Issue #8: Don't rely on AI for recruiting
HR software is supposed to find the best candidates, but the technology is not mature enough yet
Hello there!
Do you remember your last job interview? Maybe you ironed your shirt in the morning to look neat, or you worked on the right light angle to make your face look flattering in the camera. The goal of these measures is always: Impress the people on the other side of the conversation. Recruiting has never been only about skills. It’s about cultural fit and personality.
How does the dynamic change when technology does a good deal of the recruiting? HR software is not new and is supposed to make recruiting more efficient. Your applications have likely run through software filtering all the right keywords and pre-selecting you for the human recruiter. But now, AI is supposed to do interviews and examine your skills. In this issue, you’ll see that there are downsides to these new technologies — mostly because they are not reliable enough yet, but recruiters without tech knowledge might rely on them too much.
Enjoy the stories and share your thoughts!
Best,
Alice
Headlines you shouldn’t miss
THE VERGE Microsoft is giving employees a $1,500 pandemic bonus: Microsoft is offering a one-time pandemic bonus of $1,500 to its 175,500 non-executive employees “in recognition of the unique and challenging fiscal year that Microsoft just completed.” The sum could add up to $200 million — less than two days of Microsoft’s profit.
TECHCRUNCH Dropbox is reimagining the workplace with Dropbox Studios: Dropbox moves away from cubicles and traditional office settings. Instead, “Dropbox Studios” are emerging: Without permanent desks, the concept focuses on collaborative spaces like coffee tables and comfortable sofa corners to interact.
IRISH EXAMINER Artificial intelligence does not represent a threat to jobs, Taoiseach says: Ireland launched its first National Artificial Intelligence Strategy on Thursday. The government wants to help to develop the technology and is positive about the future of work. Prime Minister Micheál Martin explained that AI would not kill jobs but change occupations and increase productivity.
VOX Will a robot take your job? It may just make your job worse: Automation hasn’t been as disruptive as people feared. According to scientists, too often trivial tasks are being automated. This, however, may not lead to job losses, but a changing nature of jobs. Middle class jobs in particular have been squeezed due to automation.
WALL STREET JOUNRAL Buzz off, bees. Pollination robots are here: Another type of worker might get serious competition: Bees. With scientists working on robots to perform a crucial task of agriculture — pollination. This could upscale agricultural production.
Is the era of the CV over? This Dutch startup offers skill tests for the remote era
HR has undergone a drastic digital shift in recent years. AI-based Applicant Tracking Systems (ATS) have helped recruiters to (pre-)select the best candidates. However, critics claim that ATS brought more bad than good. These digital systems search for specific keywords in CVs and function best with a highly structured setup. Bullet points are your friends!
This approach sped up recruiting and saved HR teams hours of CV screening. But sometimes, the systems deemed candidates unfit if they didn’t fit the list of necessary keywords or had non-linear professional paths.
The Dutch startup TestGorilla developed a new way of recruiting. Instead of focussing on CVs, recruiters can test candidates with specific skill tests.
In the era of remote and hybrid work, the outcome is what counts. TestGorilla’s co-founder Wouter Durville told TechCrunch:
“Instead of just looking at a CV and looking at the big brands mentioned or the picture version of the person or how connected you are to a person, we are saying, ‘hey, use these tests and test for different things that predict job success like cognitive ability or personality to fit with your culture.’”
The startup promises to eradicate biases with its skill-based recruiting approach. However, it might be difficult to test soft skills. Extracurricular activities people add to their CVs typically serve as proof for certain skills. Sports clubs indicate a team player mentality, and social volunteering indicates empathy.
TestGorilla has already won several big players like PepsiCo and Sony as their clients.
What do you think about this idea?
AI recruiting software might rate your English skills as proficient — even if you speak German
For their podcast ‘In Machines We Trust,’ Sheridan Wall and Hilke Schellmann tested the newest AI interview tools for recruiting and had striking findings.
With the economy recovering, companies are trying to speed up their recruiting. Instead of interviewing candidates in person, AI software does the job. It records and rates a candidate’s responses and ranks them based on these scores.
Wall and Schellmann tested Curious Thing and MyInterview and received striking results.
Schellmann went through a fake recruiting process the two set up. Replying in English, the software rated her English proficiency at 8.5 out of 9 points.
In another round, Schellmann didn’t reply in English but read a Wikipedia page about psychometrics — in German!
The program still gave her 6 out of 9 points!
Later, Wall and Schellmann read the transcript. The AI interpreted the German as English words — but the sentences didn’t make any sense. The software decided that Schellmann was a 73 percent (!) match for the position, which put her ahead of many other competitors.
Research has shown that AI systems can change their assessment of a candidate due to different video backgrounds. The developers of these interview systems say that AI should never do the full job but assist recruiting. But if the HR department doesn’t understand the caveats and challenges of these software solutions, they might rely on them too heavily.
Kudos to MIT Technology Review! I highly recommend reading the original report linked above!
Opinion: The automation dystopia isn’t about losing your job to an algorithm, but getting fired by one
The Guardian columnist Jessa Crispin sees a trend towards dehumanized HR. Amazon, for example, has decided to remove it’s middle management and HR positions and do an algorithm the hiring and firing of Amazon drivers. Algorithms now monitor workers and decide when their potential to be useful is coming to an end. Amazon drivers, get fired via app.
Crispin criticizes the systematic monitoring and dehumanizing approach towards low paid workers. In her opinion, Amazon is taking advantage of the financial insecurity many workers in this sector have.
For the low income sector, automation didn’t turn into a wave of job loss. Many basic jobs can’t be automated easily. But it put those people into the position of losing the dignity and proper treatment at the workplace.
Number of the week: 64 percent worry about job security due to AI
According to a study by the business company InRule among enterprise decision-makers for AI, 64 percent express concerns about job security.
Additionally, the AI experts express concerns about unintended ethical consequences (45 percent). Only 2 percent say they don’t have any concerns regarding the implementation of AI in their enterprises.
The study was conducted among 302 US-based AI decision-makers. Despite the concerns, the InRule report concludes:
“AI is a critical source of industry competitiveness. The fastest path to AI solutions is to formulate and execute a strategy to scale AI use cases based on reality unencumbered by myths.”
Tweet of the week: McKinsey’s vision of the future of work
The global consultancy McKinsey & Company summarized the findings of their future of work analysis. The experts predict massive shifts in labor demand with an increase in healthcare and STEM. The demand, however, will drop for office support and customer service.