Employers increasingly adopt AI for hiring, emphasize soft skills

A recent survey by talent discovery platform TestGorilla has revealed that a vast majority of employers are increasingly adopting Artificial Intelligence (AI) in their hiring processes.

The 2024 global survey report gathered data from over 2,000 employers and employees across the UK, US, Australia, Europe, and Latin America, highlighting the changing landscape of recruitment in the era of AI.

According to the survey, 81% of employers are utilising skills-based hiring practices in 2024, marking an increase from 73% in 2023 and 57% in 2022. The report emphasises a growing need for human-centric soft skills that AI cannot replicate, creating a new dynamic in recruitment. A multi-measure approach to skills-based hiring, which combines different skills-based tests and assignments to measure various job-relevant skills, is identified as the optimal method.

The report found that 40% of employers who implement skills-based hiring are using multi-measure testing. This approach has yielded significant results, with 92% of these employers reporting satisfaction with their hires. They also noted several other benefits: 91% experienced a reduction in mis-hires, 83% saw a decrease in costs to hire, and 94% reported improvements in both diversity and employee retention.

TestGorilla CEO and co-founder Wouter Durville commented on the importance of soft skills in the AI-driven hiring landscape. "It is evident that skills-based hiring is the best-suited recruitment method for businesses and employees embracing the future of technology through AI," he said. "Our annual report continues to show a year-on-year increase as more employers are reporting the benefits as they move away from traditional recruitment methods."

Soft skills are becoming increasingly valued in the workplace, with 89% of employers indicating that they believe these skills are more important now than they were five years ago. Durville highlighted this trend, stating, "For years, employers have known that the top employees possess a variety of soft skills. As new technologies emerge and hybrid working rates continue to rise, there is an increasing need to identify and develop soft skills."

One of the key findings of the report is that 84% of employers are taking steps to help their workforce embrace AI, and 52% are specifically hiring for AI-related skills. This shift underscores the importance of a balanced approach to hiring that equally values both technical and soft skills. Such a strategy is essential to securing employees who can thrive in an AI-augmented work environment.

Employers adopting a multi-measure approach are reportedly reaping significant benefits. In addition to improved satisfaction with hires, these businesses are experiencing substantial improvements in various metrics. The reduction in mis-hires (91%) and cost-to-hire (83%) indicates increased efficiency and effectiveness in the hiring process. Additionally, improvements in diversity (94%) and retention (94%) reflect the positive impact of comprehensive candidate assessments on the workforce.

The findings from TestGorilla's report suggest that the integration of AI in recruitment is not merely a trend but a shift towards a more refined and effective hiring strategy. Employers are recognising that while AI can streamline many aspects of the recruitment process, the human element, particularly soft skills, remains crucial to a successful workforce. As businesses continue to navigate the evolving landscape of work, strategies that combine AI with robust soft skills assessment are likely to become standard practice in recruitment.