Due diligence is an important part of the recruitment process and understand that poor hiring leads to direct and indirect losses.
A recent survey conducted by the author revealed that most employers are aware of the possibilities of using AI and the Blockchain in the hiring process to a varied extent. The awareness of the use of AI is higher (80%) than the awareness of the use of Blockchain (46%). There is abundance of academic writing over AI and the Blockchain’s use in the process but most of the literature is about the needs, importance and adoption of these technologies by the employer.
It is a pity that awareness of the use of these technologies amongst the candidates is low (Weighted average 2.22). It is also observed that there is not much opposition but the response towards using these technologies is mediocre. About 77% of the candidates from the survey would like to know more about the use of these technologies.
Risks and limitations from employers’ perspective
Those interviewed do not see any risk in using the AI tools for recruitment. The only risk according to them is breach of GDPR but that they think is covered by taking the consent from the candidates. Use of blockchain verified CVs and verified documents is seen as a positive approach by the employers and they would like to know more about it. This is because a lot of time and money is wasted in these verifications and this is a repetitive process. The use of new technologies such as social media screening makes the recruitment process more dynamic and authentic and the employer has more chances of hiring the right employee and this can help in brand enhancement.
All checks should be done should respect to the privacy of the candidates. There is no risk, provided proper procedures and policies are in place along with candidate’s permission to conduct the background checks which is a compulsory legal requirement. Failing to comply with this can result in substantial financial and reputational damage. The organisations will have to develop transparent systems to make decisions based on technology.
The use of AI according to most of them can be beneficial for the higher management positions and not so much for the lower positions. Use of blockchain has been highly appreciated but the usage is low, and this is because the awareness of using this technology for CV verification is low. The low usage can also be attributed to the fact that there is a difference of opinion between the employers about the value addition brought in by the new technologies. This uncertainty could be one of the reasons that the companies in general have not yet started the use of these technologies but there is a shift in thought process and there is a clear evidence of increasing use of these technologies in the recruitment process. 2022 has seen an acceleration of such usage as the organisations are now recruiting globally in search of better talent.