Recruitment is broken, what are businesses doing to fix it? | FT Working It

Summary

The video script addresses the growing skills shortage that businesses are facing, driven by shrinking working-age populations and the rise of generative AI. Employers are struggling to find the right talent, and traditional recruitment methods are being challenged by AI-driven applications. The script explores how companies are adapting, such as Siemens using psychometric assessments and Novartis leveraging AI for internal mobility. Despite AI's potential, the human element remains essential in recruitment, and businesses must balance technology with personal engagement to address the recruitment crisis effectively.

Takeaways

• 🤖 Businesses are struggling with a skills shortage and shrinking working-age populations, which is expected to decrease by 25% over the next 20 years.
• 📉 Recruitment is facing a dual challenge of a rapidly aging population and the rise of generative AI, which is altering traditional hiring practices.
• 🔍 Employers are overwhelmed by the volume of job applicants, with AI making it easier to apply, but finding the right talent remains difficult.
• 📈 The legal industry and other sectors are experiencing a battle for top talent, often driven by salary wars and an increasing need to retain skilled workers.
• 👵 Companies are now focusing on older workers, with the 50+ workforce expected to make up 50% of the population by 2030 in the UK, and a similar trend globally.
• 💼 AI is both aiding and complicating recruitment processes; some companies are adopting AI for aptitude assessments instead of relying solely on CVs and qualifications.
• 🧠 Neuroscience and psychology-based assessments are being used to predict how candidates will perform in specific roles, allowing businesses to assess skills beyond experience.
• 🔄 Internal talent mobility is becoming a key strategy, with companies like Novartis using AI platforms to match existing employees with new roles based on their skills.
• 🏆 While AI is improving efficiency in recruitment, biases in data can perpetuate inequalities, making it crucial for businesses to manage these systems carefully.
• 🤝 Despite the rise of AI, maintaining a human touch in recruitment is essential to truly assess candidates’ fit and foster better working relationships.

Q & A

What is the key challenge businesses are facing according to the transcript?

Businesses are facing a skills shortage, driven by a shrinking working-age population and the rise of generative AI.

How is the working-age population expected to change over the next 20 years?

The working-age population is expected to shrink by an average of 25%, while the population over 60 is projected to grow by over 40%.

What are two major factors affecting the workforce today?

The two major factors are a rapidly aging population with fewer young people entering the workforce and the rise of generative AI.

How are some industries, like law, reacting to the skills shortage?

Industries like law are offering higher salaries to attract talent, with American firms offering salaries of £150,000-£180,000, compared to the UK’s £60,000-£80,000.

What is 'unretirement,' and why is it becoming a trend?

'Unretirement' refers to the trend of older, skilled workers re-entering the workforce. It’s becoming common as businesses seek to retain and attract people in their 50s and beyond to fill talent gaps.

What challenges do employers face with the use of AI in recruitment?

AI has lowered the barriers to job applications, leading to a high volume of generic applications, making it harder for recruiters to identify truly qualified candidates.

How is Siemens addressing its recruitment challenges?

Siemens has partnered with Arctic Shores to use AI-powered psychometric assessments to recruit based on aptitude and behavior rather than just qualifications and experience.

What are the potential biases involved in AI-driven recruitment?

AI systems are trained on existing data, which can perpetuate societal biases and inequalities, potentially favoring certain candidates over others.

How is Novartis using AI to handle the talent shortage?

Novartis uses AI through a platform called Talent Match to facilitate internal moves by matching employees to opportunities within the company based on their skills and interests.

What are the broader implications of AI for the future of recruitment?

AI can enhance recruitment by finding the best talent and suggesting upskilling opportunities, but it cannot replace the need for a human touch in assessing attitudes and suitability for long-term roles.