By Jason Vuddamalay, Director at The Search Firm

AI (Artificial Intelligence) has been in the news a lot recently. This is thanks largely to the splash made by the launch of ChatGPT, an artificial intelligence driven language processing tool that is poised to revolutionise the way we do things across multiple fields over the next few years.

Whilst the possible utility of ChatGPT is being worked out, you may be surprised to know AI-driven recruitment tools are already being widely used. More than likely, you’ve already been through a process which was mediated in part by AI. At The Search Firm we’ve got first-hand insight into AI recruitment, as our expertise has been used to help train algorithms used by predictive applications.

Why is AI used in recruitment?
Hiring organisations now commonly use AI-based recruitment tools to make the recruiting process more efficient and cost effective. A recent survey in the US says 99% of Fortune 500 companies are using AI in recruitment; here in Australia another survey suggests 1 in 3 companies are using it. The primary driver for the uptake of AI recruiting tools is that it speeds up the process, makes it more efficient and ultimately reduces the size of in-house recruitment teams, saving millions of dollars.

Whilst there were serious problems in the early adoption of AI recruitment tools (see the 2018 case where an Amazon AI was found to discriminate), developers have been refining their algorithms to reduce or eliminate bias. Despite detractors saying bias remains and there’s a concerning lack of transparency in how the algorithms work, what’s clear is that these tools are here to stay.

How is AI used in recruitment?
If you’ve ever applied for a job online, then your resume has likely been uploaded to an ATS, or Applicant Tracking System. Within an ATS, AI is often used to help prioritise resumes and will scan for key words and language, matching applications to jobs. Companies will teach the AI (the process of Machine Learning) how to make predictive assessments by feeding data on low, medium, and high performing employees already working in their organisations, enabling their ATS to prioritise certain applications.

AI Chat bots are often used and will act to sift applications based on simple criteria, such as part-time work requirements, or flexible work arrangements. You might be asked to respond in written form to interview questions and these may also be evaluated by AI recruitment tools.

The video interview is another sophisticated AI tool which can prioritise applicants based on language analysis, tone of voice, speed of speech and other criteria. It is now widely deployed to provide predictive analysis of potential hires, often before a human recruiter has seen a resume. Interestingly, one major AI-rec tech company (Hire Vue ) recently dropped its use of AI facial recognition and analysis capabilities due to significant concerns of bias – it’s a reminder that there are serious ethical questions to be considered using AI tech in recruitment.

For some roles, the gamification of the recruitment process has also enabled AI tech to test problem solving skills through simple exercises or “games”, further enabling organisations to make predictive assumptions about candidates’ suitability.

How can you optimise your AI interactions?
You must assume that an AI algorithm will interact with you or your application during a recruitment process. You may be able to tell when your permission is sought to use your data for analytics purposes, or when you are told the next stage will be run by AI. Sometimes an ATS or an online -app might have a watermark in the corner of the screen indicating which ATS is being used or what AI technology provider is assessing you.

Here are some tips and pointers that will help you navigate AI in recruitment:

Make sure your resume is optimised for AI, not just the human eye! Try to include the same words and phrases as used in the job ad in your resume to ensure the system picks you up as matching the skills and experience required in the role. There are free on-line apps that can help optimise your resume for AI, such as Jobscan .

AI tools find it easier to spot mistakes than to evaluate higher order responses to questions – so proof your documents and written responses you give to questions carefully to avoid typos and misspelling.

Many organisations now use AI video tools to augment recruitment, so it’s important to you thoroughly prepare for this too:

• Ensure you are in a well-lit and bight room, avoid being backlit by a bright light source such as a window.
• Maintain eye contact with the camera – some apps allow you to hide your selfie video image, use this feature so you aren’t distracted.
• The AI tool will evaluate your language – so don’t speak too quickly, be concise in your answers, use positive and up beat language.
•  Avoid using aggressive words and phrases and vernacular.
• Use an app like Skype to record yourself prior and critique your interview responses – practicing is essential.
• Some apps allow you to re-record if you are unhappy with your response, make use of this facility.

The future of AI in recruitment
AI recruitment tech saves companies time and money; therefore, this is a tool that is here to stay. Today it’s most used by large companies that receive hundreds, if not, thousands of applications – often for high volume and lower level roles. Whilst many of these organisations are also looking for better Diversity, Equity & Inclusion outcomes, it’s the AI recruitment tech companies’ algorithms that need close monitoring to ensure bias is eliminated. Regulation of this area is starting to emerge – see New York City’s upcoming legislation on eliminating bias in AI recruitment – and some tech companies are starting to self-regulate. Despite this, we should expect to see wider adoption of AI tools in recruitment in mid-tier and small organisations, as HR tech companies seek to grow their markets.

The lack of transparency about how AI recruitment algorithms work is certainly frustrating; however, there are steps you can take to be successful in your interactions with AI.

The five-day working week is often credited to Henry Ford, who in 1914 proposed that his car production
switch from a six-day working week to five. The creation of unions in the 20th century helped to
make a five-day week and two days’ rest the norm.

There has been much debate about a four-day working week, but the pandemic and technological advancements have begun to shift some employers’ mindsets to one that is more open and trusting of their workforces. Many workplaces have been experimenting with different types of flexible working arrangements for years now, but the pandemic has made the need for flexibility far more pressing.

Some companies are trialling a four-day work week.

When Microsoft trialled a four-day week with no loss of pay in their Japan office, the company claimed productivity went up by just under 40%. Microsoft Japan also found that electricity costs fell by 23%, and when workers took Fridays off, they printed almost 60% less. The four-day-working-week pilot that took place in Iceland between 2015 and 2019 was hailed an “overwhelming success”. 2,500 workers took part in the trial
with the results revealing that worker wellbeing increased in areas such as stress and burnout, health and
work-life balance.

In 2018, estate planners Perpetual  Guardian entered their 240 staff into a  four-day-work week trial, resulting in 78% of them saying they were able to better manage their work-life balance – an increase of 24 percentage points. In 2020, Unilever also stepped forward in New Zealand with plans for a four-day week. It placed the 81 employees based in the country into a year-long trial.

Spain launched a four-day-week trial in 2021, following calls from left-wing party Más País. The trial is set to run for three years.

“With the four-day work week (32 hours), we’re launching into the real debate of our times,” said Iñigo Errejón of Más País on Twitter.

But what about closer to home, in Australia?

The trend towards offering a compressed work week as a form of flexible working is on the rise, according to
one prominent remuneration consulting firm. Organisations offering compressed work weeks – full time hours over four days rather than five, for example – has risen by 29 per cent over the last four years. Today, more than one in four Australian organisations (27 per cent) are offering this benefit to employees.

The way we work has radically changed, and we are redefining our workplaces and working models accordingly. In addition, the war for talent has intensified due to continued border closures, and as a result Australian businesses are reimagining their benefits programs in their efforts to attract and retain employees.

Not a one size fits all approach, but there are benefits …

The four-day working week may not work for every organisation, and those that are heavily reliant on customer service tend to tread carefully. But there are other types of flexible working practices. Other forms of
flexibility may be more suitable for some organisations, at least in the short term. These include remote work,
working part-time (at reduced pay) or a mix between remote and office work.

Undoubtedly, we are moving into a future of more flexible working practices, a future that has been catalysed
by the pandemic. The four-day working week has the potential of reducing unemployment, raising productivity and improving life and work satisfaction. But organisations may need to reflect carefully on which forms of flexibility may release the greatest wellbeing and productivity benefits for them and their employees.

Source: World Economic Forum & Mercer, 2022.

The COVID-19 pandemic disrupted labor markets globally during 2020. The short-term consequences
were sudden and often severe: Millions of people were furloughed or lost jobs, and others rapidly adjusted
to working from home as offices closed. Many other workers were deemed essential and continued
to work in hospitals and grocery stores, on garbage trucks and in warehouses.

A recent McKinsey report outlined some key observations which will impact the world of work into the next
decade.

1. Remote work and virtual meetings are likely to continue. The report estimates that about 20 to 25 percent of the workforces in advanced economies could work from home between three and five days a week. This represents
   four to five times more remote work than before the pandemic and could prompt a large change in the geography of work, as individuals and companies shift out of large cities into suburbs and small cities. The finance, management,
   professional services & information sectors have the highest potential for remote work. Remote working would open up additional talent pools for business, which prior to Covid, may have made hiring decisions based on on proximity to the office.
2. Ecommerce has grown 2 to 5 times faster than before the pandemic. Roughly three-quarters of people using digital channels for the first time during the pandemic say they will continue using them when things return to “normal,” according to Consumer surveys conducted around the world. Other kinds of virtual transactions such as telemedicine, online banking, and streaming entertainment have also taken off. These virtual practices may decline somewhat as economies reopen but are likely to continue well above level seen before the pandemic.
3. COVID-19 may propel faster adoption of automation and AI. In a global survey of 800 senior executives
   in July 2020, two-thirds said they were stepping up investment in automation and AI either somewhat or
   significantly. Many companies deployed automation and AI in warehouses, grocery stores, call centers, and
   manufacturing plants to reduce workplace density and cope with surges in demand. The common feature of
   these automation use cases is their correlation with high scores on physical proximity, and research finds the
   work arenas with high levels of human interaction are likely to see the greatest acceleration in adoption of
   automation and AI.
   4. Mix of occupations may change, little job growth in low-wage occupations anticipated. It’s expected
   the largest negative impact of the pandemic to fall on workers in food service and customer sales and service
   roles, as well as less-skilled office support roles. Jobs in warehousing and transportation may increase as a
   result of the growth in e-commerce and the delivery economy, but those increases are unlikely to offset the
   disruption of many low-wage jobs. Demand for workers in the healthcare and STEM occupations may grow
   more than before the pandemic, reflecting increased attention to health as populations age and incomes rise
   as well as the growing need for people who can create, deploy, and maintain new technologies
   5. As many as 25% more workers may need to switch occupations than before the pandemic. Given
   the expected concentration of job growth in high-wage occupations and declines in low-wage occupations,
   the scale and nature of workforce transitions required in the years ahead will be challenging, according to
   research. The scale of workforce transitions set off by COVID-19’s influence on labor trends increases the
   urgency for businesses and policymakers to take steps to support additional training and education programs
   for workers. Companies and governments exhibited extraordinary flexibility and adaptability in responding to
   the pandemic with purpose and innovation that they might also harness to retool the workforce in ways that
   point to a brighter future of work.

Source: McKinsey & Co, www.mckinsey.com