The recruitment industry is witnessing a massive transformation as the implementation of robotics is speeding up hiring processes and making it efficient. According to a CNBC report, almost all Fortune 500 companies are using some variants of automation to pace up their recruitment procedure.
Artificial intelligence (AI) is becoming a vital part of the course of recruitment with automation taking over both important and trivial tasks alike. Since the hiring process consists of several layers of repetitive tasks, it makes sense to use AI-enabled robots to carry out the job while human intervention may be necessary in the final stages.
A number of recruiting companies are now using automation to assist corporate giants to skim through vast pools of candidates before zeroing in on a few. The initiative is not only cost-effective but also helpful in generating better results.
Hence, the use of AI-enabled robots in this arena is likely to ascend in the future. This makes it imperative to keep a few robotics stocks in your watch list.
But before we move on to the stocks, let’s take a closer look at how automation is revolutionizing the recruitment industry.
Breakdown of Automation in Recruitment
Triplebyte, a recruiting platform that’s changing the way corporate giants recruit in the Silicon Valley, employs artificial intelligence to perform the initial screening processes and then matches the candidates with jobs they are best suited for based on their skills.
The company claims that the effectiveness of human recruiters is diminishing because they chase the same pool of candidates, per the CNBC report. The company’s screening process has been successful in making candidates find the right job, with a success rate of 40% compared with the industry average of 20%.
Triplebyte isn’t the only company following the new road; many recruitment agencies and technology companies are now using algorithms to screen candidates through automated quizzes and interviews.
Appropriately used AI tools can eliminate human bias and therefore are more effective for a larger pool of suitable candidates. Apt automated algorithms not only reduce time taken for the hiring process and lessen chances of a future turnover, but also improve candidate’s experience, per a statement by TopResume.
While the industry looks forward to better results given the improving algorithms, human supervision is definitely necessary to attain balance.
A few well-known robots in the recruitment industry are Vera and Matilda that implement machine-learning to hire effectively. Vera was developed by a Russian start-up that has assisted in recruiting for the likes of LÓreal, PepsiCo (PEP - Free Report) and IKEA. Matilda was developed at Australia’s La Trobe University; it can analyze human emotions and frame appropriate responses.
What Does An Automated Future Look Like?
According to a report by the World Economic Forum last month, machines will be performing the majority of tasks at the workplace compared to humans by 2025. While the extensive use of automation could see 75 million jobs vanish, another 133 million new positions will emerge; leading to a net 58 million new jobs created by 2022.
The performance of machines at the workplace is estimated to rise from 29% now to 42% by 2022. The format and nature of human jobs could shift from full-time to freelance, temporary and contractual roles that need specific skills.
An analysis by PwC predicted similar results, claiming that smart automation technologies could increase productivity, giving rise to the creation of better services and products. While a lot of roles will be irrelevant or witness a change in the fundamental nature of the job, new roles will be generated as well.
Robotics Stocks in Focus
The era of cyber-physical systems, also referred to as the Fourth Industrial Revolution, has long begun. Artificial intelligence and robotics form the core of this revolution. Therefore, robotics stocks have solid growth prospects.
Mentioned below are a few robotics stocks that carry a Zacks Rank #3 (Hold).
Honeywell International Inc. (HON - Free Report) is a software-industrial company that offers aerospace and automotive products and services. The company acquired Intelligrated in 2016, a supply chain and warehouse automation technology expert. Honeywell’s shares have increased 7.4% year to date and its earnings are expected to grow 14.6% for the current year.
You can see the complete list of today’s Zacks #1 Rank stocks here.
Accenture PLC (ACN - Free Report) offers technology, management and outsourcing services. The company uses robotic process automation (RPA) services to automate its operations and business processes. Accenture’s earnings are expected to grow 7% for the current year and its shares have gained 12.3% since the beginning of 2018.
The Boeing Company (BA - Free Report) is the leading aerospace company worldwide and is best known for its commercial jetliners, military aircraft, space, defense and security systems. The company is developing and implementing co-robot technology in the aerospace domain for increased productivity and worker safety. The company’s shares have gained 32.3% year to date and its earnings are expected to grow 21.3% for 2018.
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