In a challenging and constantly evolving global job market, characterised in some industries by chronic talent shortages, search firms face the ongoing challenge of identifying, sourcing, and securing the best talent for their clients. Up until the last few years, it would be safe to make the generalisation that those experienced search consultants who had carefully cultivated deep, connected, and responsive networks, were the most likely to be successful.
In this industry, the power of an extensive network cannot be underestimated. But has the use of Artificial Intelligence (AI) changed this maxim? It’s becoming evident that AI tools can greatly enhance candidate search, providing almost unfettered access to the talent market; what other effects is AI having on executive search?
The short answer is there are many. And the effects themselves are significant. It is not hyperbole to state that AI is currently revolutionising the way that search firms recruit talent.
The biggest impacts
Summarising the effects of AI on our industry – and we have deliberately not described these as ‘potential’ effects because it’s happening right now – here are the ways that AI is currently being used in executive search:
- Enhancing candidate reach
- Improving screening of candidates
- Expanding the talent pool
- Enabling data-driven decision making
- Reducing bias
- Enhancing the candidate experience
- Overall efficiency gains
The human touch is required
Before anyone starts panicking about the ‘rise of the machines’, it is worth noting that while AI tools are being integrated into some aspects of executive search, particularly those centred around the recruitment process, there remain key components of this work where AI cannot take the place of a skilled (human!) professional.
AI alone cannot fully assess the complex and nuanced qualities sought by employers in their executive hires, including aspects such as cultural fit, emotional intelligence, or leadership potential.
Additionally, skilled search consultants typically possess a deep understanding of the industries they serve, the dynamics of senior and executive roles, and the specific needs and preferences of their clients. Building relationships with candidates, understanding motivations and aspirations, and evaluation of soft skills cannot be done by AI tools.
It’s this combination that allows executive search professionals to make holistic assessments, and ensure the very best match between job seeker, role and organisation.
However, Artificial Intelligence tools can help search consultants to work even more effectively. Here’s what we believe are the three most noteworthy effects of AI on the executive search industry:
1. Expanding the talent pool: leveraging open-source
AI is making it so much easier, and faster, for search consultants to locate candidates, through leveraging open source searching. This refers to the process of searching for potential candidates on public platforms, via social media, professional networks and a variety of other online sources where individuals have shared information about themselves. You can do it manually, to a certain extent, but AI allows us to cast a much wider net when searching for talent, uncovering passive candidates who may not yet be actively looking for new opportunities.
AI tools greatly boost search efficiency and effectiveness in several ways. The first is through data aggregation; these tools allow you to scan and index vast amounts of information at high speed, quickly identifying potential candidates who meet specific job requirements. AI also allows for more complex searching, with greater precision. It enables complete profile screening, analysing candidate profiles and filtering out irrelevant or unqualified candidates, and can provide candidate recommendations.
Overall, AI can be seen as a tool that streamlines the search process. Imagine one professional search consultant working with AI tools, and one equally skilled professional search consultant, without access, working on the same assignment – they may both have the ability but the consultant with these tools will almost certainly be the first to achieve the goal.
2. Market insights
AI-powered analytics can be extremely useful, providing search firms with valuable market insights. Through analysing large volumes of data, such as industry trends, talent availability and remuneration benchmarks, AI tools provide a competitive edge. Using these tools, it is possible to analyse professional networks and connections to create relationship maps which illustrate how candidates are connected with specific industries, organisations or key individuals. This can be used by executive search firms to identify potential referral sources, influential contacts, or hidden talent pools.
3. Diversity & Inclusion
A major, positive effect of using AI in executive search is in support of diversity and inclusion goals. AI algorithms can identify, and then mitigate biases in candidate selection. By focusing on objective criteria and minimising reliance on subjective judgements, using AI can ensure that a broader range of candidates are considered for open positions.
Search firms around the world are embracing AI technology, and using these tools to underpin their processes. At the same time, the catalogue of available AI tools is growing every day. The effects are already being felt. Yet while AI tools certainly enhance the efficiency and effectiveness of search firms, it is the combination of AI and human expertise that ultimately delivers the best results.
In the near future, the successful people and businesses in our industry will be those who embrace these incredible tools, understanding how and where they can enhance the skills and capability that already exist within a team, and invest in upskilling in order to use them effectively.
Article written by Andrew Watson, CFR Global Executive Search New Zealand
Photo: Naomi and Helen at CFR Global Executive Search New Zealand using a Surface Pro