AI Tools Help Staffing Agencies Gain a Competitive Edge
Is your staffing agency ready to leverage the power of artificial intelligence? If you haven’t dipped a toe in the AI pool yet, you may want to reconsider — or risk being left behind. Despite its fairly recent arrival and accessibility, AI has already been embraced by staffing agencies and recruiting firms of every size. A recent report from Zippia shows that:
- 65% of recruiters currently use AI in the recruitment process
- 67% of recruiters say AI has improved the hiring process
- 95% of recruiters believe AI will help applicants with the application process
- 96% of senior HR professionals believe AI will significantly enhance talent acquisition and retention
Statistics like this make one thing abundantly clear: Like it, hate it, or still feel uncertain about it — AI is here to stay in the staffing and recruiting industry. And staffing agencies diving in to embrace AI within their operations are leading the pack, delivering faster, more accurate results in an increasingly complex and competitive global job economy.
Seven Ways to Include Artificial Intelligence in the Recruitment Process
Here are seven ways to leverage artificial intelligence and get your staffing agency ready for the future of work:
- Applicant Screening
Every recruiter understands the stress and anxiety of sifting through a flood of resumes for a single open job opportunity. AI tools and algorithms can help automate the initial screening of candidates. With a few simple clicks, these tools can quickly analyze resumes, assess listed skills and match applicants to specific jobs.
- Multiple Source Searches
AI technology allows staffing agencies to source and analyze potential candidates from multiple online channels, including digital platforms and databases, instantly extending the organization's reach.
- Proactive Talent Acquisition
Some of the best candidates are the candidates who don’t know they are looking for a job … yet. AI innovation can help staffing agencies identify passive candidates, engaging with them through targeted messaging and personalized recommendations. Proactive talent acquisition strategies enable staffing and recruiting companies to build their talent pipeline and develop solid relationships with candidates before a job even opens.
- Chatbots
One of the easiest ways to get on the AI bandwagon at your staffing agency is to implement a chatbot for both candidate and client engagement. An AI-powered chatbot can help handle inquiries, provide basic information, and even schedule interviews to keep the hiring process moving forward. Additionally, chatbots deliver prompt and personalized communication to improve engagement and enhance the user’s overall experience.
- Predictive Analytics
Predictive analytics tools can analyze historical staffing data to pinpoint trends in your company’s successful hires. Having this insight allows staffing and recruiting teams to recalibrate their candidate sourcing and client targeting efforts for data-driven decisions and better future outcomes.
- Automation
AI and robotic process automation (RPA) can quickly and effectively help automate simple, repetitive tasks throughout the hiring cycle. Tapping into the power of automation helps optimize efficiencies, cut costs, and free up precious time for recruiters to dedicate to higher-value activities … like recruiting.
- Bias Mitigation
Artificial intelligence almost completely eliminates human biases in the recruiting process. The AI algorithms focus solely on objective criteria, promoting fairness, diversity, and inclusivity in candidate selection.
What Artificial Intelligence Can’t Do for Your Staffing Company
Worried that we’re all about to be replaced by AI, robots, and algorithms? Don't be. While artificial intelligence can manage many tasks and functions we all navigate daily, humans are still very necessary, especially in the staffing and recruiting industry. Here are just a few of the many things that AI won't (or, more specifically, can't) do for your staffing agency.
- Build Relationships
There’s still no algorithm for connecting with people and developing genuine relationships built on trust. AI not only lacks human empathy, intuition, and emotional intelligence; it also lacks the ability to authentically replicate actual interpersonal connections.
- Cultural Fit Assessment
Speaking of subjective insight, determining cultural fit within an organization is both a complicated and subjective task. AI innovation can determine the candidates that look like the best fit on paper, but understanding things like company values, team dynamics, and workplace environments fall beyond its programming.
- Creative Problem Solving
AI and algorithms can generate ideas, solutions, and insights based solely on existing data. While the technology may direct you to a hiring solution that you have never thought of, it’s incapable of creating and innovating answers on its own.
- Navigating Unpredictability
AI algorithms rely on what’s known, making it less adaptable to unexpected responses and situations. Staffing agencies deal with people on both sides of the hire — and people are some of the most unpredictable species on the planet. Human recruiters are very necessary throughout the hiring process to think on their feet, adjust strategies, and make in-the-moment decisions.
- Soft Skill Analysis
Soft skills, such as communication, leadership, and teamwork capabilities, typically demand nuanced observation and interpretation. AI-powered technology may miss the subtleties of these harder-to-identify skills when sifting through more quantifiable data and metrics.
- Complex Decision Making
AI can process and analyze large volumes of information to help your staffing agency make data-driven decisions; however, it cannot make complex decisions for you. Context, subjective judgment, discernment of nuance, critical thinking, and subjective insight are all essential components to sound decision-making and all things AI may not fully grasp. As a result, essential staffing components, such as payroll, compliance, and other back office functions demand the attention of a skilled and experienced provider.
Contact Headcount Management Today
Headcount Management leverages back office and payroll expertise to help staffing agencies optimize its operations. Schedule an appointment today to learn more about how HCM can help your staffing company find the balance between automation and human touch that is critical for success.