Choosing AI Recruitment Agency Software: Criteria to Consider

Even automation tools that can handle things like interview scheduling or candidate progression through the ATS fail at automating the admin related to meetings.

And it’s exactly this type of admin, the meeting-related one, that eats up most of a recruiter’s day. Think of tasks like transferring meeting notes to the ATS, writing follow-up emails, preparing job descriptions based on intake calls, or writing candidate profiles after an interview.  

We believe the solution lies in rethinking this traditional approach and the common tech stack to incorporate AI recruitment software in your workflows.

AI can work with unstructured data, automating all the admin related to intake calls and interviews, and freeing up your time for more impactful activities.

But the options are many, and the risk of buying shelfware is real. So here are some criteria to consider when evaluating AI recruitment solutions.

Types of AI recruitment tools and how they fit in the tech stack

Let’s take a look a closer look at the types of AI hiring tools on the market to understand their capabilities and limitations before investing in one.

Holistic AI recruitment platforms

These platforms take a holistic approach to recruitment and can support various operations, from sourcing, screening, and interview scheduling, to matching candidates to clients and open roles.

A tool like Carv, for example, can be integrated with the ATS, as well as job boards and social media platforms, to automate recruitment from end to end. This allows recruiters to focus on processes that require face-to-face communication, such as interviews and intakes.

Everything else, all the admin tasks related to interviews and intake calls, as well as the candidate sourcing and engagement in the talent pool can be delegated to the AI workmate, for automation.

So, if you’re planning a complete overhaul of your tech stack, start by looking at holistic recruitment platforms that offer AI capabilities beyond writing job descriptions or scheduling interviews.

As said, gen AI can handle candidate information beyond basic data, freeing you up better client and candidate relationship management.

AI sourcing tools

Unlike the first category, AI candidate sourcing tools are strictly dedicated to the sourcing piece of the recruitment process. They streamline the process of identifying candidates for particular job openings.

Such tools integrate with social platforms like LinkedIn and resume databases like Indeed or Monster, to help you automate your sourcing and scale it as your hiring needs scale.

Compared to traditional sourcing tools, AI-based ones make use of unstructured data to surface candidates that would otherwise be missed. For example, candidates with transferable skills, or those who live in a location but are willing to move, given the opportunity.

With a tool like Carv, for example, you can ask your AI assistant to get you a shortlist of candidates for a role, by looking not only at their CV, but also at previous screening calls, assessments, or interviews.

AI sourcing tools can screen and engage candidates 24/7, looking at both new job applications and passive candidates.

AI chatbots and conversational AI tools

These tools help automate and streamline initial candidate interactions and screenings. Unlike traditional chatbots, that come with predefined answers, AI-based conversational tools can handle conversation in a more natural way.

Gen AI can “understand” human language and interact with candidates in real-time, through both written and spoken conversations. So you can use an AI assistant to ask candidates knock-out questions and pre-screen them, as well as to assess their fit with a company’s culture.

By adding such tools to your hiring process, you can significantly cut your admin time, without sacrificing on the number of candidates you engage with.

Of course, you can opt for a holistic recruitment tool that offers this functionality, or for a point solution that is more affordable, but also limited in capabilities. Up to you.

AI-powered resume parsing tools

I’ll still list these tools here, although they’re not as popular as they used to be. Resume parsers are quite basic in functionality, even AI-based ones.

Depending on your budget, it might make more sense to rely on your ATS for scanning candidates’ resumes, as most applicant tracking systems can automate this step of the hiring process.

Moreover, such tools are less customizable and may cause qualified candidates to be overlooked, even in their AI-powered version. An ATS with AI functionality, however, offers a more user-friendly experience.

The AI functionality allows recruiters and hiring managers to make data-driven decisions while still providing candidates with a great experience.

AI skill assessment tools

Skills assessments make it easier to screen candidates by ensuring their skills meet the unique needs of the role they’re being considered for. And skills-based hiring is in this year, so this is one type of tool you might want to consider adding to your recruitment tech stack.

For example, The Selection Lab can compare benchmarks of potential candidates with job-specific benchmarks, making it easier for recruitment teams to identify the best candidates.

In principle, AI-based assessment skills offer more dynamic capabilities than traditional ones, including the option to have your interviews carried out by AI avatars or chatbots.

AI-powered ATS and CRM

The primary functions of the ATS include client and candidate relationship management, tracking the candidate journey throughout the hiring process, and compiling recruitment metrics.

Many ATS systems also include a talent pool functionality, which provides access to a separate database of passive candidates and those who may not be a good fit for current openings.

Also, some offer candidate sourcing and candidate matching functionalities, using AI to identify best potential candidates from various sources, including job boards and social media.

Next to these, some ATS come with built-in pre-employment assessments, and most of them offer analytics capabilities, providing insights into recruitment metrics such as time-to-hire, cost-per-hire, or candidate quality.

The AI capabilities are generally in the form of AI assistants or chatbots used to create documents and emails, to send notifications to candidates and recruiters when certain conditions are met, and to engage candidates.

This is different from the template-based approach of traditional applicant tracking systems.  

AI interview platforms

AI-powered interview platforms have become increasingly popular in recent years, offering a range of features to streamline the interview process and improve candidate experience.

Among other functionalities, these platforms offer async video interviewing capabilities, enabling candidates to record their responses at a time that’s convenient. Other tools use AI assistants to conduct real-time interviews, like mentioned already.

Given that these tools use AI-powered data processing, they can evaluate and assess candidates’ responses based on pre-defined criteria, like a job description or job requirements document, or even an Ideal Candidate Profile document.

Other functionalities offered by some of these platforms include virtual waiting rooms, automated reminders, and personalized candidate communication to enhance the CX.

Such capabilities offer more flexibility than traditional one-way or two-way interview apps, reducing the risk of missing out on the best talent.

AI scheduling tools

Interview scheduling, although important, can take up a significant amount of a recruiter’s time. AI scheduling tools help automate and streamline scheduling for everyone involved, from job seekers to stakeholders.

The functionality is quite simple, but AI-based tools in this category have the advantage of taking real-time input from candidates and recruiters, reducing the back-and-forth and ensuring a smooth interview scheduling experience.

To conclude, each one of these AI software solutions can help improve the recruiting and talent acquisition process in its own way

Still, most agencies will be better served by using an ATS along with an AI assistant tool, or next to a holistic AI recruitment platform that can automate the steps of the recruitment process that don’t go through the ATS.

Doing so eliminates the need for multiple tools, saves administrative time, reduces the mental workload caused by context switching, and provides a more customizable end-to-end solution.

Criteria for choosing recruitment software

Many companies use RFPs for choosing software, especially when the they’re looking for tools that will be central to their tech stacks, like an applicant tracking system, CRM, or recruitment automation software.

Here are some general criteria to use when looking for the best recruitment software for your agency.

Goals

To find the right software, you must first take an assessment of your needs. What kind of goals are you trying to achieve, what problems are you trying to solve?

Do you need to decrease time-to-hire, build a more comprehensive candidate database, or improve candidate tracking?

These are all specific needs to consider as you learn more about the various AI software solutions available.

Once you understand your goals and problems, you can look for key features that will help you achieve your goals.

Requirements and features

When evaluating recruitment software, it's crucial to create a clear list of requirements based on your goals. What features are non-negotiable?

Do you need advanced search capabilities, automated workflows, or AI-driven candidate matching?

To gain clarity on your “must-have” and “nice-to-have” features, we recommend mapping out your entire recruitment process, identifying any broken areas, and evaluating whether you need a new tool or just to fix your current setup.

For example, your integrations might not be ideal and could be causing data to get lost in the process. In this case, you should first try to optimize your process with the tools you have before searching for new software.

Ensure the software offers features that align with your recruitment process and enhance efficiency. Also, consider any compliance needs, reporting tools, and user roles that are essential for your team.

Customization and scalability

Recruitment software should be flexible enough to adapt to your specific workflows. Customization options, such as the ability to tailor dashboards, workflows, and candidate pipelines to your needs, are key.

Additionally, as your organization grows, the software should be able to scale with you, handling an increasing number of users, job postings, and candidates without compromising performance.

Scalable solutions ensure your recruitment or staffing firm won't outgrow the platform as you expand.

Integration capabilities

Your recruitment software needs to work seamlessly with the other tools in your tech stack, such as HRIS (human resource information systems), payroll systems, or recruitment CRM software.

Look for platforms that offer robust integration capabilities, either through APIs or native integrations, to avoid data silos and ensure a smooth workflow across systems. The better the software integrates with your existing tools, the more efficient and streamlined your processes will be.

Ease of use and usability

Ease of use is critical when choosing recruitment software. A small business might prioritize a system that's straightforward and easy to implement, while a larger firm might prioritize advanced features.

However, regardless of company size, the platform should be user-friendly and intuitive for all team members. A complicated interface could lead to user frustration and hinder adoption, so choose software that balances functionality with simplicity.

Security and compliance

Given that generative AI-based software is relatively new, there might be aspects related to security and compliance that aren’t fully streamlined yet.

For example, some of the point solutions out there might not be compliant with international standards that are expected in enterprise software. Or they might play in grey areas that aren’t fully regulated yet, or where regulations vary from one region to the other.

Whatever platform you select for your recruitment or staffing agency, make sure it meets data security standards - especially if you’re looking for customer relationship management software, an ATS, or other tool that deals with candidate and customer data.

Implementation process

The implementation process can be a major factor in your decision.

Enterprise staffing agency software that offers plenty of customization options usually takes longer to setup, and the implementation might interfere with your day-to-day processes, especially if you go for an all-in-one type of solution.

Point solutions, on the other hand, might offer plug-and-play functionalities and be ready to use off the shelf.

Some recruitment software solutions offer extensive support during the implementation phase, including training sessions, data migration, and customization assistance.

Consider the time and resources required to get the software up and running. A smooth, well-supported implementation will help your team transition without major disruptions to your recruitment processes.

Support

The level of customer support provided by the vendor can make or break your experience with recruitment software.

Evaluate the availability and quality of support options, such as 24/7 customer service, dedicated account managers, and comprehensive training resources.

Especially if you're new to the software, having access to knowledgeable support can be invaluable in ensuring you get the most out of the platform.

Budget

Not all vendors price their software solutions using the same business model. Some will quote you by number of users, and others by platform usage, features included in your plan, or the amount of customization required.

This is why it’s important to consider your long-term goals and team members’ needs first. Doing so will allow you to review and eliminate solutions that don’t meet those specific needs, as well as to ensure your chosen tool will serve your team in the long run.

One note here, and this might be obvious to most of you, but when deciding the budget to allocate to a new platform, do think about ROI and expectations too. It’ll force you to determine your key success metrics, so you have an objective framework for determining whether the chosen solution meets your needs or not.

Taking these steps will help you select the best recruitment software for your needs.

Functionalities to look for in an AI recruitment platform

Now let’s take a closer look at some of the functionalities recruitment platforms offer.

In general, you want to look for ease of use and the ability to scale. The right platform for your team members will offer an intuitive, user-friendly interface and able to grow with your agency and the evolving needs of the business.

Automation of administrative tasks

Most recruitment platforms offer some level of automation, but there’s two types of admin tasks in the hiring process:

• Tasks that use structured data and ensure the candidate progression through the recruitment funnel, like parsing resumes, scheduling interviews, posting jobs, or assessing candidate skills;
• Tasks that use unstructured data to turn conversations into output, like intake call follow-ups, interview prep tasks, and so on.

Generic automation tools only take care of the first type of tasks. Yet, recruiters spend roughly 30 hours a week on administrative tasks like the ones in the second bucket.

They’re drowning in repetitive tasks like transferring meeting notes to the ATS, writing follow-up emails after an interview, debriefing an intake call to write the job requirements doc, or writing candidate presentations for shortlisted candidates.

AI recruitment platforms like Carv can help manage these time-consuming tasks more efficiently while simultaneously providing a better candidate experience.

Advanced candidate sourcing

Unlike humans, AI recruiters can run 24/7 to find the best talent. These platforms can search various sources, including social media sites like LinkedIn, major job boards, and internal databases.

Look for advanced candidate sourcing capabilities that will help you find the right candidates - no matter where they are.

Candidate matching

Candidate matching can be difficult and time-consuming, even for the most experienced recruiters. However, AI can use predictive matching based on job descriptions, requirements, candidate skill set, personality, and culture fit.

Selecting a platform with this feature harnesses the power of AI in combination with the intuition and experience of a human recruiter.

Candidate engagement

Today’s approach to candidate screening leaves little time for extended engagement with qualified candidates.

Instead, recruiters, especially those faced with a high volume of job applications, are often required to quickly skim resumes and conduct the most basic screening before making important decisions about the next steps.

In doing so, it’s easy to miss out on top talent.  

An AI recruiting platform can proactively engage with both active and passive candidates and various talent pools.

AI can engage candidates using real-time personalization based on unstructured data within the system. This functionality will make it easy for recruiters to engage with the right candidates at the right time.

Pipeline building

Pipeline building is essential to a recruiting agency’s success. Look for features that strengthen communications and engagement, not only with clients but with candidates who are already in the talent pool.

With Carv, for example, you can let your AI workmate do your sourcing for a specific role, but you can also ask your AI assistant whether there are candidates in your talent pool that match an opening of a client you want to acquire.

Equipped with this information, you can ask the workmate to draft you an outreach email to the client. Just give it some additional context about the customer you’re trying to reach, like recent milestones, new hires, or new openings posted, and the AI workmate will draft the text for you.

Analytics and reporting

Platforms that offer predictive analytics can help forecast hiring needs and identify the best candidates based on historical data.

Predictive analytics can analyze significant amounts of data, including everything from resumes and social media profiles to identify patterns. Having this large range of data analyzed so quickly can help reduce hiring times and help ensure a good candidate match.

Over to you

If you have to prioritize a platform for getting started with AI, go for quick wins, and stick to your must-have functionalities as opposed to the nice-to-haves that often inflate the pricing.

For example, invoicing and onboarding might be nice features, but you don’t need them into an ATS or central AI recruitment platform.

Start simple, solve the most pressing problems in your recruitment process, and scale from there. A staged roll-out is generally better than a full overhaul, especially with new technology, to get your team used to the new way of working and ensure proper adoption.