As organizations reassess their recruitment strategies to better align talent acquisition with business goals, several challenges arise. These challenges highlight the need to equip recruiters with improved data and tools to enhance their flexibility and effectiveness. Finding the right candidates in the current job market remains a significant difficulty for employers. Over 90% of business leaders acknowledge that achieving organizational goals is impossible without the right talent. They also recognized that attracting and retaining talent would be the most significant challenge in 2022.
1.Competition for Top Talent & skills shortage
The severe shortage of skilled workers has made the current labor market highly competitive. Further intensified by increasing skill mismatches. As industries evolve rapidly, recruiters face the difficult task of finding candidates who not only have the necessary skills but are also prepared to adapt and learn new ones. Also, talented candidates often face confusion when receiving multiple job offers, as it’s difficult to determine the best option before joining a company. Meanwhile, employers must be prepared for situations where an ideal candidate decides to leave for another job opportunity. Forty percent of employers stated that competition for talent from more well-known companies is one of their biggest recruitment challenges, while another 40% reported competition from companies offering higher pay or better benefits.
2. Recruiter Bias
To achieve effective Talent acquisition, it’s crucial that all candidates are given an equal opportunity to secure the job. However, inherent human biases can complicate the pursuit of purely objective recruitment, posing significant challenges in the hiring process. Such biases can detract from the candidate experience, restrict access to a diverse talent pool, and harm employer brand. And also, unintentional discriminatory practices can lead to legal issues.
Figure 1 :- Unconscious Biases in Recruitment (The Training Minute, 2024)
3. Poor Employer Branding
For today’s socially conscious professionals, working for a reputable employer that values and supports its employees is just as receiving a high salary. Leading companies are going to great lengths to attract the best talent, making intense competition one of the most significant recruitment challenges today.
4. Disconnected Interview Process & dragging the hiring time
To attract top candidates, Coordinating interviews schedules that align with both recruiters’ and candidates’ availabilities is tough, leading to mistakes, frequent rescheduling, and potentially causing candidates to lose interest. And providing feedback to every candidate becomes quite difficult. These can raise concerns for candidates and damage brand image. Lengthy screening stages can slow down hiring. Therefore, screening should be Adjusted based on available time, resources, and the overall effectiveness of the recruitment process.
5. Cost
Talent acquisition requires significant investment, from marketing your employer brand to outbound and inbound recruiting expenses. Many companies find it challenging to create a recruitment funnel that stays within budget while effectively attracting top talent. Research shows that most candidates seek more than just strong infrastructure and good leadership when considering a new job. According to a Microsoft study, 73% of employees say they need a compelling reason beyond the company’s expectations to accept a position. This alignment, however, is only feasible when the candidates’ salary expectations fall within the company’s cost per hire parameters.
How to overcome the challenges
Companies are increasingly recognizing that adopting more innovative approaches to attract, source, and recruit high-potential candidates can give them a significant competitive edge (Sahay,2014). In response to this challenge, many companies are concentrating on enhancing their employer brand and overall appeal. In practice, this involves maintaining a strong presence in the job market and promoting an attractive employer image to both current and potential employees (Chhabra and Sharma, 2014).
Figure 2- Employer branding and Talent Acquisition (hrmasia, 2016)
This video will explain how a good employer brand can bring best talents to the company.
To attract top talent, should streamline the hiring process by reducing unnecessary steps and moving quickly on promising candidates. Rather than seeking a perfect match for the role, focus on a clear plan that outlines essential skills, while allowing flexibility on non- critical qualifications. Creating a plan that outlines essential skills while allowing flexibility foe non-essential qualifications. Assessments should be based on the time and resources available, as well as the overall effectiveness of the recruitment process. The job market is evolving, and so are attitudes toward work and organizations overall. While candidates are open to upskilling, companies must also adapt to keep pace with the talent. By fostering the right approach and leveraging technical capabilities, businesses can stay ahead of competitors and draw top talent to their teams.
What are the challenges that you face in talent acquisition in your company?
References
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hrmasia, 2016. [Online]
Available at: https://youtu.be/bFKG6Dloarc?si=xWUWqSZ6b5FVRNty
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Sahay, P. (2014) Design thinking in talent acquisition: a practitioner’s perspective. Strategic HR Review 13:4, 170-180.
In this era, Artificial Intelligence (AI) has permeated most
of the fields, transforming how we operate and make decisions. As the demand for
top talent remains competitive, business leaders are increasingly turning to AI
to develop and enhance their recruitment strategies.
The Harvey Nash Human
Resources 2017 survey found that 15 percent of HR leaders from 40 countries
reported that artificial intelligence and automation are already influencing
their workplace strategies. Additionally, 40 percent anticipated that these
technologies would impact their plans within the next two to five years. Mercer’s
Global Talent Trends study from the same year indicated that organizations
embracing a “digital” or “mostly digital” approach are better equipped to adapt
to change and succeed in a rapidly evolving digital landscape. Moreover, a 2017
CareerBuilder study revealed that 60% of job seekers have abandoned an
application due to its length or complexity, while 80% stated they would not reapply
to companies that failed to communicate their application status. These
findings underscore the urgent need for organizations to leverage technology to
eliminate systemic delays and enhance the hiring experience. (Rajesh, et al., June 2018)
How Global companies are revolutionizing Talent Acquisition (TA) with AI?
Here are four global companies and how they are using AI in TA.
Vodafone
It’s a telecommunications company in London, uses AI-powered
video interviews to streamline its hiring process, saving both time and money, uses AI-powered video interviews to streamline its hiring process,
saving both time and money while evaluating far more candidates than human
recruiters can. Job applicants record
themselves responding to standardized questions, and AI technology analyzes
their interviews, assessing suitability across 15,000 different factors,
including body language, facial expressions, voice tone, and speech rhythm.(Rajesh, et al., June 2018)
Unilever
In 2017, Global FMCG leader Unilever implemented AI to
screen all entry-level hires. Applicants participate in neuroscience-based
games to assess their inherent traits. And their recorded interviews are
evaluated by AI. Unilever views the initiatives as a significant success and
plans to continue it indefinitely. The company reports that the approach has
greatly improved both diversity and cost efficiency. (Rajesh, et al., June 2018)
Amazon
Amazon has been creating an automated system to evaluate job
applications using AI to determine which candidates are most likely to success
in their roles. The software reviews applications, comparing them to data and
behavioral patterns of current employees. Once promising candidates are identified,
they are fast tracked to top-tier interviews for mid-to high level positions
within the company. (Espinoza, 2024)
LinkedIn
LinkedIn has been utilizing AI for job recruitment for
several years and is now developing a more advanced generative AI to further
integrate into the platform’s features. This new AI will assist both job
seekers and recruiters in finding better matches more often. (Espinoza,
2024)
Benefits of AI in Talent Acquisition
One of AI’s biggest benefits in TA is its ability to quickly process large volumes of data. AI can sift through thousands of job applications within seconds, pinpointing the top candidates instantly. AI-driven chatbots and virtual assistants are revolutionizing the candidate journey. These tools handle tasks like answering queries, scheduling interviews, and offering feedback, making the process more interactive and responsive. This will improve a company’s brand image and help attract high quality candidates. AI empowers recruiters to make informed decisions based on data throughout the hiring process. With predictive analytics, companies can pinpoint the most effective recruitment strategies, allowing them to optimize resource allocation. AI algorithms are highly effective at matching candidates to job positions. By analyzing resumes, skills, and job criteria, AI can identify the most suitable candidates, improving the chances of successful hires and helping to reduce employee turnover. AI software assesses the likelihood of a candidate’s success by comparing their previous work experience with the performance and behavior of current employees in similar positions. This contributes to improved talent retention by fostering strong, lasting relationships with employees who are committed to their roles and the organization.
Challenges of AI in Talent Acquisition
AI platforms have shown pre-programmed biases, including those related to race and gender, raising ethical concerns. This poses a particular risk in hiring processes, where biases embedded in AI can result in discriminatory hiring practices. As a result, some applicants may be unfairly rejected, without recruiters even realizing it. The use of AI brings up privacy issues, particularly with the growing collection and analysis of candidates’ personal data. While AI can improve the candidate experience, there is a risk of making the process too impersonal. Also, chatbots and AI tools offer only pre-programmed responses to candidate inquiries, and the data they analyze is done quantitatively rather than qualitatively. Some hiring decisions are made based on factors like personality and ambition rather than solely on experience. These qualities may fail to be recognized by AI tools.
AI vs Humans in Talent Acquisition Who Wins?
Figure 1 - AI vs Humans in Talent Acquisition Who Wins? (Source - Bython,2021)
Conclusion
According to (Paramita, 2020), Using AI to assist recruiters allows for a more efficient hiring process while still maintaining a limited personal touch through chatbots. The focus on building relationships can take place during the interview stage. While candidates are open to innovative recruitment methods, personal interaction remains a key part of the process, as recruitment is about working with people and fostering connections. Thus, despite advancements in technology, the relational aspect is just as important as achieving efficiency. And according to (Bilal & Várallyai, 2021), The growing reliance on AI to handle time-consuming talent acquisition tasks reinforces the idea of augmented intelligence in HR management. This shift in the role of IT could pose a competitive risk for organizations that fall behind, potentially impacting their ability to attract and retain qualified talent. As a result, HR leaders must stay updated on AI research, market adoption trends, and its potential impact on HR management. Artificial Intelligence systems are no longer just a concept of the future, they are a reality today and will become a core technology for business operations. In this context, it is essential for organizations to recognize and adopt AI for TA strategies in the organization.
References
Bilal, H. & Várallyai, L., 2021. Artificial Intelligence in Talent Acquisition, Do we Trust It?. Journal of Agricultural Informatics, 12(ISSN 2061-862X), pp. No. 1:41-51.
Bython., 2021. AI vs Humans in Talent Acquisition Who Wins?
Available at: https://youtu.be/82aJPW6T-7k?si=j50RaBTwbH89ho-j
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Paramita, D., 2020. Digitalization in Talent Acquisition: A Case Study of AI in Recruitment. p. p. 97.
Rajesh, S., Kandaswamy, U. & Rake, A., June 2018. The impact of Artificial Intelligence in Talent Acquisition Lifecycle of organizations: A global perspective. IJEDR - International Journal of Engineering Development and Research, Vol.6(Issue 2), pp. page no.709-717.
With businesses
facing heightened competition and rapidly changing environments, the challenge
of finding suitable candidates has grown significantly. As a result,
organizations are shifting their focus towards Talent Acquisition (TA), recognizing
it as a critical function that can drive success. (Tripathy,2014)
The transformation of HR into a strategic
asset for organizations underscores the need for a more innovative approach to Talent Acquisition. In this context, viewing talent as an asset to be
strategically acquired has led to a more proactive and sophisticated Talent Acquisition process. This evolution not only enhances the ability of businesses
to attract top talent but also ensures they remain competitive in a rapidly
evolving marketplace.
Figure 1 – Talent Acquisition for Business Growth (source - 9YardsTechnology, 2024)
In businesses that are people-centric and knowledge-intensive, the quality and efficiency of the workforce are fundamental. The responsibility of ensuring that organizations have access to the highest level of talent pool largely with the Talent Acquisition (TA) function within Human Resources.
According to records most of the employers complain about the difficulty in right talent acquisition. Fast growing talented candidates and various challenging employer requirements have become a great challenge to TA teams in organizations.Common challenges in Talent Acquisition are, Recruiter bias, Competition for top talents, skills shortage, poor employer branding, disconnected interview processes, and dragging the hiring time. (Oommen, 2024)
It is believed that poor hiring choices and difficulties in attracting and retaining the right talent contribute to at least one-third of business failures. Replacing a manager or professional typically costs between 1.5 to 3 times their annual salary. Dealing with an underperformer can lead to costs reaching six figures. Moreover, the ongoing failure to secure and retain top talent, which impacts productivity, morale, company culture, and reputation, has immeasurable consequences.
However, Talent Acquisition is regularly full with challenges. Recruiters must explore a demand pipeline that can be exceedingly variable and frequently unclear, making it difficult to meet future business requirements. This uncertainty places extra weight on the talent acquisition function to act quickly and strategically.
In conclusion, as today's businesses strive for excellence, the importance of a robust Talent Acquisition strategy cannot be overstated. By focusing on quality recruitment, businesses can ensure they have the skilled workforce necessary to meet the challenges of an ever-evolving market. To thrive in this environment, TA must attract top talent from a complex supply chain. This involves not only identifying and engaging with potential candidates but also understanding the intricacies of the talent market and the particular needs of the organization. By successfully sourcing and recruiting high-quality candidates, Talent Acquisition plays a critical role in driving the overall success of the business. Thoughtful organizations and leaders build strategies around acquiring talent to meet both current and future business needs. In summary, by prioritizing this function, businesses can secure the right talent that is essential for long-term success.
REFERENCES
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Overcome New Age Challenges and Opportunities for Human Resource Management. IOSR
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9YardsTechnology. (2024).Talent Acquisition for Business Growth, 2024, Available from :<https://youtu.be/yMwxi-z6Qc0?si=gzuolpzT7r2x1I8f>[10 October 2024].
