Employers urged to be transparent on AI use during hiring

New report reveals major trust gap between employers, jobseekers on AI use

Employers urged to be transparent on AI use during hiring

Employers using artificial intelligence tools in their hiring process should prioritise transparency amid a growing disconnect between recruiters and jobseekers, according to experts.

Indeed underscored in a new report that employers should consider explaining their AI usage in hiring on their career sites. This should include:

  • What AI does (like sifting resumes for skills)
  • What it doesn't do (make final interview decisions)
  • Where humans come in  

"Be transparent about the work, be explicit about AI's role, and offer real upskilling backed with outcomes," said Kyle M.K., senior talent advisor at Indeed.

"This helps jobseekers tailor skills-first resumes and rebuild confidence in the process. It all comes down to trust, and you have to earn it before anything else."

An AI appeal process

In addition to being transparent, employers should also consider adding an AI appeal process for candidates who feel they were "dispositioned" by an algorithm.

In this AI appeal process, these job candidates can request a human interview, according to the Indeed report.

"Disclose known risks of bias so that underrepresented candidates can understand those risks," it added.

These recommendations come amid rising mistrust between employers and jobseekers on how they use AI in the recruitment process.

"This isn't a tech problem; it's human," said Matt Berndt, Head of Indeed's Job Search Academy.

"Employers and workers need to use AI collaboratively and transparently. For workers, if you're not using AI intentionally at work or in your job search, the AI tools can't help you develop and communicate your skills, grow professionally, advance in your career or excel in your current role."

Disconnected at hiring

The lack of trust in AI use in the hiring scene is one of the factors driving the disconnect between employers and jobseekers as of late, according to the Indeed report.

It found that while 70% of employers are confident that they understand what employees want, just 18% of employees believe this is the case.

It also revealed that only 20% of jobseekers said the overall job market is improving, with 41% thinking it can get worse.

On the other end, half of employers believe that the overall job market is going to improve.

This confidence gap is attributed to poor communication.

"Both sides do a poor job of communicating with each other – employers at specifying skills, capabilities, and qualifications; jobseekers at presenting them," Berndt said.

"In interviews, employers fall back on historical questions that don't elicit real skills, and jobseekers are passive rather than interviewing the company."

The findings call for a revamp of listening practices and further training on the skills-first hiring process, according to the report.

"Offer a public applicant guide on how to present skills (e.g., targeted resumes, portfolio links) and 'interview the company,'" the report read.

"Teach managers to focus on skills-based evidence and invite candidate questions. Mutually setting expectations improves fit and boosts confidence on both sides."

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