Are hiring algorithms right for your business?

You may remember in 2018 Amazon announced it was ditching its hiring algorithm due to apparent sexist outcomes of the online recruitment process. This is the exact opposite of the intended result of hiring algorithms, which are created to remove human bias and margin of error from the equation when searching for the best job candidate. Popular services like Monster and Zip Recruiter offer companies the use of their AI to make their hiring process easier and more fair.

As an article in Harvard Business Review explains, there are a lot of small tasks that hiring algorithms carry out. The article says that algorithms can “play different roles throughout this process: Some steer job ads toward certain candidates, while others flag passive candidates for recruitment. Predictive tools parse and score resumes, and help hiring managers assess candidate competencies in new ways, using both traditional and novel data.”

Hiring algorithms can automate some rather tedious labor and save time and money for people in human resources and executive positions. As Richard Marr, chief technology officer for recruitment platform Applied, told Forbes, “If done well, [using hiring algorithms] not only means efficiency savings but could also mean benefits for candidates such as quick responses and meaningful feedback.”

As great as this sounds, this software can actually preserve traditional biases that impact the hiring process, such as “amplifying disadvantages lurking in data points like university attendance or performance evaluation scores.” Thankfully, at the end of the day, humans still have the final decision in who gets hired.

Even the minds behind online recruitment service Monster admit that hiring algorithms are not a perfect solution to everyone’s hiring needs. The company posted an article to its website, judging the benefits and limitations for companies looking to use it. The article admits that there will always be the human temptation to overrule the algorithm.

“Who wants to hire a candidate — top-rated by a bloodless software application — who struck the hiring manager as somehow just not right for the job?” The article asks.  “Almost no one wants that. This situation presents a conundrum for HR and company executives.”

Monster’s advice for companies looking to use a hiring algorithm is to properly train their Human Resources departments and other individuals involved in the hiring process in how to balance the data given by the software with their natural instincts.

So is this technology the right fit for your business? It can save you time and money, but can also have some potentially negative impacts when used incorrectly. Since Amazon dropped its software because of the gendered bias, lots of research and development has gone into making these algorithms better; but they will never be perfect without the attention and training on behalf of the user. If you believe that you can balance the limitations of this software with its benefits, it might be a great tool for your business.