In our previous blog, we explored how Artificial Intelligence (AI) can expand organisations’ potential pool of candidates as well as how it is transforming the candidates screening process by making it more efficient and bias-free. As we delve deeper into the realm of AI in recruitment and selection, this blog focuses on the next critical phase – talent selection. It also shifts our lens to encompass not just the identification of talent but also the art of retaining it.

Organisations are increasingly turning to AI to fine-tune their talent assessment process to ensure that they find the right talent and thus increase their competitive advantage. AI can be used to analyse large volumes of data from previous candidates and current employees and thus provide insight into the skills and competencies necessary for a given job role. Building upon this, AI tools can compare candidates’ skills and competencies with the job requirements to find the most relevant abilities and also forecast candidates’ potential job performance. This, coupled with AI’s ability to provide less biased assessment make it a valuable asset in HR professionals’ repertoire.

Looking at specific AI assessment tools, an increasing number of organisations are using video interviews, where AI is used to ask candidates a set of pre-determined questions and also use audio and facial recognition software to analyse body movement and facial expressions to gain insight into certain personality traits and competencies1. AI can also be used to administer situational judgement tests using chatbot-style conversations. The AI can analyse candidates’ responses and determine if they are likely to react well in similar situations. In this vein, some organisations are also conducting avatar- or bot-driven assessment centre role-play exercises. Overall, AI-powered tests, simulations and video games provide a more engaging, efficient and objective assessment of candidates’ personality traits, competencies and cultural fit1.

It is time to move to the next pivotal stage of the talent management process – talent retention. After identifying the right talent using AI-driven assessments, the next question that has to be addressed is – How do you keep employees engaged, motivated and committed? First, AI can be used to monitor employees’ engagement and can be trained to spot patterns indicating if people want to leave the organisation. It can then be used to provide employees with personalised learning and development suggestions2. Second, AI can be used to provide personalised career advice based on employees’ potential, skills, competencies and experience. AI can also recommend secondment and career opportunities based on individuals’ capabilities and available positions in the company. Importantly, in the same way that AI can help identify high performing employees, it can also facilitate performance management by identifying areas of low performance. Still, it should be noted that AI is not able to determine the reasons behind low performance and, in particular, if it is due to external factors3. AI’s inability to take into account social and contextual factors is one of its main limitations, which will be discussed in more detail in our next blog.

References

1Hunkenschroer, A.L. and Luetge, C., 2022. Ethics of AI-enabled recruiting and selection: A review and research agenda. Journal of Business Ethics178(4), pp.977-1007.

2 Schmid, K., and Raveendhran, R., 2022. Where AI Can – and Can’t – Help Talent Management. Harvard Business Review.

3 Chowdhury, S., Dey, P., Joel-Edgar, S., Bhattacharya, S., Rodriguez-Espindola, O., Abadie, A. and Truong, L., 2023. Unlocking the value of artificial intelligence in human resource management through AI capability framework. Human Resource Management Review, 33(1), p.100899.