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Survey: More Companies Embrace Hiring Technology as Enterprises Rank Quality of Hire as Top Priority

Modern Hire's all-in-one enterprise hiring platform enables organizations to continuously improve hiring results through more personalized, data-driven experiences for candidates, recruiters and hiring managers. (PRNewsfoto/Modern Hire)

News provided by

Modern Hire

Sep 13, 2022, 09:03 ET

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73% of companies increased their TA tech investment in 2022, yet only 11% are satisfied with their investments; use of AI in hiring to find the right candidates and bolster retention continues to grow

CLEVELAND and DELAFIELD, Wis, Sept. 13, 2022 /PRNewswire/ -- Modern Hire, the leading enterprise hiring platform for video interviewing and pre-hire assessments, in partnership with Aptitude Research, today shared findings of The Evolution of Talent Acquisition Technology report, authored by Madeline Laurano. The survey of more than 300 senior level talent acquisition and HR professionals revealed accelerated adoption of talent acquisition (TA) technology, and a greater role for artificial intelligence (AI) as more organizations embrace this technology to ensure ethical, efficient, and quality hiring.

While the survey confirmed the pandemic and labor market have accelerated the demand for TA technology to drive transformation and improve speed of recruiting and hiring – including the adoption of AI – it also revealed nearly half (46%) of respondents do not know when they are actually using AI to support their TA initiatives. For many companies, humans are still doing many tasks that can be supported and significantly improved through AI, like communicating with and screening candidates.

An overwhelming shift in hiring priorities over the past two years has impacted TA tech investment. Quality of hire has moved to the number one position among technology spending priorities. Hiring speed and efficiency remain important, as does advancing diversity, equity and inclusion (DEI), though the latter slipped in focus from research conducted in 2020 and 2021. The report noted that science-based interviews and assessments can help an organization achieve all three.

Key findings from the survey include:

TA tech investment has skyrocketed, with no signs of slowing down.

  • 73% of companies increased their investment in TA tech in 2022.
  • 70% of companies plan to continue to invest the same amount in TA tech, even during an economic downturn. At least 28% plan to increase their investment.
  • Over 60% of companies are using more TA tech solutions today than before COVID, yet only 11% of companies are satisfied with their chosen technology - pressing TA leaders to look to more focused technology investments, such as AI.

TA priorities are shifting with the times.

  • Although efficiency continues to remain critical to TA, 70% said quality of hire is the number one driver in TA investments in 2023, with an increased focus on retention.
  • At least 68% say speed and efficiency are still important, followed closely by candidate experience (at 62%).
  • Although DEI and bias fell below other areas, 30% said providing a fair and equitable experience to every candidate is still critical and new legislation is coming into place around the use of AI in hiring.

Clear benefits of AI are seen across the board. TA teams have moved past the early fears of AI, and employers, recruiters, and candidates are embracing AI-driven solutions.

  • While most respondents using AI-based hiring solutions signaled key benefits such as efficiency, improved DEI efforts and quality of hire, at least one in two also see an improved candidate experience thanks to the use of AI.
  • Although there seems to be conflicting views on the candidate's perception of AI in the interview and hiring process, 44% are not bothered by it, and would prefer AI to a recruiter who has no time to respond, or a hiring manager who acts on bias. At least 33% are embracing AI, and only 24% would prefer not to use it.

More education is needed around AI. Respondents are not using AI because they have limited knowledge about the technology or find it confusing. 

  • Nearly half (46%) of companies do not know when they are using AI to support TA. Humans are still doing many tasks that can be supported through AI including communication and screening.
  • Only 17% of respondents said their senior leadership does not support AI, and 12% do not trust it.

Not all AI is the same. Every provider in talent acquisition seems to be tackling AI but companies have an obligation to ensure the ethical use of these solutions and are taking more responsibility for their use of AI.

  • At least 45% are leveraging third-party resources and institutions to ensure ethics in the hiring process.
  • 38% have their internal legal team review AI solutions.
  • 32% ensure providers have an ethics committee.

"As reinforced by this study, companies are adopting TA technology at rapid rates to support every area of recruitment; and as more organizations embrace AI specifically, they see the value of leveraging talent analytics to increase diversity and find the right candidates," said Mike Hudy, Chief Science Officer, Modern Hire. "But for the greatest success now and into the future, recruiting and hiring leaders should do their due diligence to ensure they are investing in trusted science-based hiring technology that is proven to provide measurable results in finding quality talent through ethical, efficient and engaging interview and assessment processes."

Click here to learn more about the survey and receive access to a full report on the findings: https://modernhire.com/evolution-of-ta/

About Modern Hire

Modern Hire's intelligent hiring platform transforms each step of the process with screening, assessment, interview and workflow automation tools that make hiring more effective, efficient, ethical and engaging. Modern Hire is differentiated by its advanced selection science and is trusted by more than 700 leading global enterprises and nearly half the Fortune 100. Find out more about the company's commitment to seriously better hiring at www.modernhire.com.

SOURCE Modern Hire

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