How AI is Changing Corporate Recruiting

Harvard Business manager, the German offshoot of the renowned Harvard Business Review, recently published an article on the role of artificial intelligence in recruiting written by Professor Fabiola H. Gerpott, Chair of Leadership at WHU – Otto Beisheim School of Management, and alumna Dr. Annika von Mutius, co-CEO of HR start-up Empion. In “So finden Sie Bewerber, die gar nicht auf Jobsuche sind” [How to Find Applicants Who Aren’t Even Looking for a Job], the research duo tackles the problem that many recruiters only look at one’s technical skills, which often leads to them overlooking how well a candidate matches the company culturally. In research, this is known as “person-organization fit.” And according to the authors, if the fit is not correct, then that employee’s performance will often fall short of expectation.

According to Professor Gerpott and Dr. von Mutius, this phenomenon is partially the result of HR departments continuing to be rather skeptical of AI. The duo suggests making use of the four-level, AI-supported recruiting system they have developed, designed to help companies determine where they stand in relation to their competition on this matter. They also advocate using AI algorithms to determine cultural fit between employer and job applicant, which results in more cost-effective and efficient recruiting, and using social media platforms (e.g., TikTok and YouTube) to find suitable candidates. This helps companies reach large demographics already in their purview and even reach people before they start actively looking for a new job. “The field of HR needs to be more courageous to change, to innovate, and, above all else, to implement and trial AI systems,” the authors note in their article.

The full article can be found in the latest issue of Harvard Business manager or online here (in German).