Recruitment is Broken, What Are Businesses Doing to Fix It? Exploring AI in Recruiting and Workforce Transformation

Businesses today face an unprecedented challenge: a shrinking talent pool compounded by a rapidly aging population and the accelerating rise of generative AI. These forces are reshaping how companies recruit, retain, and develop their workforce. Over the next two decades, the working-age population is projected to shrink by an average of 25%, while the over-60 population grows by more than 40%. This demographic shift, combined with technological disruption, means that traditional recruitment methods are increasingly ineffective.

In this article, we will explore how companies across various industries are responding to this recruitment crisis. We’ll delve into innovative approaches that leverage AI in recruiting, rethink talent sourcing, and tap into overlooked talent pools—particularly older workers. We’ll also highlight cutting-edge tools and platforms transforming hiring processes, and discuss why a human touch remains essential even as AI takes on a growing role.

The Recruitment Conundrum: More Applicants but Persistent Talent Gaps

Recruiters today are overwhelmed by the sheer volume of applications. For nearly every role, the number of applicants has soared, creating a paradox: more candidates, yet persistent shortages of the right talent. This is partly driven by technology that makes applying for jobs incredibly easy, sometimes just a click away.

Yet, as one industry leader put it, the top talent remains "thinly spread." For example, the legal sector is experiencing fierce competition, especially with American law firms entering the UK market. These firms offer young lawyers salaries as high as £150,000 to £180,000, dwarfing the £60,000 to £80,000 offered by traditional UK firms. While these salaries are outliers, they highlight a broader trend—businesses across sectors must compete aggressively for skilled candidates.

Moreover, many industries face a growing challenge as experienced workers retire or leave the workforce. The phenomenon of "unretirement"—where older workers return or continue working beyond typical retirement age—is increasingly important in addressing talent shortages.

Tapping Into the Over-50 Talent Pool: A Massive Untapped Resource

Lindsay Simpson, founder and CEO of the Fifty Five Redefined group, explains that one of the biggest recruitment challenges is demographic: fewer babies are being born, meaning fewer young people entering the workforce. Over the next twenty years, the working-age population will shrink significantly, while the population over 60 will grow by over 40%.

By 2030, half of the workforce in the UK—and even more in some parts of Asia—will be aged 50 or over. This shift demands a new approach to workforce planning. Rather than solely focusing on youth recruitment, companies must find ways to retain and engage older employees, extending careers by 10 to 20 years through flexible working arrangements and new roles.

Industries such as infrastructure, utilities, and actuarial services are particularly reliant on older workers, with few younger professionals entering these fields. Extending the careers of skilled older workers is not just beneficial but essential.

Despite this, many employers have yet to fully explore the over-50 recruitment market. One reason is the overwhelming flood of applications, leading to a “sea of sameness” where recruiters see repetitive phrases and AI-generated content in CVs and cover letters. This makes it difficult to identify genuine talent.

AI in Recruiting: The Double-Edged Sword

Generative AI tools have revolutionized how candidates apply for jobs. From discovering roles on platforms like LinkedIn or Indeed to using ChatGPT to write cover letters and improve CVs, many applicants rely heavily on AI to streamline their applications. A recent poll found that 45% of applicants have used generative AI in building or enhancing their CVs.

While this broadens the applicant pool and lowers barriers to entry, it also creates challenges for recruiters. Employers report that AI-generated applications often lack authenticity and differentiation. Some companies have even stopped accepting traditional cover letters and CVs, citing distrust in AI-assisted content. Others discard applications outright if they detect AI involvement.

However, some sectors, such as gaming companies, embrace AI use, recognizing that candidates who use AI tools are likely to be adept at using them on the job.

Innovative Recruitment Approaches: Siemens and Arctic Shores Partnership

International electronics giant Siemens exemplifies how companies can rethink recruitment amid these challenges. Facing difficulties in attracting and retaining skilled candidates—exacerbated by a "perfect storm" of workforce transformation and talent scarcity—Siemens partnered with Arctic Shores, a recruitment company specializing in AI-powered psychometric assessments.

Instead of relying solely on qualifications and experience, Siemens now recruits for aptitude and behavioral fit. Arctic Shores combines neuroscience and psychology to create interactive, task-based assessments that measure how candidates think and learn, predicting their success in specific roles.

This approach has expanded Siemens’ talent pool beyond typical industry candidates and improved employee retention and progression. Candidates who match the company’s behavioral profile are more likely to thrive and move within the organization, fostering a symbiotic relationship between employee and employer.

How AI Psychometric Assessments Work

Unlike traditional CV screening, Arctic Shores’ assessments involve non-job-related interactive tasks that evaluate candidates' problem-solving, adaptability, focus, and decision-making. For example, a candidate may be asked to trial a new security system, with increasing difficulty to assess how they respond under pressure.

Such assessments can identify traits like impatience, focus, or fast thinking, which are valuable for different roles such as sales or trading. This method reduces bias inherent in CV reviews, which often rely on keywords and experience that can be gamed or misrepresent true ability.

In one striking example, a woman named Angelina Lee increased her interview rate by 10 times simply by inserting big brand names and unconventional information (like a fraternity record for most vodka shots) into her CV. This exposed how easily recruiters can be misled by surface-level information, underscoring the need for better evaluation tools.

Bias and Limitations of AI in Recruitment

While AI offers promising solutions, it is not without flaws. AI systems are trained on historical data, which often contains societal biases. This can lead to perpetuating inequalities, such as favoring candidates from certain backgrounds or educational paths.

Employers may set filtering criteria that unintentionally exclude qualified candidates or skew towards certain demographics. For example, requiring a university degree might eliminate capable candidates who took alternative career paths.

Despite these risks, many employers remain risk-averse, relying heavily on CVs and cover letters as primary screening tools. This conservatism is driven by the high stakes of recruitment—training new hires is costly and companies expect employees to stay for several years to justify the investment.

Internal Mobility and Talent Development: Novartis’ Talent Match Platform

Some companies are tackling talent shortages by focusing on internal workforce development rather than external recruitment. Swiss pharmaceutical giant Novartis has invested in AI to facilitate internal moves and up-skilling through its Talent Match platform.

Talent Match pairs employees with new opportunities within the organization based on their skills, interests, and ambitions. The AI also identifies skill gaps and recommends targeted training, enabling staff to prepare for their desired roles.

This approach boosts employee engagement and productivity. Novartis has staffed over 500 projects through internal mobility and realized productivity gains exceeding $15 million, funds that can be reinvested in research and development.

The Future of Recruitment: Balancing AI and the Human Touch

The recruitment landscape is evolving rapidly. The barrier to applying for jobs has lowered dramatically, thanks to AI tools that simplify and automate application processes. This forces recruiters and employers to rethink how they identify truly qualified candidates.

Emerging technologies like AI-powered psychometric assessments, internal talent matching platforms, and automated candidate sourcing tools are helping businesses widen their talent pools and improve hiring outcomes.

However, technology cannot replace the human judgment and empathy needed in recruitment. The best outcomes come from combining AI’s analytical power with human insight to assess cultural fit, motivation, and potential.

Automating Recruitment’s Busywork

One company leading the charge in integrating AI into recruitment workflows is EQ.app. Their mission is "Zero-Admin™"—eliminating the administrative burden that recruiters face daily by automating repetitive tasks like candidate sourcing, screening, and scheduling.

EQ.app’s autonomous AI agents streamline workflows, freeing recruiters to focus on building meaningful connections and making strategic hiring decisions. Their platform helps scale inclusion by breaking down systemic barriers and making opportunity accessible to all.

By leveraging EQ.app’s innovative AI solutions, businesses can significantly enhance efficiency, reduce bias, and improve the quality of hires in an increasingly competitive talent market.

Key Takeaways for Employers and Recruiters

• Demographics are shifting: The working-age population is shrinking, and half the workforce will be over 50 by 2030 in many regions.
• Older workers are a vital talent pool: Extending careers and recruiting older employees can help fill critical skills gaps.
• AI is reshaping recruitment: From sourcing to assessment, AI tools offer new ways to evaluate aptitude and fit beyond CVs.
• Beware of AI bias: Algorithms trained on biased data can perpetuate inequalities if not carefully managed.
• Internal mobility matters: Platforms like Novartis’ Talent Match enhance retention, engagement, and productivity.
• The human touch remains essential: AI can augment but not replace human judgment in hiring decisions.

Frequently Asked Questions (FAQ)

What is AI in recruiting and how is it used?

AI in recruiting refers to the use of artificial intelligence technologies to automate and enhance hiring processes. This includes screening resumes, matching candidates to job descriptions, conducting psychometric assessments, and facilitating internal mobility. AI helps make recruitment more efficient and objective, though human oversight remains critical.

How can companies address the talent shortage caused by an aging workforce?

Companies can tap into the over-50 talent pool by extending careers, offering flexible work arrangements, and creating roles suited to older workers’ skills. Developing internal talent through upskilling and reskilling programs is also crucial, as is embracing diverse hiring practices.

What are the risks of using AI in recruitment?

AI systems can perpetuate existing biases if trained on skewed data, potentially disadvantaging certain groups. Overreliance on automated filtering may exclude qualified candidates who don’t fit traditional profiles. It’s important to combine AI with human judgment to ensure fairness and inclusivity.

How does psychometric assessment improve recruitment?

Psychometric assessments evaluate candidates’ cognitive abilities, personality traits, and behavioral tendencies through objective, task-based tests. This approach helps predict job performance and cultural fit more accurately than resumes alone, reducing hiring bias.

Why is internal mobility important for companies?

Internal mobility allows organizations to fill roles with existing employees who already understand the company culture and processes. It boosts employee engagement, reduces recruitment costs, and helps retain valuable talent by providing career development opportunities.

How can recruiters manage the influx of AI-generated applications?

Recruiters should adopt assessment tools that evaluate aptitude and behavior rather than relying solely on CV keywords. Implementing AI-powered screening platforms that detect authenticity and focus on transferable skills can help filter quality candidates effectively.

Conclusion

The recruitment landscape is at a crossroads. Faced with demographic shifts and a flood of AI-generated applications, businesses must innovate to secure the talent they need. Harnessing AI in recruiting—whether through psychometric assessments, internal mobility platforms, or automation of administrative tasks—offers promising solutions.

However, success depends on balancing technology with the human element. Understanding candidates’ motivations, values, and potential requires empathy and nuanced judgment that AI alone cannot provide. By embracing this hybrid approach, companies can navigate the recruitment crisis, build diverse and capable workforces, and thrive in a rapidly changing world.

For recruiters and employers looking to streamline hiring while maintaining this balance, platforms like EQ.app demonstrate how AI can reduce administrative burdens and unlock new opportunities for talent acquisition.