are irrelevant. This is because LinkedIn doesn’t filter job applicants by potential fit. Sure, you can add some filtering criteria yourself, but your job is still available for millions of job seekers to see and potentially apply for.

Technology has made it incredibly easy to apply for jobs. This isn’t necessarily a bad thing: it’s better to have lots of applications than none. But it does mean that hiring managers are spending time sifting through applications, rather than interviewing strong candidates. This elongates the time to hire, and leads to burnout on both sides; hiring managers are fed up and job seekers are disheartened.

‘Dark vacancies’

Employment Hero speaks to SMEs every day and we know that the traditional recruitment process disproportionately impacts their ability to hire. They can’t afford to spend huge amounts on advertisement fees and they don’t have internal teams to deal with the influx of applicants.

This has given rise to what I term ‘dark vacancies’. These are positions that exist but are not advertised publicly. Our data shows that 80% of roles with SMEs are hidden because they opt to fill them internally or through old-school methods like shop front windows and word of mouth.

Good AI, properly adapted, can analyse exactly what you are looking for in a candidate and use this criteria to reduce hundreds of applications to a handful that deserve your attention.”

While this can be great for local communities, it prevents SMEs from discovering exceptional talent that is eager to join but unaware of these hidden opportunities. While there is always room for internal promotions and direct outreach, relying heavily on these methods can severely restrict your talent pool.

AI is the solution

Application overload is a problem created by technology. It must be defeated by technology too.

Good AI, properly adapted, can analyse exactly what you are looking for in a candidate and use this criteria to reduce hundreds of applications to a handful that deserve your attention. It can remove potential human biases in recruitment and automate a lot of the paperwork required in hiring someone – meaning you get to focus on the real human conversations that are still essential to finding the right people.

Employment Hero’s SmartMatch aims to do more than this. Since we offer full service HR software, we can see across the entire org chart of an organisation and identify the current roles available. Our AI can automatically match you to candidates with the right skills and experience for each role and predict vacancies before they open by analysing industry trends like peak seasons.

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Getting this right won’t just help stretched HR teams hire more efficiently. It will help the entire country increase its productivity as we move from an era of months-long vacancies to one where jobs are almost never unfilled. Achieving this will require a real understanding of where the human touch is still needed and where technology can help. It will be the biggest change HR has seen in decades – and the most exciting.

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Kevin Fitzgerald

Kevin Fitzgerald is UK MD of Employment Hero, an integrated cloud HR platform bringing together compliance, payroll and people management.

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