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Navigating AI’s Impact on Talent Assessment in 2024 & Beyond

Artificial intelligence, automation, and other digital platforms are disrupting the fundamental nature of work and constraining businesses’ in upskilling their workforces to deal with these changes. In today’s digital workplace, there is no one skill or set of skills that will guarantee performance success for the business. Research shows that 70% of organisations do not know how to identify the required competencies to navigate through the digital landscape. So, how can companies build a skilled and agile workforce that is ready to handle the changes brought by the digital transformation? Talent assessments can empower companies by identifying employees who are most likely to acclimatise to the new change by identifying the necessary competencies.

Today’s talent assessments use technologies like Artificial Intelligence enabling focus on soft skills and employee experience. While these advancements promise precision, objectivity, and speed, concerns about credibility and fairness emerge. For instance, some individuals may not perform well when recorded during assessments, raising doubts about the technology’s accuracy. Moreover, AI systems learn from human data, which can perpetuate bias and prejudice, potentially leading to discriminatory outcomes. So, the question remains: Is integrating AI in talent assessments more advantageous or problematic? Let’s explore the benefits and concerns in-depth.

Benefits of AI in Talent Assessments :

1. Objective Evaluations :

During bulk hiring, assessing thousands of candidates can be an overwhelming challenge for human evaluators. The sheer volume of data makes it practically impossible to guarantee the selection of the right candidate for the job. Conversely, AI can swiftly skim through vast amounts of information, analysing candidates within a fraction of a second to deliver objective results. By working based on predefined criteria, it evaluates each candidate against job-related skills, qualifications, and experience, eliminating subjectivity and bias from the evaluation process. Moreover, AI empowers evaluators to rewatch video assessments and analyse them with a fresh, objective perspective. This allows them to identify the perfect fit for the role and make well-informed decisions.

2. Find The Right Culture Fit :

SHRM reports that hiring someone with a poor culture fit can result in high turnover, costing an organisation between 50%-60% of the person’s annual salary. AI-powered assessments go beyond mere skills and experience, evaluating candidates holistically by focusing on their behaviours and attitudes that align with the company culture. Through a comprehensive analysis of candidates’ response to questions, tasks, and data collected from surveys and interviews, AI accurately assesses whether a candidate is a perfect fit for the organisation’s culture.

3. AI Proctoring :

Alarming research reveals that one in every two candidates cheat during entry-level job assessments, making it increasingly challenging to find the right candidate. Traditional assessment evaluations lack comprehensive proctoring through all three channels – video, audio, and image allowing malpractices to thrive in online assessments. On the other hand, AI-powered proctoring technologies prove to be a game-changer in preventing cheating during online job assessments. These innovative tools effectively eliminate instances of malpractice, delivering secure and reliable results. By combining artificial intelligence with manual review, companies can detect fraud and uphold the integrity of their online assessments.

Concerns of AI in Talent Assessment :

1. Potential for Bias and Discrimination :

While AI holds the potential to reduce bias in decision-making, it is not entirely bias-free. AI systems typically rely on past data that is fed into the system. If the training data contains biases or reflects discriminatory practices, the AI system may generate results that contradict human judgement. For instance, if the AI system is fed data from a company that historically hired candidates exclusively from a certain school background, it may inadvertently favour candidates from that specific background, unfairly disadvantaging others. This opacity in datasets and decision systems can lead to biased outcomes, detrimentally impacting employee engagement, morale, and productivity.

2. Algorithm Aversion :

Despite algorithms outperforming human judgement, many individuals still prefer relying on gut instinct due to mistrust in AI’s decision making. This phenomenon is known as algorithm aversion. Surprisingly, even though algorithms can effectively remove bias from decision-making, a study found that employees perceived HR decisions based on algorithms as less fair compared to human decisions. Algorithm aversion stems from a limited understanding of AI’s inner workings, its control over decision-making, and a lack of transparency. Assessors may feel uneasy explaining why an AI-based decision was made, leading to potential employee dissatisfaction. As a result, it is critical to understand how AI works and how it can be used to improve assessment processes.

3. Lack of Human Touch :

Research reveals that over 77% of candidates searching for a job in the past five years prefer human interaction. Relying solely on automation during candidate screening could lead to missed opportunities for great fits. Additionally, AI interactions during assessments may struggle to understand human language and emotions, resulting in candidate frustration and disengagement from the process. The lack of human touch in assessments can negatively impact the candidate experience, hindering their connection with the company and its culture.

The journey we’ve embarked on leaves no room for doubt – AI adoption is the way forward. With technology’s relentless progress, AI-driven assessments are propelling us into the future at an unstoppable pace. Embracing these advancements is no easy task, especially when it comes to building and utilising generative AI systems based on a company’s own knowledge content. However, the immense benefits that await make every effort worthwhile.

While other touchpoints demand attention, HR managers must align with HR technology, not resist it. In the right hands, artificial intelligence becomes a powerful ally, revolutionising how businesses hire and retain top talent. The result? A harmonious blend of AI-driven efficiency and human touch, propelling organisations towards long-term success and unprecedented growth.

The choice is clear: Embrace AI wholeheartedly and unlock the true potential of talent assessments for a brighter, prosperous future. Wondering where and how to start? Discover how our assessment development centre service can transform your talent assessments and drive exceptional results. Learn more at: https://bit.ly/3YqrCzU

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