talent acquisition

GR8 Take: The 2020 Talent Acquisition Outlook

GR8 Take: The 2020 Talent Acquisition Outlook

Anyone who works in the talent acquisition space is aware that 2019 was characterized by strong job growth, the entry of Gen Z into the workforce and, of course, rapid advancements in recruiting technology. Here at GR8 People, the year flew as we added fresh faces to the GR8 People team, welcomed many new customers and continued to innovate and expand the deep capabilities of our One-Experience Talent Platform.

One such innovation—EUREKA!—reminded us how critically important it is to build AI-driven recruiting applications natively within a talent platform as opposed to offering it through a myriad of point solutions, which often involve complex and costly integrations. But more on that in a minute.

Given that talent acquisition will continue to be a major area of focus among enterprise organizations, what should we expect from the industry in 2020? Three trends come to mind immediately: the increasing adoption of AI for recruiting, a renewed focus on replacing outdated applicant tracking systems and an ongoing evolution of talent acquisition as a data-driven function.

Increasing Adoption of AI for Recruiting

Artificial intelligence for recruiting was seemingly everywhere in 2019, but perhaps nowhere more so than AI for candidate sourcing and assessment. Because AI-driven applications can match and rank thousands of candidates within minutes, typically with greater accuracy and less bias than humans, it makes perfect sense that organizations would seek out these applications. Doing so takes an extremely time-consuming, repetitive task off the recruiter’s already full plate, allowing greater focus to be placed on nurturing talent and moving candidates through the pipeline.

Yet, there are growing concerns when it comes to AI for recruiting that can’t be ignored. First, there’s apprehension among job seekers who are only beginning to understand the degree to which organizations are using AI across various points of the hiring process. Take, for example, a Pew Research Center survey, which finds that 67% of U.S. adults say they are “somewhat” or “very” worried about the development of algorithms that can evaluate and hire job candidates.

Government officials are also paying closer attention. The Illinois Artificial Intelligence Video Interview Act took effect on Jan. 1, which requires that companies hiring workers in Illinois inform job applicants not only that AI will be used during the video interview but specifically how it will be used.

Other states are likely to follow suit. What this means for vendors who create the technology and the employers who use it is that transparency is a must. This includes transparency regarding how the application works, the data driving the application and the human element relied upon to ensure governance and compliance. We decided early on that as GR8 People ventured into this space, we would ensure that our applications are built in a manner that pairs recruiter oversight with machine learning so that we can provide the highest level of transparency possible. Employers who purchase these applications should expect nothing less.

Replacing Outdated Legacy Applicant Tracking Systems

There’s just no getting around it anymore—that sub-par ATS simply needs to go. While many organizations had hoped to use their candidate relationship management (CRM) software as a workaround to the ATS, they’re now seeing firsthand why this just isn’t possible.

For starters, CRMs were built to deliver the tools that talent acquisition needs to properly segment, engage and nurture A-players until a suitable opportunity arises or the individual is ready to make a job change. Muddying this role has led to ineffective practices and, therefore, limited success in terms of converting candidates to applicants through dedicated nurturing programs.

Secondly, CRMs simply can’t deliver the robust workflow configurations that enterprise organizations need in order to automate the hiring process for all while ensuring that critical hiring process steps aren’t missed. Consider the need to manage important aspects of compliance and governance, as well as issues related to GDPR in Europe and emerging privacy legislation in the United States.

The only way to achieve long-term hiring success is to use CRMs for what they were designed to do and replace an ineffective ATS with a modern and elastic talent platform that ensures the ability to track valuable prospects throughout the entire hiring lifecycle.

Ongoing Evolution of TA as a Data-driven Function

For years, the talent acquisition industry has struggled to become a data-driven function, though mounting pressure may finally tip the scales in the favor of data. We’re witnessing major demand for HR data analysts and people analytics professionals who can identify patterns and trends hidden within huge amounts of data and translate them into meaningful insights that are used to dramatically improve talent practices and their associated outcomes.

In fact, our customers are using data to uncover previously overlooked factors that contribute to new hire turnover and determine the exact points within the hiring process where the biggest bottlenecks occur. One thing that’s certain is that we’ve just begun to scratch the surface in terms of how data will advance talent acquisition practices and, in the process, help TA teams make better talent and business decisions. Enterprise recruiting software vendors can play an essential role as talent acquisition’s partner in its transformation to a data-driven function.

Here’s to an Exciting Year Ahead

It will be interesting, no doubt, to see how all this unfolds throughout 2020 and where we find ourselves a year from now. I know I’m looking forward to every minute of it. After all, it’s the complexities and challenges of the talent acquisition industry that make being part of it so exciting.

For a more in-depth look at the industry’s biggest trends, download our 2020 Talent Acquisition Outlook: 8 GR8 Talent Acquisition Predictions E-Book today.

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