The HR industry continues to see billions of dollars of investment in HR technology. According to the 2020 PwC HR technology survey, $148 billion in spend on HR cloud solutions is required to address the needs for the future of work. Seventy-four percent of the companies surveyed plan to increase spending on HR tech to address these pressing talent needs.
Trends in talent acquisition technology
In the talent acquisition space, companies are now replacing dated systems and paper processes with recruiting technology to provide social media recruiting, online assessments, automatic workflows, and real time analytics. In fact, employers find automating HR processes so critical that 90% of Fortune 500 companies report utilisation of recruiting software, according to a Jobscan 2020 survey.
Employers find automating HR processes so critical that 90% of Fortune 500 companies report utilisation of recruiting software.
Talent acquisition software is generally part of a suite of Enterprise HCM systems such as Oracle HCM, Workday and SuccessFactors. As more companies move away from on-premise solutions, the above-mentioned providers offer a cloud-based solution, known as software as a service, that unifies a wide range of critical HR functionality into a single system and provides an employer with a single source of data.
The value of AI
Augmenting the HCM enterprise software solution, some employers are identifying a need to implement specialised technology solutions designed to streamline and even transform their key processes. This HR technology “ecosystem” approach has merit in that it can connect multiple solutions that are best in class for different steps in a recruitment value chain which ultimately provides an HR operating system that brings the processes and experiences together.
Organisations are seeing AI provide tremendous value to the recruiting process, as well as offering unparallel ability to rapidly sift through data to glean prospective candidates.
Trending across industry is the integration of artificial intelligence to replace menial and repetitive tasks. Organisations are seeing AI provide tremendous value to the recruiting process, as well as offering unparallel ability to rapidly sift through data to glean prospective candidates. Companies are using chatbots who can answer candidate questions, verify qualifications and keep applicants updated throughout the hiring process. Another application of AI includes the integration of targeted algorithms to help employers’ source diverse candidates to support their diversity and inclusion goals.
The benefits of technology adoption for TA
Technology has revolutionised talent acquisition and continues to be an instrumental factor in the ongoing evolution of the function. This transformation has far reaching implications for HR professionals, as well as current and prospective employees. Benefits range from an increased supply of candidates to a meaningful and positive candidate experience.
1. Increased Applicant Flow
Integration of technology has enabled greater levels of applicants in the recruiting process as well as support to manage those applicants. Recruitment through social media, as an example, is one of the fastest growing enhancements to the talent acquisition process. Not only is job advertisement easier but it allows for greater efficiencies as the employer can reach the right candidate at the right time. Ultimately, this enables a larger pool of applicants for any given job. Applicant tracking systems have become much more sophisticated allowing an employer to successfully manage that increased applicant pool.
Applicant tracking systems have become much more sophisticated allowing an employer to successfully manage that increased applicant pool.
2. Quality Hire
Emerging technologies now give more options for talent acquisition professionals to bolster their success at making higher quality decisions. For example, utilising sophisticated algorithms embedded within AI can augment and enhance human judgement as it relates to a candidate’s propensity for successful future performance. The use of big data can offer insight into the job market, sourcing strategies, candidate behaviour, as well as their unique skill sets. All the analytical data that is captured not only supports current hiring success but informs future hiring decisions through the application of predictive analytics.
3. Improved Candidate Experience
A 2017 CareerBuilder survey indicated that only 32% of candidates rated their experience as very good. Remarkably, in that same survey, 78% of candidates believe that the overall candidate experience is a true indicator of how an employer values its employees. The candidate experience is becoming a critical component to an organisation’s talent acquisition strategy and key metric to consider.
A 2017 CareerBuilder survey indicated that only 32% of candidates rated their experience as very good.
4. Creating real impact
The good news is that technology has improved the candidate experience in very real and impactful ways. First, consider the efficiency by which a candidate applies for a job. Use of mobile friendly and one click application processes are examples of technology that support an easier way to apply for job. Second, technology makes it easier to keep candidates up to date. More enhancements on recruiting technology offer a heightened focus on workflow and real time feedback options.
Use of mobile friendly and one click application processes are examples of technology that support an easier way to apply for job.
Today a candidate can have access 24/7 to an employer to ask questions or receive updates, making the entire process feel more equitable and transparent. Finally, candidate experience can translate into either a positive or negative impact on an employer’s brand. The notion being that a happy candidate behaves like a happy consumer, which has the potential to influence an organisation’s overall brand.
5. Optimisation of Employees and Process
Enabling a higher degree of intelligent automation and conversational AI allows talent acquisition professionals to focus on the value-added components of the work rather than being relegated to the transactional tasks. The transactional work can now be streamlined by engaging robots and offering other automated solutions to the mix.
6. Positive Impact to Business
The acquisition and retention of talent continues to be a top imperative for most C-suite executives. Given their focus, having more efficient and effective talent processes that are supported by technology supports those goals and leads to better experiences for prospective employees. Secondly, Through automation of recruiting processes, employers now have the data needed to make more informed, evidence-based decisions as it relates to talent. Ultimately, a better hire implies better performance resulting in more substantial impact to business results.