Work is oftentimes about trust: trusting a person with the cash register, creating the right strategy for the product, or testing all the aspects of the system. Naturally, one of the recruiter’s most crucial tasks is assessing whether the person can be trusted and what risks may be associated with them.
This is part V of efficient hiring, and today the topic is risk assessment in recruitment.
Hiring risk
In hiring, risks may include more than just those associated with legal, reputational, and financial aspects. Finding a perfect person for a job means understanding if the person matches the skills and experience expectations, team dynamics, company mission, or even the location requirements.
With the cost of finding, hiring, and training a replacement reaching 33% of a person’s annual salary, recruiters have to make sure the candidate fits all the requirements, and if not, identify and evaluate the risks to mitigate any damages beforehand.
The best way to identify hiring risks is by creating a risk assessment matrix – a visual representation of all the possible risks and their impact on the business. The two main elements of the matrix are the likelihood (0%-100%) and the impact (Minor-Major) of the risk.
Red Flag Detection in Talantly.ai
However, creating a risk assessment matrix for each candidate can be a great piece of work. Hence, it would be useful to have artificial intelligence help in this case.
Risks associated with hiring can be easily identified by using Talantly.ai. The Risk Assessment Matrix in Talantly analyzes 11+ categories and makes sure all inconsistencies between the job requirements and the candidate’s materials are clearly visible to the recruiter.
To access the report, go to the candidate card and click on the top left drop-down menu. Among the available reports, there is a “Red flag” that will create a list of all the possible risks that came up during the interview process. It is important to notice that this risk assessment matrix can only be generated if there are 2+ available documents.
The Risk Assessment Matrix has 5 main output categories:
- Risk Category: a requirement that was considered “risky”, or one that the candidate’s documents do not support in any way
- Risk Level: a general score of risk impact, three risk levels include Low, Medium, High, and Critical
- Evaluation: Talantly creates a description of why it highlighted this specific risk category and level
- Evidence: the system provides a direct quote from one of the available candidates’ documents as a source of a previously made claim. Every quote has a source noted in the brackets (Interview, CV, References, etc.) and the relevance percentage, or how well the quote illustrates the evaluation.
- Impact Score: 1-10 shows how much the risk is likely to influence the candidate’s performance if true, with 10 being the highest
At the top, an overall risk score allows the recruiter to quickly understand if the candidate is worth continuing the hiring process with.
Conclusion
Risk assessment for recruitment is arguably the most important part of the whole hiring process. Hiring a trustworthy person who will not only meet all the technical requirements but also be a great fit for the team is a crucial process, as the whole team dynamics and sometimes business finances depend on it. Hence, it should be done with great attention, and an AI recruiting technology to ensure thorough analysis.
