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
Modern Hire, the leading enterprise hiring platform for video interviewing and pre-hire assessments, in partnership with Aptitude Research,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.
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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.
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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.
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