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Recent Trends in Recruitment and Selection

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ORGANIZATIONAL MANAGEMENT ISBN 978-93-5868-623-4

Chapter 6
Recent Trends in Recruitment and Selection
(With Special Reference to Artificial Intelligence)
=======================================================
Dr. Kishor P. Bholane
Head, Department of Commerce
Vinayakrao Patil Mahavidyalaya, Vaijapur
Email ID: [email protected], Mob. No.: 8275343305
=======================================================
Abstract:
Recruitment is a resource and time-intensive process. The process of recruitment and
selection tasks can now be simplified with the help of modern technologies. This research paper
is trying to study the recent trends in recruitment and selection, benefits and challenges of
integrating AI in recruitment and selection and to overview the status of AI adoption in
recruitment and selection.
Keywords: Artificial Intelligence, Recruitment, Selection, Chatbots, Cyber Security etc.
==========================================================================

Introduction:
The employment landscape has changed drastically post COVID 19 across the world.
Business world is continuously facing the challenges of economic recession and then pandemic
making the labour market even more tight. Retention of key talent and high turnover costs are
two major challenges before the business organizations. Now is the time to shift gears and
upgrade hiring strategy.1 Latest recruitment and selection trends are massively gaining
popularity in India. Companies across India have seen 68% growth with remote working. The
recruitment statistics online state that more than 95% of the companies plan to recruit shortly
by adopting modern recruitment trends in India. Among these numbers, 10% of small-scale
businesses are focused on hiring freelancers.2 Revisiting the traditional approaches and finding
loopholes there helps them work more innovatively than ever.

Review of Literature:
The researcher has made an effort to summarize various aspects of the study by
reviewing existing literature. Hemlatha A., Barani Kumari, Nishad Nawaz & Vijaykumar
Gajenderan (2021) studied the impact of AI on recruitment and selection of Information
Technology Companies and concluded that AI technologies in the recruitment process can
enhance the recruitment process's quality with a high accuracy level and reduced human bias. 3

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Mehrotra & Khanna (2022) studied recruitment through AI in selected Indian companies and
concluded that he use of AI has significantly helped to reduce the time taken to finish the entire
process of recruitment and hiring of a candidate.4 Bholane Kishor P. (2023) studied the
adoption, applications and challenges of artificial intelligence in Indian banking sector and
concluded that AI will enable banks to leverage human and machine capabilities optimally to
drive operational and cost efficiencies, and deliver personalized services. 5

Objectives of the Study:

Objectives of the present study are:
1) To study the recent trends in recruitment and selection.
2) To overview the application of AI in recruitment and selection.
3) To study the benefits and challenges of integrating AI in recruitment and selection.
4) To overview the status of AI adoption in recruitment and selection.

Materials and Methods:

This study is descriptive in nature and is based on secondary data which is collected
from various reports, websites, journals etc. This study is trying to add to the existing literature
on latest trends in recruitment and selection and AI in recruitment and selection.

Recent Trends in Recruitment and Selection:

Invention of modern technologies, its faster adoption and corona-like pandemics
brought drastic changes in the recruitment and selection policies of companies. Following are
the recent and latest trends in recruitment and selection:6, 7
1) Virtual Recruitment:
One of India’s most time-saving and profitable recruitment trends is hiring employees
virtually. Virtual recruitment makes the entire hiring process quick and straightforward. They
can choose the most compelling profiles from a large pool of candidates who can handle
multiple tasks simultaneously. More than 65% of the applicants seek hybrid work opportunities
to make reasonable monthly incomes. Hiring managers are working smartly with the new
hiring trend of remotely taking interviews and onboarding employees.
2) Work From Home Opportunity:
Remote working is the future as it is the most significant cost-saving alternative for
companies. According to legit online sources, new hiring trends in 2023 show that almost 98%

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of employees wish to get remote work options even when the covid-19 situation improves.
Therefore, managers need to come forward with innovative strategies and conditions.
3) Diversity, Equity and Inclusion:
Diversity and inclusion, is another area of growing focus for HR leaders that directly
affects talent acquisition and recruitment. Statistics show that businesses with a diverse
workforce and inclusive workplace have better productivity and profitability. According to
the World Bank, gender and ethnic diversity can increase profitability by up to 33%.
4) E-Presenteeism:
A recent survey shows that we are witnessing the birth of a new remote work-related
phenomenon among workers. The results of this research found that four in five HR managers
think working from home is encouraging E presenteeism, causing employees to feel that they
should be online and available as much as possible.
5) Data-Driven Strategy:
Recruitment trends in 2023 is based on a data-driven strategy. Employers are continuing
to hire new employees based on a data-driven approach. Recruiters deeply analyse budgeting,
data and relevant available information to get the best workforce for their company. Various
evidence shows how a data-driven strategy improves 70% to 80% of the hiring process, making
it simple and effective.
6) Employer Branding:
Employer branding is one of the most significant recruitment trends in 2023. Since
every job applicant examines a company's reputation and brand before applying for a position.
As a result, employers are beginning to recognize the significance of preserving or developing
their brand image. Future applicants will want to be associated with a reputable company.
7) Robotic Process Automation:
Robotic process automation (RPA) is an increasingly popular technology that can
automate manual, repetitive activities. RPA bots are capable of performing a vast array of
recruiting tasks that normally take several hours. RPA performs operations on a bulk scale that
doesn't require any level of human intervention. For example, verifying documents for a large
number of candidates requires a lot of effort but doesn't need a person to be involved. A bot
can simply process each document for verification and upload the results into an applicant
tracking system. This can save recruiters significant time and effort.
8) Artificial Intelligence:
As technology becomes more powerful, HR departments will experience an AI wave.

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As technology becomes more powerful, HR departments will experience an AI wave.

Most companies will implement systems that work on the principle of artificial intelligence,
making this one of the most significant recruiting trends of 2023.
9) Virtual and Augmented Reality (VR/AR):
Virtual and augmented reality can play a significant role in employee onboarding and
training. It is an advanced technology that opens a path to many opportunities that can boost
engagement.
10) Analytics:
HR in general is adopting analytics at a rapid rate. The use of analytics across talent
acquisition processes assists data-driven decision-making and helps to provide insights to
identify areas of strength and weakness. It can also reduce the cost of talent acquisition
practices, identify problems and blockages in the process and fill vacant roles more quickly.
Talent analytics can prove the effectiveness and ROI of your recruiting software investments.
11) Software Development:
Software development is another recruiting trends in the last few years. There is a rise
in HR technologies such as upgraded applicant tracking software, recruiting systems
and onboarding platforms.
12) Flexible Schedules:
The most popular recruitment trend in 2023 is providing employees with flexible
working schedules. Employees’ urge to get more flexible hours will continue in 2023. Work
from home trend has given birth to increased demand for flexible schedules. Flexibility allows
employees to complete their daily tasks at their set timings. Various reports reveal that
companies offering flexible work schedules attract the best talent.
13) Proactive Recruiter:
Recent trends in recruitment show that recruiters have started reaching out to suitable
candidates and establishing relationships even before a position becomes available. A proactive
recruiter work on finding the right and most suitable candidate before the need is created for a
specific position. Attracting the best talent ahead gets simple by using proactive strategies. The
proactive recruiter designs the best system in the industry that primarily focuses on sourcing,
engaging, and attracting candidates and keeping them way ahead of hiring needs.
14) Targeting Resilient Personalities:
The pandemic and economic crisis added the new trend of targeting resilient during
the recruitment process.

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15) Contingent Workers:

Fluctuating business needs require flexibility, and contingent labour can help meet
those demands. Many employees have found that contracting can be more profitable than
regular employment and does not tie them to a single employer. Over the past few years, there
has been an upward trend in using contingent workers and creating a hiring process expressly
for them.
16) Social Media Recruitment:
The latest recruitment trends 2023 view social media hiring as the top hiring method.
During and after the covid-19 pandemic, 90% of the population using social media like
LinkedIn, Facebook, Twitter, Instagram etc., has shown an increased rate of staying online by
almost 2 times. Therefore, hiring managers see it as the most significant opportunity for
connecting with multiple candidates. Global Recruitment trends have identified social media
as a powerful medium to attract the right crowd. In addition, it helps in building the brand and
the employee value proposition.
17) Skills-Based Hiring:
According to the latest talent acquisition trends in 2023, recruitment managers will
focus more on the candidates’ domain-based experience than resumes and talent acquisition-
based experience. The Marketing Head & Global Chief People Officer of Tech Mahindra said,
“Company’s hiring is 100% based on candidates’ skills on latest technologies like blockchain,
artificial intelligence, cybersecurity, etc.
18) Employee Well-being and Mental Health Checks:
Since pandemic, there is a rise in evaluating mental health policies and employee well-
being apps, surveys, and training, turning this into one of its principal recruiting trends.

Artificial Intelligence for Recruitment and Selection:

AI for recruitment is the integration of AI solutions in the recruitment process, where
machine learning models can help to shortlist ideal candidates, automate manual tasks,
streamline the recruitment workflow and free recruitment managers from repetitive high-
volume tasks. The applications of AI in the hiring process also help to generate insights from
the available talent pool, build screening tests to eliminate bias and identify successful traits
from candidates who have remained with the company.8

Benefits of Integrating AI in Recruitment and Selection Process:

Following are the benefits of integrating AI in recruitment and selection process:9

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1) AI can speed and refine the search process, create talent pools for future sourcing and save
HR recruiter’s significant time.
2) Automation can drastically reduce the workload for hiring managers and recruiters, enabling
them to focus on additional recruiting activities.
3) AI enabled chatbots make it easier for candidates to interact with the company's recruiting
teams.
4) AI can reduce or eliminate conscious or unconscious bias from the recruiting process.
5) AI can cover a wider range of sources for candidates, identify better candidates and provide
an improved candidate experience.

Challenges of AI-powered Recruitment and Selection:

AI-powered recruitment is still in its evolutionary stage and having some challenges
as follows:10
1) Adoption of AI in recruitment and selection requires higher upfront costs.
2) AI needs lot of data to accurately mimic the intelligence of humans.
3) AI can learn bias from previous data. For example, if a company has more male than female
employees, an AI-powered tool can easily favour male candidates to match the current
identity of the company.
4) AI can screen a candidate's skills and abilities that are relative to the role, but the system
would struggle to analyse many aspects of a candidate's emotional intelligence that could
help them succeed in the company. Thus, AI lacks the human touch.
5) There is increased risk of cybersecurity as chatbots are easy targets for hackers. Sharing
sensitive personal or company data through these apps could leave you open to cyberattacks.

Status of AI Adoption in Recruitment and Selection:

According to a recent study by Gartner, about 70% of organizations are using artificial
intelligence (AI) in their recruitment and selection processes. 11 It’s no wonder that many
businesses are leveraging the power of AI to leverage their hunt for top talents. Organizations
that implement AI will have a competitive advantage over the ones that haven’t yet
implemented AI. Following are some companies that have successfully implemented AI in
their recruitment strategies:12
1) IBM Watson Talent:
IBM Watson Talent’s AI technology helps to streamline and automate the recruitment
process. It uses predictive analytics to identify the best candidates by analyzing data from

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resumes, social media profiles and other sources. The company also uses natural language
processing to assess candidates’ communication skills during video interviews. It also offers a
chatbot that can answer candidate queries and provide personalized feedback.
2) Hilton:
Hilton is a multinational hospitality company that operates a portfolio of hotel brands.
The company has developed an AI-powered chatbot that can answer candidate queries, provide
personalized feedback, help in scheduling interviews and providing feedback to candidates.
Hilton also uses AI technology to analyse candidate data and predict job fit.
3) Unilever:
Unilever uses AI technology to improve the effectiveness of its recruitment process, to
identify skills gaps and provide employees with development opportunities. The company has
developed an AI-powered chatbot to answer candidate queries and provide personalized
feedback. This company also uses AI technology to analyse candidate data and identify the
best candidates for each role.
4) Amazon:
Amazon has developed an automated applicant evaluation system (AI-powered
software) which analyses resumes and compare them to profiles of Amazon employees in
similar roles. Promising candidates are fast-tracked for interviews. Amazon uses AI technology
to enhance the candidate experience and streamline recruitment.
5) Delta Air Lines:
Delta Air Lines uses AI technology to analyse candidate data and identify the best
candidates for each role. This helps in reducing time-to-hire and improving the quality of hiring
decisions. The company uses AI technology to identify skills gaps and provide employees with
personalized training and development opportunities. The company has developed an AI-
powered chatbot.
6) Procter & Gamble (P&G):
Procter & Gamble leverages AI technology to enhance its mass recruiting and talent
acquisition efforts. The company utilizes AI-powered tools to analyse candidate data. P&G’s
AI algorithms help identify candidates with the right skills, qualifications and cultural fit. It has
also developed AI-enabled chatbots to engage with candidates.
7) Siemens:
Siemens AI algorithms help to analyse candidate profiles, resumes and online
assessments to identify suitable candidates for specific roles. The company has also developed
AI-powered chatbots and virtual assistants to provide personalized candidate experiences.

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Conclusions:
Thus, Artificial Intelligence can transform hiring process by making the recruitment
and selection process more efficient and effective, reducing conscious or unconscious bias,
reducing the workload for hiring managers and recruiters, covering a wider range of sources
for candidates, identifying better candidates and providing an improved candidate experience.
But at the same time, it should be kept in mind that AI-powered recruitment is still in its
evolutionary stage and having some challenges also. AI will change the recruiter role through
augmented intelligence.

References
1) https://www.linkedin.com/pulse/how-recruitment-trends-evolving-2023.
2) https://www.sutrahr.com/recruitment-trends.
3) Hemlatha A., Barani Kumari, Nishad Nawaz & Vijaykumar Gajenderan (2021). Impact
of AI on Recruitment and Selection of Information Technology Companies. Proceedings
of the International Conference on Artificial Intelligence and Smart Systems (ICAISS -
2021), pp. 60-66.
4) Mehrotra & Khanna (2022). Recruitment through AI in Selected Indian Companies.
Metamorphosis, Vol. 21(1), pp. 31-39.
5) Bholane Kishor Prakash (2023). Adoption, Applications and Challenges of Artificial
Intelligence in Indian Banking Sector. Journal of Management and Entrepreneurship,
Vol. 17, No. 2 (IV).
6) Luke Marson (2023). Talent acquisition and recruitment trends in 2023. Retrieved from
https://www.techtarget.com/searchhrsoftware/feature/7-talent-acquisition-and-
recruitment-trends on 30 June 2023.
7) Khyati Babel (2023). Latest Recruiting Trends that HR must Implement in 2023. Retrieved
from https://www.ismartrecruit.com/blog-latest-recruiting-trends-for-hr on 12 June 2023.
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role-in-hiring-process.html.
9) Luke Marson (2023). Using AI for recruiting: Complete guide for HR pros. Retrieved from
https://www.techtarget.com/searchhrsoftware/tip/Using-AI-for-recruiting-Complete-guide-
for-HR-pros on 30 June 2023.
10) Vld Cruiter (2023). What are some challenges of using AI in recruiting? Retrieved
from https://hrtech247.com/challenges-of-using-ai-in-recruiting/ on 1 July 2023.

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11) https://webpipl.com/companies-using-ai-for-recruitment
12) https://webpipl.com/companies-using-ai-for-recruitment#companies-using-ai-for-
recruitment-and-hiring-process
13) Bholane Kishor Prakash (2023). Adoption, Status and Environmental Sustainability of
Industry 4.0 in India, International Journal of Novel Research and Development, Vol. 8
(1), pp.865-870.
14) Bholane Kishor Prakash (2017). Digital India: Issues and Concerns. Proceedings on
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