Advanced technologies drive 38% faster time to fill, 42% quicker time to hire and 46% more qualified applicants
The Hackett Group, Inc. has released its latest Digital World Class Matrix focusing on the talent acquisition (TA) software marketplace. The report examines how rapid automation and generative artificial intelligence (Gen AI) advances affect recruiting outcomes and reveals leading vendors.
“The year-over-year evolution of AI applications within the talent acquisition space is moving at breakneck speed”
Human resources (HR) organizations are frequently challenged to do more with less; the recruiting function is no exception. Talent acquisition professionals must sift through massive candidate pools for their open roles. They must find the right fit while delivering a great user experience for candidates and hiring managers. To achieve this, HR groups are using advanced automation and AI to reduce redundant tasks and increase efficiencies. As a result, recruiters can act more strategically to find talent who will propel the organization forward in terms of higher quality candidates, workforce evolution and upskilling.
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The Talent Acquisition Digital World Class Matrix provides an in-depth guide to some of the biggest talent acquisition technology providers and how their solutions impact companies’ operations, recruiting effectiveness, and ultimately the success of the workforce. The report evaluated 15 providers for their capabilities and value delivered to clients based on vendor briefings and extensive customer interviews across 29 different criteria.
Capability ratings assess a vendor’s capacity to provide talent acquisition solutions across critical operational areas. These include candidate experience, recruiter experience, candidate relationship management, internal mobility, recruitment marketing, interview solutions, candidate assessment, onboarding and analytics, in addition to core platform functionalities such as user interface quality, data integration, and platform structure.
Value realization ratings assess a vendor’s impact across key metrics for TA performance, including time to fill, time to hire, qualified applicant improvement, cost per hire, internal mobility adoption, quality of hire, candidate diversity, customer service, pace of innovation, implementation experience, automation and integration, and overall satisfaction and business value to the organization.
Adopters of advanced TA technologies are realizing the benefits across these critical metrics. End users report an average 38% improvement in time to fill, 42% improvement in time to hire and 46% increase in qualified applicants entering the talent pool.
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Leading TA vendors continue to push the envelope in developing new technologies to reduce recruiter workloads and provide greater insights for the broader talent management function. End users are starting to more openly adopt AI applications to improve their recruiting outcomes. Top use cases identified include intelligent automation, content generation and collaboration capabilities.
Other AI applications are still nascent in their TA journey but have tremendous potential once they are fully embraced and used properly. These include advanced interview solutions with Gen AI question prompts and predictive analytics that significantly advance strategic workforce strategies. The introduction of agentic AI is of particular interest, providing a significant leap in AI-powered automation. Agents can make multiple decisions and actions independently, dramatically reducing administrative workloads for recruiters. Agentic AI started being more broadly introduced in the HR function in the fall of 2024.
“The year-over-year evolution of AI applications within the talent acquisition space is moving at breakneck speed,” said Matthew Merker, senior research director for Human Capital Management Market Intelligence at The Hackett Group. “Early adopters of these applications are realizing significant improvements in critical metrics such as time to fill and cost per hire. Coupled with advances in candidate relationship management and candidate experience, AI applications are a game-changer for organizations seeking to attract and retain the best talent to drive their businesses forward.”
By using this comprehensive analysis, HR professionals can make informed purchasing decisions aligned with the strategic priorities and critical metrics they seek to impact in talent acquisition outcomes.
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Source – businesswire
