Are you missing out on top talent due to an over-reliance on AI recruiting? | Businessman

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A bad hire can cost your business up to 30% of an employee’s salary in the first year. But what if your reliance on AI-driven recruiting tools is causing you to miss out on top talent altogether? Costs from recruitment, onboarding and training to lost productivity and potential re-hires will cost you approximately $840,000 over two years.

For startup founders and entrepreneurs looking to streamline the hiring process, AI is certainly a valuable solution. However, if AI systems only go through generic resumes and filter candidates based on keywords, there’s a good chance you’ll miss out on ready-made headhunters—those who could move your business forward.

In today’s job market, there is intense competition for top talent. For start-ups, missing out on the right employees doesn’t just affect day-to-day operations – it has a direct impact on innovation and long-term business success. In smaller companies, the financial and operational risks of poor hiring decisions are even greater than in large organizations.

AI tools, while effective, often lack the human intuition needed to recognize features that don’t fit neatly into keyword searches or algorithms. Balancing the efficiency of AI-integrated recruitment processes with layers of personal interaction ensures you don’t sacrifice growth potential for convenience.

Related: Artificial intelligence is changing the way companies recruit for open roles – and how candidates game the system

AI vs. AI

It’s common for HR teams to use AI-generated interview questions to test candidates’ knowledge base. There are even AI tools to perform this function depending on the industry and job role. Hiring managers also use artificial intelligence systems to collect and sort applications. At the same time, the candidate’s use of artificial intelligence is something that is generally frowned upon.

I have observed professionals expressing their concerns about the complexity and repeatability of application processes on platforms such as LinkedIn. These processes are often lengthy and tedious. They are also expected to provide custom resumes and cover letters tailored to specific positions and companies.

So the question arises: Can candidates really be guilty if they themselves use AI tools to streamline time-consuming pre-employment assessments?

After all, candidates face a system that demands perfection at every stage, often without a clear understanding of exactly what hiring managers are looking for. In many cases, candidates are not using AI out of laziness, but as a means of navigating a system that can feel mechanical and unforgiving. They are simply trying to level the playing field against artificial intelligence driven applicant tracking systems (ATS).

Candidates are not always aware that AI systems are filtering their resumes, and as such, they may use AI-generated responses in an attempt to match specific keywords and formats required to pass through an applicant tracking system (ATS). The irony is that both parties—employers and job seekers alike—are increasingly using AI to “game” the system rather than engage in more human and meaningful interaction. It’s a cycle where AI is used to beat AI, which begs the question: How can we bring the human element back into the hiring process?

Related: How to Use Artificial Intelligence to Streamline Your Hiring Process

Solution

With AI being integrated into almost all operational processes to save time and resources, it is foolish to argue that AI should be removed from HR practices. However, I believe that more human intervention is needed at critical stages of the recruitment process.

1. Include structured video interviews

With the proliferation of generative artificial intelligence in the professional space, it may be time for employers to ditch written assessments in favor of video interviews. For pre-screening purposes, one-way video interviews with limited response time could be an effective solution.

One-way video interviews reduce the likelihood of AI-generated responses, as candidates must think and react in real-time, demonstrating their communication skills, problem-solving abilities, and even cultural fit. By using a structured format, employers can ensure consistency in the questions asked while allowing for more authentic human interactions early in the hiring process.

2. Introduce context-specific behavioral interview questions

Recruiters have a responsibility to develop their procedures and introduce better interview questions in the early stages of the interview itself. Let’s not start another conversation with a superfluous “Tell me about yourself”, “What are your strengths and weaknesses?” or “Why should we hire you?” These questions often lead to rehearsed and generic AI-generated answers that don’t provide meaningful insight into a candidate’s fit for the role.

Instead, recruiters should focus on context-specific behavioral interview questions that encourage candidates to share real-world experiences and demonstrate their problem-solving skills. There’s a reason why “tell me about some of the most difficult problems you’ve worked on and how you solved them” is Elon Musk’s favorite job interview question. This allows recruiters to reduce reliance on AI-generated responses and encourage authentic interactions.

3. Custom job descriptions with flexible criteria

Write job descriptions that emphasize skills, problem solving, and adaptability, rather than a list of keywords that candidates can easily target with AI-generated resumes. Instead of “five or more years of marketing experience and Adobe Suite knowledge,” you might ask, “Have you developed a successful marketing campaign? Tell us what tools you used and how you measured success.” Expanding the language in job descriptions will encourage diverse candidates to apply and prevent applicants from simply tailoring their answers to relevant keywords.

Related: 7 Founders on Their Simple AI Fixes for Common Business Problems

Building stronger connections

Establishing rapport with candidates in the early stages of recruitment is critical to improving employer branding. When you reject candidates after an engaging interaction, they’re more likely to leave a positive impression of your company, even if they don’t get the job. So business leaders should focus on being attractive to future talent and building a reputation for a thoughtful and human-centered hiring process. After all, employees’ first impression of the company is formed at this stage. So don’t let it feel impersonal, automated and detached.

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