AI Recruiting Software Is A Financial No-Brainer
As artificial intelligence continues to shape and impact their line of work, recruiters have ever so many questions about it.
- ‘Is it safe?’
- ‘Can I trust it?’
- ‘Will it cost me my job?’
All very valid concerns that you’re perfectly entitled to have when you care about what you do. The discussion is on, with strong opinions on both sides. But there are two things about AI recruiting software that aren’t up for debate.
One is that it makes recruiters’ jobs easier and more efficient. The other is that it cuts costs to the point that it pays for itself.
Recruiting software powered by AI is here to stay. That’s because thousands of companies worldwide have tasted the benefits. Once you see how a simple piece of programming code can increase your recruiting team’s efficiency by nearly 51%, it’s impossible to go back.
For recruiting directors and heads of talent, the financial implications make sense at every level. After all, money saved in one place can be re-invested in places where it can make a real difference.
From giving recruiters the time they need to build relationships to reducing the overall cost per hire, AI recruiting software makes sense on every level. Here’s how.
It makes recruiters happier and more efficient.
Quite simply, AI recruiting software makes recruiters better at their work – and happier when they’re doing it. That’s because it removes obstacles that induce fatigue, burnout and dissatisfaction.
Recruiters don’t want to spend hours each week on administrative tasks like scheduling interviews or negotiating over meeting rooms. Not when they could be using that time to up-skill, network or build relationships with prospective candidates.
Thankfully, AI-enabled recruiting software can do those things (and more) without batting an eyelid, leaving recruiters free to focus on career trajectory.
A solution like My Ally, which automates the entire recruiting coordination process, can save recruiters nearly 20% or more of their weekly time. That’s practically as good as doing an extra day’s work without having to sacrifice the weekend.
As well as the time and cost savings, companies benefit from having recruiters who are more satisfied with their jobs. That means better work-life balance, lower turnover rate and a stronger employer brand.
It limits the cost of interviewer time.
When companies hire, it’s not just recruiters’ time they need to keep tabs on. From relocation costs to signing bonuses, dozens of factors impact cost per hire.
But there’s one that consistently and significantly increases that final number, and it’s something companies just can’t avoid: interviewer time.
Many organizations stick to 3-5 rounds of interviews when hiring for technical, specialized or management roles. Some have been known to get close to double digits. This is unproductive for two reasons.
First, it costs interviewer time to hire good talent. While a necessary investment, the hours they spend on an interview are hours they aren’t innovating or doing what they do best. So after more than a few interviews, you’ll see diminishing returns.
Second, too many interviews really hits your employer reputation in a negative way. And if you think you can manage, consider that 69% of employees would not work for a company that has a bad image.
As well as the number of interviews, their format has a considerable effect on cost per hire. Just a single three-person panel interview (out of four total screenings) can increase expenditure by 50% or more, assuming all the interviewers are at similar pay grades.
All said and done, SHRM pegs the average cost per hire at $4,425. And companies that use AI recruiting software are likelier to feature in the lower end of that data range.
It helps you avoid bidding wars. (H2)
Consider this scenario.
While hiring for an executive-level engineering role, you receive an application from one of the best in the business: Sally McOutstanding.
An MIT graduate with nearly a decade of highly specialized work experience, Sally is just coming off a three-year managerial role with a Fortune 500 tech giant. She’s not just an innovator and an influencer, but someone who really cares about the people she works with.
Considering your scaling efforts and business strategy, Sally is a must-have talent. And at an annual salary of $200,000, she’s highly affordable.
Only because your recruitment process is manual (or semi-automated at best), you took too long to set up an interview. Now Sally has multiple offers, some as high as $300,000 per year.
If you had been able to set the interview up 5x faster, you might have been able to get in on the ground floor. Now you’re either going to have to pay above market rate – or worse, let her go, possibly to a direct competitor.
Once on the market, A-list talent – the kind who make a real difference – will probably be hired within 10 days. If you aren’t using AI recruiting software to speed things up, that’s not a race you can win.
It lowers your chances of hiring a bad fit.
The only thing more financially draining than hiring good talent well above market rate is hiring a bad fit.
Wrong hires happen for a number of reasons – poor decision-making, pressure, cost or time constraints, lack of quality candidates, nepotism and more. Even companies with world-class hiring practices will make a wrong hire once in a while.
Sometimes, it’s just bad luck.
You’ll still want to do everything possible to minimize your chances of hiring the wrong person for the job. AI-powered recruiting software can help you identify the right candidate using keyword analysis, psychographics and other metrics.
It can also help you move faster through the pipeline, reducing your chances of having to fish in a nearly empty pond.
The cost of hiring, training and terminating a candidate who turns out to be poor fit for your company just isn’t worth it. Not when for a fraction of that cost, you can implement a system that helps you improve profitability along with retention rate.
Unfortunately, companies that take too long to hire are usually left with few choice options, many of whom will turn out to be bad fits no matter where they work.
It’s quite simply a no-brainer.
The world might still be on the fence when it comes to AI, but this is not machine intelligence in the same vein as Skynet or Ultron.
We’re talking about AI recruiting software – tools that improve and automate recruiting and recruiting coordination using simple programming. Technology that’s designed to help companies secure the best, most innovative talent..
The world’s most agile organizations have already started using AI recruiting software. The next wave of adopters will join their ranks.
Will your company be one of them?