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Abstract

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ABSTRACT

This dissertation is set out to consider the role of artificial intelligence (AI) and its impact of
growing influence it is having within the recruitment segment of IT Industry. This research
considered how AI is influencing employers of IT Companies and candidates, specifically
throughout the initial stages of the recruitment process. With limited academic research
conducted till date, AI has been accepted, by practising recruitment specialists, as being
“game-changing for HR” (May, 2016, p.6). The overarching aim of this research was to study
and recommendations on how recruitment processes could be changed after the integration
of AI in IT Firms.

Technology has always held an influence within the recruitment scene, reducing costs and
delivering increased effectiveness in recruiting candidates (Okolie, 2017, Singh, 2003).
However, the US Department of Labour suggested recruitment, as it stands, is only 16%
effective (Clear Fit). If this is the case, the introduction of AI provides the opportunity to
achieve significant improvements. According to Bullhorn (2018), these early improvements
are likely to effect the sourcing and screening of candidates, the initial stages of the
recruitment process.

Due to the lack of academic literature regarding AI’s influence on the recruitment industry in
IT Firms, an Integrative literature review was conducted to develop new perspectives on the
topic (Saunders et al., 2016). As a result both scholarly literature and professional sources
were used. To develop a structured analysis of these sources, thematic analysis was used
(Braun et al., 2006). These themes were taken from arguments made in the literature
surrounding the impact and influence that AI could have in recruitment. The themes of ‘risks
and limitations’, ‘bias and inclusion’ and ‘technicalities and opportunities’ guided a framework
for primary research to be conducted.

In order to assess the potential impact that AI may have on recruitment processes in IT
Firms, three forms of research were undertaken. Semi structured interviews were conducted
with nine experts in varying fields surrounding recruitment and AI in major CMM5 Level IT
Firms. An online survey with 132 respondents provided insight into a candidates pre-existing
perceptions of recruitment processes. Finally, an observation of a round-table event was
conducted in order to analyse the key themes, thoughts and concerns of experts that exist
currently within the field of AI in HR.

This paper concludes with the suggestion of a newly formed recruitment process. This
process integrates significant structural and technological change in recruitment but enables
HR teams to maximise the efficiency and effectiveness of their talent acquisition. As a result,
the standardised process of recruiting for roles will need to be flipped, from trial and error, to
a ‘test for success’ model.

Keywords: IT Recruitment, Recruitment management, digital recruiting, AI, AI-based


recruitment, Technology
ABSTRACT
Globalization, information technology and recent social trends, have added more
pressure on organizations to redefine themselves and update. There has been an
increasing trend of adopting Artificial Intelligence (AI) technologies within the business
environment throughout the last two decades. Organizations have been undergoing
fundamental changes in the nature of work, and more importantly, in their recruiting
procedures, triggered by the ever faster and omnipresent digital evolution process
(Ployhart, 2006). Tremendous amounts of data are entailed by this digitization shift, the
amount of which is so great that humans are not capable of processing and interpreting
them. Neither are hiring managers of bigger organizations able to do so since they have
to check dozens of applications, which is especially time-consuming and, consequently,
quite costly for their companies. Besides these trends, there is a scarcity of legible
workforce in IT sectors. As a result, several employers and organizations are struggling
with finding and retaining talented employees with essential skills (Hanin, Stinglhamber,
& Delobbe, 2013; Saks, 2005).

Based on the fact that talent is valuable, not easy to imitate or to substitute, and rare,
organizations that can better attract, recruit and retain talented candidates will
probably outperform those which are not able to do so (Ployhart, 2006). Adequate
recruitment has therefore become the main issue for numerous companies (Jarrahi,
2018; van Esch & Black, 2019; Webber, Detjen, MacLean, & Thomas, 2019). It is vital for
both organizational survival and the achievement of competitive advantage (Ployhart,
2006). With regard to the fact that such rare and skillful employees can have a positive
effect on organizational outcomes, it is of great importance for companies to find them
before competitors seduce them.

Therefore, this dissertation aims to first find out what kinds of modern digital and online
tools and AI-supported technologies is being used by the Hiring Mangers and recruiters
in their hiring process and how much the use of AI is impacting the hiring process and
presents an unbiased literature review depicting the different perspectives put forward
by various authors regarding adoption of AI, future and risk associated with AI in
recruitment in IT Companies.

The data for this dissertation was gathered via online survey questionnaire and was
analyzed. It has been concluded that AI provides promising solutions for IT recruiters to
optimize recruitment process by taking over time-consuming repetitive tasks such as
sourcing and screening applicants. But there have been issues over cost of development
of such systems, security, etc. such concerns, are noted and discussed in-depth in this
dissertation.

Keywords: IT Recruitment, Recruitment management, digital recruiting, AI, AI-based


recruitment, social media recruiting, Technology

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