Trends in Recruitment Information and Communication System

using Artificial Intelligence in Industry 4.0

Nidhi Oswal

, Karamath Ateeq

and Saju Mathew

Business Department, Khawarizmi International College, Abu Dhabi, U.A.E.

BSIT Department, Skyline University, Sharjah, U.A.E.

Freelance Research Consultant, Kerala, India

Keywords: Industry 4.0, Internet of Things (IoT), Artificial Intelligence, Human Resource Management, Recruitment

Process.

Abstract: Automation of industry and business practices termed as Industry 4.0(Fourth Industrial revolution) has led to

the production of the smart machine. Information systems and applications used for business processes are

now integrated with data analytics. The job description of employees is changing to suit the industry needs.

Innovations in algorithms for decision making make AI (Artificial Intelligence) a useful recruitment tool for

implementing Human resource management (HRM) strategy. The recruitment process has been a cognitive

human ability. This has been taken over by machines which act as virtual assistants in providing recruitment

solutions technically.HR personnel is now empowered to implement strategic business plans developed by

the top management. In this paper, AI technologies, and the use of AI platforms to select employees with the

required skill set to match management’s business strategy is focused on. The paper also highlights Industry

4.0 and technology trends that have changed the functions of HR and redefined the role of HR personnel.

Information and communication about job vacancies, skills set required, benefits, and compensations due, etc.

are now being digitalized. Recruitment using AI has made it possible to hunt for a workforce globally. AI

plays a significant role in collecting data of the candidate through various sources and evaluates the required

candidates based on job description more efficiently and in an unbiased manner. The use of AI demonstrates

higher accuracy than human recruiters and increased productivity to satisfy the dynamic needs of business

processes. Applications of AI allow candidates and employees to experience personalized and more intuitive

results.

1 INTRODUCTION

The development of technology and the economical

progression has brought a tremendous revolution in

the industries and the organization are now adapting

to the digital era. Digital technology had already

made its way to the manufacturing and service

industry in terms of automation software. The

technology was shifted a level ahead with the

emergence of the industry 4.0 revolution or what it

is called today as the Internet of Things (IoT).

Industry 4.0 provided a whole new vision or a

holistic view of the manufacturing and service

industry in terms of real-time big data, the

interconnectivity of departments, usage of machine

language, improved and faster processes. Various

digital tools like cloud computing, cybersecurity,

networking, nanotechnology, and Artificial

Intelligence were bringing innovation in designing

the organizational processes with minimizing the

human factor or interference of human biases into

the processes. Now, innovation in organizational

process design using the digital tools of IoT can

provide organizations a competitive edge.

One of the most important departments of an

organization whether it’s a manufacturing or a

service is its Human Resource Department who

manages an organization's people and with the

inclusion of latest technology can shrink the time

taken for all the activities of the department, which

directly shows the growth in the industrial

development and performance. Hence it’s very

crucial for every industry or business to update their

technology and bring new innovations to cope

themselves in the new generation competitive

period.

Oswal, N., Ateeq, K. and Mathew, S.

Trends in Recruitment Information and Communication System using Artiﬁcial Intelligence in Industry 4.0.

DOI: 10.5220/0010503201110118

In Proceedings of the 3rd International Conference on Finance, Economics, Management and IT Business (FEMIB 2021), pages 111-118

ISBN: 978-989-758-507-4

111

One such new technology that is nowadays

controlling all the major sectors of the industries is

“Artificial Intelligence”. With the introduction of

artificial intelligence in the Human Resource

Department has brought a significant revolution by

combining the human intelligence and the

innovation of the digital technologies in automating

all the activities performed by the department. Now,

using AI, machines can drive the processes with the

human intelligence factor. John McCarthy first used

the term Artificial Intelligence in 1950. Already

more than 60% of businesses are using AI to its

fullest and it is valued by trillion $ by 2018 (Albert,

2019). AI is the new face of the business world. A

whole new glossary is created for HR crucial

activities in the era of industry4.0 (Bondarouk and

Brewster, 2016).

Various crucial activities of the HR department

include recruitment, selection, hiring, training and

development, and talent management for the

development of an organization (Nawaz, 2019).

Within the global market where technology brings

rapid changes in the demands and desires of the

consumers, human resources are considered

valuable resources in the job markets. In recent

times with various economic, political, and social

changes going over the world, it has become more

challenging for HR managers to identify and acquire

talented human resources for their companies.

Recruitment processes need to be redesigned to

identify the most suitable candidates and

encouraging them to initiate the process of applying

within the company. AI enables the recruitment

process to be more efficient with the intelligent data-

driven decision. Programs using AI help in matching

the desired skills of the candidate as per the job

description. Now, HR managers have access to lots

of data, real-time data. AI-enabled tools help the HR

managers to segregate the candidates on the

predefined data. Results are more accurate and

reliable leading to an increase in productivity with

low-cost as human errors and bias factors are

reduced to a high level. Of course, organizations

now need to spend time and money on training the

employees to work efficiently and effectively with

digital technologies. An outstanding recognition was

received by Volvo, a luxury car company at the

Brussels Motor show due to their AI embedded car

used to interview the candidates for the post of

service technicians (Vedapradha et al., 2019). But

the use of AI in various HR processes has reduced

manpower and created some ambiguity between

manpower and machine power (Geetha R. and

Bhanu D., 2018).

The main objective of the paper is to comprehend

the connection between the Human Resource and

Artificial Intelligence and to focus on the trends in

the recruitment process related to information and

communication system using AI.

The methodology used to write this paper is

based on the literature review and the secondary

data. A thorough review of all the secondary data

from various journal publications, conference

proceedings, websites and the books are referred

while drafting this paper. All the keywords

mentions in the paper were researched to describe

the objective of the paper.

2 TRENDS IN WORKFORCE

RECRUITMENT

In this modest business world, the human resource

department is an essential part of any organization

for its improvement and organizational performance.

To be effective and prosperous in the business

world, organizations have to attempt greater

customer gratification which is a dynamic key for

their existence and to accomplish this, organizations

have to adopt innovative human resource methods so

that they can be unique among their competitors.

The most common work carried out by human

resources are- recruitment & selection, training &

development, and other activities related to retaining

skilled, loyal, and motivated employees in an

organization. The most important activities that

Human Resource Management (HRM) deals with is

- recognizing, attaining, and developing a productive

workforce so that they can work for the

organization's goals and objectives in the most

appropriate fashion. Among these, the most

interesting and challenging activity is carried out is

to identify and acquire the most desirable candidates

whose skills match the desired set of skills required

to perform in a specific job.

These activities are the most time-consuming

process and which leads to wastage of a lot of

money due to poor recruitment method

and

technology used. (Hmoud B & Laszlo V, 2019).

Over the years many researchers had given a

different definition for Human Resource

Management (HRM).

According to Edwin B. Flippo recruitment is

defined as “searching and identifying the potential

employees and to encourage them so that they can

work for the organization's development and the

objectives”. Any mistakes done in this process can

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affect the financial and the economic growth of the

organization. The traditional recruitment process of

an organization has a potential impact on

recruitment activities and has a greater impact on the

prospective candidates who apply for the desired

job. The traditional recruitment process was a very

extensive process where a lot of paperwork was used

and they were not focusing on any specific models

of recruitment.

The most common steps that were used in the

traditional recruitment process were –

1. To identify the vacancy in the organization.

2. To prepare the job description and desired

personal skills.

3. To identifying the sources of qualified

applicants and screening the candidates from

the huge pool of candidates.

4. Shortlisting and conducting interviews.

5. Decision making and hiring the most suitable

candidate

As an improvement Breaugh J. A (2008),

developed a Breaugh recruitment process model

which consists of four phases. The following table 1

shows the Breaugh Recruitment Process Model

(Breaugh, 2008).

Table 1: Breaugh Recruitment Process Model.

Step 1 Establish recruitment objectives

Step 2 Develop a recruitment strategy

Step 3 Carry out recruitment activities

Step 4 Evaluate recruitment results

Thebe and Van Der Waldt developed 11 macro-

level steps for the recruitment process. Muller and

Baum Mueller, J.R & Baum, B. in 2011 developed

another 12 steps recruitment process model (Oswal,

Khaleeli, Alarmoti, 2020). But both of these

developed models were presenting the traditional

recruitment process only which was very time

consuming, complicated, bias, showed racism, and

failed to identify the originality of the information

that is provided by the applicant (Beattie, G. &

Johnson, P., 2012).

To overcome all the difficulties that were faced by

human resources the organizations are now

adapting

to new technology and one of such emerging

technologies is “Artificial Intelligence (AI)”.

Currently, Artificial Intelligence has completely

taken the control over human resource department

and the other working sectors.

3 ARTIFICIAL INTELLIGENCE

(AI)

Artificial Intelligence (AI), is the most recent

emerging technology that uses human intelligence

and which is used by most of the organization to

expand the efficiency and the performance of the

organization. AI has the incredible power to act like

a human brain and it gives full competence by using

different inputs to give proper outputs in human

resource management. Artificial intelligence uses

different sets of algorithms and based on it, it

performs its actions. Though the concept of

Artificial Intelligence was found in the 1950s, the

actual development and its exploration happened

recently. Currently, the development of artificial

intelligence had happened so fast that it is been used

across all the fields of life. The growth of the

Internet has also added advantage to the

development of artificial intelligence.

Artificial intelligence plays a vital role in human

resource management by reducing the workload of

the human resource manager since artificial

intelligence uses chat-bot agnostic solutions and

algorithms. Based upon the different algorithms the

entire process of recruitment, selection, training,

development, etc., takes place. Due to the usage of

artificial intelligence, it has completely reduced the

manual and paperwork that was done in the

traditional recruitment process. The technology

provides online services to the employees as well as

to the applicants by communicating with them with

the help of a chat-box. The following figure 1 show

the life cycle of artificial intelligence for human

resources.

Figure 1: Life cycle of artificial intelligence for human

resource.

Operations are an important part where the

organization shows its interest to hire an employee.

In the recruiting process, an ample amount is wasted

by the human resource hence the organization wants

Data Generation Operations

AI Algorithms

Decision

Making

Trends in Recruitment Information and Communication System using Artiﬁcial Intelligence in Industry 4.0

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to apply the operations of artificial intelligence to

reduce the cost of hiring. Following table 2 shows

the human resource most common functions and its

corresponding forecast jobs for workforce analytics:

Table 2: Human Resource functions and its corresponding

forecast jobs.

HR Functions Forecast jobs

Recruiting

Are we acquiring the good

candidates?

Selection

Are jobs offered to those who will

be the best employees?

On-boarding

Which practices cause new hires

to become useful faster

Training

What interventions make sense

for which individuals, and do they

improve in their performance?

Performance

Management

Do our practices improve job

performance?

Advancement

Can we predict who will perform

best in new roles?

Retention

Can we predict who is likely to

leave and manage the level of

retention?

Employee

benefits

Can we identify which benefits

matter most to employees, what

are the effects of those benefits

(e.g., do they improve recruiting

and retention)?

All the above mentioned human resource

operations may affect the efficiency of the

organizations. These operations create a huge

amount of data which can be in the form of text,

recording, etc. The above operations can be used to

develop the corresponding recruiting algorithms for

artificial intelligence which can be used to trace the

data on digital activities. The important inputs such

as ATS (Application Tracking System) produce data

generation.

For data generation, the data is extracted from

different databases which are converted into a

common useable format and they all clubbed

together before the analysis is done.

Artificial intelligence algorithms refer to an

extensive set of methods or techniques that can be

familiarized and acquired from large data to create

algorithms that can perform the better task and

provide better predictions.

Decision making is the final stage of the life

cycle which is used based on the understanding of

the algorithms developed. In human resource

decision making have more preference or choice,

how they can utilize

the experimental evidence that

is extracted from different models so that they can

standardize the recruiting process for the

organization.

4 TRENDS IN RECRUITMENT:

USAGE OF AI

The landscape of recruitment is changing with AI

being included in the HR manager’s toolbox. Job

advertisements are now optimized, published, and

purchased using AI. Performance of advertisements

and analysis of market data is done using predictive

algorithms. This is later followed by scheduling

interviews and placements. Algorithms and the use

of AI facilitate the selection of the ideal job

advertisement on the right platform and at the right

time to reach the ideal candidate. Marketing is

taking over the advertisement.

Recruitment marketing creates an employer

brand and an attractive, engaging, and interesting job

ad. Chabot is widely used to schedule interviews to

pre-screen candidates. A human-sounding

conversation that captures videos, pictures

responses, documents, etc. is used. Chat boxes can

converse through text, email, and chat since these

robots are programmed to be assumptive, intuitive,

and empathetic. ATS resume databases are screened

for talented candidates who suit the roles at the

organization. The candidates are then matched for

the requirements open at the organization. This is

further extended to social media or email

communication to contact the candidate. Social

media profiles are looked into to add to the

candidate’s profile. Besides this job aggregator is a

technology that includes AI and bots to pierce into

social channels, career sites, and job boards to

advertise a job vacancy.

Figure 2 shows the conceptual framework of

recruitment process using artificial intelligence.

Figure 2: Conceptual recruitment framework using AI.

Sourcing Screening

Interview

Selection

Evaluation Using AI

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In the above figure all the activities of the

recruitment is done using artificial intelligence.

• Sourcing - shows job description or

advertisement of the job

• Screening – candidates qualification or skill

assessment is done

• Interview – can be conducted text-based,

online or face-to-face

• Selection – on the basis of merit and fulfilment

of jobs requirement candidates are selected and

given offer letter

• Evaluation – all the selected candidates will be

evaluated on the basis of their work

performance.

A unique

URL is required for each job

specification. With the advent of AI and technology,

the role of HRM personnel is iterating to redefine

new responsibilities.

Table 3: Redefined HR roles & Platforms Used for

Communication and Recruitment. (The Top 13 Best AI

Recruiting Tools).

Redefined HR roles

Platforms used for

communication and

recruitment

Digital Lead Ambassador Fetcher

www.fetcher.ai

Bot Monitor XOR

www.xor.ai

Head of Relevance and

Purpose

Hiretual

www.hiretual.com

Head of work Reinvention

and Reskilling

Eightfold

www.eightfold.ai

HR Data scientist

Pymetrics

www.pymetrics.ai

Head of Insights Textio

www.textio.com

Bot Monitor and HR Data

Scientist

Humanly

www.humanly.io

Diversity and Inclusion

Officer

Paradox

www.paradox.ai

5 MANAGING INFORMATION

AND COMMUNICATION IN

RECRUITMENT USING AI

Time-consuming traditions and customs make

recruitment activities a laborious process. Evaluation

of people with skills to match the job specification is

being considered a monotonous job. Automation of

recruitment can lead to new doors for

communicating and managing information collected

by using AI. Since recruitment influences the

organization, it should be unbiased and handled by

machines. Many candidates may pull out of a

position and feel unproductive. It also damages the

employer's brand and business. Shifts in technology

are changing the way job seekers find a job and

hiring managers to know the candidates through

interviews applications and negotiations.

AI and automation aids in recruitment through

new channels of information and communication.

According to the Recruiter Nation Survey conducted

in 2018, shows that nearly 43% of human resource

managers have communicated to the job seeking

candidates through text only. Texting can be

beneficial in recruitment if communication remains

professional. Text-based interviews are also

conducted which as compared other types of

interviews are less stressful and which helps the

candidates to communicate freely without any

nervousness. Christian Mairoll, CEO of Emsisoft,

says that he conducted text-based interviews which

were very beneficial to him and the candidates were

selected on the merit basis based on their verbal and

written skills.

But it has been found that texting is not suitable

for the first contact or replacement of phone or in-

person interview. It cannot be a creative way to get

the attention of the organization. Today, AI and big

data are used by organizations as information assets

are increasing. Since the subjective nature of people

can be a hindrance, big data and AI is less biased in

the recruitment process.AI helps cannot replace

human-human communication and the final decision

in recruitment however the recruiter can

communicate more effectively and maintain the

interest of the candidate towards the company.AI

communicates based on the background and

information provided by the candidate. Laborious

communication like application letters, filling up the

resume is now automated .facts about the candidate

are scanned from various sources and communicated

to the recruiter through AI and analysis of data.

Natural language algorithms connected to the user

interface enable recruiters to give personal feedback

to each candidate.

HR professionals are finding themselves at the

frontend to assist businesses to respond to the

change. AI can be a driver to explore:

• Why Industry 4.0 has created a transformation

in strategies and practices of HR

Trends in Recruitment Information and Communication System using Artiﬁcial Intelligence in Industry 4.0

115

• What can the HR managers do to integrate the

change for their workforce and the organization

• How can the HR respond to emerging

technologies, critical skills, and roles required in

the organization

Figure 3 shows how different functions of human

resource management can be carried out with the

help of artificial intelligence technologies making a

new trend in recruitment process artificial

intelligence human resource management system.

Figure 3: Trends in Recruitment using AI Technologies.

During the Industry 4.0 period, recruitment starts

with a transformation in business strategies. HR

managers gear up to reach out to employees with

extended skills. This process is made efficient by

adopting suitable algorithms and machine learning

to automate the information and communication

process through AI.

Figure 4 shows structural architecture of new

trend in recruitment process- artificial intelligence

human resource management system, showing how

the information can be managed and communicated

to the candidates.

The most important feature of AI embedded tools

like textio uses augmented writing tools for the job

description to surpass any kind of business and is

more inclusive in

terms of diversity. This will add

more transparency to the recruitment process. AI can

estimate options by analyzing big data. Emerging

technology applications in HR like assessing pay

equity, calculating the end of service benefits, and

monitoring employee compensation are some areas

where AI can reinforce the information that was

documented.

Figure 4: Structural Architecture for AI-HRM.

6 ADVANTAGES OF AI-HRM

Following are the advantages of new trend in

recruiting process AI-HRM;

1. Selecting the correct candidates: with the

help of AI technology the system selects the

correct and matched profile of candidate for

the advertised position.

2. Enhanced integration of analytics: from the

large pool of candidates profile AI

technology selects the matched profile

quickly thereby increasing and improving the

efficiency of recruiting process.

3. Improved recruiting quality: AI technology

creates multiple rounds of recruitment

process so that minute details of the

candidates can be collected before making

selection decision.

HRM

Strategic Planning, Performance Management,

Recruitment & Deployment, Training &

Development, Employment Relations,

Compensation Management

AI Technologies

Expert system, Data Mining, Knowledge

Discovery, Big Data Analytics, OCR, Intelligent

Robots, Face Recognition, NLP, Visual Scanning

ystem, Voice Interaction, Neural Network

AI-HRM

Intelligent Decision Assistance System, Intelligent

Evaluation System, Human Machine Interactive

System, Intelligent Training System, Consultant

System, Intelligent Incentive System.

Sends Details

Online Advt. (Indeed.com)

Creates

Profile

Stored

For

Creates

Candidate

HRM

Fills online

Form

Advertise

for Position

Industry

Database

Uses AI

Technology

and Algorithms

List the

Selected

Candidates

Extracts

Candidate

Skills and

personal

Linked

In/Job

Agency

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4. Better decision making: AI technology

selects the correct candidate for the correct

position from the pool of the candidate’s

profile.

5. Automation and non-biased: Due to the usage

of AI technology no human intervention is

required making the system automated and

bias free.

6. Employment growth and motivation: Regular

training programs and development courses

are conducted by the organization. Due to

usage of AI technology all the programs and

the materials can be customized and the

employee can undertake the training program

at his own time.

7. Organizational development: Using AI

technology organization can closely monitor

the performance and requirements of the

employee creating a strong and healthy bond

between the organization and employee.

7 LIMITATIONS

AI has redefined each job to make it more efficient

but still, the limitations exist. Human touch is

irreplaceable in various steps of HR functions. Since

the HR role is mainly related to managing humans,

so human interference cannot be completely

removed. Certain challenges faced while

implementing the AI in the recruitment process for

managing the information and communication with

candidates are:

• Unable to get feedback from prospective

candidates' experience about the organization's

initial recruitment process.

• Abstract human characteristics like empathy,

emotions, and intuitive decision making are

still to be instilled in AI.

• Applications like ATS limit the choices for the

recruiters. These AI-enabled applications help

the recruiters in searching for suitable

candidates by using keywords.

• Experienced candidates who are not tech-savvy

may not add these hot job searched keywords

into their CV. They could be missed out by the

recruiters if they are depending on ATS to

search the candidates.

• Observation of the body language during the

face-to-face interview is missed out by

machines and chat boxes.

• AI still needs to add features of understanding

the psychological traits of a candidate for top-

level management jobs.

• During the selection process, it is difficult for

AI to monitor the employees learning abilities

and motivational factors.

• The soft skills evaluation is still a challenge for

AI. Since the initial process involves machines,

candidates missed out on the opportunity to

meet the employers.

• As per Global human capital, still, 69% of the

companies are not ready in terms of facilities

and employees.

• Since it’s an addition to the cost, organizations

are still under the dilemma related to full usage

of AI in HR functions.

8 CONCLUSION

The fusion of humans and machines has restructured

various departments in an organization and their

processes. HR functions have also undergone

various changes with the usage of AI. The

implication of AI has provided the HR team with

tools to analyze a large amount of data, provides

flexibility and intelligent insight into the whole

process of recruitment. Automated processes of

Recruitment information and communication make

processes faster and efficient providing recruiters the

productive time to focus on strategic issues related

to HR. For effective usage, recruiters should be fully

trained to use the applications most appropriately.

Organizations should make a careful selection of

applications available in

the market keeping in mind

the factors related to cost, user-friendliness,

flexibility, and reliability. HR functions especially

recruitment should be performed with a precise

combination of AI and human roles. To stay ahead

in the competition, organizations should automate

HR processes but not forgetting the human factor in

traditional recruitment style.

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