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Most managers now rely on AI for hiring and firing, study finds

by Priya Kapoor
3 minutes read

In the rapidly evolving landscape of workplace dynamics, a recent survey by Resume Builder sheds light on a compelling trend: the increasing reliance of managers on generative AI tools for crucial personnel decisions. This study, encompassing 1,342 US managers, revealed that 60% of them are now leveraging genAI solutions like OpenAI’s ChatGPT, Microsoft Copilot, and Google Gemini to navigate pivotal choices concerning promotions, raises, layoffs, and terminations within their teams.

Interestingly, a staggering 78% of these managers utilize genAI for determining raises, showcasing a significant shift in how performance evaluations are being conducted. Furthermore, the survey highlighted that a substantial portion of these managers—more than one in five—frequently entrust genAI to make final decisions autonomously, underscoring the growing integration of AI into managerial practices.

Despite the widespread adoption of genAI tools, the study unveiled a concerning gap in training, with two-thirds of managers lacking formal education on utilizing these technologies effectively. Additionally, nearly half of the respondents have been prompted to ponder the possibility of genAI replacing human roles—a notion that 57% of managers deemed feasible, leading to 43% of them actually implementing such replacements.

On the recruitment front, both employers and job seekers are increasingly turning to genAI for streamlining processes such as candidate short-listing and resume creation. This adoption has proven beneficial, with data indicating enhanced success rates in securing employment or finding the right candidates. However, the drawback lies in the potential for bias or limited criteria, which could inadvertently exclude qualified individuals from consideration.

Another enlightening revelation from a study by TestGorilla unveiled that one in five US and UK employers now utilize genAI tools for initial candidate interviews, marking a significant shift towards AI-driven hiring practices. While 70% of employers leverage genAI in recruitment, only 38% prioritize seeking AI-specific skills, emphasizing a renewed appreciation for human attributes like critical thinking and communication in the hiring process.

In terms of preferred tools, ChatGPT emerged as the top choice for 53% of managers, followed by Microsoft Copilot at 29%, with Google Gemini garnering 16% of the preferences. These tools are not only aiding in training material creation and performance assessment but are also instilling confidence in managers regarding the fairness and impartiality of AI-driven decisions.

However, the study also revealed a glaring need for proper training on ethically utilizing genAI, with only 32% of managers having received formal guidance on this front. Stacie Haller, chief career advisor at Resume Builder, emphasized the importance of ethical implementation to avoid legal ramifications and maintain employee trust. She highlighted the necessity for organizations to couple genAI with human oversight, ensuring thoughtful and responsible usage to preserve organizational culture and integrity.

In conclusion, while genAI undoubtedly offers efficiency and data-driven insights, its integration into people management must be approached judiciously. By prioritizing ethical guidelines, comprehensive training, and a harmonious blend of AI and human judgment, organizations can harness the full potential of genAI while upholding fairness, transparency, and employee confidence in the decision-making process.

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