The growing competition, the increased CV frauds and the need to hire the perfect person for the job are forcing the HR managers to find out ways and means to get it right. AI and blockchain are two emerging technologies that are now being used in the hiring process and it is important that everyone understands the impact of using these technologies in the recruitment process.
The importance of due diligence in the HR sector has been studied in detail by the academia, public and the private sector. There is enough evidence about the due diligence processes and the number of companies that fail to do proper background checks. A CareerBuilder survey found that nearly 28% of the companies do not conduct sufficient background checks and two-third of the employers end up hiring the wrong person for
a job. The management of talent is a cause of concern and therefore there is a need for implementing a due diligence strategy. Most companies, especially in the finance sector, perform due diligence of candidates before they are hired.
The studies and the research conducted have focussed on the importance of due diligence, the prevalence of CV fraud, the negligence of the process and the resultant losses. New research by global staffing firm Robert Half found 77 per cent of senior managers admit recruiting the wrong candidate for a role. Of those, 56 per cent said the cost of a bad hire is more severe today than it was a year ago, with the biggest negative impacts being time wasted hiring and training the new employee as well as decreased staff morale and productivity.
Artificial Intelligence and blockchain will have a positive impact on the hiring processes while also disrupting the current hiring process. It is expected that the adoption of these technologies will result in a better, faster and cheaper recruitment process. This should then lead to more and more companies adopting these technologies thus deterring fraudsters and CV fakers.
What will be the impact of using artificial intelligence (AI) and blockchain in terms of cost, reduction of risk and finding the right employee for the job?
How do the candidates view the use of these technologies?