People Analytics will change the way HR makes its decisions: but what’s driving this change?

Amongst marketing colleagues throughout any sector of business, it is inconceivable that customers would not have their fingerprints and footprints of their data analysed to the nth degree to better understand their value, buying behaviours, patterns of consumption and preferences.  CRM and other data driven disciplines like ASO, SEO, NPS are the life-blood of decision making in marketing. Sure hunches in marketing are still important – but only if they are backed up with data. So, why is it the case, that HR do not as yet apply the same rigour in better understand human potential and performance when making key hiring and appraisal decisions?

HR and People Management have always been an inherently human set of processes…. the clue is in the title. But are people necessarily the best judge of people? Traditionally HR, hiring managers and recruiters are trusted with the responsibility of using their experience to assess and select the best talent available in the market. Knowing what a ‘good hire’ looks like is part logic (reviewing CVs and experience track record) and part intuition (having a feel for whether the person will fit the organisation through interviews).  Both of these practices are fraught with inconsistencies, inaccuracies, subjectivity and even bias (unconscious or otherwise). But in fairness to the HR profession it has been very difficult, up until now, to replace the wisdom of experience with anything else.  But advances in Big Data, Cognitive NeuroScience, automation and machine learning – have heralded a new era of certainty and reliability in the form of People Analytics: the science of assessing people through data.

New Technology – New HR Solutions

Humans and AI are finally able to start working together to make better business decisions. In a recent McKinsey study, 47% of executives have embedded at least one AI capability into their business process.  However, HR remain the function which is least convinced of the benefits to their organisations in deploying AI in HR falling way behind operations, product development, service delivery and marketing and sales. Lack of coherent internal and external data sets, lack of skills to operate in an increasingly digital and data driven HR environment and lack of leadership to drive changes in traditional practices: are some of the main reasons cited for lack of uptake amongst businesses for People Analytics.

As a pioneer in bringing machine learning and People Analytics into the HR market over the past 5 years, here are a number of key benefits that Cognisess have delivered for those companies who have been early adopters for AI in HR.

Saving time – AI has an appetite for data. It is able to process applicants and identify the top candidates faster than an employee manually organising them. This means HR managers can spend more time preparing applicants for the role. Recently the world’s largest brewer, AB InBev, was able to interview their strongest candidates just 3 days after they’d sent in their application. Before employing Cognisess Pro’s people analytics, it took them 10 days. Cognisess saved them time, enabling them to hire the best talent faster.

Saving money – One bad hire can cost €45,000 (£39,294) in loss of productivity. Predictive analytics cannot foresee the future, but in can prevent unsuitable candidates from advancing through the process. It reveals not only the best talent –  but also those candidates who will fit or adapt into a specific company the culture, thrive in the role and therefore stay – thus saving companies a considerable amount of money and resource in the long term.

Increasing diversity, decreasing potential bias – Humans are naturally biased, and although we all do try to minimise it, our bias is always subconsciously present. In the past, there was no way to eliminate it from the recruitment process – predictive analytics and machine learning has completely transformed this. For instance, Cognisess Deep Learn ™ our AI engine, doesn’t take into account race, gender, age or background. Instead, it focuses purely on a person’s cognitive ability and emotional and social attributes to perform to any given role. This change allowed hotel giant, IHG, to eliminate potential bias by 93% from their recruitment process. This not only increases their prospect of developing a truly diversified workforce, but also demonstrates a clear commitment to fairness and inclusion for the employer brand.

How will it transform HR?

“Companies who adopt a predictive analytics system create a brighter future. They not only gain useful objective data on their applicants and employees, but they also gain insight about their talent pools. Managers can identify strengths and weaknesses – even uncovering hidden talents!” Comments Chris Butt, CEO of Cognisess. This approach encourages employees to develop their adaptability and skills whilst managers can better envision a person’s progression in a business by using AI to create complete picture about people and their potential.

As People Analytics become more affordable, accessible and user-friendly we will see many more companies recruit and appraise through a predictive analytics platform, whilst dialling back less reliable traditional recruitment methods. Forward thinking companies such as DFS and Knight Frank are already using our predictive analytics platform, Cognisess Pro to transform their approach. Cognisess Pro’s objective method of assessing talent works well to support and validate recruiters ‘gut instincts’ about a candidate with the data and evidence to back up why they are a good fit for the role. With Cognisess Pro, companies can constantly refine the attributes they are looking for whether it’s short term memory or emotional intelligence – or any other of 120 attributes the platform analyses.

The benefits for HR

Increased Efficiency

With 73% of applicants abandon job applications if they take longer than 15 minutes, there is clearly an art to retaining candidates until the end of an application. Cognisess Pro’s gamified assessments engage the candidate whilst gaining insights for the recruiter – 90% of applicants have a positive experience on the platform. “Our clients often see an increase in applications using our platform.” Reveals Chris Butt, CEO of Cognisess. A positive application experience also leaves candidates with a good first impression of a business.

Increased Diversity

With ethnically diverse teams outperforming non-diverse teams by 35%, it consciously pays to focusing on a person’s innate abilities and skills to identify what a balanced and diverse team fit looks like. Predictive analytics create a fairer process for all by removing subjectivity and bias. Typically recruiters are disposed to hiring the type of person they personally connect and recognise through experience or preference – rather than ability or potential.  Having a more objective approach greatly increases the chances of a building a more diverse and productive workforce.

Increased Speed to Hire

People analytics allows HR to recruit quickly cut through the volume of applicants and information to identify the best talent whilst creating a positive and fair process for every participant. Simultaneously the technology allows recruiters and managers to monitor and benchmark their existing employee talent pool to quickly spot opportunities to redeploy talent – rather than always reaching for an external solution.

Learn more about AI in HR

Cognisess is already supporting some of the world’s leading businesses to transform their approach to managing talent and potential. 

For more insight, download our recent case study with global hotel giant IHG.

What is unconscious bias and why it should be reduced in talent recruitment?

Unconscious bias: a brief overview

Every one of us carries a degree of unconscious bias. This is informed by our personal experiences, stereotypes and cultural context. It’s the way our brains make quick judgements about people and situations without us even registering it. Ultimately these inherent biases can impact decision-making in the hiring process. For instance, during a study by PNAS, participants were invited to review a number of job applications. Despite the applications being randomly assigning a male or female name, each reviewer was more likely to conclude:

  • The male applicants were better qualified than female candidates.
  • They were inclined to hire male candidates over female applicants.
  • The male applicants were deemed more worthy of a higher starting salary than the female candidates.   
  • They were more willing to invest in developing a male candidate than a female one.

This is a prime example of unconscious bias at play. Although reviewers didn’t deliberately discount females because of their gender; their unconscious bias did. Ultimately this would impact on the hiring decision, career development and salary of the candidates. It may have even prevented the best candidates from being considered for a position.

Can bias ever be eliminated or at least reduced?

“Because we are all human, we all harbour conscious and unconscious biases. Sometimes they’re useful – like when we stubbornly always choose to stay at our favourite brand of hotel; but often they’re not. Even when we try our best to identify and minimise them, they are always there as they form an intrinsic part of being human,” revealed Cognisess CSO, Dr Boris Altemeyer: “

Although this bias is instinctive, there are methods recruiters can use to minimise the risk of affecting hiring decisions. The emergence of artificial intelligence provides an effective solution to reduce bias. According to Dr Altemeyer: “AI doesn’t have to worry about understand its own unconscious bias, because it has none.”

Cognisess Pro, our market leading AI recruitment platform, makes it optional for candidates to disclose age, gender, race or the schools they went to and that can be hidden from assessors too.  More significantly this information is never taken into account for Cognisess assessments. This is called ‘blind recruitment’ and focuses purely on the attributes and abilities that matter when hiring a candidate. This process provides decision makers with an in-depth understanding of a candidate’s suitability for the role – regardless of background. The platform is data-driven with 50 assessments to choose from measuring over 120 attributes. This range of data has been proven to assist companies like AB InBev, CIL and IHG  make better informed and fewer bias decisions about recruitment and assessments.  For example, hotel giant IHG has recently eliminated potential bias by 93.75% using Cognisess Pro, enabling a fairer and more accurate approach to talent management compared to their more traditional recruitment processes.

Why should companies strive to minimise it?   

It is a given that leading recruiters are committed to a fairer recruitment process for applicants. This is important in building a credible employer brand and reputation to compete in the talent market.  But making a conscious effort to remove bias also provides other significant benefits. “Companies in the top quartile for racial and ethnic diversity are 35 percent more likely to have financial returns above their respective national industry medians.”  according to a recent Mckinsey report. Adopting an approach like Cognisess Pro which can reduce or eliminate bias, will lead to the development of a more diverse workforce.  “Teams which have a more diverse composition bring so much more to the business in terms of having strength in depth to maximise opportunities like problem solving, creativity, customer empathy and innovation which can benefit a company in both the short and long term,” confirmed CSO, Dr Altemeyer.

Additionally, a recent analysis of talent attraction strategies revealed that  67% of applicants want to join a diverse team .  Focusing on this will support companies to attract more candidates and the best talent into the applicant pool.

Taking the first steps to address bias

“In the battle for talent, not every company is going to win the hearts and minds of the top 3% of graduates every year – and that thinking in itself is a form of bias”, stated Cognisess CEO Chris Butt: “Therefore companies have no other option to but too look beyond the obvious to identify talent in its many forms and how it can ably fill the skills gaps they have.”

Cognisess Pro is the most advanced People Analytics and Assessment Platform on the market today bringing AI to HR. It is helping companies create a fairer process and pinpointing the best person for the role based on ability and potential – not gender, age or race. If you are uncertain of how to best start the journey of integrating AI into your HR processes, contact us today to schedule a demo.