SHRM’s research indicates that 85% of companies are already tapping into the benefits of AI hiring because of its efficiency and productivity.¹ No doubt that technology has become increasingly prevalent in hiring processes today.
But according to Gartner’s “Future of Work Trends”, this creates new data risks.² More than ever before, transparency has become a fundamental component of any successful hiring process – it is seen as a control measure to the looming privacy crisis.
In this article, we examine data risks, explore how companies can mitigate them, and discuss the importance of transparency in recruiting tech.
Risks Associated with Recruiting Technology
Recruiting technology involves the use of digital tools such as applicant tracking systems (ATS) or artificial intelligence (AI) powered tools that help to streamline the hiring process, reduce time-to-hire, and help recruiters make informed decisions quickly.
However, with the use of any technology in hiring, companies can face potential risks.
1. Data Breaches
Data breaches have become a pervasive concern in the modern, digital age. As companies continue to adopt and rely on various digital tools, platforms, and systems to streamline their recruitment and hiring processes, the potential risk of data breaches inevitably grows.
These breaches can result in unauthorized individuals gaining access to highly sensitive candidate and employee information, potentially leading to the compromise of personal data and distrust between the parties involved.
In extreme cases, data breaches can also cause significant damage to a company’s reputation and finances, highlighting the importance of prioritizing robust data security measures to protect the privacy and integrity of all stakeholders involved in the recruitment process.
2. Biased Algorithms
Biased algorithms represent a significant concern when it comes to automated recruiting tools and artificial intelligence-driven algorithms. These technologies, although designed to streamline and improve recruiting processes, might inadvertently contribute to the persistence of bias.
This can occur when algorithms are trained on historical data that reflects past discriminatory practices or biases present in the data. As a result, these algorithms may continue to reinforce these biases in the recruitment process, leading to unfair and potentially discriminatory hiring practices.
This highlights the importance of addressing bias within the development and implementation of recruiting technologies to ensure a more equitable and inclusive hiring procedure.
3. Privacy Concerns
Privacy concerns arise when the collection, storage, and utilization of personal information are not handled with the utmost care and responsibility by companies during recruitment.
Candidates and employees may become apprehensive about sharing their data, fearing that their sensitive information may be misused, leaked, or accessed by unauthorized individuals.
Creating a More Transparent Recruitment
This calls for new processes that can sustain the use of technology in recruitment. With more transparency, candidates are confident that their information is with capable hands.
1. Establish clear communication with candidates.
Candidates should be informed about any third-party providers that have access to their data. During recruitment, be sure to maintain open communication with candidates by being transparent with the metrics used for evaluation, and how these metrics are weighed.
According to Hunkenschroer & Kriebitzin research on AI ethics 3, companies must be transparent with their use of data sets and algorithmic methods, and the reason behind using AI to overcome challenges in recruitment.
While it’s impossible to explain every decision in detail, it’s still the company’s responsibility to disclose the general selection process and success standards used for applicants. Firms need to simplify complex algorithms, report any instances of bias, and document candidate complaints in their transparency reports.
2. Conduct regular audits of hiring technologies.
In establishing trust with candidates, it’s important to keep tabs on hiring technologies to ensure they are unbiased and fair. Companies should:
- Review the algorithms and models used in data collection and analysis.
- Ensure vendors comply with your company’s data protection standards and privacy regulations.
- Check if technologies are updated with the latest security patches and features in place.
3. Implement robust security measures.
Use strong encryption, firewalls, and secure access protocols to protect sensitive data about employees.
Employees or candidates should be aware of what personal data is collected, how it is used, and how it is protected.
4. Implement intrusion detection and prevention systems.
Deploy intrusion detection and prevention systems (IDPS) to monitor and protect your company’s network and systems from potential cyber threats.
Where possible, use anonymization techniques to remove personally identifiable information from datasets, reducing the risk of data breaches and privacy violations.
5. Educate recruiters and HR professionals.
To use the tools ethically, recruiters and employees must be well-informed about the implementation process. They should be trained on ethical recruiting practices such as avoiding discrimination based on race, gender, age, religion, disability or other protected classes to ensure that no candidate is put at a disadvantage in any way.
Having a diverse recruitment team can also facilitate the recognition of biases. It has been observed that individuals from underrepresented communities are often the first to detect such biases. Thus, it becomes crucial to have a diverse team to minimize AI biases and create a better candidate experience.
Why Does Transparency Matter in Recruiting Tech?
Being transparent is the intention to build a lasting relationship and it works the same way in recruiting. Transparency may seem like an additional step to take but it’s still a step forward and upward.
1. Transparency is key to building trust.
Recruitment is a two-way street: candidates want to find the right role, and companies want to find the right candidate.
However, this can be a daunting task, especially if you’re using recruiting technology that candidates may be unfamiliar with. If you want to build trust with your candidates, be transparent in your recruiting tech.
Transparency allows candidates to understand how the recruiting tech works and how their data will be used. It also allows them to ask questions or voice their concerns, which can help to alleviate any fears or uncertainties they may have about hiring procedures.
2. Transparency is necessary for compliance.
Transparency is not just essential for building trust; it is also necessary for compliance.
With new government regulations on privacy, such as the General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA) in the US, companies must be transparent about how they collect, use, and store candidate data.
If companies fail to comply with these regulations, they risk hefty fines and damaging their reputation. It’s essential to be transparent in your recruiting tech processes to ensure compliance with these new regulations.
3. Transparency pushes DEI forward.
As companies worldwide strive to create inclusive work environments, many are pushing diversity, equity, and inclusion (DEI) initiatives forward, despite encountering resistance. Gartner’s Future of Work trends for 2023 highlights this commitment to DEI and emphasizes the importance of trust and transparency in recruitment.
By being open about their DEI initiatives and using recruiting technology that minimizes bias, companies can attract a more diverse pool of candidates and foster an inclusive work environment.
According to the National Science Foundation (NSF), although progress has been made, the underrepresentation of women, minorities, and persons with disabilities still exists in STEM.⁴ However, transparent recruiting practices can help address the issue of biases, creating a more equitable workforce.
STAY AHEAD OF THE CURVE BY PARTNERING WITH ACS PROFESSIONAL STAFFING FOR RECRUITMENT TRANSPARENCY
One of the biggest steps you can take to intensify transparency in your hiring efforts is to build trust with candidates. At ACS Professional Staffing, we work like headhunters, meticulously sourcing candidates who are best suited for specific roles, instead of relying only on automated recruitment processes.
Our commitment to improving candidate experience, promoting diversity and inclusion, and ensuring compliance with new and changing government regulations sets us apart in the industry.
With us, you can be rest assured to overcome any barriers that may prevent you from building a transparent and positive workplace culture. So, contact us now to learn how we can help!
1. Va, Alexandria. “Fresh SHRM Research Explores Use of Automation and AI in HR.” SHRM, April 13, 2023, www.shrm.org/about-shrm/press-room/press-releases/pages/use-of-automation-and-ai
2. McRae, Emily & Aykens, Peter. “9 Future of Work Trends for 2023.” Gartner, Dec. 22, 2022, www.gartner.com/en/articles/9-future-of-work-trends-for-2023.
3. Hunkenschroer, Anna & Kriebitz, Alexander. “Is AI recruiting (un)ethical? A human rights perspective on the use of AI for hiring.” Springer Link, July 25, 2022, https://link.springer.com/article
4. “Diversity and STEM: Women, Minorities, and Persons with Disabilities.” National Science Foundation, January 30, 2023, https://ncses.nsf.gov/pubs/nsf23315/.