AI hiring tools favour the wrong skills, employers warn

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Research from skills development organisation City & Guilds found that 74 percent of HR professionals and line managers consider employability skills more important than technical skills for success in their business. Yet 69 percent believe AI-powered recruitment tools give greater weight to technical abilities.

The research comes as artificial intelligence becomes more established in recruitment. Some 43 percent of employers surveyed already use AI to screen or filter applicants, although 70 percent report that the technology saves them time during hiring.

City & Guilds commissioned research consultancy Deep Blue Thinking to survey 908 HR professionals and line managers at UK businesses between 4 and 15 February. A separate survey of 1,014 people aged 18 to 24 was conducted between 6 and 17 February.

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Human capabilities becoming harder to find

Nearly two-thirds of employers, 64 percent, reported increasing difficulty finding candidates with employability skills. Problem solving was identified as the hardest capability to recruit.

The consequences are already being felt within organisations, according to respondents. Some 37 percent associated shortages with operational errors and delays, the same proportion reported increased staff turnover and low morale and 33 percent pointed to reduced efficiency. Poor customer service was cited by 29 percent.

There was also some disagreement within businesses about which capabilities matter most. Face-to-face communication was valued by 44 percent of HR professionals compared with 36 percent of line managers. Managers were more likely to prioritise valuing customers, at 37 percent compared with 33 percent among HR respondents, and digital communication, at 31 percent compared with 25 percent.

Andy Moss, interim chief executive of City & Guilds, argued that employers risk losing sight of the qualities they increasingly need when technology is used during candidate selection.

“AI powered recruitment risks screening out the human skills employers say they need most. Employability skills – communication, problem solving and time management – matter just as much as technical know-how, if not more.”

He added that apprenticeships and vocational training can help people develop these capabilities through practical experience alongside formal learning.

Young people concerned about AI and jobs

The separate survey of 18 to 24-year-olds found widespread concern about the effect of artificial intelligence on their employment prospects. Just over half, 51 percent, worried that AI would reduce opportunities for people their age, while 41 percent were already using the technology to improve their work and communication skills.

Confidence in some of the capabilities valued by employers was relatively low. Only 40 percent of young respondents described themselves as completely confident in face-to-face communication.

Apprentices reported greater confidence than other groups surveyed. Some 48 percent were completely confident communicating face to face and 74 percent had received dedicated employability skills training.

Laura-Jane Rawlings, chief executive of Youth Employment UK, a not-for-profit organisation supporting young people’s employment and skills, argued that employers should not interpret a lack of confidence among young people outside work and education as evidence that they lack ability.

“Too often, low confidence among young people who are not in education, employment or training is misunderstood as a lack of capability, when in reality it reflects a lack of opportunity, access and recognition.”

Employers urged to review AI recruitment

City & Guilds said businesses should examine how their recruitment technology assesses applicants rather than assuming automated screening identifies the qualities required for a role.

Its report, Counting the Cost: The UK’s Employability Skills Crisis, recommends investing in employability skills through onboarding, early careers programmes and mentoring. It also calls for employers to review the way AI-driven recruitment tools assess candidates.

The organisation is also calling on policymakers to give businesses greater flexibility to spend money on employability skills as well as technical training through programmes including the Growth and Skills Levy, Youth Guarantee and Jobs and Careers Service.

Education and training providers should introduce these capabilities earlier, it argues, particularly face-to-face communication, so that young people have greater confidence before entering employment.

Managing Editor | Website

William Furney is a Managing Editor at Black and White Trading Ltd based in Kingston upon Hull, UK. His writing focuses on contemporary employment issues including pension schemes, employee health, financial struggles affecting workers and broader workplace trends.

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