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The impact of AI on staffing: A VP of technology’s perspective

Staffing Stream

The impact of AI on staffing: A VP of technology’s perspective

Billy Veraszto
| July 9, 2024
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I have logged nearly three decades in the staffing and recruitment industry as the head of technology. This highly people-intensive field has evolved dramatically with the advent of tech, automation and now artificial intelligence (AI), which is quickly becoming an integral part of our professional lives. Today’s recruiters are very digitally oriented and have assimilated AI to streamline and leverage tasks such as calendar management, list creation and meeting summaries, among other things. Even “old guard” recruiters acknowledge it can help the sourcing and placement processes with its agility.

The Human Touch in an AI-Driven World

It’s not just AI in staffing that is growing — AI is making waves in many of the sectors where we do business, including healthcare, finance, manufacturing, retail, marketing, education and more. However, while AI can automate many tasks, it cannot provide empathy, creativity and human connection. Workers with strong soft skills such as communication, problem solving, leadership and adaptability will continue to be highly valued in an AI-driven economy. AI absolutely has a place in many different areas, but the human touch is still very much alive and valuable — especially in staffing. 
 

Top Five Ways AI is Being Used in Staffing
  1. Candidate identification and talent sourcing for advanced search algorithms for candidate profiles across platforms such as job boards and social media. It can also help mitigate unconscious bias by focusing on data-driven criteria rather than subjective judgments.
  2. Résumé screening and shortlisting based on predefined criteria using machine learning algorithms to analyze for key words and job description match.
  3. Chatbots for preliminary assessments and candidate interactions as well as video interviews with AI analysis to help with potential culture fit based on verbal and nonverbal cues to evaluate candidate suitability.
  4. Marketing and communication to optimize messaging and job postings that resonate with candidates and improves engagement.
  5. Predictive analytics using historical data and identifying patterns to help determine which candidates are likely to stay and succeed.

Overall, AI is changing the way many staffing companies recruit. Many of our competitors utilize AI in their applicant tracking systems (ATS) to scan résumés for keywords, which saves time. However, AI unfortunately can also miss out on highly qualified candidates who may not be using the right keywords.

At our company, we take a different approach. We review every résumé and interview every candidate one on one. For employers using an ATS, it’s important to remember that AI is only as effective as the prompts it receives. Businesses can improve AI screening by adjusting the criteria and having humans review both accepted and rejected profiles to make sure that a “diamond in the rough” isn’t overlooked.

AI also helps match workers with suitable roles more quickly and efficiently. We use a smart-matching algorithm to align our clients’ needs with qualified candidates for temporary, consulting and direct hire roles. LinkedIn has been doing this for years, and big players like Hilton, Unilever and Amazon also use AI in their hiring processes.

Predictive Analytics in Staffing

AI provides predictive analytics, allowing companies to anticipate future labor needs in specific industries or locations. This helps businesses plan their staffing requirements more effectively. We always strive to give our clients as well as prospects additional value and information.

The Future of AI in Staffing

In the staffing sector, we need to approach AI with a balanced perspective. Staffing is fundamentally about people, and the relationships between them can’t be replaced by AI. Many candidates want to be in touch with their recruiter on a weekly basis to receive updates on any changes or additions to their job search as well as hearing how their job search is progressing.

While AI’s influence is growing, it won’t replace all jobs. AI lacks human understanding, warmth, empathy, years of experience and soft skills like communication, leadership, time management and intuition. It also can’t replicate the loyalty of both our candidates and our clients!

AI is a powerful tool, but the human touch remains essential. AI can improve the experience for both employers and staff, whether temporary or permanent. I’m excited to see how AI will shape the future of staffing.