While employers and organizations look for quicker, easier ways to hire employees, many are turning to artificial intelligence (AI) decision making. It would appear that using algorithms in decisions would limit discrimination but in fact, algorithmic discrimination is still a very real problem. When considering an applicant for employment, there are far too many mistakes that could occur under the premise of "machine learning".
Since the COVID-19 pandemic, employers are facing either furloughs and layoffs or increased hiring. Those that are hiring, such as manufacturers and transportation, medical/healthcare and retail, want the process to be fast, cheap and with as little in-person interaction as possible. These and many smaller businesses are choosing to adopt digital hiring and onboarding processes of new employees. Many are turning to AI-powered hiring.
AI-powered recruiting and hiring promises to:
Technology, such as applicant tracking systems, may be helpful when a recruiter has to sort through hundreds of resumes but there are still drawbacks to using artificial intelligence through the entire hiring process. Errors can be made by any background screening company but when they're made by an algorithm, they aren't corrected until the algorithm changes.
As an example, gig-economy employers such as Uber have faced angry candidates after they were denied employment because of AI-powered background check errors. When an applicant is denied a job because of a background check, they have the right to dispute the inaccurate data, according to the FCRA. Unfortunately, when those applicants aren't given the opportunity to make those changes, employers can face litigation.
Frequent errors of AI-powered background checks include:
See also: When Should Employers Consider Criminal Records?
Last month, the Director of the FTC Bureau of Consumer Protection shared helpful guidance for employers choosing to use artificial intelligence and algorithms for hiring and hiring decisions. He recommends that employers:
Background screening reports contain a large amount of data from a large amount of sources. Since there is little commonality between how courts and employers report data, our process is to apply electronic filtering first, then make sure a human personally reviews every report. We also make sure to help walk our clients through every aspect of the background check review process:
This personal touch is extended to prospective employees and applicants as well. At VeriFirst, we truly believe a human eye or touch is required in the background check process. Want to learn more? Contact us or click the box below to schedule a demo!