Navigating HR tech products as a CHRO

Having been a CHRO of a listed company in my last role, I can empathise with the confusion and exhaustion that comes from navigating the myriad HR tech products flooding the market whilst trying to manage many ongoing HR change initiatives.

Last year, as CEO of an HR tech start-up I did what most do in that role — I spent a whole lot of time talking to customers, CHROs, heads of talent, recruiters and business owners, listening to their challenges to build a product that works for them. There are a few themes I picked up on through these conversations.

• Improving procedural fairness — ensuring the most important processes (recruitment, promotion and REM ) is fair in both perception & application
• Solutions which deliver integrity of both recruitment and promotion decisions (as more companies aim to promote from within)
• A strong desire to leverage automation for low value, manual and/or repetitive HR tasks
• Make everything simpler for the HR team and employees
• More insights to make better, fairer decisions
• The challenges of knowing what data matters and building the internal capability to make use of it

What is the ‘right’ tech stack?

‘What’s the right tech stack for my team and our company?’ and ‘how do I integrate all these technologies?’ are questions every CHRO of any sizeable company is grappling with. And the answer is more complicated than committing to a new HRIS.

Whilst I am not a tech expert, I spend many hours a week thinking about one critical part of the HR function that is ripe for technology innovation — recruitment. In that vein, I am sharing some things I have learnt which I hope will be useful to your investments in your tech stack in 2019.

1. Decision-making transparency to enhance organisational trust

There are HR tech products that give you insights on engagement hot spots, employee sentiment, and screen applicants for roles by scraping and analysing people’s personal profiles or communications. If you believe (as I do) that transparency enhances trust, especially when it comes to anything coming out of HR, these tech products could undermine organisational trust and maybe even your employer brand. Look beneath the hood of a tech product to validate how it works. AI and the concern of algorithmic bias is one every CHRO needs to be ready to talk about. Understand the source data and how it will be used in the solution. For candidate selection, any front end testing needs to not only be valid but feel valid to the user. That’s why we use relatable and valid questions to assess candidates in building our predictive models. No CVs, no video and no games.

Any extra discretionary effort by employees is going to be heavily influenced by how much trust your people have in you. Better to invest in tech solutions that allow for more transparency around how decisions are being made, that use reliable, objective and valid data.

2. Create and source forward-looking data for prediction

Think of the people analytics generated by HR today — turnover reports, engagements stats, culture diagnostics, exit survey analysis, 9 box talent management. All of it is backward-looking reporting on the past performance of talent. Much of it also subject to the vagaries of human analysis, therefore biased insights. How many of your organisations use data to validate the placement of people on the ‘potential axis’ of a 9 box? Or use NLP to extrapolate the key themes from engagement surveys and exit survey verbatim?

A bigger challenge for all of this backwards analytics is connecting the dots — how does a culture survey actually move you towards and predict a different culture? My colleague who spent his early years building up the data science team for a leading engagement survey platform and led the benchmarking analysis for their clients observed that year after year the same companies were in the top and the bottom quartile of engagement.

Changing culture is hard unless you change the people — the people you hire and the people you promote.

Predictions versus Psychometrics

The best investment you can make to change the culture and help the organisation move towards forward-looking predictive analytics is to start to capture data from the outset — from your applicant pool, through to the people you hire.

Having a data DNA profile of your applicant and hired pool means you can better target your employer branding, you can identify with high accuracy the profile of the stronger performers, the people who are high flight risk in the early months, the talent that moves fastest to productivity. Knowing these profiles means you can seamlessly feedback into your recruitment a better hiring profile.

This is the power of predictive analytics over psychometric testing which has no feedback loop back to the business on whether the person with the high OPQ test was any good in the role.

3. Data authenticity matters 

‘Garbage in garbage out. This is usually a reference to a data quality issue.

Data can take many forms- it’s not always hard numbers (more on that later), it can be data that is structured and regulated by you vs data that is unstructured and not regulated by you, such as CV’s. The former is always better — closer to the objective source of truth, usually owned by you, and less prone to gaming.

CVs are a source of bias

CVs are a poor man’s data substitute and rarely indicative of anything. A CV is a highly gameable type of data and relying on CV data to select talent exacerbates the risk of bias, as was experienced by Amazon when they built their hiring models around a 10-year database of CVs (mostly male).

I won’t spend time on the risks of bias in CV screening as enough has been written about that, other than to share this from a blog post which quotes academic research that ‘both men and women think men are more competent and hirable than women, even when they have identical qualifications ‘, and that ‘resumes with white-sounding names received 50% more calls for interviews than identical resumes with ethnic-sounding names’. https://www.lever.co/blog/where-unconscious-bias-creeps-into-the-recruitment-process.

Removing bias in the screening process is no longer about social justice, now it’s about commercial outcomes — McKinsey has documented each year since 2014 that companies with top quartile diversity experience outsized profitability growth https://www.mckinsey.com/business-functions/organization/our-insights/delivering-through-diversity

4. Think broadly about ‘what is data’

There are a plethora of surveys that make the point that HR functions are starting to invest in the power of people analytics.

Making data more visual has been a big driver behind the success of engagement analytics companies such as a Culture Amp, Glint and Peakon, transforming ugly engagement decks and the traditional circumplexes into insights-driven real-time dashboards. Visualisation offered by tools like Tableau is table stakes these days for HR.

Data doesn’t always look like data in a traditional sense. Take textual search data, human behavioural tracking data for example. Google has been making money off that data strategy for years and there are now books written about how google search terms are the most accurate mirror to our true beliefs and values (Read Everybody Lies for a fascinating insight into the power of text).

Tracking human behaviour has been mainstream in marketing teams for years, but has been slower to be leveraged in HR. In consumer marketing, no one cares why a person is more likely to buy an item, they are only interested in optimising for the outcome. There has been some interesting research applying consumer behaviour analysis to HR with fascinating insights, for example, that your choice of browser in completing an online assessment is a strong predictor of your performance in the role.

5. Provide data-driven actionable insights for the business

In consulting there is an often-used accusation of consultants ‘boiling the ocean’, which usually refers to those 100-page decks with chart after chart, visualising every data point possible as if the sheer weight of the deck is somehow testament to its accuracy.

Most junior consultants aspire to write the ‘killer slide’, the elusive one slide that crystallises the strategy in one data visual that will transform the company’s trajectory.

As HR teams start to produce more output on people analytics, there is a risk of ‘boiling the ocean’ on people analytics — quarterly engagement surveys, monthly churn data, diversity reporting. Figuring out the ‘so what’ of the data and using those insights to move the needle on business metrics that matter is harder, but also necessary. For HR integrating non-HR owned data is also important to get a fuller picture, especially for sales led businesses. For example, if sales drop off at the 2-year mark, what can HR do about that? What HR processes change as a result of seeing high correlations between sales trajectory in the first 6 weeks and tenure greater than 6 months.

In building predictive models for our clients, this is a sample of some of the actionable insights that were revealed through analysing both HR and sales performance data:

• We found that female sales recruiters had a faster performance trajectory, but with a noticeable slow down at 2 years — this led the client to change their targets at recruitment to hire more women and embed new development programs for women at the critical 2-year mark
• We observed a strong statistical correlation between outbound inside sales performance in the first 6 weeks and retention beyond 6 months, which led to changes in their onboarding but also more stringent probation processes earlier on to avoid holding onto people for too long
• We identified better team leaders based on the relative performance of new starters by team leaders, where performance is defined as speed to sales productivity and retention at the 1-year mark
• We reduced the complexity and time invested in KPI tracking for both recruiters and the operations team through knowing which KPIs truly mattered as lead indicators of performance

6. Think creatively about what business data can help in HR

HR’s role is very much one of building bridges across the organisation — taking a helicopter view of talent, ensuring that the needs of the business will be met in 3 years, 5 years by the people in the business, in enabling communication and collaboration channels across teams and geographies.

Building a single source of truth about their employee base often justifies HR’s biggest tech investment in helping achieve those objectives — the so called ‘one size fits all’ HR system. Yet it’s a big step to assume that even with the HRIS in place that HR has all the data it needs to do its job. Every function is making similar investments — sales & marketing into CRMs, operations teams into rostering systems, LTI and OHS data that might sit in the BU or a separate OHS team.

Last century, HRs accountability might have ended when they filled a role. Today, HR is accountable for ‘talent optimisation’ and that means ensuring people’s success through their career with the organisation, and often even beyond. Knowing how that talent is performing on the job– roster adherence, injury patterns, call centre metrics, sales performance — are integral to optimising that talent pool.

Capitalise on these various streams of data!

I encourage HR leaders to be expansive about what is performance data, especially objective performance data, and being relentless in sourcing that data from their non-HR colleagues internally.

7. HR as a data generator for the business

Data generated within HR can help drive broader organisation decisions. B2C companies with large volumes of sales and marketing applicants can leverage the power of those volumes for the benefit of the rest of the business.

Big brand companies can receive half a million-plus applications in one year, often engaging meaningfully with just a fraction. Technology allows you to test and engage meaningfully with every one of those applicants. Instead of thinking of that pool only as a candidate pool relevant to recruitment, for a B2C business, that pool is most likely also your consumer base and a rich source of data for your business.

Customer acquisition cost (CAC) for product and services like travel, retail, software, financial products range from $7 to $400, with companies committing substantial advertising budgets to reach that kind of audience, yet over in recruitment, they are engaging with them for free, at a point where the candidate/consumer is at their most willing and motivated to engage with you.

Imagine what consumer data you could capture from that applicant pool for the benefit of the business?

Transparency and authenticity, forward-looking predictive data, business impact first, think creatively and broadly, and HR as a data generator. These are 7 themes that can transform your organisation in by leveraging the data hidden within HR through the efficient use of technology.

You can try out Sapia’s Chat Interview right now, or leave us your details to book a personalised demo

We’ve relied on interviews for centuries. They are an important step in the selection process.  

If done effectively, interviews are a great means of assessing a candidate. We trust them to enable us to determine if our candidates have the attributes, traits, behaviours, skills, experience and personality to meet the role requirements.

Here’s the problem. It is physically impossible to interview every candidate. So, we rely on CV screening as the first step. A recruiter on average spends six seconds looking at the resume. In six seconds, a snap judgement is made on shortcuts (biases).

At the starting block, the process has failed. You cannot possibly pick qualities like grit and initiative from a CV, right? Then, of the people who applied for the job, around 13% of applicants may get an interview. During C-19 times – you can more than half that number.

With interview automation, interviews are at the
start of your recruiting process – not midway through it.

In this way, you realise the value of interviews without investing one-minute of your time in them. 

Imagine this. Everyone has already been interviewed before you have read one CV. A pre-qualified, pre-assessed, high-quality shortlist before you have read ONE CV. That’s the dream! Because now you are not wasting time reading resumes of people who either can’t do the job, won’t do the job, or they just don’t fit. And, instead of flicking through 100 resumes for a puny 6 seconds each, you can take the space to consider the best. The best? Those candidates who have already been pre-selected for that grit and initiative you so badly want in your team.

Okay, so here are the 6 reasons to start your recruiting process with interviews

You can try out Sapia’s FirstInterview experience here.

1.  You will reduce your time to hire

Time to hire measures recruiting efficiency. It is the number of days between the first contact with a candidate to the day the candidate accepts the offer. Screening is your first time-to-hire bottleneck.

Even if you’re using an ATS you may be able to easily rank resumes, but you still have to consider them. And there’s your block.

A new generation of interview automation is here so that you can have every candidate interviewed in a flash. Of course, it integrates and works seamlessly within your ATS. It saves recruiters from screening resumes and boosts the efficiency of your recruiting process.

Reducing time to hire is great for candidates who get the job faster (or can move onto the next job). It is terrific for recruiters who get the reward of quicker placements and attaining their metrics. It is a relief for hiring managers who get their team to a full complement and can get back to their actual job.

Interviewing automation makes your recruiting process much faster – usually around 90% faster. 

2. You will improve the overall quality of hires

Hiring managers want their best team. They want people who can do the job, who will do the job and who will perform. With interview automation, Ai assesses traits, communication skills, optimism and temperament prior to you getting involved.

As a Recruiter, you get a complete picture of a candidate beyond what is written on their CV. You learn a lot of information about the candidate. Ai will rank and grade all your candidates for you. It pre-qualifies those who are a fit to move forward.

Have you ever thought to yourself: “If only I could hire 10 more Julie’s!” (*insert name)? With Ai, you can. And, as far as quality goes, this is the distinction from all other forms of pre-employment.

AI learns what a successful hire looks like and pin-points more like them. AI bases this learning on your historical recruiting decisions and then applies that knowledge to new candidates to automatically screen, grade, and rank them.

Interviewing automation gets you to the best of your talent pool much quicker resulting in, on aggregate, much better quality in your hires.

3. You will reduce bias and improve diversity

Diversity and Inclusion have been on the HR agenda for a long time. And in more recent years, it’s made its way onto the Business agenda too. In 2020, global management consulting company McKinsey again confirmed that companies with both ethnic and cultural diversity and gender diversity in corporate leadership are outperforming non-diverse companies on profitability. They found: “The most diverse companies are now more likely than ever to outperform non-diverse companies on profitability”

Diversity improves employee productivity, retention and happiness. Settled then. We want businesses that are diverse and fair.

The problem is that humans are inherently biased.

Here’s the King of Recruiter biases: The Dunning-Kruger Effect. It’s where we lack the self-awareness to accurately assess our own skills meaning that we overestimate our ability. You think you are a brilliant totally unbiased Recruiter, right?  You may well be, but it’s not uncommon to think you’re smarter or better than the average person. Haven’t we all skipped over candidates who don’t have the requisite ‘Big 4’ employer on their resume, or the ‘right kind of degree’?

Even when we don’t mean to be, human bias is pervasive.  We keep these biases alive, through our relentless refusal to admit our shortfalls. And unfortunately, this isn’t great when it comes to hiring for diversity.

Ai is far less bias than humans. 

The reason for this is you can test, adjust and get rid of biases. The good news is Ai doesn’t resist stubbornly while claiming absolute fairness and denying any bias. This means that undesirable machine learning biases will tend to decrease over time. In Sapia’s case, its blind screening at its best. Nothing that typically influences human bias is introduced into the algorithms – no CV’s, no socials, no videos, no facial recognition – it’s just the candidate and their text answers. Much fairer for candidates of course and a richer experience where they can just be themselves.

Interviewing automation makes your recruiting process much fairer and your hiring decisions far more diverse.

4. You will reduce the cost of each hire

Those who have already automated their interviews have reallocated that spend toward higher-value investments.

Your ability to hire cost-effectively will be hampered if you don’t have the right tools.  Make sure that all your recruitment technology is pulling in the same direction – to make hiring as seamless, streamlined and stress-free as possible – rather than working against you. The money you invest in the right technology will soon pay off when it comes to time and efficiency savings.

The real game-changer is that interview automation can also help you solve a churn problem.

 Significant costs are borne by an organisation when an employee voluntarily leaves. 

These include replacement costs such as costs associated with advertising, screening and selecting a new candidate. A study conducted by the Australian HR Institute in (AHRI) 2018 across all major industry sectors in Australia (Begley & Dunne, 2018) found that on average companies face an annual turnover rate of 18%. Within the age group of 18 to 35 it worsens significantly, at 37%. That is, more than 1 in 3 people in the youngest age group leave an organisation within a year.

Imagine if you could predict those with a likelihood of churning before you had met them? Then think about the enormous savings that would be derived across your organization if you could do so.

If you haven’t yet automated your interviews, you are spending too much on hiring.

5. You will increase the productivity of every recruiter

What’s the toughest part of your job as a Recruiter? If you had more time, could you do that part better? 

Chances are that reading CV’s and running interviews are not the hardest part of your job but are the most time-consuming. What if you could have available time for those high-value tasks. Like managing your stakeholders. Getting to know the business better. Improving your business partnership skills. Learning the essence of what Hiring Managers actually want. Networking and improving talent pools, particularly for those hard-to-fill roles.

So, if interview automation can take care of all of your first interviews for you then ask yourself:

Of how much value am I when buried knee-deep in screening? Visualise less of that and more of the buzz you get when you find the perfect fit. There’s no better feeling than knowing you’ve helped someone further their career AND helped your Hiring Manager find someone who ‘just fits’ and will perform. Nothing can replace the collaboration and empathy that you as a live person can extend.

We cannot discuss productivity without also giving mention to structured interviews.

According to this Sapia research paper published by IEEE: Structured interviews (where the same questions are asked from every candidate, in a controlled conversation flow and evaluated using a well-defined rubric) have not only shown to reduce bias but also increase the ability to predict future job performance. With interview automation, the questions asked in a structured interview are derived using a job analysis as opposed to interviewer preference and are typically based on past behaviour and situational judgement.

Interviewing automation frees up recruiter’s time to perform higher-value tasks with far greater output.

6. You will boost candidate experience (beyond imagination)

With interview automation you can move from an elongated process that leaves candidates in the dark, not knowing where they stand, to a super-efficient experience that feels empowering.

According to the Society for Human Resource Management (SHRM), 82% of candidates report the ideal recruiter interaction is a mix of innovative technology and personal, human interaction.

If your mission is to provide the best experience possible to your candidates, interview automation should not be ignored.

Improving your candidate experience is so much easier by adopting technology that is inclusive, personalised and relatable. Sapia’s interview automation offers a mobile-first, chat interview that interviews everyone in-depth and at scale. Giving every candidate personalised feedback.

Here is what interview automation offers above a manual interview process for candidates:

• Utterly relatable – An accessible, mobile-first ‘familiar’ text experience that candidates enjoy with no confronting videos or questionnaires. Questions are related directly to role attributes.
• Totally convenient – Completing it anywhere, anytime and in your own time with an untimed interview – giving candidates the space to be themselves.
• Wholeheartedly fair – Everyone gets an interview levelling the playing field for all. It’s blind screening at its best – no gender, age or ethnicity revealed.
• Unbelievably motivating – Following their FirstInterview all candidates receive an email with personalised insights. It’s delightfully surprising to receive something of such great value.
• Surprisingly beneficial – Candidates receive coaching tips that help them with their career, transforming the experience.
• Highly open – Candidate experience improves by 148% when candidates are asked for interview feedback.  That’s why after their FirstInterview all candidates can rate their experience and give their input.

Interviewing automation enhances candidate experience, with no further time investment from you.

Download the 2020 Candidate Experience Playbook here

Taking the first step on automating your interviews: start with volume roles first. 

Gartner predicts by 2021, 50% of enterprises will spend greater budget on chatbot creation and bots than traditional mobile app development.

Businesses are adopting Sapia’s chat interviews across various job families – especially in front-line customer service roles. The quickest payback you will get on an investment in interview automation is to apply it to your high-volume roles first. Interview automation can truly enhance your high-volume recruitment process and help you make it more efficient (and pleasant) for everyone involved. This will help you get your time-back really quickly and release the budget for automation in other areas of recruiting.

The future of all first interactions between candidates and your business will be through automation. The only decision, for now, is where you will adopt interview automation first.

Read the Ultimate Guide to Interview Automation> 

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You can try out Sapia’s FirstInterview right now, or leave us your details here to get a personalised demo.

Have you seen the 2020 Candidate Experience Playbook?

If there was ever a time for our profession to show humanity for the thousands that are looking for work, that time is now.

Download it here 

Interested in a demo of our Lever integration? Fill out the form below!

Like Sapia, the team at Lever like to make life easy for recruiters. Lever streamline the hiring experience, helping recruiters source, engage, and hire from a single platform. Now you can supercharge your Lever ATS by seamlessly integrating interview automation from Sapia. Integrating is easy, and secures fairer, faster, and better hiring results. In the war for talent, you’ll pull ahead of your competitors even faster with Sapia + Lever. 

Hiring is more complex than ever

There’s a lot expected of recruiters these days. Attracting candidates from diverse backgrounds and delivering exceptional candidate care whilst selecting from thousands of candidates isn’t easy.

Recruiters are expected to:

• Find the right people, ensuring a diversity of candidates
• Fill roles quickly and efficiently
• Interrupt bias in hiring and promotion
• Ensure every person hired amplifies the organisation’s values
• Create a candidate experience that is engaging and rewarding

Simplify Lever ATS hiring

A lot is expected from recruiters, from screening thousands of applicants to attracting candidates of diverse backgrounds and delivering a great candidate experience. But technology has advanced a lot and can now better support recruiters.  

The great news is that when you integrate Sapia artificial intelligence technology with the powerful Lever ATS, you will have a faster, fairer and more efficient recruitment process that candidates love.

You can now:

• Reduce your screening time by up to 90%
• Increase your candidate satisfaction to 99%
• Achieve interview completion rates over 90% and
• Reduce screening bias for good!

Sapia + Lever

Gone are the days of screening CVs, followed by phone screens to find the best talent. The number of people applying for each job has grown 5-10 times in size recently. Reading each CV is simply no longer an option. In any case, the attributes that are markers of a high performer often aren’t in CVs and the risk of increasing bias is high.

You can now streamline your Lever process by integrating Sapia interview automation with Lever.

We’ve created a quick, easy and fair hiring process that candidates love.

1. Create a vacancy in Lever, and a Sapia interview link will be created. 
2. Candidates receive the link. Every candidate will have an opportunity to complete a FirstInterview via chat, automatically sent to them after completing their application in Lever.
3. Candidates receive feedback. Every candidate will automatically receive a personalised personality profile and coaching tip after completing their first interview! No more candidate ghosting.
4. See results as soon as candidates complete their interview. Each candidate’s scores, rank, personality assessment, role-based traits and communication skills are available as soon as they complete the interview inside Lever. 

By sending out one simple interview link, you nail speed, quality and candidate experience in one hit.

Integrate Lever and get ahead.

Sapia’s award-winning chat Ai is available to all Lever users. You can automate interviewing, screening, ranking, and more, with a minimum of effort! Save time, reduce bias and deliver an outstanding candidate experience.

Experience a Sapia FirstInterview for yourself

The interview that all candidates love.

As unemployment rates rise, it’s more important than ever to show empathy for candidates and add value when we can. Using Sapia, every single candidate gets a FirstInterview through an engaging text experience on their mobile device, whenever it suits them. Every candidate receives personalized insights, with helpful coaching tips that candidates love.

Together, Sapia and Lever deliver an approach that is: 

• Relevant Move beyond the CV to the attributes that matter most to you: grit, curiosity, accountability, critical thinking, agility, and communication skills
• Respectful Give every single person an interview and never ghost a candidate again
• Dignified Show you value people’s time by providing every single applicant with personal feedback
• Fair Avoid video in the first round of interviews and take an approach that’s 100% blind to gender, age, ethnicity, and other irrelevant attributes
• Familiar Text chat interviewing is not only highly efficient, but it’s also familiar to people of all ages  

There are thousands of comments just like this…

• “I have never had an interview like this in my life and it was really good to be able to speak without fear of judgment and have the freedom to do so.”
• “The feedback is also great. This is a great way to interview people as it helps an individual to be themselves.”
• “The response back is written with a good sense of understanding and compassion.”
• “I don’t know if it is a human or a robot answering me, but if it is a robot then technology is quite amazing.”

Test drive it for yourself here (it takes 2 minutes!)  

Recruiters love using artificial intelligence in hiring.

Recruiters love that Sapia TalentInsights surface in Lever as soon as each candidate finishes their interview.

Together, Sapia and Lever deliver an approach that is: 

• Fast Ai-powered scores and rankings make shortlisting candidates quicker
• Insightful Deep dive into the unique personality and other traits of each candidate 
• Fair Candidates are scored and ranked on their responses. The system is blind to other attributes and regularly checked for bias.
• Streamlined Our stand-alone LiveInterview mobile app makes arranging assessment centres easy. Automated record-keeping reduces paperwork and ensures everyone is fairly assessed.
• Time-saving Automating the first interview screening process and second-round scheduling delivers 90% time savings against a standard recruiting process.

HR Directors and CHROs love reliable bias tracking.

Well-intentioned organizations have been trying to shift the needle on the bias that impacts diversity and inclusion for many years, without significant results.

Together, Sapia and Lever deliver an approach that is: 

• Measurable DiscoverInsights, our operations dashboard that provides clear reporting on recruitment, including pipeline shortlisting, candidate experience and bias tracking.
• Competitive The Sapia and Lever experience is loved by candidates, ensuring you’ll attract the best candidates, and hire faster than competitors.
• Scalable Whether you’re hiring one hundred people, or one thousand, you can hire the best person for the job, on time, every time.
• Best-in-class Sapia easily integrates with Lever to provide you with a best-in-class AI-enabled HRTech stack. 

Getting started is easy!

Let’s chat about getting you started – book a time here ⏰