Technology and Recruiting – Does an algorithm know people better than people do?

Machine Learning in Recruiting

In 2014, Amazon began building computer programs to review job applicants’ resumes with the aim of mechanising the search for top talent (Dastin, 2018). Clearly, Amazon have thrived under the influences of new technology, and can thank warehouse automation, automatic pricing, and people falling in love with Alexa for their rise to the top of the e-commerce industry. Recruiting remained one of the relatively untapped lines of business, so why not try and enact the same changes there?

The reason became very clear very quickly. Amazon’s recruitment mastermind had a bias against women. Now, this seems like a commercial catastrophe in this day and age, and I agree, but the reason in happened is relatively simple. It tried to automate hiring with a machine learning algorithm, but upon testing it realised that it merely perpetuated the tech industry’s bias against women. Simply put, it trained the machine on historical data, and so the historical preferences stayed true (O’Neil, 2018). Perhaps the machine works perfectly in line with historical hiring preferences, but until there is enough balanced data available, it won’t recruit effectively. It is an exciting prospect; a machine picking the people, but it seems to be a few short steps away from perfection.

Screen Shot 2018-12-27 at 11.59.55 — Plot 1 – Global Headcount Comparison (Amazon) (Dastin, 2018)

Amazon focused on CV and written application screening, but that is not the only area where waves are being made. Launchpad have begun deconstructing and analysing video interviews to aid the recruitment process. Each video is transcribed and the candidate’s language and speech patterns are analysed. Algorithms can measure key personality and aptitude indicators like sentiment and lexical complexity to determine not only what it is they’re saying, but also how effectively they communicate their ideas (Hamilton, 2018). That sounds mind-blowing, but it doesn’t stop there. The system then looks at the manner in which candidates communicate. The actual audio files are analysed for things like pitch variation, pacing, pauses and other speaking qualities that could be indicative of performance level. Finally, the video recording itself is observed, looking at facial expressions, movements, eye tracking and more. In short, something as simple as raising an eyebrow a millimetre following a certain question or statement could make you more likely to be a good leader, and Launchpad are aiming to harness that power.

Looking at the recruiting objectively, it seems like automation is the way to go. With an accurate, wholly representative training dataset, the time and cost needed to develop a hiring machine is sure to pay off. It is fascinating to see how much money company’s are spending on recruiting, and that if that can be curbed in one fell swoop with substantial investment, I struggle to see why it shouldn’t be. In the future, perhaps the same amount of information could be learned from one digital interview that requires no staff or resources to host as from a full 12 hour assessment day; that is a win for all parties involved.

Regulatory Changes

With the introduction of the EU General Data Protection Regulation (GDPR), recruiting changed overnight. As the focus on the technology side of recruiting increases, it is imperative for companies to remain within the realm of the new laws. How they gather, store, and most importantly use applicant’s data is now scrutinised in much greater detail (Girdler, 2018). The most important considerations relevant to recruiting are as follows:

Companies need to have a legitimate reason to process data. This one is rather straightforward, but it means that data collected must be relevant to the job posting. It also means a recruitment decision must be made in a timely manner.
Consent, consent, consent! A recruitment company must have explicit consent from the applicant to process their data. This will become more relevant if applications are being screened and compared through a machine that actively learns from the applicant’s data.
Companies need to be completely transparent about their data processing. If an applicant is not being considered for the position but their information is being used to train the model on who not to hire, the candidate must be informed (Bika, 2018).

The introduction of this new regulation may be a thorn in the side of technological advancement in the recruiting industry for some time, but it remains to be seen how companies are dealing with it.

Targeted Advertising and Postings

The final area the world of recruitment is changing that I will discuss is in advertisement and targeting postings and listings. The power of Google and other advertising giants can be used to ensure that the right people are being exposed to the right listings. If I have an interest in working in a hedge fund, there is little to no point in paying to expose me to an advertisement for a listing in a nursery. By analysing cookie data and search and internet usage history, you can discover a persons interests. This targeted advertising extends the reach of the job posting and can lure candidates who aren’t actively looking for an open position on a job board. Rather than investing substantial time and money to plan an advertising campaign, design ads, and buy media, the employer simply signs up to have the targeted ad generated from their job opening (Rossheim, 2018).

If this is combined with techniques from above, a company could develop a checklist of traits and characteristics that make a good hire, and target people who have usage history that is indicative of the same characteristics. Thus begins a matching game on a global scale. If the full power of technology could be used in recruiting, it could transform it from an exhausting back and forth conversation into an exciting game of cat and mouse, and once again everyone is happier. There is no doubt significant investment would be needed, and perhaps the technology is still too infantile to be worthy of such investment. However, there is no doubting that the day where a fully automated recruitment process is the norm is nearly upon us.

Devin Connolly
Novus Opus

References

Bika, N. (2018). GDPR compliance guide for recruitment | Workable. [online] Recruiting Resources: How to Recruit and Hire Better. Available at: https://resources.workable.com/tutorial/gdpr-compliance-guide-recruiting [Accessed 27 Dec. 2018].

Dastin, J. (2018). Amazon scraps secret AI recruiting tool that showed bias against women. [online] U.S. Available at: https://www.reuters.com/article/us-amazon-com-jobs-automation-insight/amazon-scraps-secret-ai-recruiting-tool-that-showed-bias-against-women-idUSKCN1MK08G [Accessed 27 Dec. 2018].

Girdler, S. (2018). The 4 trends changing recruitment, and the opportunities that they provide for background screening | Onrec. [online] Onrec.com. Available at: http://www.onrec.com/news/opinion/the-4-trends-changing-recruitment-and-the-opportunities-that-they-provide-for [Accessed 27 Dec. 2018].

Hamilton, W. (2018). Predicting Right-Fit Hires: The Impact of AI and Machine Learning on Recruitment. [online] Launchpadrecruits.com. Available at: https://www.launchpadrecruits.com/insight-articles/ai-machine-learning-recruitment [Accessed 27 Dec. 2018].

O’Neil, C. (2018). Bloomberg – Amazon’s Gender-Biased Algorithm Is Not Alone. [online] Bloomberg.com. Available at: https://www.bloomberg.com/opinion/articles/2018-10-16/amazon-s-gender-biased-algorithm-is-not-alone [Accessed 27 Dec. 2018].

Rossheim, J. (2018). Technology’s Impact on the Recruiting Landscape | Monster.com. [online] Monster Hiring Resource Center. Available at: https://hiring.monster.com/hr/hr-best-practices/recruiting-hiring-advice/attracting-job-candidates/new-recruiting-strategies.aspx [Accessed 27 Dec. 2018].

Company Spotlight: Music Streaming

Hello Readers! Welcome back to another week Novus Opus. Following Seamus’ interesting debrief of the music streaming industry, and Conor’s insightful commentary on the vinyl revival, it’s time for our next edition of the Company Spotlight!

The reason for selection of this company is an interesting one. I, like many others, was looking into the Spotify vs Apple Music debate, and came across a YouTube video, linked here: Spotify vs Apple Music.

apple-music-VS-spotify-stock-2018-billboard-1548

In this video, a previous Spotify feature – music selection based on the tempo at which you are running – is mentioned. I began to wonder if there is a company out there using a machine learning or AI focused approach to select music for people. I’m aware that Spotify uses preferences and listening history to give recommendations, but I’m thinking more advanced than that. Is it possible that in the future, we won’t pick our own music, but rather an algorithm will be intelligent enough to do so for us? Everyone knows the feeling of coming across a fantastic song that you can’t stop restarting. Could there come a day were these songs are presented to us day after day, accurately, by a machine?

I then came across Endel. This company, backed by the likes of Techstars (Hu, 2018) and Amazon (FinSMEs, 2018), provide personalised, sound-based, adaptive environments that help people focus and relax. The service comes in the form of an App available on the App Store. According to their website, linked above, they utilise the circadian rhythm (our body clock), the pentatonic scale and sound-masking to directly impact physiological and psychological wellbeing.

Clearly, their focus is currently on relaxation and concentration, but they offer modes for relaxing, focusing, moving, and sleeping. The question is, could this technology be adapted to not just provide sounds, but provide whole songs? Furthermore, could it be used to not only supply songs to the user, but to create the songs from the bank of sounds it accumulates? We all have our own music preferences, but perhaps an algorithm as complex as this one could create a sequence of sounds that is more valuable to us than our favourite songs.

The most interesting aspect of Endel, as explained by their CEO, Oleg Stavisky, is the ability to take an artist’s songs and sounds, and use their algorithm to provide a different version of the same artist? (Hu, 2018). Say you love bopping along to Taylor Swift, but seriously need to focus on a task at hand. Endel can take in Swift’s sound and output a version of her music scientifically proven to boost concentration levels. As a result, we could all soon be listening to our favourite artist’s music, through a streaming platform, no matter what we are doing.

Endel is just the beginning of what could be an interesting race to recommendation optimisation in the music industry. This potential change to the nature of work in the industry could redirect the focus from having the best platform to producing the best recommendations and adaptations for the user.

Mozart’s classics amped up for the gym. The future sounds bright to me.

Take it easy,

Devin Connolly
Novus Opus

References

Hu, C. (2018). Meet the 2018 Techstars Music Startups Transforming the Music Industry for Good: Exclusive. [online] Billboard. Available at: https://www.billboard.com/articles/business/8430173/meet-2018-techstars-music-startups-transforming-music-industry [Accessed 20 Nov. 2018].

FinSMEs. (2018). Endel Receives Investment from Amazon’s Alexa Fund | FinSMEs. [online] Available at: http://www.finsmes.com/2018/10/endel-receives-investment-from-amazons-alexa-fund.html [Accessed 20 Nov. 2018].

Ticketing – An Opinion on Value Sources

Hello Readers! I hope you’ve all got that Friday feeling. I’m going to kick start my weekend by giving some of my thoughts on this weeks industry discussion, as posted by Conor earlier in the week.

I really like some of the points highlighted by Conor in his deep-dive in to the new work of the ticketing industry. The most intriguing point mentioned, in my opinion, is the fact that the changes in the work of ticketing companies are fueled by a desire to reduce costs rather than to increase revenue. The main topic of discussion here is, or at least should be, are the savings made justifying the money spent on the development of new technologies?

When a new product or service is developed, and that is what changes the nature of work done, success is easier to gauge. A market can be sized, sales teams can be put together, costs can be tallied, and rough estimates for profit can be calculated. In this case, however, the innovative companies need to completely deconstruct their operating model and price every aspect of it. The cost of developing and implementing a technology must be weighed against the savings from those areas of the operating model that this technology can remove, as Conor discussed with respect to the airline industry.

However, it is important to consider the benefits to the wider stakeholders, as savings made are not the only benefit derived from the development of new technologies. The most important stakeholder to any company is their customers, so it is interesting to consider the effects of this ‘new work’ on them. While the purpose of these innovations internally may be primarily to save time and money rather than create value, they definitely do create value externally through the customers.

As an avid football fan, I will use match tickets as an example. In the past, tickets were ordered by post or over the phone,supply was uncertain, and risks were abundant. Fans that wanted to guarantee tickets had to present themselves to the stadium box office on release day, making the trip overseas for matches (prominent in Ireland, given the standard of national football) difficult. I distinctly remember my first to trip to see my beloved Sunderland being tarnished by the fact that we spent the first half of the game in a queue to collect our tickets. Digital tickets, purchased online and used on a smartphone, have created immeasurable value for fans. Of course, this value is created by saving time, energy and money for the customer, as it does in the company. However, that creates value for the company, in the eyes of the customer, over its competitors.

My loyalty can be questioned, but if I was given a choice between two indifferent football matches, and the ticket acquisition for one was more efficient, cheaper (excluding base price) and more transparent, I know where I would go. Logic, of course, goes out the window if Sunderland reach a play-off final this season, as in that case I will gladly queue for days and chant away to match day.

Sunnderland — The Stadium of Light, Sunderland AFC

The crux of the matter is that these innovative companies, or companies that are willing to change the way they work, not only save time and money internally, but also gain a powerful competitive advantage that can create value explicitly through customer acquisition, loyalty and retention. It must also be remembered, however, that some people (or Sunderland fans) are settled in their ways, and will happily let innovation pass them by.

The Journey Begins

Thanks for joining us!

Allow me to introduce the team.

My name is Devin Connolly, and people call me the numbers guy. My focus is on financials and feasibility, and figuring out whether the world of wonderful plans out there is founded in fact or foolishness.

I’m joined by Ross Finnegan, our in-house thought guru, who specialises in all things strategic, personal and ethical. Unlike myself, Ross knows people, and people know him. He can spot a phony like a deer in lights, and does not hesitate to lay down the law when he feels ethical or moral misconduct is unfolding.

Next, we are joined by our very own International, Conor Wallace, hailing all the way from Hollywood! Unfortunately, it’s the Northern Irish Hollywood, and not the nice one. Conor is a recognised tech genius, and is rumoured to be in the process of being headhunted for MI5. Like Devin with numbers, and Ross with subjectivity, Conor understands machines.

Finally, say hello to our strategic mastermind, the man behind the crystal ball, Séamus Keher. Séamus has fine-tuned the art of speculation over the years, and he specialises in the future of work. Séamus has been knocking it out of the park with his predictive prowess since day dot and will be gleefully providing his visions for the future.

Together, we will take on the task of visualising the world of work in the future. We haven’t chosen this topic out of fear, or concern, but rather out of pulsing curiosity. It is an exciting time for the world of work, and hope to explore in detail whether that be for better or worse. Work, by definition, means “activity involving mental or physical effort done in order to achieve a result”. (1) That said, there are many aspects of work that require attention: the individual, the collective company, and the industry in its entirety. ‘Work’ is a broad subject, and so will we attempt to divide conquer as best we can. We will jump from industry to industry and examine the past, present and the oh so wonderful future within each one. Every piece of analysis will be accompanied by a company case study or highlight, where we outline a particular company that is leading the way with innovation or has done something particularly noteworthy. Our team is passionate about the future of work, so comments will be dotted here and there as we progress.

The diversity within the team will allow us to comment on all the vehicles that implement change, whether they be personal, financial, technological, or purely strategic. In reality, a change in one of those areas will require a change in another, and those are the kind of links we hope to explore. Simply put, work has changed, and has continuing to do so. We glad you are with to follow us along the journey to understand the ethics, the economics, and the exciting innovations of the Novus Opus; the new work

Good company in a journey makes the way seem shorter. — Izaak Walto

(1) Oxford Dictionaries | English. (2018). work | Definition of work in English by Oxford Dictionaries. [online] Available at: https://en.oxforddictionaries.com/definition/work [Accessed 26 Oct. 2018].