Faced with a flood of new AI-based technology solutions that claim to transform workflows and optimize hiring decisions, enterprise HR and talent acquisition leaders need to know how to appraise these bold assertions and understand how to evaluate the success (or failure) of their strategies and hiring decisions.
According to McKinsey, 83 percent of Fortune 500 executives do not trust the effectiveness of their own hiring decisions and processes. Much of the problem centers on the fact that, according to a 2019 Wall Street Journal piece, most companies do not “check to see if their hiring practices actually produce the kind of employees they want. What they check instead, obsessively, is costs per hire and time to hire. This is like checking to see the total cost of your advertising campaign without looking to see what effect it had on sales.”
The core problem of HR and hiring is not a lack of data. It is a lack of meaningful data. Cost per hire and time to fill are fine metrics, but what you really need to know is how well new hires are performing on the job and whether those hiring decisions are making the organization better. For this, you need quality of hire metrics, and those metrics must be linked back to data from the hiring process so you can measure and improve the predictive power of your hiring decisions.
With the widespread availability of data and advanced AI tools, understanding your hiring decisions in this way has never been more possible. But talent experts need to have the background knowledge to see what’s really possible and see past what’s just marketing hype. They also need to thoroughly understand the real-world implications of deploying these technologies—especially AI, which can do no small harm in unskilled hands—for their organizations and their candidates.
Find out how integrating valid, trusted science with leading-edge hiring technology can change the way your organization makes hiring decisions. The right solution can more reliably predict performance, ensure fairness and diversity, streamline workflows, and create a more satisfying and personal candidate experience.