Greenhouse report reveals majority of resource-strapped HR managers leaning on AI for efficiency

Greenhouse, the hiring operating system for people-first companies, has released its EMEA HR Manager AI & Bias Pulse Report, revealing both optimism and concern with artificial intelligence (AI) in recruitment and hiring processes. The survey of 1,700 HR Managers in the UK, Germany, and Ireland found that nine out of ten (89%) are using AI tools in their HR departments. With layoffs often hitting HR and recruiting teams the hardest, close to two-thirds of the resource-strapped departments (65%) say the greatest benefit of AI in the hiring process is efficiency.

Other benefits of AI reported include the ability to find the most suitable and skilled candidates (47%), better candidate matching (44%), reducing the effect of bias (43%), and automating repetitive tasks (42%). Despite the benefits of AI, there are challenges to overcome. While 44% of HR Managers say that AI will make hiring decisions for humans in the future, 35% say it has made wrong hiring decisions.

AI as a recruiting assistant, not a replacement

Almost half of respondents (47%) say they cannot fully trust AI hiring tools, and 34% say that AI will introduce more bias in all areas of recruitment. Two-fifths of hiring managers (40%) are concerned that AI is introducing further bias against historically underrepresented groups. AI should assist, but not replace, hiring decisions made by human beings, and close to half (47%) of HR Managers are worried about over-relying on AI without human oversight.

“It’s no surprise that resource-strapped HR departments are excited about the benefits of AI. Our findings show that many believe AI will replace humans in decision-making, yet 35% say AI has made wrong hiring decisions. There is no evidence to believe that AI is capable of making end-to-end hiring decisions without human intervention,” said Henry Tsai, Chief Product Officer at Greenhouse. “Efficiency should not come at the expense of fairness. There’s just no good business or moral reason to hand the wheel to AI when we are aware of its existing flaws and risks. AI in hiring is an assistant, not a replacement.”

Despite AI concerns, human biases continue to plague the hiring process

While HR Managers are concerned about AI’s potential for bias, the majority have failed to recognize their own biases are continuing to plague the hiring process. More than 68% of respondents say candidates’ educational background would sway their hiring decisions. Close to one in every five HR Managers (17%) say that they only hire from the most prestigious universities in the region. The findings show that just 12% say educational background has no bearing on whether a candidate has the skills and capabilities to be successful in a role. Furthermore, 56% of respondents would be more inclined to hire a candidate with a similar background to their own.

“While many are concerned about the risks of AI introducing bias, HR Managers have failed to recognise their own biases that are plaguing the hiring process,” said Colm O’Cuinneain, GM of EMEA at Greenhouse. “Candidates should be judged on their skills and capabilities, rather than the privilege of having access to prestigious university educations and degrees that have no indication of whether a candidate will be successful in the role.” 

Additional findings from the report highlight:

• The main AI tools HR Managers have adopted in their hiring processes include; generative AI (59%), digital admin software (49%), resume filters (48%), digital one-way screening interviews (43%), candidate filtering (43%), and AI screening tools (40%)
• When deciding between two candidates, 53% of HR Managers would favour the candidate with the higher degree
• Only 27% of HR Managers say a candidate’s background similarities to their own have no impact on their hiring decisions
• Over half (52%) say a distributed workforce has created cost savings in their organisations and 29% have implemented AI to support remote workers
• Close to two-thirds (63%) of HR Managers have noticed increased internal mobility in their organisations
• Six in every ten say internal mobility is a positive retention tool and 56% say AI led to more internal mobility within their organisation.
• Yet, 28% do not believe their internal mobility processes are fair and transparent

For access to the full results from the 2023 EMEA HR Manager AI & Bias Pulse Report Report visit the Greenhouse site here.

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