AI, pay, alignment, and recruitment

August 27th, 2024 | Industry News

The massive and complex impact of AI on company missions and goals has become a significant factor in recruitment in the past 12 months. Why? Because AI has influenced who is recruited and why, who is laid off and why, and that has caused many organisations to reassess their goals – and many employees to reconsider their commitment to their employer.

Recruiting software focuses on skills, achievements and productivity – the things employers most desire in a recruit. But candidates are increasingly aware that they are viewed as disposable elements in a strategy that focuses on productivity above loyalty. There’s some substantial evidence for this in a recent survey from the USA. The average pay rise there in 2024 was 4.1%, a decline from the 2023 average of 4.5%. 47% of US companies say that their wage budgets for 2024 are lower than for the previous year too, and 38% of employers say that they’re struggling to fill roles compared to 57% two years ago. AI has effectively presented itself, at least in the early stages of its impact, as a cost-effective alternative to human employees. As companies apply AI to roles in an attempt to reduce wage bills, current and potential future employees view those companies as being less aligned to their workforce and more aligned to operational efficiency.

AI and online recruitment software

While most of the impact of AI has been seen in its screening and assessing role in the early stages of recruitment, the momentum of AI in reducing job security and influencing the job security of staff is creating a sense that organisational priorities and goals are changing so rapidly that nobody can feel safe.

Web based recruitment software can help both employers and employees by moving as rapidly as the environment does, although this does require HR departments to be able to keep up with these changes. Thinking about employment as being a contingent activity – something that exists when an organisation has need for specific skills, is something that employees can do to give themselves greater resilience and recruitment management software can play a role in helping candidates to see how they can use their skills in a variety of ways to leverage income; including temporary and part-time roles, gig economy work and entrepreneurship.

Data led employment decisions

Recruitment database software can also help with good decision making, as companies need great data and analytics to develop suitable strategies if they are to themselves survive this new challenge to productivity.