Recruiting the right candidates for a job opening can be a daunting task, especially for larger organizations that receive hundreds or thousands of applications for each position. Applicant Tracking Systems (ATS) has become an essential tool for recruiters and hiring managers to efficiently manage the recruitment process. ATS recruitment software can help automate various aspects of the hiring process, such as resume screening and applicant tracking. However, to make the most of these features, recruiters need to know how to use the ATS to match candidates to job openings.
One important metric used by ATS is the candidate match score. This score helps recruiters evaluate the suitability of a candidate for a particular job and prioritize applicants. In this article, we will delve into the concept of candidate match scores, how they are calculated, and how they can help recruiters make informed hiring decisions.
What is the Candidate Match Score?
A candidate match score, also known as an Applicant Match Score is a numerical rating that is used to determine how well a candidate matches the job requirements and qualifications of a particular job opening. It is essentially a tool that hiring managers use to gauge the suitability of a candidate for a specific role. This score is calculated by analyzing various factors, such as the candidate’s education, work experience, skills, and achievements, and then comparing them to the job requirements.
The candidate match score is generated through the use of an applicant tracking system (ATS), a software application that enables companies to manage the entire recruitment process. The ATS automatically analyzes resumes and applications, identifying keywords and phrases that match the job description and scoring candidates based on their level of relevance.
One of the primary benefits of using a candidate match score is that it streamlines the recruitment process, saving time and effort for both the hiring manager and the candidate. By using an ATS, the system can quickly identify the most qualified candidates, allowing hiring managers to focus their attention on those who are most likely to succeed in the role.
How is Candidate Match Score Calculated
To calculate the candidate match score, the ATS software analyzes various factors, such as the candidate’s education, work experience, skills, and achievements.
For example, if a job posting requires a candidate to have a bachelor’s degree in computer science and five years of experience in software development, the ATS will scan through the candidate’s resume and determine if they meet these requirements. If the candidate has a bachelor’s degree in computer science but only three years of experience, they may receive a lower match score than a candidate who has a bachelor’s degree and five years of experience.
The ATS also analyzes the candidate’s skills and achievements to determine their match score. For example, if a job posting requires a candidate to have experience with a particular programming language or software tool, the ATS will scan through the candidate’s resume to see if they have listed these skills. If the candidate has experience with the required programming language or software tool, they may receive a higher match score than a candidate who does not have this experience.
Once the candidate match score has been generated, the hiring manager can review the candidates with the highest scores and decide which ones to invite for an interview. This helps to ensure that only the most qualified candidates are considered for the role, leading to a more efficient and effective recruitment process.
The calculation of the candidate match score can vary depending on the specific ATS recruitment software being used. Some systems may assign a higher weight to certain factors, such as experience or education, while others may place more emphasis on the specific skills required for the job.
Recruiting Automation
Recruiting automation is a crucial component of the ATS recruitment process. ATS software automates the recruitment process by scanning resumes for keywords, filtering out unqualified candidates, and scheduling interviews. By automating the recruitment process, organizations can save significant time and money while hiring the best candidates. According to a report by Ideal, recruiting automation can reduce the time to hire by up to 90%.
Recruitment AI Software
Recruiting new employees can be a time-consuming and costly process, but with advancements in technology, organizations are turning to recruitment AI software to streamline the process. Recruitment AI software can automate many of the tedious and repetitive tasks associated with recruiting, such as screening resumes and scheduling interviews, saving recruiters time and increasing the efficiency of the hiring process. In this article, we will explore some statistics from reports and studies on recruitment AI software.
According to a report by Grand View Research, the global recruitment AI software market was valued at USD 1.1 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 22.9% from 2021 to 2028. The report attributes the growth of the market to the increasing demand for automation and the need to reduce the time and cost associated with the recruitment process.
One of the main benefits of recruitment AI software is its ability to reduce bias in the hiring process. According to a study by the Harvard Business Review, when companies use AI to evaluate job candidates, the selection process becomes more merit-based, and candidates from underrepresented groups have a higher chance of being hired. The study also found that AI can help reduce the impact of human cognitive biases in the recruitment process.
Recruitment AI software can also help reduce the time to hire. A report by Jobvite found that the average time to fill a job in the United States was 28 days in 2020, up from 26 days in 2019. However, the report also found that organizations that use AI in their recruitment process have an average time to fill of 22 days, a significant improvement over the national average.
Another benefit of recruitment AI software is its ability to improve the candidate experience.
According to a survey by Phenom, 84% of candidates said that the use of AI in the recruitment process would improve their candidate experience. This is because AI can provide candidates with a more personalized experience, such as recommending jobs that match their skills and experience or providing real-time feedback during the application process.
However, there are also some concerns about the use of recruitment AI software. One of the main concerns is the potential for algorithmic bias, which can lead to discrimination against certain groups of candidates. To address this concern, organizations should ensure that their recruitment AI software is designed to be transparent and auditable and that it is regularly reviewed to identify and mitigate any biases.
So it is safe to say, recruitment AI software can provide significant benefits to organizations, including reducing bias, improving efficiency, and enhancing the candidate experience. However, organizations must also be aware of the potential risks and take steps to ensure that their recruitment AI software is transparent and unbiased. As the demand for automation in recruitment continues to grow, it is likely that we will see continued innovation in this field in the coming years.
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Recruiting Automation and Recruitment AI Software
Recruiting automation has become a critical element in the modern hiring process, with ATS recruitment software serving as a key feature for many organizations. These software tools streamline the recruitment process by automating routine tasks such as job posting, resume screening, and candidate communication. This not only saves time and money but also ensures a more efficient and effective hiring process.
However, while ATS recruitment software provides significant benefits, recruitment AI software takes automation to the next level. These software tools utilize artificial intelligence and machine learning algorithms to automate more complex recruitment tasks, such as applicant matching. Applicant matching involves matching job requirements with candidate qualifications to identify the best-fit candidate for a particular role.
ATS recruitment software employs applicant matching scores to rank candidates based on their skills and experience compared to job requirements. However, recruitment AI software takes this process further by analyzing candidate data from a variety of sources, including social media profiles, online presence, and even facial expressions during interviews. By leveraging this additional information, recruitment AI software can make more accurate matching decisions, resulting in better candidate selection and improved overall hiring outcomes.
According to a report by Deloitte, 33% of surveyed organizations currently use AI in their recruitment process, highlighting the growing adoption of these technologies in the recruitment industry. With the potential to streamline and optimize hiring processes, reduce bias, increase diversity, and improve overall hiring outcomes, recruitment AI software is likely to become an increasingly important tool for organizations looking to stay ahead in a competitive hiring landscape.
Benefits of Using the Candidate Match Score in Recruitment:
Using candidate match scores in recruitment offers several benefits for both recruiters and job seekers. These benefits include:
1. Reduced Time-to-Hire
One of the most significant benefits of candidate matching in ATS recruitment is the reduction in time-to-hire. According to a study by the Society for Human Resource Management (SHRM), the average time to fill a position is 42 days. However, with candidate matching in ATS recruitment, this time can be significantly reduced. A report by the Aberdeen Group found that companies using ATS software reduce their time-to-hire by an average of 50%.
2. Improved Candidate Quality
Another benefit of candidate matching in ATS recruitment is the improved quality of candidates. By using candidate matching algorithms, recruiters and hiring managers can identify candidates who meet the required qualifications and have relevant experience. According to a study by Jobvite, 67% of recruiters say that candidate matching is the most significant benefit of using ATS software. This improved candidate quality not only leads to better hires but can also reduce employee turnover rates.
3. Enhanced Diversity and Inclusion
Candidate matching in ATS recruitment can also enhance diversity and inclusion in the hiring process. By using algorithms that are designed to remove biases and focus on skills and experience, ATS software can reduce the impact of unconscious bias in recruitment. A report by McKinsey & Company found that companies in the top quartile for ethnic and racial diversity are 36% more likely to have above-average financial returns than companies in the bottom quartile. By improving diversity and inclusion in the hiring process, candidate matching in ATS recruitment can lead to better business outcomes.
4. Improved Compliance
Another advantage of candidate matching in ATS recruitment is improved compliance with employment laws and regulations. By using software that automatically scores candidates based on objective criteria, ATS recruitment can ensure that all candidates are evaluated fairly and consistently. This approach can help companies avoid legal challenges related to hiring practices and can ensure that the company is in compliance with all applicable laws and regulations.
5. Cost Savings
Finally, candidate match in ATS recruitment can lead to significant cost savings for companies. According to a report by the Brandon Hall Group, companies that use ATS software reduce their cost-per-hire by an average of 70%. This reduction is primarily due to the improved efficiency of the recruitment process, which leads to reduced time and resources spent on recruiting activities.
Hiring Automation
Hiring automation is the process of using technology to streamline and optimize the recruitment process. It involves the use of various software applications, such as Applicant Tracking Systems (ATS), video interviews, and online assessments, to automate different stages of the hiring process.
The use of hiring automation has been growing rapidly in recent years as organizations strive to improve efficiency, reduce costs, and increase the quality of hires. According to a survey by SHRM, 56% of organizations currently use some form of automation in their recruitment process, while another 20% are planning to implement it in the near future.
One of the most significant benefits of hiring automation is that it helps to reduce the time and effort required to find and attract suitable candidates. By automating the initial screening of resumes, organizations can quickly identify the most qualified candidates and avoid spending time reviewing irrelevant applications.
Another benefit of hiring automation is that it helps to reduce bias in the recruitment process. By using objective criteria to evaluate candidates, such as skills, experience, and qualifications, organizations can ensure that hiring decisions are based on merit and not on subjective factors such as gender, ethnicity, or age.
Hiring automation also helps to improve the candidate experience by providing a more streamlined and transparent process. Candidates can submit their applications online, complete assessments, and schedule interviews without the need for multiple phone calls or emails. This can help to improve the overall candidate experience and increase the likelihood of attracting top talent.
The use of ATS recruitment software has increased significantly in recent years, with many organizations realizing the benefits of automating the recruitment process. According to a report by CareerArc, 95% of Fortune 500 companies use ATS recruitment software to manage their recruitment process. The report also indicates that ATS software can reduce the time to hire by 36%, and the cost per hire by 70%. These statistics demonstrate that ATS recruitment software can save organizations significant time and money while helping them hire the best candidates.
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What is ATS Recruitment?
Applicant Tracking Systems (ATS) are software applications designed to handle the recruitment process. The software automates the entire recruitment process, from job postings, to resume screening, candidate communication, and even scheduling interviews. ATS recruitment systems are used by organizations of all sizes and industries, from small startups to large corporations.
ATS Recruitment is a software-based approach to managing the recruitment process. The system is designed to automate many of the time-consuming tasks associated with recruiting, such as posting job openings, screening resumes, and managing candidate communications. The ultimate goal of an ATS is to help organizations find the best candidates for their open positions quickly and efficiently.
How does ATS recruitment work?
ATS recruitment works by analyzing job applications and resumes and comparing them to specific job requirements. The system uses algorithms to scan and rank each candidate based on specific keywords and phrases that match the job posting. These algorithms use natural language processing (NLP) to interpret and analyze text, making it easier to identify relevant skills, education, and experience.
Once the system has identified the best candidates, it will notify recruiters or hiring managers, who can then review the candidate’s application and determine whether they are a good fit for the position. The ATS can also automate communication with candidates, such as sending confirmation emails or scheduling interviews.
ATS Recruitment and Hiring Automation
The Applicant Tracking System is a software solution that simplifies and automates recruitment tasks. This software is designed to help HR professionals manage the entire recruitment process, from job posting to onboarding. ATS recruitment has become a popular choice for businesses of all sizes, from startups to multinational corporations. According to a report by MarketsandMarkets, the ATS market size is expected to grow from $1.21 billion in 2018 to $2.34 billion by 2023, at a CAGR of 14.6%. The growing demand for automation and the need to streamline recruitment processes are the key drivers of this market growth.
Hiring automation is a key feature of ATS recruitment software. With ATS, recruiters can automate tasks such as job posting, resume screening, and applicant tracking. This automation saves recruiters a significant amount of time and effort, allowing them to focus on more critical tasks such as interviewing and candidate engagement. According to a report by Talent Board, the average time-to-hire for organizations using ATS is 34 days, compared to 43 days for those who don’t. This data shows that ATS recruitment software helps businesses reduce their time-to-hire, thereby improving their overall recruitment efficiency.
Advantages of ATS Recruitment
Below are some of the advantages of ATS Recruitment.
1. Streamlined Recruitment Process
ATS helps streamline the recruitment process by automating repetitive tasks, such as resume screening, scheduling interviews, and sending email notifications. This saves HR managers a lot of time and allows them to focus on more strategic tasks, such as building relationships with candidates and improving the employer brand.
2. Improved Candidate Experience
The recruitment process can be daunting and time-consuming for candidates. ATS helps to improve the candidate experience by providing them with a user-friendly platform to apply for jobs, track their application status, and communicate with the HR team. This leads to better engagement with candidates and a positive impression of the company.
3. Enhanced Collaboration
ATS allows HR teams to collaborate more effectively by providing a centralized platform to manage candidate data. All team members can access the same information, which reduces communication errors and improves collaboration. This ensures that everyone is on the same page and makes the recruitment process more efficient.
4. Improved Data Management
Recruitment generates a large amount of data, such as candidate profiles, resumes, and interview notes. ATS provides a centralized platform to store and manage this data, which makes it easier to analyze and report on. This helps HR teams to make more informed decisions and improve their recruitment strategies.
5. Cost Savings
ATS can save organizations a significant amount of money by reducing the time and resources required for recruitment. For example, it eliminates the need for manual resume screening and reduces the number of interviews required. This leads to a faster time-to-hire and reduces recruitment costs.
6. Improved Compliance
Recruitment is subject to various legal requirements, such as equal employment opportunity laws and data privacy regulations. ATS helps organizations comply with these regulations by providing a platform to track and manage compliance-related information. This reduces the risk of legal issues and ensures that the recruitment process is fair and transparent.
7. Better Candidate Quality
ATS helps to improve the quality of candidates by using algorithms to screen resumes and match them with job requirements. This ensures that only the most qualified candidates are considered for the role, which improves the quality of hires. It also reduces the risk of bias in the recruitment process, as ATS uses objective criteria to screen candidates.
Limitations of ATS Recruitment
ATS recruitment has become an essential tool for many organizations, helping to streamline recruitment processes and increase efficiency. However, it is essential to recognize the limitations of the system, which can have significant implications for the recruitment process. Organizations must be aware of these limitations and take steps to address them to ensure that they are not missing out on top talent
1. Limited Search Capabilities
One of the most significant limitations of ATS recruitment is the system’s limited search caphe system. The system works by scanning resumes and applications for specific keywords and phrases. This approach means that candidates who have transferable skills or experiences that may be relevant to the position but do not use the same specific language as the job description, may not be identified or ranked highly by the ATS.
According to a study by Jobscan, an online tool that helps job seekers optimize their resumes for ATS, job applicants who do not use the specific language of the job posting are 72% less likely to get an interview. This limitation can lead to a lack of diversity in the candidate pool, as candidates from non-traditional backgrounds or who have transferable skills may be overlooked by the ATS.
2. Lack of Personalization
Another limitation of ATS recruitment is the lack of personalization. With the high volume of applications received through an ATS, it can be challenging to provide personalized feedback to each applicant, which may leave them feeling undervalued. Candidates may receive automated responses or generic rejection letters, which do not provide them with any useful feedback or insights into the recruitment process.
According to a study by Talent Board, an organization that specializes in candidate experience, only 35% of candidates who applied for a job through an ATS received personalized feedback, compared to 60% of candidates who applied through other methods.
3. Risk of Unconscious Bias
While ATS recruitment is designed to eliminate bias in the recruitment process, there is still a risk of unconscious bias. The system can be programmed to ignore specific factors such as gender, age, and ethnicity, but it cannot completely eliminate unconscious bias in the recruitment process.
According to a study by the Harvard Business Review, even when the hiring process is anonymous, gender bias can still influence the recruitment process. The study found that when a resume was presented with a male name, it was more likely to be selected than the same resume presented with a female name.
4. Inability to Assess Soft Skills
Another limitation of ATS recruitment is the inability to assess soft skills, such as communication, teamwork, and leadership. ATS systems are primarily designed to scan resumes for specific keywords and phrases, making it difficult to evaluate soft skills, which are often essential for success in a role.
According to a study by LinkedIn, 92% of talent acquisition professionals believe that soft skills are just as important as hard skills. However, the study also found that 89% of those professionals struggled to assess these skills during the recruitment process.
5. Lack of Transparency
Another limitation of ATS recruitment is the lack of transparency in the recruitment process. Candidates may not be aware of how their application is being assessed or why they were not selected for an interview. This lack of transparency can lead to frustration and damage the organization’s reputation.
According to a study by CareerArc, 72% of job seekers who had a negative experience during the recruitment process shared their experience on social media. This negative feedback can harm the organization’s reputation, making it more difficult to attract top talent in the future.
Challenges of using candidate match in ATS recruitment
These systems are designed to streamline the hiring process by filtering out unqualified candidates and highlighting those that meet the criteria specified by the employer. However, the effectiveness of these systems has been called into question, with many studies pointing to several challenges associated with using candidate matches in ATS recruitment. This article explores some of these challenges and offers insights into how companies can navigate them.
Challenge 1: The Reliance on Keywords
One of the most significant challenges of using candidate match in ATS recruitment is the reliance on keywords. Keywords are an essential component of ATS systems, as they help to identify the most relevant candidates for a given job posting. However, the use of keywords can also be problematic, as it can lead to the exclusion of potentially qualified candidates who do not use the same language as the job posting.
Studies have shown that keywords can be biased and favor candidates who are skilled at gaming the system by adding more keywords to their resumes. This can lead to qualified candidates being overlooked, especially those from diverse backgrounds who may not have had the same opportunities to learn and use the language used in the job posting.
According to a report by Indeed, nearly half of all job seekers tailor their resumes to include keywords that match the job posting, even if they don’t have the experience or qualifications. This can lead to a situation where the best candidate is not identified because they did not include the same keywords on their resume.
Challenge 2: Inflexibility of ATS Systems
Another challenge associated with using candidate match in ATS recruitment is the inflexibility of the systems. ATS systems are designed to match job requirements to candidate qualifications, but they do not take into account other factors that may impact a candidate’s suitability for a position. For example, an ATS system may filter out a candidate who does not have the exact number of years of experience listed in the job posting, even though they may have the necessary skills and experience in related fields.
Studies have shown that the inflexibility of ATS systems can lead to qualified candidates being excluded from the recruitment process. In a study by TalentWorks, it was found that only 2% of candidates who applied to a job posting received an interview. This low rate of success can be attributed to the inflexibility of ATS systems and the fact that they do not take into account factors beyond the specific job requirements.
Challenge 3: Limited Ability to Assess Soft Skills
Another challenge associated with using candidate match in ATS recruitment is the limited ability of the systems to assess soft skills. Soft skills, such as communication, teamwork, and problem-solving, are essential for success in many jobs but are difficult to assess using traditional ATS algorithms.
Studies have shown that the lack of consideration for soft skills in ATS systems can lead to the exclusion of qualified candidates. In a survey by LinkedIn, 89% of hiring managers said that it is difficult to find candidates with the right soft skills. This highlights the need for a more holistic approach to candidate assessment that takes into account both technical qualifications and soft skills.
Challenge 4: Inability to Recognize Contextual Information
ATS systems are also limited in their ability to recognize contextual information. For instance, if a candidate has a gap in their employment history, an ATS system may automatically reject their application, even if they have a valid reason for the gap. This can lead to the exclusion of qualified candidates who may have experienced personal or professional challenges.
Challenge 5: Difficulty in Attracting Diverse Candidates
Another challenge of using candidate matches in ATS recruitment is the difficulty in attracting diverse candidates. According to a report by McKinsey, companies with diverse workforces are more likely to outperform their peers. However, ATS systems may prioritize candidates with similar educational backgrounds or experience, which may limit the diversity of the candidate pool.
Challenge 6: Importance of Context
Another challenge of using candidate matches in ATS recruitment is the importance of context. While keyword matching can help identify relevant resumes, it does not necessarily capture the context in which those keywords are used.
For example, a candidate may have experience with a particular software program, but that experience may be limited or not relevant to the job they are applying for. On the other hand, a candidate may not have direct experience with a particular software program, but they may have transferable skills that make them a suitable candidate for the job.
A study by TalentWorks found that the likelihood of getting an interview increased by 2.6 times when a candidate’s resume was customized to the job description, compared to a generic resume. This indicates that context plays a crucial role in determining a candidate’s suitability for a job and that relying solely on keyword matching may not be sufficient.
Challenge 7: Impact of Unconscious Bias
Another challenge of using candidate match in ATS recruitment is the potential impact of unconscious bias. Unconscious bias refers to the implicit associations and stereotypes that people hold about certain groups of people, which can influence their decision-making.
Research has shown that unconscious bias can affect recruitment decisions, particularly in the screening stage where candidate match algorithms are often used. A study by the National Bureau of Economic Research found that resumes with “white-sounding” names received 50% more callbacks than identical resumes with “African-American-sounding” names.
This highlights the importance of mitigating unconscious bias in recruitment processes, particularly in the use of candidate match algorithms. Recruiters should be aware of the potential for bias in their decision-making and take steps to minimize its impact.
Challenge 8: Need for Transparency
Finally, a key challenge of using candidate match in ATS recruitment is the need for transparency. Candidates often have little insight into how candidate match algorithms work or how their resumes are being evaluated. This lack of transparency can lead to frustration and mistrust among job seekers, particularly if they feel that they have been unfairly excluded from the recruitment process.
A study by the Harvard Business Review found that job seekers were more likely to have a negative perception of a company if they felt that the recruitment process was unfair or lacked transparency. This can have a negative impact on an organization’s reputation and ability to attract top talent.
Best ATS Software
1. Workable
Workable is an ATS system designed to streamline recruitment processes for small to medium-sized businesses. The system includes features such as job posting, candidate tracking, and reporting. Workable’s user-friendly interface and easy-to-use tools make it an excellent option for businesses that do not have a dedicated HR department.
Workable’s ATS also includes features such as interview scheduling, candidate assessment, and integrated communication tools. The system also integrates with various third-party tools, including LinkedIn and Indeed, making it easier for businesses to post jobs and source candidates.
2. JazzHR
JazzHR is a comprehensive ATS system designed for small to medium-sized businesses. The system includes features such as job posting, resume parsing, and interview scheduling. JazzHR’s reporting tools also make it easy for businesses to track their recruitment metrics and make data-driven decisions.
JazzHR’s ATS also includes features such as candidate assessment, customizable hiring workflows, and integrated communication tools. The system also integrates with various third-party tools, including LinkedIn and Indeed, making it easier for businesses to post jobs and source candidates.
3. Lever
Lever is an ATS system designed for medium to large-sized businesses. The system includes features such as job posting, candidate tracking, and reporting. Lever’s user-friendly interface and customizable hiring workflows make it an excellent option for businesses with more complex recruitment needs.
Lever’s ATS also includes features such as interview scheduling, candidate assessment, and integrated communication tools. The system also integrates with various third-party tools, including LinkedIn and Indeed, making it easier for businesses to post jobs and source candidates.
4. SmartRecruiters
SmartRecruiters is a cloud-based ATS system designed for businesses of all sizes. The system includes features such as job posting, candidate tracking, and reporting. SmartRecruiters’ user-friendly interface and customizable hiring workflows make it an excellent option for businesses with complex recruitment needs.
SmartRecruiters’ ATS also includes features such as candidate assessment, integrated communication tools, and a mobile app. The system also integrates with a variety of third-party tools, including LinkedIn and Indeed, making it easier for businesses to post jobs and source candidates.
5. Jobvite
Jobvite is a comprehensive ATS system designed for businesses of all sizes. The system includes features such as job posting, candidate tracking, and reporting. Jobvite’s advanced reporting tools and analytics make it easy for businesses to track their recruitment metrics and make data-driven decisions.
Jobvite’s ATS also includes features such as candidate assessment, integrated communication tools, and customizable hiring workflows. The system also integrates with a variety of third-party tools, including LinkedIn and Indeed, making it easier for businesses to post jobs and source candidates.
Above are some of the best ATS available in the market, you can explore more options in our HRTech Radar.
Closing Thought
A candidate match score is a valuable tool for hiring managers that enables them to quickly and objectively evaluate candidates based on their qualifications and skills. By using an ATS to generate the match score, the recruitment process is streamlined, reducing the time and effort required to identify the most suitable candidates. Additionally, the candidate match score helps to reduce bias in the hiring process, ensuring that candidates are evaluated based on their qualifications rather than subjective factors. Overall, the candidate match score is an essential component of modern recruitment processes, providing a fair and objective way to assess candidates’ suitability for a given role.
HR Technology News: HR Technology Highlights – HR Tech Daily Round-Up For 12th April 2022
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