As the demand for new skills rises, organizations are increasingly focused on upskilling their workforce while also trying to attract new talent. However, finding qualified candidates remains challenging. To fill critical roles, companies must adopt more advanced recruiting methods, practices, and technologies.

Leading organizations are using AI and automated recruiting solutions to adopt a skills-based hiring approach, gaining a competitive edge. The challenge lies in balancing advanced technology with a human-centered approach to meet the needs of both individuals and the organization.

Recruiting Tech Trifecta: AI, Automation, and Generative AI

While generative AI is the latest breakthrough in recruiting technology, AI and automation have been enhancing talent acquisition for years. Early adopters realized the power of advanced sourcing technology to intelligently position jobs where the most qualified candidates are likely to see them. Instead of simply posting a job and waiting for applicants, companies now proactively engage both active and passive candidates through intelligent search and personalized outreach, utilizing data from their digital footprints.

According to the 2024 Talent Trends Report by the Society for Human Resource Management (SHRM), “screening, interviewing, and assessing candidates using AI functionality gives recruiters the ability to sort and prioritize candidates more efficiently than humans have time for and may help to minimize biases in the selection process.” Deltaclass Technology Solutions states that AI allows recruiters and managers to use a more data-driven, objective approach for their screening and selection decisions.

The explosion of generative AI is providing even more AI benefits for recruiters, HR, and hiring managers. Generative AI is being used to create job postings, employment brand assets, interview guides, and communication assets such as job offer letters. It is also taking virtual assistants and chat bots to the next level to simplify communications with and improve accessibility to information for candidates throughout their hiring experience.

Skills Are the Data Fueling AI Algorithms

These advanced AI tools go beyond creating efficiencies; they also provide the intelligent functionality to identify candidates’ skills and capabilities with greater accuracy. The focus on skills proficiency and skills-based hiring is essential during this time where we continue to have a mismatch of people to jobs in the labor market.

High-profile companies, such as Delta Airlines, have adopted “skills-first” hiring practices and eliminated college degree requirements for many of their jobs. Delta stated that skills-first recruiting—externally and internally—allows them to consider a broader pool of candidates, while also minimizing or eliminating biases for those who may not have a degree but have the practical experience and/or demonstrated proficiency in the skill that qualifies them for that job.

According to the Conference Board, skills-based hiring is not just about dropping education degree requirements or acceptance of alternative credentials. Taking a skills-based approach means thinking differently about the work itself and what critical skills are required for that work. Of those skills, which ones can be developed in a short period of time, and which ones should you hire for?

Companies are increasingly open to hiring candidates with transferable skills. AI and skills data help recruiters identify potential in candidates who can be upskilled post-hire. One high-profile example occurred during the COVID-19 lockdown when Swedish flight attendants were retrained to assist in hospitals by leveraging and re-purposing their skills related to safety, customer care, and handling stressful situations.

Keep People at the Center of Your Recruiting

AI-driven recruiting tools are meant to enhance and expand recruiters’ own skills, not replace them. Successful recruiting and hiring relies on the ability to build relationships, communicate clearly and effectively, navigate complex interpersonal situations, solve unique problems, and demonstrate ingenuity and persistence in finding the right person for the right role.

While adopting AI solutions and incorporating them into your hiring process has many benefits, it’s equally important to be aware of potential risks and challenges such as data privacy concerns, data biases, and inaccuracies in results. Having frequent open dialogue about ethical implications is important to uncover and address concerns.

Success in hiring hinges on recognizing that people are at the core of every decision. By balancing AI with a human-centered approach, you can attract top talent, make equitable decisions, and build a workforce aligned for long-term success.