Should Computers Take Over Your Hiring Cycle?

As apps and SaaS offer greater service in the recruiting arena, is it time for humans to get out of the game? A recent study from the National Bureau of Economic Research (NBER) suggests algorithms are better equipped to make hiring decisions that boost company retention rates.  The study involved a meta-analysis of 300,000 employment records from 15 different companies. About a third of the employees hired were assessed and hired based on online personality and skills testing. Some fine points of the study include: •    The study evaluated positions that are generally considered repetitive or lower skill jobs, such as employment in a call center, or grading standardized tests. •    The retention rate for those chosen by computer was 15 percent higher than hires made by humans. •    Hires made by humans were not significantly more or less productive than those made by computer. One of the study authors, Dr. Mitchell Hoffman, notes, “It definitely suggests that more decision making powers should be given to the machine relative to the humans.” Have recruiters and hiring managers become outdated? Mind and machine—the best hiring combination Algorithms used throughout the recruiting cycle are worth the cost.  #ProjectNova, the ATS solution from OrangeHRM, uses Watson technology to offer fine-grained candidate analysis and comparison.  From cultivating social media for candidate information, to prompting specific interview questions, Project Nova is a digital recruiting assistant. But does a sophisticated ATS module dismiss the human factor?  The short answer is “no.”