embracing disruption in the recruitment sector · 2020-04-15 · phone calls and emails in a single...
TRANSCRIPT
Embracing disruption in the recruitment sector
2 of 8
Disruptive technology and new forms of automation
are seemingly bombarding the recruitment sector
from all directions.
The proliferation of online jobs boards and filtering
services such as Direct Match, ubiquitous use of
LinkedIn and new hybrid recruitment models have
already posed a challenge to established contingent
agencies and executive search firms.
Further disruption has arisen from both big players
like Google for Jobs and hired.com, as well as from
lean and hungry tech start-ups like talent.io utilising
increased automation.
With the industry managing so much personal
data, the advent of the General Data Protection
Regulations (GDPR) is also causing ripples through
the sector.
And then there’s AI. Although still evolving, the
biggest impact of AI currently is around automation
of repetitive processes through machine learning.
The next level, boasting memory to learn and make
decisions, has recently delivered autonomous
vehicles and sophisticated chatbots, while upcoming
generations of AI will understand human thoughts
and emotions, although this is not quite a reality yet.
Feeling the impact
Why is all this technological disruption happening
now and what does it mean for recruiters?
Essentially, it’s down to massively increased
processing power and the sheer volume of
data available.
This impacts on recruiters in two key ways. Firstly,
AI and other disruptive technologies are changing
the nature of existing jobs and creating new jobs
in all sectors. So recruitment companies should be
striving to get in at ground level and be the ‘go-to’
organisation for the new jobs being created.
Secondly, these disruptive technologies can enable
a recruitment business to spend less time on
low-value work and focus on high-value activities
because simple tasks can be automated.
Rapidly evolving technology, particularly the increasing adoption of artificial intelligence (AI), is seriously disrupting the UK recruitment sector. We take look at the changes, challenges and opportunities it raises for the industry.
Embracing disruption in the recruitment sector
3 of 8
Recruiters that can identify the low-value activities in
their businesses that can be automated and leverage
new technology to increase focus on high-value
activities should be able to extend their reach, drive
efficiency and deliver value to clients.
An example from outside the recruitment sector is
LawGeex, a tech legal firm specialising in automated
contract reviews. In a test, a non-disclosure
document containing five technical errors was run
past a team of 12 lawyers and the firm’s AI platform.
The lawyers took 90 minutes to resolve the issues,
the AI just two.
Within the sector, customer relationship management
(CRM) software such as Pulse helps firms to
automatically capture all customer communications,
phone calls and emails in a single system.
Other systems enables staffing firms to integrate
and automate their in-house workflows from end-
to-end and there are also bots to help recruiters
with GDPR compliance.
Effective response
Forward-thinking recruiters like SThree are blazing
a trail to capitalise on these technologies.
Andy Hallett of SThree likens the impact of
disruption on the recruitment sector to TV series
Game of Thrones, where a rapidly changing world
is filled with threats from all directions.
“We know more disruption is coming – but what
are we going to do about it? To respond effectively
recruiters need to ‘disrupt themselves’ by asking
what their customers want, and pre-empting where
and how they are going to be disrupted,” he says.
This requires a long-term commitment to
innovation, argues Andy, which is why SThree has
a specialist innovation team running a research and
development programme which is ‘ring-fenced’
within its corporate structure.
Build, buy or rent
SThree has identified three broad strategies to
respond to and embrace disruptive technology: build
it, buy it or rent it.
In terms of build, it has developed its own
technology solutions – such as the TalentDeck talent
acquisition platform, its Showcaser video interview
technology and HireFirst, a hybrid recruitment
platform.
“Other disrupters have the technology but have
much to learn about recruitment,” says Andy. “We’ve
got the knowledge, so we’re building tech to deliver
it more effectively, to push back against them.”
SThree has also acquired minority interests in a
number of up and coming tech companies. Among
these is RoboRecruiter, a recruitment-specific
chat and messaging bot; The Sandpit, a start-
up incubator funding enterprise software for the
recruitment sector; and the RightStaff platform,
which is changing the way medical staff are supplied
to the NHS cost-effectively.
4 of 8
And Andy says that sometimes there is no point in
“reinventing the wheel” if someone is doing it really
well already and it’s simply easier to buy or hire
proven third-party platforms such as Salesforce.
“You have to constantly spot who is trying to kill
your business and commit to a culture of innovation
to help you push back against the disrupters,
get support from the top and look for people with
the right digital backgrounds, including from
outside the sector. Our motto isn’t ‘fail fast’, it’s
‘learn quick’,” says Andy.
Human qualities
Disruptive technologies are of course also bringing
about rapid changes to the way people work. In
fact some roles are evolving so fast that the job spec
has changed before an appointment is even made.
Edward Short, Vice President for EMEA at leadership
development and behavioural change specialists
Potentialife, argues that rather than eliminating
people from the workplace, AI and automation
actually help reinforce the importance of human
qualities to recruitment sector businesses and their
client companies.
“Organisational structures are more fluid and
messy today and jobs are moving away from being
role-based,” he explains. “If you‘re recruiting people
around ‘roles’ you’re behind the curve. Previously,
the most important thing was a good CV and
skills, now it’s attitude.”
“Increasingly, companies want people with
different behaviours and the right ‘attitude sets’.
Organisations are clamouring for peak performers
who can demonstrate nuanced, value-adding
human qualities like innovative thinking, authenticity,
collaboration, delegation and smart risk-taking.
Within recruitment organisations that translates
to having staff with the ability to understand how
people will perform most effectively within a
team culture, who are able to gauge interpersonal
skills and culture-fit, and provide a differentiated
candidate experience.
Ed questions whether robots and algorithms can
really do these intuitive human things. “Not yet,
anyway,” he suggests. “However, there are a huge
number of steps in the recruitment process and
introducing AI and automation technology removes
the most tedious, low-value tasks, freeing up time
for the high-value, human-touch activities.”
So, it seems there is still a vital role for the personal
touch. Recruiters need to decide which part of
the recruitment process they can automate with
5 of 8
technology to free up their people to focus on these
essential human elements. “They’ll be better at
identifying candidates with the right attitude sets,
understanding what hiring managers are looking
for and matching them up,” says Ed.
Data management risks
The enormous amount of personal data handled in
recruitment makes GDPR a further and increasingly
pressing disrupter for recruiters.
The new regulations mean new requirements
for firms, such as how to respond to data access
requests, the need to have a data protection
officer in place and the need to report any data
breaches within 72 hours.
“To manage the impact of GDPR businesses need
to understand their data landscape and take a
risk-based approach,” explains John MacKnight
of risk analysis consultancy CRA.
“While the regulator is neutral about the technologies
supporting data processing, individuals have
specific rights relating to automated decision-
making and profiling, activities possibly handled
by AI. You have to be conscious of how you use that
technology and must make people aware of it.”
John stresses that reputational risk is the main
GDPR issue for recruiters and recommends starting
a risk register to create a baseline of understanding
in order to develop layers of appropriate defence.
He adds: “Defences can include the technology
solutions available to help manage GDPR –
but there’s no silver bullet and human error will
often be the weakest link.”
Grasping the opportunities
Technology is undoubtedly bringing massive
changes, challenges and opportunities to the
traditional recruitment business.
But the demand for high quality recruitment services
is likely to continue to grow unabated as the UK
seeks to address the talent gap post-Brexit.
Those businesses prepared to engage people with
the necessary skillsets to embrace and adapt to
AI will be able to focus on higher-value, high-end
activities, potentially opening up major business
opportunities and financial returns. The key is
understanding how technology can be of most value
in solving clients’ problems.
While the sector will certainly look very different in
the future, the rewards will be considerable for those
that get it right.
6 of 8
Biographies
Andreas Iacovou is a Relationship Director working in the Business Services Industry Team in London.
Andreas has a Bachelor’s degree with honours in Economics and Law and has benefited from working
in the information technology and banking sectors over the last 20 years . Andreas joined Barclays
in 2008 as an Industry Specialist in the Business Services Team and now heads up the recruitment sector
industry team. Prior to embarking on a career in finance, Andreas worked for a number of technology
companies and was involved in the early development of the Tesco.com ecommerce offering . As an industry
specialist at Barclays, Andreas has developed considerable understanding of the business services sector
and is considered to be a trusted adviser to his clients.
Andreas IacovouRelationship Director
Barclays
T: +44 (0)7917 200 853
7 of 8
Biographies
Martin primarily acts for SMEs and large companies, providing financial solutions to enable them
to drive their business on and achieve their financial goals.
He believes strongly in offering a practical approach to clients’ financial situations, not only listening
to their needs and desires, but also providing tailored accountancy and tax advice based on his knowledge,
experience and what is best for the client.
Martin combines accountancy, audit and tax knowledge gained over the years to offer honest advice,
support and guidance regarding the issues faced by small and medium-sized.
His services range from facilitating monthly board meetings and acting as a quasi-financial director,
to intensive hand-holding exercises with clients, guiding businesses through financial matters on an almost
daily basis.
Martin AtkinsPartner and Business Services Specialist
Menzies
T: +44 (0)20 3795 3456
8 of 8
Barclays is a trading name of Barclays Bank PLC and its subsidiaries. Barclays Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority (Financial Services Register No. 122702). Registered in England. Registered number is 1026167 with registered office at 1 Churchill Place, London E14 5HP. Item Ref: BM413604. June 2018.
barclayscorporate.com
Biographies
Tim Dunn runs a portfolio of SME clients and is a member of the business services sector team at Menzies,
with a specific focus and expertise working with clients in the recruitment industry. With over 20 years’
experience in this sector Tim works hard to ensure compliance matters are attended to with the minimum
of fuss, and he uses his experience to provide proactive advice and commercial solutions to the challenges
clients face.
With his good understanding of technology and software (in particular cloud based applications), Tim can
help design innovative efficient solutions for clients.
Tim DunnPartner and Recruitment Specialist
Menzies
T: +44 (0)1784 497 170