Hiring processes at risk due to widespread adoption of generative AI
As generative AI adoption accelerates, hiring processes face significant risk of exploitation.
Our survey, gathering responses from both recruiters and candidates, reveals that recruiters express both confusion and alarm about how generative AI skews hiring results, while candidates openly admit to using it to gain a competitive edge.
What is Generative AI
Generative AI is a type of artificial intelligence that can emulate human speech and thought patterns while simultaneously being able to access and understand all data on the internet.
This makes generative AI dangerous in contexts where people are being assessed for knowledge, skills, and authenticity which is essentially the crux of the hiring process.
Why Is Generative AI Disruptive To Hiring
77% of new graduates and 84% of early career professionals admit to using generative AI to perform well on pre-employment assessments
A majority of job applicants admit to using generative AI to cheat on pre-employment assessments leading to inaccurate data points on which to base hiring decisions.
This leads to re-hires and sunk costs down the line and a potential culture clash where candidates who cheated their way in might not be as committed to the team.
See the impact of generative AI on assessment scores79% of new graduates and 66% of early career professionals admit to using generative AI to embellish resumes
Generative AI allows candidates to fabricate and inflate their experience to the extent that recruiters find it difficult to make informed hiring decisions again leading to re-hires, sunk costs and .
Generative AI conceals actual experience and skill
Allows candidates to portray a false persona with relative ease
Early and mid-career professionals are able to generate a fake portfolio with relative ease. This allows them to showcase a higher level of skillset than they actually have.
What We Offer
Helping our clients mitigate the adverse effects of generative AI on their hiring processes
True Assess helps you identify and address vulnerabilities in your hiring process. By considering strategies and emerging technologies candidates use to outsmart your process, we ensure your hiring data is accurate and untampered.
Our consultation leads to more effective hiring outcomes and a workforce aligned with your company culture. We enhance the integrity of your assessment processes, ensuring only genuinely qualified candidates join your team, fostering a cohesive and ethical work environment for long-term success.
Audit
Review the assessment platform to gauge risk factor from generative AI.
Assess
Simulate the candidate experience including interviews to identify exploitable gaps.
Analyze
Collaborate with the hiring team to understand current hiring processes, decision-making, and data usage.
Report
Provide a detailed report with identified risks and improvement recommendations.
How We Can Help You
The average job posting in the US receives 80 applicants. It only takes one of these applicants to outsmart the hiring process and cost you thousands.
True Cost of a Bad Hire - Interactive Calculator
A bad hire with an annual salary of $72,000 will amount to a sunk cost of $0 if realized and terminated within 3 months.
Step-by-Step Calculation with Detailed Breakdown
1. Recruitment and Onboarding Costs
- • Total Cost of Recruitment and Onboarding for one hiring cycle: $4,700
- • This includes:
- • Hours spent by hiring team members reviewing resumes, conducting interviews, and related tasks.
- • Cost of advertising and software tools used for the position.
- • Onboarding and initial training costs for the new hire.
- • We will factor for two hiring cycles since another hiring cycle will happen to replace the bad hire.
- • Total Cost Incurred in Two Hiring Cycles: $0 (calculated as $4,700 * 2)
2. Cost of Lost Productivity
- • Average Annual Revenue Per Employee in US: $170,000
- • Average Monthly Revenue Per Employee: $14,167 (calculated as $170,000 / 12)
- • Total Months of Lost Productivity: 6.5 months (calculated as 3 + 1.5 + 2)
- • Months Employee was Retained: 3 months
- • Additional Time for Re-hiring: 1.5 months
- • Ramping Up Period for New Hire: 2 months
- • Cost of Lost Productivity: $0 (calculated as $14,167 * 6.5)
3. Monthly Compensation of Bad Hire
- • Annual Compensation: $72,000
- • Monthly Compensation: $6,000 (calculated as $72,000 / 12)
- • Number of Months: 3
- • Total Compensation: $0 (calculated as $6,000 * 3)
Total Cost Calculation
- • Total Cost of a Bad Hire: $0 (calculated as $0 + $0 + $0)
