Hear that sound? It’s hiring managers around the world collectively exhaling. A few very similar job applications could be considered a coincidence, and it’s reasonable to expect overlap between the skill sets of candidates who are a good fit for the same role.
But you know there’s a problem when you’re faced with dozens of identical applications, and we all know the culprit. Cue the “AI sigh”.
AI in the Job Application Arms Race
Two-thirds of job seekers are using AI tools to craft their applications. In many ways, it’s understandable. In the current icy cool labour market, job vacancies are few and far in between and competition is fierce. This means that candidates are having to apply for more jobs to get an offer, and they’re looking for ways to speed up the process. Enter: ChatGPT-generated CVs and cover letters.
It’s becoming a vicious cycle. Now that candidates can ‘quick apply’ for roles and craft cover letters in seconds there are even more applicants per vacancy. This is making it tougher for talent to stand out, and overwhelming teams with the tricky task of trying to identify top candidates. In response, employers are increasingly using the technology themselves in an attempt to accelerate screening processes and spot AI-assisted applications. But they are at risk of buying into a false economy.
Automatic AI detection tools are not failsafe, and not all AI is created equal. HRs must resist sacrificing efficacy at the altar of efficiency by opting for “black box” AI or tools trained on garden variety data, which are at risk of basing decisions on arbitrary information without showing the working behind them. The danger is that hiring teams are unable to correct inaccuracies and make ill-fit hires, amplifying issues for both candidates and HRs forced to re-recruit.
Beyond the CV: The Skills-Based Alternative
With job seekers and HR teams alike left feeling disillusioned by the whole process, it’s clear something has to change. But the answer isn’t using AI to paper over cracked systems. It’s time to rethink the way we hire.
CVs have been around for centuries. Yet previous experience says little about a candidate’s ability to do a job, and even less about aptitude for roles that didn’t exist in the past. It’s beyond comprehension that we’re still using such an outdated and inaccurate method to assess job candidates. Particularly since many employers have such a small margin for error. Whilst new roles are emerging in some sectors, there’s still just a handful of vacancies on offer in others. This means that, now more than ever, transferable skills are the real differentiator.
Applied’s research shows that anonymous skills tests predict candidate performance 3x more accurately than CVs. Hires who have the skills needed to succeed in roles are also more likely to stay. Our approach drives a 93% retention rate as a result. So whilst one-click applications and robo CV screeners might seem like a quick fix, implementing skills-based hiring processes pays employers dividends in the long run.
Embracing Ethical AI in Hiring
Identifying the skills needed for specific roles is the first step. From there, scenario-based questions, numerical aptitude and cognitive ability tests can be used to identify relevant transferable skills. Since AI is set to help workers automate around 30% of tasks by 2030, AI literacy may well be amongst the skills hiring managers want to test for.
In this case, HR teams will need to embrace a more flexible stance on AI use, and might even ask candidates to demonstrate their ability to use the technology effectively through practical tests.
Ethical AI can also be used by HR teams in some cases to make skills-based hiring even more efficient and effective. For example, AI trained on debiased data can be used to anonymise applications for more objective screening systems.
We can’t close Pandora’s box. But its treasures can be ours for the taking. And employers ready to ditch outdated approaches will be first in line to benefit from vast talent pools rich with in-demand skills, and build teams fit for an evolved job market.
Khyati Sundaram is the CEO of Applied: a behavioural science-backed tool which helps companies hire fairly and without bias. Before joining Applied, Khyati co-founded her own company and also worked in investment banking with JP Morgan and RBS. She also holds an MSc in Economics from the London School of Economics, as well as an MBA from the London School of Business.
