New report reveals automation tools are 'missing strong candidates'
Employers across New Zealand are struggling to find the right talent for their organisations as automation tools miss strong candidates amid a surge in job applications, according to a new report.
Robert Half's latest findings revealed that 98% of Kiwi employers face challenges in distinguishing top talent in the current competitive hiring market.
According to the report, the rise of automation in workplaces is a major contributor to these challenges, despite previous reports touting technology as a solution to hiring gaps.
"With advances in technology prone to error, along with uniform formatting and templated language driven by the rise of AI-generated content, distinguishing candidates and accurately assessing their true skills and suitability has become increasingly difficult," said Ronil Singh, director at Robert Half, in a statement.
More than a third of employers said AI-generated CVs are making it difficult to assess talent quality (36%), while automated screening tools tend to miss strong job candidates (37%).
Other challenges reported by recruiters include:
- High volume of applications making it difficult to review thoroughly (36%)
- Limited visibility into soft skills or cultural fit (34%)
- Generic CVs and cover letters that don’t highlight unique strengths (34%)
- Difficulty assessing long-term potential or commitment (34%)
The findings come as the country's unemployment rate hits a decade-high of 5.4%, and with job ad applications going up 19.6% year-on-year as per SEEK data.
Rise in overqualified candidates
Meanwhile, the surge in job applicants also introduced the unexpected rise of overqualified candidates, according to 93% of employers in the report.
Hiring managers in the technology industry saw the highest number of overqualified applicants (96%), compared to recruiters in finance and accounting (90%).
Singh warned that while it may seem like a "bonus" to hire overqualified candidates, it can also put firms at a disadvantage.
"If the position doesn't fully leverage their skillset, it may lead to disengagement, lower morale and, ultimately, higher turnover," he said.
Addressing the application surge
Employers in New Zealand are addressing the surge in job applications by looking at role-specific experience and soft skills, according to the report.
More than a third of employers (34%) said they are looking for candidates with strong interpersonal or soft skills. Others said they are looking for:
- Demonstrated, relevant experience tailored to the role (31%)
- Clear and concise communication in CV and cover letter (31%)
- Demonstrated understanding of the company or industry (30%)
- Professional presentation and attention to detail (29%)
- Referrals or internal recommendations (28%)
- Evidence of adaptability or problem-solving skills (26%)
- Strong alignment with company values or culture (26%)
"With high application volumes and AI-generated content flooding recruitment pipelines, employers are placing greater emphasis on proven role-specific experience and soft skills, which are almost equally as important in today's market," Singh said.
"Candidates who clearly articulate these qualities are more likely to stand out in an otherwise crowded and uniform talent pool."
