Study: Hiring Will be Driven by Quality,  Intelligence During 2023

A Hiring How-To: Improved Quality, Enhanced Outcomes

The pressure of the pandemic has led both employers and job candidates to make impulsive hiring and technology decisions that haven’t always worked out, according to Modern Hire. But in 2023, the company expects to see HR leave “reactionary measures” to focus on techniques that drive efficiency, effectiveness, engagement, and ethical outcomes, said CEO Karin Borchert.

The company’s fifth annual Hiring Trends Report expects “chaotic labor conditions” to continue through 2023, with some industries scrambling for candidates while others are forced into conducting layoffs. At the same time, companies should better understand and optimize their hiring technology.

Modern Hire’s analysis identified three trends supporting this narrative: 

Renewed Focus on Quality of Hire. During the last year, many employers their standards to maximize speed-to-hire. But leading organizations recognized that hiring right the first time is vital to retention and creating value. In addition, the skills and competencies needed for most jobs are more complex and more urgent than they were even a few years ago, as “digital, 21st Century” skills become table stakes.

More Responsible Use of AI in Hiring. Research shows that AI has come of age as a tool that can accelerate quality hiring at scale, while minimizing the bias that is inherent with human evaluations. Globally, nearly half (45%) of companies now use AI to improve their recruiting and HR. However, it’s important to remember that AI-driven automation and scoring have been scrutinized by city and state agencies and regulators worldwide for their potential to introduce different types of discrimination into the hiring process.

The new year will bring meaningful steps forward with more laws encouraging transparency, fairness and the protection of individual privacy to help address the confusion, misuse and uncertainty in the marketplace, the report said.

Intelligent interviewing. The traditional interview process is under real pressure in 2023, as science and next-generation technology address the urgency felt by companies and the frustration felt by candidates, to move the interview experience up a notch, the report said. The next level “intelligent interview” is one that uses data and candidate feedback to continuously learn, improve and evolve. More specifically, an intelligent interview embraces:

  • The use of science, analytics and AI for greater automation and insight along with reduced bias 
  • Clarity, accessibility, transparency and “humanity” in the candidate experience
  • Global candidate reach through multilingual capabilities and support for international talent markets.
  • Seamless workflows and extreme ease of use.

In 2023, advanced interview technology will include built-in structured interviews across job families and roles. This will help create a process that is more objective, authoritative and consistent. Augmenting this with automated AI-based scoring provides an objective and fair way to evaluate candidate responses to interview questions.

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