More money is flowing into Environmental, Social and Governance (ESG) than ever. In 2021, investors poured $649 billion into ESG-focused funds worldwide, up 90% from the $542 billion invested in 2020. In the UK, over 21% of investors plan to back funds and companies with comprehensive ESG strategies by 2025. And in Australia, more than 55% of super funds are using responsible investment approaches to inform strategic asset allocation.
All this investment has prompted a sharper focus on social issues across major companies – the S in Environmental, Social, and Governance. The great news is that investment in the big S, in turn, means more money and attention toward progress in Diversity, Equity and Inclusion (DEI).
Executives who underscore the significance of diversity in hiring understand that an impactful DEI strategy must originate from the highest ranks – consider the Australian superannuation fund HESTA and its 40:40 vision as a prime example. However, for the strategy to be truly effective, diversity hiring ideas need to permeate all levels of the organization. It’s also critical to meticulously track and measure the extent to which we are achieving our diversity hiring goals to ensure real progress is made.
Both boards and shareholders want measurable change in DEI, and fast. According to a Harvard Business Review study of S&P 500 earnings calls, the frequency with which CEOs talk about issues of equity, fairness, and inclusion has increased by 658% since 2018. The momentum is clear, and expectations are that this will only increase further in the coming years.
Diversity goals need to be measurable, today
According to another HBR article, 40% of US companies discussed DEI in their Q2 2020 earnings calls, which is a huge step up from the 4% of companies that did the year before. And with 1,600 CEOs pledging to take action on DEI, setting goals and tracking progress remain top priorities.
DEI and ESG are big challenges, and we might take myriad possible approaches in trying to solve them. Some companies may start at the executive level (HESTA, as an example), while others may invest in partnerships and outreach programs. The spectrum of options can easily become overwhelming.
| “Interestingly, I’m just looking at our workforce profile and have been discussing the changes in diversity since we updated our recruitment approach last March. Not only have we hired three times more ethnic minorities and 1.5 times more women, but we now have twice as many LGBTQI+ colleagues in our business than we did three years ago! Other initiatives have played a part, but I’d imagine the game changer has been Sapia as we’ve had some direct feedback from a transgender colleague that they felt more confident with our recruitment process than they did in other applications! David Nally, HR Manager, Woodie’s UK |
So why not start with the people you bring into your company, at all levels? Why not begin with the way you attract, assess, and select talent?
With advanced conversational Ai, you can set realistic DEI targets and measure them comprehensively, ensuring access to the best talent from diverse backgrounds. A sophisticated Interviewer is not just another chatbot that operates on a fixed set of rules. For instance, our conversational Ai delves deep into interview responses to understand each candidate’s unique attributes in a fair and objective manner.
Our Smart Interviewer helps you track and meet these three key diversity goals.
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Gender bias
Our proprietary interview response database is made up of more than 500,000,000 words, enabling us to conduct the most sophisticated response analysis in the recruitment industry. We can do this on a macro scale (e.g. across countries, cultures, industries, and role types); or for individual companies.
Take these findings, combining data from a range of our customers, globally:
Figure 1: Gender stats across applicants, Ai recommendations and hired
Thanks to our machine-learning capabilities, and the vastness of our database, we can provide the hiring team with real-time analytics on the following diversity hiring goals:
- Number of observed female applicants vs number of expected female applicants (and the same for male applicants)
- Diversity smart goals examples such as the overall hiring rate of females vs males
- Overall rate of female vs male recommendations made by our Ai to meet diversity targets
By employing a smart interviewing Ai at the first stage of recruitment, we can prove progress with regards to inclusivity and bias reduction. These aggregate company data show that while the expected number of female applicants exceeded the number of those that actually applied, the number of recommendations made by our Smart Interviewer also beat expectations (effectively compensating for the top-of-funnel bias). We can also see that the rate of observed female hires far exceeded the expected number.
What does this indicate? With merely three metrics, you can discern the advancements made in your DEI recruiting goals – and if the performance doesn’t meet the mark, it’s evident at which stage the targets falter.
It is important to note that the recommendations of our Ai are based solely on its analysis of candidate responses in the chat-based interview. Its suitability criteria is based, among other factors, on HEXACO personality modeling and accurate assessments of various job related competencies such as team work, critical thinking and communication skills.
Our data also keep biases in check at each stage of the recruitment process, depending on the role type. As you can see, for all three roles, this company’s hiring outcomes were within regulatory limits (as stipulated by the US Equal Employment Opportunity Commission (EEOC)) across the three stages of their funnel: Applications received, recommendations made, and the hiring decisions ultimately made by the hiring team. The final step, it is important to note, happens independently of our Ai: It is a human decision. Despite this, the outcome data is recorded, so that the company can compare its outcomes against inputs and recommendations to see if late-funnel biases are occurring.
Figure 2: Role-type-based gender bias. Mid line represents zero bias. Shaded regions signify the tolerance range. Right of line favors females, while left favors males.
The feedback from candidates is extremely positive: Company A’s strivings for fairness and equality in its processes has resulted in a candidate satisfaction score of 98.7% for females, and 98.1% for males. Better still, the interview dropout rate across the board is less than 10%.
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Ethnicity bias
Parallel to gender, our ethnicity analytics equip hiring managers to efficiently set and accurately monitor diversity smart goals examples for ethnic representation in recruitment. Company A, as depicted in Figure 2, is pioneering in this respect: Its BAME (Black, Asian, and Ethnic Minorities) recommendation rate stands at 46.5%, outpacing expectations, while its non-BAME recommendation rate is at 37.1%.
Our data has also helped Company A to increase its hiring commitments for First Nations people: The rate currently sits at 4.5%, from 4,000 candidates, above the national average of 1.8% (2018-19). This number is expected to increase over the coming year.
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Personality biases
The data we collect helps us, as well as our customers, understand the extent to which personality determines role suitability and general workplace success. It also helps us to eliminate long-standing biases that negatively impact certain candidates, despite the fact that said candidates may be highly suitable to the roles for which they are applying.
For example, people high in trait agreeableness (compassionate, polite, not likely to dissent or proffer controversial viewpoints) tend to underperform in the traditional face-to-face interviews. Hiring managers may assume, based on this, that they are unable to lead, or are not a ‘culture fit’. However, a face-value assessment of agreeableness is not a reliable predictor of candidate potential. Only scientific analysis of HEXACO traits can make this call with accuracy.
Take these two visualizations, showing how different personality traits affect the recommendations made by our Ai. Females (red dot) and males (blue dot) are slightly different in agreeableness, but there is virtually no difference in their conscientiousness, a strong predictor of job performance. As a result of being able to measure conscientiousness accurately, our system can effectively allow for higher levels of agreeableness – or cancel out the negative face-value judgements typically made in face-to-face interviews. Despite these personality differences, as shown in Figure 1, Sapia Ai recommendations for both male and female groups remain similar (~40%). This results in a fairer chance for all, and a wider pool of candidates. In this case, this is to the benefit of females.
Figure 3: Male (blue) and Female (red) personality trait differences
Bringing it all together
The world is changing, and we can no longer continue to take a “We’ll see what happens” approach to the ‘S’ in ESG. Many investors are pushing companies for better diversity and inclusion outcomes. At Sapia, our data show that fair, scientifically valid, and explainable Ai can produce better outcomes for peoples of all genders and ethnicities. The companies that have adopted our Ai approach are seeing strong improvement in their own DEI practices and results.
Over and above assisting our clients, our commitment to DEI is embodied in a guiding vision of our own: Our FAIR Framework. This embeds an approach that ensures our systems and processes are ethical and transparent. Many similar Ai systems operate in a ‘black box’, providing little knowledge about how their algorithms help make important decisions or create issues like amplifying biases. We are committed to a fairer world, free of bias – and, with every candidate interviewed, our data is bringing us closer.
Related
Blog
Sapia.ai Wrapped 2024
It’s been a year of Big Moves at Sapia.ai. From welcoming groundbreaking brands to achieving incredible milestones in our product innovation and scale, we’re pushing the boundaries of what’s possible in hiring.
And we’re just getting started 🚀
Take a look at the highlights of 2024
All-in-one hiring platform
This year, with the addition of Live Interview, we’re proud to say our platform now covers screening, assessing and scheduling.
It’s an all-in-one volume hiring platform that enables our customers to deliver a world-leading experience from application through to offer.
Supercharging hiring efficiency
Every 15 seconds, a candidate is interviewed with Sapia.ai.
This year, we’ve saved hiring managers and recruiters hours of precious time that can now be used for higher-value tasks.
Giving candidates the best experience
Our platform allows candidates to be their best selves, so our customers can find the people that truly belong with them. They’re proud to use a technology that’s changing hiring, for good.
Leading the way in AI for hiring
We’ve continued to push the boundaries in leveraging ethical AI for hiring, with new products on the way for Coaching, Internal Mobility & Interview Builders.
Blog
Situational Judgement Tests vs. AI Chat Interviews: A Modern Perspective on Candidate Assessment
Choosing the right tool for assessing candidates can be challenging. For years, situational judgement tests (SJTs) have been a common choice for evaluating behaviour and decision-making skills. However, they come with limitations that can make the hiring process less effective and less inclusive.
AI-enabled chat-based interviews, such as Sapia.ai, provide organisations with a modern alternative. They focus on understanding candidates as individuals and creating a hiring experience that is both fair and insightful while enabling efficient screening and selection.
This shift raises important questions: Are SJTs still a tool that should be considered for volume hiring? And what do AI assessments offer in comparison?
1. The Static Nature of SJTs
Traditional SJTs use predefined multiple-choice questions to assess behavioural tendencies and situational knowledge. While useful for screening, these static frameworks lack the flexibility to adapt based on real-world performance data or evolving role requirements.
Once created, SJTs don’t adapt to new data or evolving organisational needs. They rely on fixed scenarios and responses that may not fully reflect the dynamic realities of modern workplaces, and as a result, their relevance may diminish over time.
AI-enabled chat interviews, on the other hand, are inherently adaptive. Using machine learning, these tools can continuously refine their models based on feedback from real-world outcomes such as hiring or turnover data. This ability to evolve ensures the assessments align with organisations’ needs.
2. Richer Data Through Open-Ended Responses
One of the main critiques of SJTs is their reliance on multiple-choice responses. While structured and straightforward, these options may not capture the full scope of a candidate’s thinking, communication skills, or problem-solving ability. The approach is often limiting, reducing complex human behaviour to a few predefined choices.
AI-enabled chat interviews work more holistically and dynamically. These tools provide a more complete picture of a person by allowing candidates to answer questions in their own words. Natural language processing (NLP) analyses their responses, offering insights into personality traits, communication skills, and behavioural tendencies. This open-ended format lets candidates express themselves authentically, giving employers a deeper understanding of their potential.
3. The Candidate Experience: Stressful or Supportive?
SJTs often include time constraints and rigid formats, which can create pressure for candidates. This is especially true when candidates feel forced to choose options that don’t fully reflect how they would actually behave. The process can feel impersonal, even transactional.
In contrast, chat-based interviews are designed to be conversational and low-pressure for candidates. By removing time limits and adopting a familiar chat interface, these tools help candidates feel more at ease. They also frequently include personalised feedback, turning the assessment into a valuable experience for the candidate, not just the employer.
4. Addressing Bias and Fairness
Traditional SJTs are prone to transparency issues, as candidates can often identify and select the “best practice” answers without revealing their true tendencies. Additionally, static test designs can unintentionally embed bias; due to the nature of the timed test, SJTs have been found to disadvantage some groups.
AI chat interviews, when developed ethically within a framework like Sapia.ai’s FAIR Hiring Framework, eliminate explicit bias by relying solely on the content of a candidate’s responses. Their machine learning models are continuously validated for fairness, ensuring that hiring decisions are free from subjective judgments or irrelevant demographic factors.
5. An Assessment That Improves Over Time
Workplaces are constantly changing, and hiring tools need to keep up. SJTs’ fixed nature can make them less effective as roles evolve or organizational priorities shift. They provide a snapshot but not a dynamic view of what’s needed.
AI-enabled chat interviews are built to adapt. With feedback loops and continuous learning, they incorporate real-world hiring outcomes—like retention and performance data—into their models. This ensures that assessments stay relevant and effective over time.
Rethinking Candidate Assessment
As hiring demands grow more complex, so does the need for tools that can capture the whole person, not just their response to hypothetical scenarios. While SJTs have played an important role in hiring practices, they are increasingly being replaced by tools like AI-enabled chat interviews.
These modern approaches provide richer data, adapt to changing needs, and create a richer and more engaging experience for candidates. Perhaps most importantly, they emphasise fairness and inclusivity, aligning with the growing demand for unbiased hiring practices.
For organisations evaluating their assessment tools, the question isn’t just which method is “better.” Understanding the specific needs of your roles, teams, and candidates will help you choose tools that help you make decisions that are both informed and equitable.
Blog
Keeping Interviews Real with Next-Gen AI Detection
It’s our firm belief that AI should empower, not overshadow, human potential. While AI tools like ChatGPT are brilliant at assisting us with day-to-day tasks and improving our work efficiency, employers are increasingly concerned that they’re holding candidates back from revealing their true, authentic selves in online interviews.
As an assessment technology provider, we are responsible for ensuring the authenticity and integrity of our platform. That’s why we’re thrilled to unveil the latest upgrade to our flagship Chat Interview: the AI-Generated Content Detector 2.0. With groundbreaking accuracy and a candidate-friendly design, this innovation reinforces our mission to build ethical AI for hiring that people love.
Artificially Generated Content (AGC) is content created by an AI tool, such as ChatGPT, Claude, or Pi. We initially rolled out the first version of our AGC detector last year and have continued to improve it as our data set has grown and these AI tools have evolved.
What’s New?
Our updated AGC Detector 2.0 achieves an impressive 98% detection rate for AI-assisted responses, with a false positive rate of just 1%. This gives organisations peace of mind that they’re getting the most authentic assessment of every candidate.
This cutting-edge system builds on Sapia.ai’s proprietary dataset of over 2 billion words, derived from more than 20 million interview question-answer pairs spanning diverse roles, industries, and regions. It’s trained on real-world data collected before and after the release of tools like ChatGPT, ensuring it remains robust and reliable even as AI tools evolve.
The Challenge of AI in Chat-based Interviews
Our data shows that around 8% of candidates use tools like GPT-4 to generate responses for three or more interview questions. While these tools may offer a quick way for candidates to complete their interview, they can inadvertently hide a person’s true personality and potential – qualities our customers are most interested in understanding through our platform. In fact, research from Sapia Labs shows that these tools have their own personality traits, which may be quite different from the candidate applying for the role.
For Candidates: Enabling Authenticity
When a response is flagged as potentially AI-generated, the system doesn’t disqualify candidates. Instead, a real-time warning pops up, allowing them to revise their answers or submit them as-is. This ensures that candidates are encouraged to present themselves authentically, reflecting their unique communication styles and sharing their genuine experiences.
For Hiring Teams: Actionable Insights
Responses flagged as AI-generated are highlighted in the candidate’s Talent Insights profile, accessible via Sapia.ai’s Talent Hub or ATS integrations. These insights give hiring teams the transparency to make informed decisions, fostering trust while accelerating hiring timelines.
Built on Unmatched AI Interview Expertise
“Our detection model’s strength lies in its foundation of real-world interview data collected from diverse roles and regions,” says Dr Buddhi Jayatilleke, Sapia.ai’s Chief Data Scientist. This depth of understanding enables the AGC Detector to maintain its industry-leading accuracy – even when candidates subtly modify AI-generated answers to appear more human.
Why This Matters
The AGC Detector 2.0 embodies Sapia.ai’s commitment to ethical AI that amplifies human potential. As our CEO Barb Hyman explains:
“The hiring landscape has fundamentally changed since ChatGPT, but our commitment remains clear: AI should amplify human potential, not penalise it. This breakthrough fosters authentic hiring conversations. Our real-time warning system helps candidates make better choices and gives enterprises confidence in their selection decisions.”
Testing and Validation of the AGC Detector 2.0
The new detector has been rigorously tested on over 25,000 interview responses generated by humans and leading AI models like GPT-4, Claude-3.5, and Llama-3. The results speak for themselves, reinforcing the reliability and fairness of this game-changing technology.
Fairness & Transparency in AI-Enabled Hiring
By detecting AI-generated content while allowing candidates to correct their responses, our AGC Detector 2.0 ensures every applicant has the chance to put their best, most authentic foot forward when applying for a role powered by Sapia.ai. For enterprises, it provides confidence in the integrity of their hiring decisions and ensures they’re connecting with real candidates at scale.