Algorithms, Artificial Intelligence, and the Essential Need for More Human Intelligence in Talent Acquisition Strategies

This article originally appeared on Cayuga Hospitality Consultants.

Algorithm-based applicant tracking systems (ATS) have been in place for over 20 years. Recruiters have generally come to rely on the algorithms to find the most qualified talent for the specific roles that are being filled. AI is exposing the weaknesses in ATS applicant ranking and selection. The odds are that top candidates are being ignored because of this strategy and sent to the “Thank you for applying” waste field of untapped talent buried in the applicant database. Talent acquisition strategies and tactics need to have a human intervention that mines the forgotten treasure of talent that is sitting in ATS platform databases.

Artificial Intelligence (AI) Related to Talent Acquisition

The impact of AI on the labor market is a controversial topic. What is not controversial is that the labor market is changing significantly, and the changes are accelerating quickly. The skills required to perform certain roles will change, become equalized, or become obsolete. Some roles, as we have known in the past, will be eliminated and new roles with different skillsets will be created. It is critical to audit your hotel and restaurant’s roles and make necessary changes as AI transforms organization effectiveness. AI will not eliminate the talent acquisition process, but it will change how hospitality organizations attract and recruit top talent.

Algorithms within Applicant Tracking Systems (ATS)

Algorithms are imbedded in most ATS platforms. Recruiters can use the algorithms to eliminate candidates by asking knockout questions.

 Here are a few knockout questions:

• Can you work full-time?
• Can you travel?  
• Can you work on-site?
• Do you have specific skills or certifications?

Recruiters can also use the algorithms to rank and score candidates (based upon hotel or restaurant preferences by role) based on the best fit for the role(s) by reviewing candidate resumes. Recruiters rely heavily on this ranking system to identify top talent. Relying on the ATS platform to rank candidates misses opportunities to interview many talented candidates who simply do not format their resumes to be picked up by the algorithms.

There is an entire industry dedicated to helping candidates change resume wording and formatting to increase the likelihood of getting selected for interviews. AI is helping candidates increase opportunities to be selected for interviews by employers. AI prompts are easily created by job candidates to increase the odds of getting a screening interview. That should make recruiters nervous. Are recruiters selecting the best candidates or the ones who best “game” the system? The solution is all too human.

How to Conduct a Talent Acquisition Audit

Audit and review each of these criteria:

1. Key Performance Indicator (KPI) Metrics Audit

• Time-to-Fill: Average days from job posting to offer acceptance (benchmark: 30-45 days)
• Time-to-Hire: Days from first candidate contact to offer acceptance.
• Cost-per-Hire: Total recruitment costs divided by number of hires (including advertising, recruiter salaries, technology, travel)
• Quality of Hire: Performance ratings, retention rates at 90 days/1 year/2 years, hiring manager satisfaction scores
• Source of Hire Effectiveness: Which channels (referrals, job boards, LinkedIn, agencies) produce the best candidates at the lowest cost?
• Offer Acceptance Rate: Percentage of offers accepted (benchmark: 85%+)
• Candidate Pipeline Metrics: Application-to-interview ratio, interview-to-offer ratio, and diversity of candidates in the pipeline.

2. Candidate Experience Audit (Mystery shop your process)

• Application Process: Is it mobile-friendly? How long does it take? Are there unnecessary barriers? How many “clicks”  for the candidate? 
• What is the dropout rate?  What is the percentage of candidates quitting the application process prior to completing the application?
• Communication Timeliness: How quickly do candidates receive acknowledgment, updates, rejections?
• Interview Process: How many rounds? Are they structured? Is scheduling efficient?
• Feedback & Transparency: Do candidates understand next steps and timeline?
• Post-Interview Experience: Are rejections personalized? Do you request feedback?

3. Stakeholder Interview Audit

• Hiring Manager Satisfaction: Are they getting qualified candidates quickly?
• Recruiter Effectiveness: Are recruiters strategic partners or order-takers?
• New Hire Feedback: Did recruiting accurately represent the role and company?
• Executive Alignment: Does TA strategy support business objectives?

4. Process Mapping and Efficiency Audit

• Applicant Tracking System (ATS) Utilization: Are you using all available features? Is it creating bottlenecks?
• Tools: Do you have the right tools? Are there redundancies or gaps?
• Process Workflows: Are approval processes slowing hiring? Are there unnecessary steps?
• Automation Opportunities: What manual tasks could be automated?

Types of Recruitment Process Outsourcing (RPO)

There are cost-effective recruitment process outsourcing strategies available that can apply human intelligence to the recruitment strategy, which will remove the “algorithm bias” and bring a deeper, qualified talent pool to the surface. Competing for talent in a marketplace dominated by AI will likely be won with human intervention.

1. Full-Service RPO (Enterprise RPO)

The RPO provider assumes complete responsibility for the entire recruiting function across the hotel or restaurant. They essentially become your in-house recruiting department, managing all aspects of talent acquisition from strategy to onboarding.

2. Project-Based RPO (On-Demand RPO) – Temporary engagement for specific hiring initiatives with defined start/end dates. The RPO provider delivers intensive recruiting support for a finite period to address a particular business need.

3. Selective RPO (Hybrid/Modular RPO) – The organization retains some recruiting functions in-house while outsourcing specific components, roles, or departments. This creates a hybrid model where internal and external teams collaborate. This can include executive search and other hard-to-fill roles.

4. Recruiter-on-Demand (Embedded/Supplemental RPO) –

The RPO provider supplies individual contract recruiters who embed within the client’s team, use the client’s systems/processes, and act as temporary internal staff. This provides flexible capacity without the overhead of hiring employees.

More Humans in the Talent Acquisition Process

Talent Acquisition strategies need to be audited for effectiveness in any hospitality organization. 

Is the current strategy working?

Has the algorithm rejected top talent?

Donald Hoover, principal of DHR Strategies, is highly skilled at identifying unique talent for executive leadership roles both in publicly traded and private organizations. His possesses a demonstrated history of working in casino, hospitality and higher education sectors, and is an expert in structuring and deploying organizational training, development, and retention initiatives. As an advisor within the IGAMING sector, Donald specializes in developing IGAMING solutions for casino properties in emerging markets. Donald has extensive experience in unionized properties, and is a specialist in negotiating collective bargaining agreements, resolving contract disputes, and implementing new agreements into practice. Donald is an active member of the Cayuga Hospitality Consultants global network.