Small-Business Hiring: Why AI Interview Bot Should Be Your Next Investment

At PreScreen AI, we are dedicated to making advanced talent acquisition technology more accessible to SMBs. That’s why we regularly look for insights into what matters for SMBs and the issues they face. A survey conducted by The Society for Human Resource Management (SHRM) shows that 24% of midsize organizations (defined here as having between 100 and 499 employees) are using automation based on AI already. However, only 16% of small businesses have incorporated the tools so far.

 In fact, larger companies are much more likely to use AI than smaller ones. For the 84% of small-business owners who aren’t using AI, the main reasons are that they don’t feel it would help their business and don’t understand how to use AI, according to a survey conducted by Salesforce. 

As an HR leader at a small- or midsize business (SMB), you might find yourself in between these two groups—interested in the benefits AI could bring to your organization but unsure of how this technology and AI recruitment strategies, in particular, can transform your business function.

Let’s now explore why small and mid-scale organizations should consider AI recruiting investment.  Small businesses often lack resources. This means that employees are working countless hours on tasks that could be easily automated with AI. Not only will automating repetitive tasks save those employees from burnout down the line, but it will also free up valuable time for them to focus on higher-value activities. Case in point: Out of all the SMBs that implemented AI out there, 91% have seen an increase in success.

Given the stiff competition with larger corporations, If SMBs want to thrive — rather than simply survive — in the era of AI and recruitment innovation, it’s crucial that they’re able to use AI recruiting solutions as well as the latest advancements in this technology, for instance, intelligent chatbots for interviewing candidates, just like the big guys do. 

Understanding how other HR departments take advantage of AI recruitment strategies will help you determine whether your SMB could benefit from implementing AI talent acquisition.

How Do AI Recruiting Solutions Work?

Most AI recruiting solutions use artificial intelligence (AI), natural language processing (NLP) and machine learning (ML) technologies to yield impressive automation and advanced data analysis to professionals and organizations that employ them. 

At PreScreen AI, we have developed an innovative recruitment bot to interact with applicants and conduct preliminary interviews. At its heart, a recruitment bot is simply a software application that attempts to mimic human conversation. When an applicant interacts with this AI interviewer, the NLP algorithms used by the system comprehend as well as decipher what they say. After that, the recruitment bot comes up with appropriate responses thus ensuring smooth and engaging conversations.

Strategic Hiring with AI Recruitment Bot

AI recruitment bot is designed to automate the stage of candidate pre-qualification. The first step in preparation for the AI interview is screening the role requirements resume as well as the candidate’s resume (if it’s available). The recruitment bot uses AI algorithms that quickly scan and analyze these sources for relevant qualifications, skills as well as experiences to create tailored interview questions for each applicant.

After this stage, the system creates interview invitations for each candidate, and the recruitment bot can perform initial interviews with potential employees whenever it’s convenient for them. The bot asks some questions during an interview session, listens to the responses given by the candidate and analyses them using set guidelines. Advanced NLP algorithms and sentiment analysis capabilities allow the recruitment bot to measure the applicant’s job suitability in terms of technical expertise and soft skills. The complete evaluation of the candidate is then presented to the recruiter in the form of an interview summary.

Tangible Benefits of AI Talent Acquisition

Talent acquisition technologies are revolutionizing the recruiting efforts of many companies. Due to the powerful capabilities that come at affordable pricing, AI recruiting solutions deliver a wide array of advantages for organizations of all sizes. A recruitment bot for interviews is not the exception. In a nutshell, this recruitment innovation saves time and money for SMBs while also making sure that fair and unbiased evaluations of candidates take place.

Low Costs

One of the main reasons why firms prefer to have a recruitment bot as part of their AI talent acquisition is because of substantial savings on their costs. Conventional methods often incorporate purchasing the services of recruitment agencies or maintaining an in-house HR department, both of which can be expensive for SMBs. A recruitment bot can eliminate human intervention in the initial phases of employment thereby reducing the hiring costs.

Quality Hires

Secondly, the recruitment bot has an ability to analyze a candidate’s tone and sentiment during the interview. It is very helpful to SMBs while measuring communication skills, personality traits, and fit into company culture in general. Using this data will allow SMBs to make better decisions about who they hire so that they find people who will match their goals and values within a company structure. Ultimately AI recruiting solutions help small and mid-scale organizations make quality hires, avoid extra expenses associated with mis-hires as well as foster more cohesive work environments.

Objective Evaluations

Talent acquisition technology provides objective evaluation of candidates based on standard criteria, unlike humans who might be influenced by their preconceived ideas. Recruiters may tend to be subjective when carrying out interviews which might affect hiring decisions. Interviewer bots have predetermined queries alongside evaluation standards thus ensuring that all applicants are fairly assessed. Taking advantage of AI recruitment strategies, companies make informed choices based on competence rather than sentiments.

Competitive Advantage

Besides helping to save costs and enhance efficiency, talent acquisition technology can make SMBs more competitive in the labor market. When the preliminary stages of recruitment are automated, businesses attract potential hires and communicate with them better. This enables SMBs to always be ahead in their search for top talents by identifying quickly and securing the right personnel who will push the organization towards growth and success.

Although it may require an investment of a certain amount of time and resources to embrace AI talent acquisition practices, there are long-term benefits such as cost savings, increased efficiency as well as access to elite candidates that make this an excellent addition for SMBs looking to improve their recruitment systems. These firms can use NLP and AI recruiting solutions to improve the way they hire new workers thereby attaining better than ever before recruitment goals.

Cost-Saving Statistics for SMBs Using AI Talent Acquisition

The use of digital assistants during recruiting has been proven to be very helpful for small or medium-sized firms (SMBs). This intelligent talent acquisition technology replaces expensive recruitment agencies or maintaining a large in-house HR department through automating some aspects of recruiting processes. In order to illustrate how much money and other resources could be saved with the help of AI recruitment strategies, let’s see some numbers.

• According to Deloitte research, companies that leverage talent acquisition technologies powered by AI at their selection procedures reduce time-to-hire by up to 75%. It means that SMBs may save valuable time and resources by resorting to the recruitment bot for initial interviews and prequalifying candidates.

• An Allegis Group report says traditional methods used by companies have an average cost per hire of around $4,000. In the meanwhile, recruiters leveraging AI recruitment solutions such as interview bots can lower this expense by up to 70%. Such statistics imply huge savings for small businesses most especially if they happen to hire several employees throughout the year.

• The introduction of AI recruitment strategies may lead to a decrease in the possibility of hiring mistakes that prove to be expensive. A poor hire is reported to cost between 30% and 150% of the employee’s annual salary, according to SHRM survey. In the future, using AI-enbled talent acquisition technology for consistent and equitable evaluations can help SMBs avoid wrong choices in respect to hires thereby saving time as well as money.

• Wise AI recruitment strategies also enable businesses to optimize their hiring budget by reallocating resources into other critical areas. When less reliance on costly recruitment agencies is there, it gives way for SMBs to channel funds towards employee training and development programs, marketing efforts or expansion initiatives hence leading to overall growth and success.

• AI recruiting investment translates into reduced costs through enhanced candidate experience. A CareerBuilder study showed that 78% of candidates think that the overall experience they have during the hiring process indicates how companies value their employees. Good employer branding arises when job seekers are treated well throughout the hiring cycle. With recruitment innovation like PreScreen AI, candidates can have interviews any time at their own convenience, choose either voice or chat interface and engage in meaningful natural conversations. This smart system creates a positive candidate experience, unlike script-based chatbots that fail to support fluent dialogue.

Thus, it cannot be denied that there are considerable cost savings associated with utilizing AI recruiting solutions. Cost per hire can go down dramatically as well as the time taken between posting the job advertisement and making a hire.

Still Not Sure If AI Recruiting Investment Is Worth It?

When applied to hiring, AI can be a revolution. However, there are few reasons why some organizations are reluctant to embrace AI recruitment strategies. According to the data from the Society for Human Resource Management (SHRM), the top four most frequently mentioned reasons for not using AI recruiting solutions include:

• No resources (time, money and labor) available for implementing AI recruitment strategies properly.
• Not knowing which tools would suit their needs best.
• ‘Human touch’ is missing in talent acquisition technology or AI.
• Cannot afford to implement automation or AI recruiting solutions.

Indeed, the successful implementation of any new technology into business operations requires investing time and money. When choosing talent acquisition technology for your company, it’s important to consider the key features and capabilities that align with your business requirements. Get in touch for more details on how to build a productive hiring strategy with the power of AI.