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Recruitment | 4 Min Read

The Top 3 Barriers to Technology Adoption in Talent Acquisition

The Possible Solution

Implementing hiring technology is one possible solution that can solve all challenges for good. But, the road is more rockier than it looks. In our internal survey conducted with over 2000+ global organizations; 86% of organizations stated talent acquisition is their biggest challenge. And, much of it can be attributed to inefficient use of technology in hiring.

Why Organizations Can’t Survive Without Technology Driven Hiring?

Technology has already started dominating multiple facets of our lives, and hiring is no exception. In the age of data and Artificial Intelligence, recruiters can improve hiring metrics only after learning about the precise areas. And, factors such as candidate skill-sets changing at a lightening speed and poor engagement throughout the interview process only make recruitment a tough nut to crack. If you make hiring decisions solely based on instincts and perform random changes in your talent acquisition strategy, it’s only going to fetch half-baked results. Even if you taste success for a while, it’s not going to last for long.

Then, Why Organizations Shy Away from Technology Adoption in Hiring?

Lack Of Budget

33 percent of organizations surveyed for our recent report on State of Talent Acquisition 2019 stated high costs to be their biggest bottleneck for not implementing hiring technology. And, Will Craig, Managing Director of Car Leasing comparison site LeaseFetcher is also on the same page. He comments, “The main thing stopping us using a technology-driven hiring process is the cost involved – for a startup, like us, the sheer amount of capital that we’ve have to invest in the technology puts it out of our immediate reach.”

Long Implementation Cycles

Even if budgets are not a constraint, as in the case of large organizations, lack of technical expertise and long implementation cycles happen to be the key derailer. When HR teams already juggle multiple hats from hiring to payroll and administration where their key performance metrics revolve around closing requisitions, engaging employees and reducing attrition; they are not motivated enough to accelerate technology-based hiring practices. Long story short, they simply don’t have the bandwidth to implement HR technology.

Keith Johnstone, Head of Marketing at Peak Sales Recruiting talks in detail about the issue preventing the adoption of HR technology in organizations. He says, “When considering software that can help streamline the hiring process, two major considerations stand out – HR leaders lack the time and training required to implement these new systems.

Emphasizing the need of redefining the role of HR to understand and include technology adoption, he also comments, “Having the confidence that HR will deliver on the right tool for your organization requires confidence that comes from redefining the expectations of what they do. By elevating the level of strategy expected  from HR, a business can benefit on a number of levels, however this change also requires an update to the skills required of the role. Historically, HR departments have been measured based on management of benefits and compensation, employee satisfaction and retention, and recruitment. If they are expected to be able to identify a new software that will suit the strategic needs of the company, and implement said platform company-wide, this requires a skillset they may not have had the opportunity to hone.”

Unclear ROI

All too often, HR teams often fail to convince business leaders about the ROI of talent acquisition tools and therefore, are unable to get dedicated budgets. Fearing the costs to go over the roof with little to no improvement in the hiring metrics, most organizations simply give up the idea and continue as usual. Even our upcoming report on State of Talent Acquisition 2019 reveals that 33 percent of organizations don’t invest in HR technology for lack of budgets while more than 23 percent of them take a step back for lack of clarity in ROIs.

Again, Keith  Johnstone provides quite a convincing argument about why technology transformations in HR look both daunting and tedious. He says, “leaders may have unrealistic expectations regarding the ROI of the tool without the patience to go through the pains of implementing and training staff on the software. This is could be one of the reasons 70% of digital transformations fail.”

Suggesting a failsafe method to justify ROI of HR tools to prompt HR leaders and decision makers to go for it, he sums up by saying, “As organizations begin to see the strategic value in HR-driven software, and HR adapts to meet business’ changing needs, we’ll see the demand and implementation of hiring technology rise even more. “

The Need of the Hour

According to the findings of our latest report, the average hiring volume is expected to go up from 25 percent in 2018 to 31 percent in 2019 whereas average hiring budgets will rise from 20% in 2018 to 34% in 2019. So, dealing with such an increase is going to be a painstaking process without embracing technology. Therefore, it’s high time to invest in HR software and tools that can manage end to end talent acquisition, giving you complete visibility into individual stages of the hiring funnel. In fact, more and more organizations are now looking for software that can oversee their entire recruitment process. Backing up the fact, Keith Johnstone says, “

“With this in mind, an all-inclusive system appeals much more than standalone niche software that only accomplishes bits and pieces of the puzzle rather than the big picture. Although a number of recent offerings in the HR software space offer the ability to help streamline the hiring process, we also want a tool that can serve us well in to the long-run of an employee’s tenure. “

Your Talent Acquisition Demands Transformation

Unlike before, there are a gamut of SaaS tools available in the market that can streamline your hiring process without killing time in setting-up infrastructure and arranging for tiring trainings. A structured recruitment process is all you need that helps you in precise talent measurement across the roles that you plan to hire. One such tool is Mettl Hiretrack that combines the power of three recruitment centric systems into-one. The tool acts as your

  • Applicant Tracking System
  • Assessment Engine
  • Interview Guide

You can ensure that your recruitment runs on autopilot while extracting vital data to improve your hiring metrics and the entire process.  With AI-enabled features, you can precisely know what sourcing channels are performing the best, what’s your current funnel conversion rates at each stage and how candidates are faring against the set of technical, cognitive and psychometric assessments assigned to them. So, filtering candidates becomes easier as you get data-driven insights into their performance vs abilities required to succeed at the role.

Not only you can identify candidates with high domain acumen; but can take a step ahead to measure their cognitive and psychometric abilities to decide whether they can meet the specific requirements of a role. Apart from that, you can also define the key competencies to excel at a role and measure candidate performance against each of the competencies for data-driven hiring decisions. The best part is, you can also correlate test and interview scores with on-job performance with an intuitive reporting mechanism; before the candidate even joins the organization that speaks volumes about the success of your hiring efforts.

Time to Embrace Hiring Technology

As we enter 2019, talent acquisition across the globe is going to change by leaps and bounds. Unlike before when talent acquisition meant spending more money on a candidate, the definition has changed as candidates expect way more than a fat paycheck. Therefore, HR teams must be spending more time understanding their motivations to devise better employee engagement strategies and programs to lower attrition, reduce high turnover rates and minimize business losses arising therefrom. And, this is only possible by leveraging the power of automation and AI in the hiring funnel that allow complete visibility about what’s going in favor and what’s not when it comes to attracting top talent. In fact, our report has already highlighted the fact that more than 53% of organizations are using assessments and around 40% of organizations are using video interviews to cut down hiring time, improve candidate experience and to build a employer brand to attract top talent. It’s time to do away from monotonous tasks of manually scheduling interviews, sending interview invites and going all haywire.

A Step-by-Step to Creating a Structured Hiring Process Using Competency Framework, Technology & Data Analytics-1

Originally published January 14 2019, Updated December 17 2020


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About This Topic

Talent assessment is the practice of assessing talent before making critical organizational decisions, such as hiring, development, promotions, etc. Talent assessments evaluate a candidate’s skills, knowledge, personality, behavior, and work style to future-proof an organization’s business interests.

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