Why recruiters are overwhelmed and top-tier talent is being overlooked.
Corporate job postings typically attract an average of 250 applications, underscoring the fierce competition in today’s job market. Candidates, in turn, must submit hundreds of applications to secure a position, often 100 to 200+. However, while Applicant Tracking Systems (ATS) systems boost efficiency - 94% of recruiters report their positive impact - the growing reliance on automation comes with a cost. Filters and algorithms often prioritize narrowly defined experiences, unintentionally screening out adaptable, high-potential candidates. This dynamic reflects the ongoing tension between efficiency and equity in the hiring process.
With platforms like LinkedIn and Indeed experiencing unprecedented numbers of job applications, TA teams are overwhelmed, forcing them to prioritize speed over quality. This shift, while necessary for handling the volume, often results in missed opportunities for high-caliber talent. Meanwhile, candidates face the frustration of applying to hundreds of jobs just to get noticed, diluting their chances of standing out with tailored applications in a highly competitive market. This flood of applications negatively impacts both employers and candidates, as it strains recruiters and diminishes the candidate’s ability to tailor their application - a critical strategy for standing out in today’s competitive job market.
Despite the ongoing competition, the influx of applications shows no sign of slowing. As a result, TA teams are increasingly relying on ATS systems to streamline recruitment. However, these systems have limitations. ATS often prioritize specific keywords and experience over broader skills and potential, unintentionally excluding highly qualified candidates. Research by Fisher Phillips has shown that automation can perpetuate biases by favoring candidates whose CVs closely match predefined role requirements. This phenomenon, known as "automation bias," occurs when decision-makers place too much trust in AI-driven recommendations, often overestimating their accuracy compared to human judgment. Consequently, candidates with diverse or non-traditional career paths may be overlooked, even when they possess the skills and potential to excel in the role.
How to address these challenges?
Implement skills-based hiring practices
Shifting from experience-based filters to skills-based hiring is a powerful way to combat the limitations of automated screening. According to a McKinsey report, organizations that prioritize skills over job titles are able to tap into a broader and more diverse pool of candidates, which is crucial for mitigating the effects of automation bias.
Use AI and automation to augment, not replace, human judgement
While AI and automation can help streamline the hiring process, human oversight remains essential. By using AI to handle the administrative tasks of recruitment - like CV parsing and initial screening - hiring teams can still ensure that candidates with unconventional career paths are considered. However, AI-driven tools must be continuously monitored and adjusted to reduce bias.
Outsource recruitment to a specialized firm
Outsourcing recruitment to a recruitment process outsourcing (RPO) provider can alleviate the strain on internal teams, allowing them to focus on higher-level tasks while leveraging external expertise to manage the recruitment process. RPO providers are equipped with advanced screening technologies and a deep understanding of industry-specific talent pools. They can also bring a human touch to recruitment, ensuring that diverse candidates are not unintentionally overlooked due to reliance on automated filters. Additionally, RPO providers often have the capacity to perform in-depth candidate assessments, identifying transferable skills and cultural fit beyond the scope of traditional ATS filters.
As the volume of job applications continues to rise, TA teams face mounting pressure to filter through an overwhelming number of candidates. While automation and ATS systems offer efficiency, they often overlook talented individuals with broader, transferable skills. To combat this, organizations must rethink their approach by prioritizing skills-based hiring, augmenting AI with human judgment, and considering external expertise through RPO providers. By making these adjustments, companies can not only streamline their recruitment process but also ensure they are uncovering the best and most diverse talent available, ultimately leading to stronger, more dynamic teams.
