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or bad employment it can cost your business up to 30% of that employee's first year's salary. But what if your reliance on AI-driven recruiting tools is causing you to miss out on top talent? Costs ranging from recruitment, onboarding and training to lost productivity and potential re-employment will it costs you about $840,000 in two years.
For startup founders and entrepreneurs looking to streamline the hiring process, AI is certainly a valuable solution. But if AI systems just go through generic resumes and filter candidates based on keywords, there's a good chance you'll miss out on exceptional thinkers — the ones who can take your business forward.
In today's job market, there is intense competition for the best talent. For start-ups, a lack of the right hires doesn't just affect day-to-day operations – it directly affects innovation and long-term business success. In smaller companies, the financial and operational risks of bad hiring decisions are even larger than in large organizations.
AI tools, while efficient, often lack the human intuition needed to recognize qualities that don't lend themselves well to keyword searches or algorithms. Balancing the efficiency of AI-embedded hiring practices with layers of personal interaction ensures you don't sacrifice growth potential for convenience.
AI vs. you
It's common to see HR teams using AI-generated interview questions to test candidates' knowledge base. There is even AI tools to perform this function depending on the industry and job role. Hiring managers also use AI powered systems to collect and sort applications. At the same time, the use of artificial intelligence by a candidate is something that is generally not accepted.
I've observed professionals express their concerns about the complexity and repetition of application processes on platforms like LinkedIn. These processes are often long and tedious. They are also expected to provide CVs and cover letters tailored to specific positions and companies.
So the question arises: Can applicants really be blamed if they themselves use AI tools to streamline time-consuming pre-employment assessments?
After all, candidates are faced with a system that demands perfection at every stage, often without providing clarity on exactly what hiring managers are looking for. In many cases, candidates use AI not out of laziness, but as a tool to navigate a system that can feel mechanical and unforgiving. They're just trying to level the playing field against AI-driven applicant tracking systems (ATS).
Candidates are not always aware of the AI systems filtering their CVs and as such, they may use AI generated responses in an attempt to match specific keywords and formats required to pass through the CV Systems. Applicant Tracking System (ATS). The irony is that both sides – employers and job seekers – are more and more using AI to “game” the systeminstead of engaging in a more human and meaningful interaction. It's a cycle where AI is being used to outmaneuver AI, raising the question: How can we bring the human element back into the hiring process?
Related: How to use AI to improve your recruiting practices
The solution
Given that AI has been integrated into almost all operational processes to save time and resources, arguing that AI should be eliminated from HR practices is foolish. However, I think more human intervention is needed during critical stages of the hiring process.
1. Incorporate structured video interviews
With the proliferation of generative AI in the professional space, it may be time for employers to ditch written assessments in favor of video interview. For pre-show purposes, one-way video interviews with a limited response time can be an effective solution.
One-way video interviews reduce the likelihood of AI-generated answers, as candidates are asked to think and respond in real time, showcasing their communication skills, problem-solving skills and even cultural fit. By using a structured format, employers can ensure consistency in the questions asked while still allowing for more authentic human interactions early in the hiring process.
2. Present context-specific behavioral interview questions
Recruiters have a responsibility to evolve their practices and present best interview questions itself in the early stages. Let's not start another interview with a “Tell me about yourself,” “What are your strengths and weaknesses?” or “Why should we hire you?” These questions often lead to repetitive and generic AI-generated answers that fail to provide meaningful insight into a candidate's suitability for the role.
Instead, recruiters should focus on context-specific behavioral interview questions that prompt candidates to share real-world experiences and demonstrate their problem-solving skills. There's a reason that “tell me about some of the toughest problems you've worked on and how you solved them” is Elon Musk's favorite job interview question. This allows recruiters to reduce reliance on AI-generated responses and foster authentic interactions.
3. Custom job descriptions with flexible criteria
Write it down job descriptions that emphasize skills, problem-solving ability, and adaptability, rather than a list of keywords that candidates can easily target with AI-generated resumes. Instead of stating “five or more years of marketing experience and knowledge of the Adobe Suite,” you might ask, “Have you run a successful marketing campaign? Tell us what tools you used and how you measured success.” Broadening the language in job descriptions encourages diverse candidates to apply and prevents applicants from simply tailoring their answers to match keywords.
Related: 7 Founders on their simple AI fixes for common business problems
Building stronger connections
Building a rapport with your candidates in the early stages of hiring is essential to improving your employer brand. When you reject candidates after an engaging interaction, they're more likely to leave a positive impression of your company, even if they don't get the job. So business leaders should focus on making themselves attractive to future talent and building a reputation for being a thoughtful and human-centered hiring process. Ultimately, employees' first impression of a firm will be formed during this stage. So don't make it feel impersonal, automated and disconnected.