It’s the classic dilemma: How do you attract potential hires to your company that are not only bright, educated, energetic and ready to work, but who also have that little something “extra” that makes your company what it is? Today’s business culture is shifting, and finding the right mix of Baby Boomers, Gen-Xers, and Millennials can be challenging. Perhaps that’s why Unilever decided to delegate the task of choosing new hires to artificial intelligence software.
It worked. Overall, “Unilever says hiring has become faster and more accurate – 80% of applicants who make it to the final round now get job offers, and a similar number accept – and saved on recruiting costs, too,” per the Wall Street Journal. The company’s decision to use algorithms designed with the business’s needs in mind, coupled with an aggressive online recruiting strategy, has led to more than 450 successful hires for Unilever.
How does the process work?
First, Unilever placed target ads on sites like The Muse, WayUp, and Facebook. Applicants “who clicked on the ads were directed to a career site where they could apply for entry-level jobs and internships in just a few clicks, since Unilever pulls information from the candidate’s LinkedIn profile to fill out the application.” (Id.) The AI then analyzed the applicants, and those who passed muster were given 12 online “games” to play, further narrowing the pool of candidates, with only the top third asked to conduct video interviews.
The software scanned the applicants’ faces and assessed their reactions to questions. This, along with applicants’ responses, and even their vocabulary choices, determined who would be invited to conduct face-to-face interviews. Andy McAllister, a Unilever supply chain director, told the WSJ that Unilever’s new hiring process demonstrated that “the previous recruiting tactics left room for bias, since recruiters often compare applicants against their own experiences and unconsciously root for students they personally interview.” (Id.)
AI or EQ: finding the right way to find the right employees
Unilever may not be the only company relying on algorithms for its hiring practices – but the question remains: Are such hiring strategies the right choice for your company? Last year, Forbes published a piece that called AI recruiting platforms “disruptive” (in the best possible way) and “revolutionary,” and suggested that one platform, called Mya, “improves recruiter efficiency by 38% and increases candidate engagement by over 150%.”
Still, there are things that AI, in its current forms, may not be able to detect – even with the most sophisticated algorithms. We know many business owners who put more faith in emotional intelligence (“EQ”) rather than specific skillsets when it comes to their potential new hires. After all, processes and methods can be taught to new hires when they come onboard, and there is something to be said for training employees in your own methodology and practices from the ground up.
Even so, EQ is not necessarily something that can be taught, especially to people old enough to search for jobs. EQ is about self-awareness, empathy and social skills. According to Fast Company, “[y]ou want people on your team who have enough gusto to solve issues, not only before they become larger than life, but also by looking at alternative perspectives. When faced with a problem, highly emotionally intelligent people want to solve it as soon as possible. They don’t dwell on the actual issue or the outcome that has occurred.”
Employers of course want new hires to arrive with a practical set of skills and at least a hypothetical (if not working) knowledge of how to get the job done right. But they also want employees who are engaged, able to solve problems, and who will always look for ways to improve – not just because the job demands it, but because they want to grow as individuals and as team members. To this end, no software in the world is intelligent enough (yet) to determine how potential employees will react to different groups of people or how they might perform in high-pressure situations, because potential employees likely see tests that simulate such circumstances for exactly what they are – tests.
Whether or not AI is the right tool for your hiring practices ultimately depends on the type of business you have. Not every job requires a high EQ, and most of today’s workers probably already appreciate the value of EQ as a result of their efforts to integrate in society since birth. Depending on your unique circumstances, you may be better off using AI to narrow down a pool of job applicants, a list of employees up for promotion, or sticking to traditional hiring practices and recruiters.
Max Julian is a partner at Gertsburg Licata in the litigation practice group. He may be reached at (216) 573-6000 or at [email protected].
Gertsburg Licata is a full-service, strategic growth advisory firm focusing on business transactions and litigation, M&A and executive talent solutions for start-up and middle-market enterprises. It is also the home of CoverMySix®, a unique, anti-litigation audit developed specifically for growing and middle-market companies.
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