3 Reasons to Use AI Resume Parsing in Candidate Screening (And How It Works)
Recruiters and hiring managers have a crucial role to play when it comes to hiring. But with busy schedules, numerous roles to fill, and an overwhelming volume of candidates, the hiring process can be slow and ineffective.
One of the most time consuming tasks? Resume screening.
By leveraging HR technology to help with the candidate screening process, your TA team can reduce time-to-hire, improve productivity, and identify top talent at scale. But how does AI resume parsing work?
(Prefer video content? Take a deep dive into resume parsing here, or book a demo to see AI in action!)
What is AI resume parsing and how does it work?
AI resume parsing is the automated review process of all candidate information submitted on a resume including years of experience, hard skills, soft skills, geographic location, and other pertinent details that are useful when assessing if a job seeker is a good fit for a particular role.
Resource: The Definitive Guide to Artificial Intelligence for Recruiting
Manual resume parsing on the other hand is a [time consuming] task that bogs down TA teams, making it difficult to find top talent for open roles. By leveraging AI to assist with the resume screening process, recruiters can quickly identify potential candidates and move them through the hiring funnel.
But how can AI recruiting software help you design a more efficient hiring process? Here are 3 reasons why you should be using AI resume parsing to achieve your hiring goals.
1. Reduce time spent on manual resume screening
Recruiters spend hundreds of hours sourcing, screening, and scheduling candidate interviews — but these repetitive tasks can be productivity killers. With limited hours in a day and hundreds of resumes to review, recruiters are forced to make quick decisions. But this process doesn’t guarantee that the best-fit candidate will even make it to the hiring manager’s desk.
With AI resume parsing, recruiters can maximize their time while AI quickly identifies the top potential candidates based on job requirements — such as years of experience, hard skills, or geographic location.
AI recruiting software can help automate the initial resume screening process, enabling recruiters to discover and connect with the most qualified candidates faster.
Pro tip: By pairing resume parsing software with an AI chatbot, recruiters can automate additional time consuming tasks such as scheduling interviews, answering frequently asked questions, and recommending open jobs based on skills.
2. Find best-fit candidates faster with fit scores
Although job and resume parsing are key elements of any HR technology, Phenom AI takes it a step further.
“After all this work of finding candidates, sourcing endless databases, and figuring out on paper if [the job seekers is] actually a right fit for a company, the biggest question is: are they a high-quality candidate for this company,” says Maggie Allen, Senior Director and Manager of Solutions Consulting at Phenom.
To help teams assess the potential fit for open positions, Phenom AI assigns dynamic fit scores to each candidate. (You may be wondering, what’s a fit score and why does it matter? Both are good questions to ask.)
Fit scores are an AI-assigned score that helps recruiters identify and engage best-fit talent in seconds, not centuries. Within the Phenom platform, there are multiple fit score rankings that illuminate potential candidates based on their relevant skills, titles, experience, and location.
Candidates can receive an A, B, or C fit score that appears near the candidate name so recruiters can quickly identify which job seekers they should take a closer look at.
Dynamic fit scores are a key component to the resume screening process because they:
- Visually show recruiters which applicants are a potential match, cutting down on time spent reading resumes
- Allow for feedback based on assigned scores which helps the AI make better recommendations in the future
- Help recruiters make informed decisions about which candidates should migrate through the hiring funnel
AI-driven resume parsing with fit scores allows recruiters to maximize their time and jumpstart the hiring process for every available role.
Related Resource: Hiring in a Recruiter Shortage: How BMO is Filling Roles Fast with AI & Automation
3. Improve the quality of candidates presented to hiring managers
Recruiters and hiring managers have a crucial relationship when it comes to hiring — but it’s typically riddled with roadblocks and challenges.
According to the 2021 State of Recruiter & Hiring Manager Collaboration Report, 56% of recruiters, talent acquisition specialists, and talent acquisition leaders surveyed identified unrealistic expectations as a major challenge when hiring top talent.
This report also found that 47% struggle with the quality of candidate that’s presented to hiring managers. With AI-driven resume screening, your team can:
- Streamline communication between recruiters and hiring managers
- Leverage AI to identify potential best-fit candidates, at scale
- Reduce time spent manually screening resumes and sourcing talent
By choosing the right AI recruiting software with AI-powered resume parsing, your team can utilize effective tools that help them identify top talent faster, communicate more effectively, and streamline the hiring process.
How can Phenom AI help?
Although AI-driven resume parsing can help your team work together more efficiently for faster hiring, not all AI-powered HR technology is created equally.
Phenom AI is specifically designed to help with both the job and resume parsing process by:
- Performing sentence extraction to identify necessary skills for the open position
- Inputting only the most relevant skills based on our custom skills algorithm
- Automatically determining "must-have" versus "nice-to-have" skills using custom skills-to-sentence mapping
- Extracting relevant education requirements based on various styles of writing and contextual understanding
No resume? No problem! With Phenom, you can still provide an optimal experience for recruiters, candidates, and hiring managers by offering job seekers the opportunity to build their profile directly through your career site or via chatbot.
Leverage AI-powered resume parsing for faster hiring
With AI-driven resume screening, recruiters don’t have to worry about reviewing every single applicant. AI does all the hard work which results in more qualified candidates landing interviews in front of the hiring manager. Improve how your team engages, nurtures, and converts top talent with AI.
Ready to see Phenom AI in action? Request a demo.
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Kasey is a content marketing writer, focused on highlighting the importance of positive experiences. She's passionate about SEO strategy, collaboration, and data analytics. In her free time, she enjoys camping, cooking, exercising, and spending time with her loved ones — including her dog, Rocky.
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