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The Rise of Automated Hiring Systems: A Blessing or Curse?

Written by Salary.com Staff

December 4, 2023

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The job market has evolved rapidly with technology, for better or worse. Applicant tracking systems are taking over the hiring process. This automated hiring system saves HR managers countless hours of tedious work reviewing applications that are irrelevant or underqualified. The algorithms can quickly filter, and rank applicants based on a predefined list of requirements and qualifications.

The rise of automated hiring systems has its dark side as well. Many argue that automated hiring systems are not as helpful as they seem. For others, these recruitment upgrades make the work of the HR department easier.

Automated hiring systems aim to simplify hiring. But can AI tools evaluate empathy, creativity, leadership, and soft skills in job candidates? The debate on automated hiring is intricate, with valid arguments on both sides.

Read on to know the pros and cons of automated hiring systems.

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What Is Applicant Tracking Systems?

Applicant Tracking Systems (ATS) are automated hiring systems that help companies manage their hiring process. ATS is for collecting, organizing, and evaluating job applications.

When big companies have job openings, they often get too many applications to read. That is why they use automated hiring systems to help them. ATS looks at resumes and cover letters to find specific words and information that match what the company is looking for in a new employee.

ATS is a system that helps recruiters find the best job applicants. It screens all the applications and keeps track of each candidate's progress. The automated hiring system stores all the information in one place so recruiters can see everything about each applicant. This helps them make better decisions about who to hire.

Applicant Tracking Systems aim to streamline hiring but can have drawbacks as well. Algorithms and keywords used to screen job applicants sometimes mistakenly exclude qualified candidates. Job seekers can find automated ATS frustrating when they do not receive feedback or communication during the hiring process. With human judgment, ATS can help companies find the best candidates for open positions.

In today's job market, companies get a lot of applications from people who want to work for them. ATS makes filtering applicants easier. For job seekers, it is important to understand how ATS works and utilize it to their advantage.

Automated hiring systems are tools. When used correctly, the hiring process becomes fair and focuses on finding the right candidates.

The Pros of Using Automated Hiring Systems

Automated hiring systems revolutionized the recruitment process. Some argue that using ATS (Applicant Tracking System) takes away the human element. Many companies see them as valuable and helpful tools with many benefits.

Cost and Time Savings

ATS helps companies save money and time. They automate tedious tasks such as screening resumes, scheduling interviews, and sending rejection emails. Using an ATS help HR staff save time on administrative work, allowing them to focus on more important tasks. It helps small companies with limited resources for the hiring process as well.

Standardized and Fair

ATS helps companies hire fairly by evaluating all candidates using the same criteria. Automated hiring systems focus on skills, experience, education, and other job-related factors. This gives everyone an equal chance to get hired.

Improved Candidate Experience

A good ATS provides a smooth application process from start to finish. Candidates can easily submit their information and check the status of their application. The system will automatically notify when it rejects them for a position. This transparency and efficiency lead to a better experience for applicants.

Access to Data and Analytics

Automated hiring systems collect and organize applicant information, keeping it in one place for easy access. They generate simple reports and metrics, such as time-to-hire and applicant sources, helping HR staff make informed decisions. Some systems predict the best candidates for a job, making the hiring process more efficient and effective.

Automated hiring systems are not yet perfect. Regardless, many companies already find them helpful in making recruitment more efficient, fair, and data-driven. When appropriately implemented with a human touch, they can be excellent tools.

The Cons of Relying on Automated Hiring Systems

Automated hiring systems are efficient but can have some significant downsides that companies must consider before adopting them.

Bias and unfairness

Automated hiring systems may keep old biases that favor some groups, which is not fair. These systems look at keywords and may not see the full picture, leading to unfair treatment. When the people making these programs are not diverse, this can be a problem.

Lack of transparency

Many job application systems are like secret boxes. It is tough to know when automated systems are fair because we do not understand how they make decisions. It is frustrating for applicants not to know why they were turned down for a job. To trust these systems more, it is crucial learn how they make hiring decisions.

Missing soft skills and job fit

Automated hiring systems only focus on scanning resumes for relevant keywords, degrees, and years of experience. They struggle to assess soft skills and cultural fit.

An algorithm cannot figure out how good someone is at communicating, thinking critically, or solving problems. It cannot tell when a person's personality and values match a company's culture.

Trusting only in automated tests may overlook awesome candidates.

Lack of Personal Touch

Automated systems can make the hiring process feel impersonal. This may stop potential candidates from applying or negatively impact on the company's reputation. Recruiters and hiring managers are best at judging which skills and qualities will make candidates successful and fit within the company culture. AI tools can help speed up the process, but human input is crucial for the final decision.

Combining human and AI judgment is the most effective hiring method.

Before committing to applicant tracking systems, companies must know its potential downsides. AI can help in recruiting but must not completely replace humans in hiring decisions. It is important to have rules and supervision in place to use ATS (Applicant Tracking System) properly. The most ethical and effective approach is using technology to augment human judgment rather than automate it.

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The Future of Automated Hiring Systems

The rise of automated hiring systems is rapid, but their future remains uncertain. Many companies use ATS (Applicant Tracking System) to simplify recruitment. But the hiring outcomes and the effects on candidates are not clear. With the continuous advancement in technology, it is expected for automated hiring systems to become more sophisticated.

Advanced AI and Machine Learning: Automated hiring systems will leverage AI and machine learning to better match candidates with job requirements, improving the quality of matches.

Video Interviews and Assessments: These systems will increasingly incorporate video interviews and skills assessments to provide a more comprehensive view of candidates' abilities.

Reducing Bias.: Addressing bias in automated hiring systems will be a top priority, with a continuous effort to design algorithms that reduce discrimination and ensure fairness.

Customization and Personalization: Applicant tracking systems will get better at customizing the hiring method to fit the exact requirements and desires of both businesses and job seekers.

Wider Integration: As more and more people realize the advantages of using automated hiring systems, different industries and sectors will start using them more often.

Candidate Experience Enhancement: Future systems will strive to enhance the overall experience for job seekers, making the application and interview process more user-friendly.

Continuous Improvement: As technology advances, automated hiring systems will continuously evolve and adapt to stay up to date with changing recruitment trends.

The automated hiring systems of the future promise to make the hiring process more efficient and effective. Maintaining a balance between AI and the human touch is crucial to this.

Tips for Optimizing Resume for Automated Hiring Systems

To optimize resume for an ATS (Applicant Tracking System) and increase chances of making it past the initial screening, there are a few tips to keep in mind:

Focus on relevant keywords.

ATS systems rely on keywords to match candidates to jobs. Carefully read the job listing and identify essential keywords, skills, and qualifications. I Incorporate these keywords prominently into the resume, especially in the resume summary statement and work experience descriptions.

Use related terms and synonyms as well. For example, when the job posting lists “project management” as a desired skill, you could include phrases such as “managed key projects,” “coordinated cross-functional teams,” and “delivered projects on time and within budget.”

Use a simple, clean font.

Fancy fonts, graphics, and tables can confuse an ATS. Stick to a simple, clean font such as Arial, Calibri, or Times New Roman in a conservative size of 10 to 12 points. Avoid using columns, text boxes, headers, and footers. Keep resume clean and straightforward.

Include all relevant information.

Be sure to include details on all relevant education, work experience, skills, and accomplishments. The ATS needs this information to assess qualifications correctly.

Do not leave out any schools attended or jobs held, even short-term ones. List all applicable skills, awards, publications, languages, and certifications.

Place important information strategically.

The ATS will scan a resume from top to bottom. Place the most important and relevant information, such as resume summary and work experience, towards the top of the first page. Bury less important details like hobbies and interests at the bottom.

Check for errors and consistency.

Before submitting a resume to an ATS, carefully proofread it for errors, typos, and inconsistent formatting. Double-check that all dates, names, titles, and contact information are correct. The ATS may flag any inconsistencies or errors in the resume, which can result in rejection.

Following these tips will optimize resume for an ATS, helping land an interview.  Ensure the ATS works well with the right approach. Staying focused on relevance, clarity, and consistency boosts chances of success.

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Conclusion

Automated hiring systems promise efficiency and reduced costs. They can be unfair and make things feel less personal as well. For jobseekers, make sure resume is good, practice for interviews, and network with others. When you are a company, use technology responsibly and keep a human touch in hiring.

AI may be the future, but human intelligence matters a lot. When used right, automated hiring systems and human judgment can work together and make things better. Technology must mean we lose the human connection.

Companies can get the best of both worlds when they use technology wisely.

Explore more HR tech to help with business, can check out more products from Salary.com.

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