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Why HR should implement predictive hiring – and how to get started

You know the common definition of insanity? The one where the same thing gets done over and over again, but the end result doesn’t change? It might not be a big deal when talking about your daily commute, but taking the same old approach to hire key personnel could be an expensive mistake.

Industry studies estimate bad hires cost up to 2.5 times the dollar amount of that person’s salary – and the damage doesn’t end there. Mismatched employees disrupt workplace chemistry, productivity, and profitability.

In response to poor hiring decisions, a growing number of companies now employ predictive screening and hiring models. Engaging predictive analytics and artificial intelligence (AI) – or algorithms that ‘think’ like humans – to help with the legwork historically performed by recruiters.

AI and predictive analytics look at historical data and then apply the learnings to new data to predict future outcomes. So, predictive hiring models can predict who will make it through the interview process, outperform their peers and still be around a few years down the road.

Progressive HR professionals have realised the potential of predictive and data-driven hiring, and hiring managers seem to agree.

“Today, HR has a seat at the table, and in order to maintain that business partnership, you need to have an analytics framework.”
Andy Kaslow, CHRO, Cerberus

A 2016 survey revealed a strong desire to drive talent acquisition through data and analytics. Two hundred executives at large U.S. firms want technology to play a bigger part in the hiring process. And the clamour for analytics isn’t confined to a younger crowd. Two-thirds of decision-makers who desire data-driven solutions fell between the ages of 45-64.

So, why isn’t everyone doing it?

Although there is a general consensus that data-driven and predictive hiring will make hiring decisions more accurate, many HR professionals still view it as cumbersome and costly to implement.

And it can be true.

Understanding the data needed to make an impact, and figuring out the best techniques and algorithms to use is difficult.

And it can be expensive to hire data scientists, and other key technical personnel needed to implement a full scale HR analytics system.

But, there’s no need to go it alone or to do it all at once.

Rather than setting up in-house HR analytics teams, most companies opt to engage a vendor who specialises in custom predictive screening and hiring models. Finding a vendor that works with you to solve your hiring challenges will significantly cut cost and time to implement.

So, if you are considering implementing predictive hiring, we have put together a few tips to ensure you get off to a great start.

1. Define what you want to improve

The crucial first step of any successful project is to define what that success looks like. And implementing predictive hiring isn’t any different.

Have a think about the biggest issue your organisation is facing at the moment that better hiring decisions will solve.

For example, you might have the issue that a lot of new hires are leaving your organisation after a few months. Or you might have a company culture in need of strengthening, and need to hire people who fit with your ideal culture.

When you have honed in on the issue you want to solve, you also need to start thinking about the data that will be required to solve your challenge.

To give you an indication of the type of data you might need, consider these examples;

  • If you have an issue with turnover, the data needed would be employees’ start and end date.
  • Or, if you were looking to improve your customer service level at a call centre, you would need some sort of customer service KPI data – for example NPS.

(These indications are based on the data required if you were working with us at PredictiveHire)

2. Find a shortlist of vendors

After defining the issue you want to address with predictive hiring, it is time to find a shortlist of vendors that can help you achieve your goal.

Make sure you look for vendors who are able to build predictive hiring models focused on your specific issues, whilst making sure the candidate experience isn’t compromised.

3. Perform your due diligence

When you have your shortlist of vendors narrowed down, make sure you perform your due diligence. Some vendors will be a better fit for the challenge you wish to solve with your predictive hiring model.

Make sure your shortlisted vendors address these key questions;

  • What are they basing their predictions on? Predictive hiring experts should be able to tell you the scientific basis of their predictions.
  • How do they address the potential of existing biases being incorporated into the algorithms?
  • How do they fit in with your current hiring process? Can they fit in without causing too much disruption/change?
  • What is the user experience of their product like? How about the candidate experience? For a predictive hiring solution to be useful it should be easier to use than not to use.
  • How do they support you during implementation, on-boarding and roll-out of the tool?
  • What is required from you in order to maximise the project outcome?

Ai for Hiring – Buyers Guide: The 8 Questions You Must Ask

All of these questions are important to address to ensure the project’s success.

Implementing new software and processes will always require some level of change management, for example; following the ADKAR or Kotter change management approaches. Make sure you are comfortable with the level of support the vendor will offer you during the roll-out.

Following these three steps will ensure you are off to a good start with your predictive hiring project – and can start reaping the rewards quickly.

Predictive HR analytics is here to stay.

Resisting this change may put your company at a distinct disadvantage in the marketplace.

A recent MGI study found that AI can significantly improve the bottom line for businesses willing to incorporate them into their core functions. And the time really is now. Early adopters will enjoy a significant data-advantage in only a few years.

“[Leading businesses] use multiple AI technologies across multiple functions. As these firms expand AI adoption and acquire more data, laggards will find it harder to catch up.”
McKinsey Global Institute, June 2017

In the words of Gartner Research’s senior vice president Peter Sondergaard, “Information is the oil of the 21st century, and analytics is the combustion engine.”


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


 


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How leading retailers are using AI-Native Hiring

Retail leaders have embraced AI to improve supply chains, automate checkout, and enhance customer experience. But what about finding the people who deliver that customer experience?

AI brings incredible possibilities to supercharge how retailers hire, develop, and retain talent.

At Sapia.ai, we helped iconic retailers like Woolworths, Starbucks, Holland & Barrett, and David Jones reimagine hiring from the ground up – replacing resumes, ghosting, and gut feel with structured, ethical AI that delivers performance and fairness at scale.

The Retail Problem: Volume, Turnover, and Ghosting

Retail is high volume. It’s high churn. And it’s high stakes for candidate experience:

  • Candidates ghosted during slow hiring cycles
  • Store managers are overloaded with admin
  • Recruiters are overwhelmed with 100,000+ seasonal applicants
  • Talent is overlooked due to bias or unfair screening processes, not a lack of potential

And yet, most hiring still relies on broken tools: resumes, forms, manual processes, and outdated systems.

Sapia.ai: The AI-Native Hiring Engine Built for Retail

Our platform automates the entire “apply to decide” journey, leveraging AI & automation to streamline the hiring process & bring intelligence into retail hiring. 

Smart Interviewer™: Mobile-first, chat-based, structured interviews for a holistic candidate assessment. 

Live Interview™: AI-driven bulk interview scheduling without calendar chaos.

InterviewAssist™: Instant interview guide generation.

Discover Insights: Embedded analytics to track hiring health in real-time.

Phai: GenAI coach for career and leadership potential.

Unlike resume parsing or generic chatbots, Sapia.ai assesses soft skills, communication, and culture fit using natural language processing and validated psychometrics. It’s ethical AI built in, not bolted on. 

From Application to Interview in Under 24 Hours

Candidates don’t want to wait. They don’t want to be ghosted. And they don’t want resumes to define them.

> 80% of Sapia.ai chat interviews are completed in under 24 hours.

We see consistently high completion across categories: grocery, merchandising, home improvement, and luxury retail.

“It was fast, fair, and I actually got feedback. That never happens.” – Retail Candidate Feedback

Real Impact, Across Every Retail Category

Sapia.ai powers hiring for millions of candidates across diverse retail environments:

Impact of Sapia.ai on Retail Hiring in 2024
Category Hours Saved FTEs Saved  Cost Saved
Grocery 272k 131 $6.5m
General Merchandise 193k 93 $4.6m
Specialty Retail 133k 64 $3.2m
Home Improvements 103k 50 $2.5m
Merchandising 22k 11 $0.5m
Luxury 9k 4 $0.2m

The savings created by intelligent, AI-native automation have unlocked team capacity, impacted retailers’ P&L, and improved store readiness.

Speed That Delivers Real ROI

Every candidate gets interviewed instantly. No waiting. No bias. Just fast, fair, data-backed decisions. This generates real impact for retailers who previously relied on slow, outdated processes to handle thousands of applicants. 

  • Woolworths: 5,000 hours saved in a single week
  • Starbucks: Doubled hiring capacity, 91.8% completion
  • Holland & Barrett: Time to hire cut from 20 to 7 days
  • Woodie’s: 3x more ethnic minorities hired in 3 months

DEI by Design, Not by Mandate

With Sapia.ai:

  • 98% of candidates opt in to demographic questions
  • Zero adverse impact detected across gender, ethnicity, and disability
  • 1.5–3x improvements in diverse hiring rates

DEI Fairness Scores (based on actual hiring data):

Gender: 1.03 (vs customer baseline of 1.01)

Ethnicity: 1.15 (vs customer baseline of 0.74)

Why? Because ethical AI removes what humans can’t unlearn: bias. With a candidate experience that is inclusive by design, retailers can ensure fairness in screening, and measure it in hiring.  

Candidate Experience = Brand Experience

Retail candidates are your customers. And the experience you give them matters. We have built a brand advocacy engine that delights candidates and gives you the data to prove it. 

  • 9.2/10 CSAT across 2.6 M+ retail candidates
  • NPS: 78 (30+ points above industry benchmark)
  • 87% more likely to recommend the company’s products post-interview

Responsible, Explainable AI Built for Retail

Not all AI is created equally. Since 2018, Sapia.ai has been built on a foundation of responsible AI:

  • No use of resumes or scraped data
  • Hosted securely via AWS Bedrock
  • Claude-powered LLM scoring with model cards and explainability
  • Independent audits on bias, privacy, and methodology

“We can’t go back to life before Sapia.ai. We used to spend half the day reading resumes.”

— Talent Lead, Starbucks AU

What’s at Stake: Time, Brand, and Revenue

Every day spent using outdated hiring methods costs retailers:

  • Wasted recruiter hours
  • Lost revenue from unfilled roles
  • Bad churn that drains training budgets
  • Lower customer satisfaction from poor-fit hires.

With Sapia.ai, you get the productivity unlock retail hiring demands, and the intelligence your talent deserves.

Want to see how fast, fair, and human retail hiring can be?

 

Book a demo

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Blog

Reinventing the Competency Framework: A Data-Driven Approach for the AI Era

We can’t hide from reality anymore. Talent needs are shifting overnight, and AI is redefining what it means to work. Traditional talent frameworks are no longer fit for purpose. At Sapia.ai, we believe the future of talent strategy lies in a smarter, fairer, and more adaptive way of defining what great looks like. 

Our AI hiring platform is built on the largest proprietary dataset of interview answers globally – we’re a data company at heart, and we’ve seen the power of data-driven people methodology in transforming how organisations hire and retain good talent.  

So, when it came to building a new Competency Framework that could be leveraged globally for hiring for any role at any scale, of course, we used a ground-up, data-led methodology that bridges the gap between organisational psychology and AI.

Why Rethink Competency Frameworks?

Conventional frameworks are typically crafted through expert interviews and focus groups. While valuable, they tend to be subjective, static, and too slow to keep pace with evolving job demands. As roles become more fluid and technology augments or replaces task-based skills, organisations need a new way to understand the human capabilities that genuinely matter for performance.

We wanted to identify enduring, job-agnostic competencies that reflect what drives success in a modern workplace – capabilities like adaptability, resilience, learning agility, and customer orientation.

(Why competencies and not just skills? Read why here.)

Our Approach: Where AI Meets I/O Psychology

Sapia.ai’s methodology is rooted in the science of human behaviour but powered by cutting-edge AI. We asked two core questions:

  1. Can we make competency discovery agile, scalable, and evidence-based?
  2. Can we use AI to automate the process without losing the rigour of traditional psychology?

The answer to both: yes.

We began with a rich dataset of over 37,000 job descriptions across industries and role types. Using large language models (LLMs) and advanced NLP techniques, we extracted over 200,000 behavioural descriptors. These were distilled down through a four-step process:

  1. Behavioural Descriptor Extraction
  2. Clustering and Labeling
  3. Cluster Analysis by I/O Psychologists
  4. Thematic Categorisation and Definition of Competencies

This resulted in a refined list of 25 human-centric competencies, each with clear behavioural indicators and practical relevance across a wide range of roles.

Built to Scale. Built to Adapt.

Our framework is intelligent, but importantly, it’s adaptive. Organisations can apply this methodology to their own job descriptions to discover custom competencies. This bottom-up, role-data-led approach ensures alignment to real work, not just theoretical models.

And because the framework integrates directly with our AI-powered hiring tools, you get a connected system that brings your talent strategy to life. 

Our framework comes to life in the following tools: 

  • Job Analyser – Starting with a job description, it creates a unique competency profile for each role to build tailored structured interviews in seconds.
  • Structured Chat-based Interviews that assess candidates’ responses according to the competency profile for consistent candidate assessment.
  • Talent Insights Reports from every interview with deep reasoning and explainability for fair and objective hiring decisions.
  • Phai Career Coach for internal mobility and employee growth that considers their competency strengths and career aspirations.

The Future of Talent Acquisition & Development is Competency-First

Skills alone cannot predict success. Competencies do. As AI continues transforming how we work, Sapia.ai’s Competency Framework offers a scalable, scientific, and fair foundation for hiring and developing the talent of tomorrow.

Want to see how it works? Download the full framework.


 

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It’s Time to Stop Hiring for Skills, and Start Hiring for Competencies

If you’re a CHRO or Head of Recruitment at an enterprise today, chances are you’ve been inundated with messages about the importance of “skills-based hiring.” LinkedIn’s recent Work Change Report (2025) is full of compelling data: a 140% increase in the rate at which professionals are adding new skills to their profiles since 2022, and a projection that by 2030, 70% of the skills used in most jobs today will have changed.

This is essential reading. But there’s a missed opportunity: the singular focus on “skills” fails to acknowledge the real metric that talent leaders need to be using to future-proof their workforce — competencies.

Skills vs Competencies: The Crucial Distinction

  • Skills are task-specific capabilities. Think Python programming, Excel, or even negotiation.

  • Soft skills refer to interpersonal or behavioural qualities like adaptability, communication, and resilience.

But skills on their own — even soft ones — are generic, disjointed, and often disconnected from real-world performance. In contrast:

  • Competencies are clusters of skills, knowledge, behaviours and abilities that are observable, measurable, and context-specific.

Put simply, competencies answer the all-important question: Can this person apply the right skills, in the right way, at the right time, to deliver results in our environment?

Why Competencies Matter More Than Ever

The Work Change Report outlines a future where job titles are fluid, roles evolve quickly, and AI is a constant disruptor. This creates three massive challenges for hiring at scale:

  1. Roles are changing faster than static skill frameworks can keep up

  2. Job candidates may have non-linear, cross-functional backgrounds

  3. The shelf-life of technical skills is shrinking rapidly

Skills alone don’t tell us whether someone can succeed in a role that will look different 12 months from now. But competencies can. Because they measure not just what a person knows, but how they apply it.

Adaptive Talent: The New Competitive Advantage

The LinkedIn report highlights a critical insight: organisations now prioritise agility in entry-level hiring. And there’s a good reason for that. With professionals expected to hold twice as many jobs over their careers compared to 15 years ago, adaptability is not just a nice-to-have. It’s core to success.

But you can’t measure agility with a keyword on a CV. You measure it by looking at competencies like:

  • Learning agility

  • Change resilience

  • Cross-functional collaboration

  • Problem-solving in ambiguous contexts

When you shift the focus away from skills to behavioural competencies that can be defined, observed, and assessed in structured ways, you open yourself up to a much more dynamic and more useful way of managing talent.

Building a Competency-Based Talent Framework

To hire effectively at scale, particularly in a technology-driven world of work, talent leaders must shift their lens:

  1. Define Role-Specific Competencies: Move beyond job descriptions based on qualifications or vague skill sets. Break roles down into measurable competencies that reflect current and emerging performance expectations. This step is crucial for organisations to be able to accurately assess role-fit in the next stages. Sapia.ai does this automatically, taking job descriptions and building role-specific competency models in seconds.

  2. Assess Competencies Fairly and Objectively: Use structured behavioural interviews, ideally at scale. These provide a much more accurate picture of a candidate’s readiness than self-reported skills or credentials. Sapia.ai’s AI powered interviews enable competency assessment, at scale.

  3. Build Pathways for Development and Internal Mobility: A competency framework makes it easier to identify transferable strengths, development gaps, and future-fit potential. It gives employees clarity on how to grow within the business. Using an AI-powered coach can help ensure that talent is being continuously developed against the organisation’s competency framework.

The Future of Work Requires Depth, Not Just Breadth

LinkedIn’s data shows that people are learning more skills more quickly than ever. But the real question for talent leaders like you is: Are those skills being applied in ways that drive value? Are we hiring for task proficiency or performance?

The truth is that the organisations that will thrive in an AI-driven, skills-fluid economy aren’t the ones chasing the next hot skill. They’re the ones designing systems to identify, develop and scale competence.

Keen to Shift to Competencies, but Lacking a Framework? 

Sapia.ai has developed a comprehensive Competency Framework using a data-driven approach. Download the full paper here.


 

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