Kevin Wheeler: RPO Poised for a New Era

Kevin Wheeler predicts that, in five years, AI will automate 80% of recruitment tasks. This change will create both opportunities and challenges for RPOs. In his recent keynote at the 2024 RPOA Conference, Wheeler, a top futurist and HR advisor to Fortune 500 firms, shared his vision for recruitment and RPO. He stressed that recruiting has begun a transformative shift driven by AI's capabilities. 

To thrive, RPOs must embrace AI and prepare for a culture shift. Wheeler's insights explained why some organizations succeed with AI, and others do not. The difference lies in strategic implementation and attention to organizational factors. This post reviews Wheeler's vision of AI recruiting. It covers success factors for adoption and recruiters' new roles in the tech revolution.

The Current State of Recruiting

To understand the coming change, Wheeler pointed out how recruiters spend their time today. Most recruiters dedicate as much as 80% of their hours to transactional tasks such as data entry, resume screening, and web searches. AI can do these tactical tasks instantly.

The remaining 20% encompasses value-added work that builds relationships and requires human judgment. This distribution highlights why the recruitment industry stands ready for technological disruption. Wheeler's analysis of recruiting practices explained that most daily activities follow predictable patterns. Machines can learn and replicate them.

Wheeler noted that younger candidates often prefer AI interactions over human ones. "The younger they are, the more they like it," he pointed out. This shift in preferences suggests that AI adoption matches new candidate expectations. 

Understanding AI's Current Capabilities in Recruitment

Organizations at the cutting edge of technology already automate most of their hiring systems. As an example, Wheeler referenced the use of AI technology in Amazon’s warehouse hiring system. Amazon's hiring portal automatically processes job applications. It screens qualifications, does background checks, and sends job offers. It also schedules start dates. 

"No human, no interview, nothing," Wheeler stressed. This real-world example proves that full (or close to full) recruitment automation is possible and achievable. This works best for entry-level jobs. But, technology rapidly advances. While existing solutions currently serve simpler hiring needs, their capabilities grow exponentially. Technology may soon handle more complex hiring. "Give it a year, give it two years, and it's going to be a threat," Wheeler cautioned.

Hear Wheeler highlight AI stats that show the disruption of AI to the future of work. Listen to the full episode on the Time to Hire podcast. 

Challenging Traditional Recruiting Assumptions

Wheeler identified three common assumptions in recruiting that are challenged by evolving AI technology. First, many believe the recruiting process must be led by humans. Second, recruiters often consider human intuition critical for candidate screening. Third, the industry maintains that traditional resumes remain essential for candidate evaluation.

These assumptions deserve examination. Wheeler noted that human intuition in hiring often shows bias. He pointed out that 60% of executives fail within their first two years despite intensive human screening. Meanwhile, AI can evaluate candidates anonymously, focusing purely on capabilities and skills.

The traditional resume may also face obsolescence. Wheeler noted new options, like blockchain, to verify credentials. MIT and Harvard are storing degrees in secure blockchain systems. These technological solutions provide more reliable verification than traditional document reviews.

What does recruiting look like with more AI technology? Wheeler outlined a new vision for the recruitment process with increased AI technology.

Reshaping Recruitment Processes

Wheeler outlined how AI will reshape standard hiring procedures into streamlined operations. Consider this future scenario he described: A hiring manager needs to fill a position. They will interact with an AI system. It will gather role requirements through targeted questions. It will analyze past hiring data to find successful candidate profiles.

The system then creates job descriptions and requirements. They are based on past success patterns. It posts to relevant job sites. It screens and ranks applicants as they apply. It presents the top matches within hours or days. This process eliminates traditional bottlenecks while improving accuracy.

Wheeler explained that predictive analytics will help companies avoid past hiring mistakes. The system can analyze past hires to find patterns. It will identify which traits lead to success. "You can look at the traits, the characteristics of those you hired that didn't make it versus the ones that did," Wheeler noted.

Wheeler advised RPOs to shift into providing more strategic value as AI reduces the need for traditional recruiting functions. 

The New Roles of RPO Recruiters

Wheeler described five developmental stages for recruiting professionals as AI adoption increases. The Talent Architect stage involves understanding AI systems and optimizing their implementation. These pros need tech skills. They must configure recruitment automation to get the desired results. They must grasp algorithms and technology well enough to maximize the benefits of AI tools.

As Talent Advisors, recruiters will shift focus to strategic workforce planning. They will help organizations anticipate future talent needs and develop long-term acquisition strategies. This role involves working with senior leaders. Align talent strategies with business goals three to five years ahead.

The Talent Scout role focuses on finding candidates who maintain minimal digital presence. This requires traditional networking skills to connect with passive candidates who avoid online platforms. Wheeler noted that some top AI architects have deliberately removed themselves from the internet due to overwhelming job offers.

Human-AI Liaisons will guide hiring managers through new systems. Wheeler saw it as a temporary, few-year role. But, it is key for tech adoption. These professionals will help organizations navigate the transition to AI-driven recruitment.

Finally, Automated Systems Managers will oversee fully automated processes. They will intervene only for exceptions or strategic decisions. This role marks the final stage of AI integration into recruitment operations.

These new roles outline the future of recruitment. But, organizations need the right skills and resources to succeed with AI.

Success Factors for Implementing AI

Wheeler identified several critical factors that determine successful AI implementation in recruitment. Understanding these elements helps organizations prepare for and execute effective AI adoption strategies.

First, organizations need enough data volume and quality. Wheeler said that AI systems learn from past hiring data. They use it to make predictions and recommendations. RPO providers have an advantage. They have broader talent networks and more hiring data than individual companies. This larger dataset helps AI systems predict candidate success. It lets them learn patterns.

Second, technical infrastructure must support AI integration. Wheeler noted that many Fortune 500 companies struggle to implement AI tools. Their existing systems cannot support them. RPO providers can invest in AI-ready, purpose-built infrastructure for multiple clients.

Third, organizations need clear processes for AI governance and oversight. Wheeler pointed to Amazon's successful warehouse hiring automation as an example. Their system works. They set clear limits for AI decisions and built-in controls. Organizations must define when AI can decide on its own. They must also say when to use human review.

Fourth, Wheeler emphasized the importance of change management and training. We must help hiring managers and stakeholders work with AI systems for a successful implementation. Organizations must train employees to trust AI processes. They must also keep human oversight.

Finally, organizations need financial resources for sustained investment. Wheeler observed that RPO providers succeed more. They can spread AI costs across multiple clients. Corporate recruiting departments often struggle to secure funding because they operate as cost centers rather than profit centers.

As organizations consider these factors, they must craft strategies to succeed in an AI-driven recruiting future.

Preparing for the Future of Recruitment

The future belongs to those who master AI implementation. This means mastering its technical and organizational aspects. Wheeler's analysis shows that success needs more than buying AI tools. It requires a complete approach to data, infrastructure, governance, training, and finance.

For RPO providers, this understanding creates opportunities and imperatives. Their advantages in data access, tech, and investment position them to lead in AI adoption. They must also develop their teams' abilities to be strategic advisors and relationship builders in this new tech era.

AI has begun to transform recruiting. Wheeler's insights give a roadmap for success. Organizations that embrace these success factors will thrive in the AI-enabled future of recruitment. They must prepare their teams for new roles.

Kevin Wheeler is a co-founder of the RPO Association. His book, "Talent Acquisition Excellence," and newsletter offer insights on recruiting trends. Join us at the RPOA Annual Conference to meet and learn from industry thought leaders such as Kevin Wheeler. Check out the RPOA calendar of events for the annual conference and more events from the RPOA.