How Artificial Intelligence impacts CV and Cover Letters in candidate screening

From the lack of comprehensive insights to the time-consuming review process, CVs and cover letters exhibit various limitations. To address these challenges, employers are increasingly using pre-employment assessments, which promise unparalleled objectivity and efficiency. These tools pave the way for a more informed and streamlined hiring process, ensuring they identify and secure the best-fit candidates in a rapidly evolving job market.

Read this guide to find out all you need to know about the future recruitment beyond the CV and cover letter writing.

Contents

  1. Why are cover letters and CVs used in recruitment?
  2. Are cover letters and CVs effective at candidate selection?
  3. How does A.I. affect the reliability of CVs and cover letters?
  4. Why hire using Assess Candidates assessments?
  5. FAQs and Glossary of Terms

1. Why are cover letters and CVs used in recruitment?

Cover letters and CVs are common components in the recruitment process, offering a comprehensive snapshot of a candidate’s qualifications, experiences, and professional aspirations. Cover letters provide a personalized introduction, allowing candidates to articulate their motivations and unique attributes. Meanwhile, CVs delve into a candidate’s academic and professional history, highlighting achievements and skills. 

Roughly 95% of HR experts are convinced that AI can greatly facilitate the application process for job seekers.
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Why are CVs used in recruitment?

Curriculum vitae (CVs) is a comprehensive overview of a candidate’s academic and professional journey. This document encompasses vital details, including educational achievements, work history, skills, and qualifications. By presenting a chronological account of a candidate’s career, recruiters can efficiently evaluate the relevance and depth of their experiences. 

Hiring managers spend an average of 6 seconds reading a resume.
Zippia

CVs enable a thorough examination of a candidate’s expertise, providing recruiters with valuable insights into their capabilities and suitability for a specific role. As a standardized document, CVs streamline the initial screening process, allowing recruiters to quickly identify candidates who possess the desired qualifications and experiences.

Why are Cover Letters used in recruitment?

Cover letters provide candidates with a platform to convey their motivations, unique attributes, and personal connection to the role and company. Unlike the more factual nature of CVs, cover letters offer a narrative that reveals a candidate’s personality, communication skills, and enthusiasm for the position. 

The description on a job opening contains an average of 21.8 skills, while resumes list only 13 skills on average.
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By expressing individual motivations and showcasing how their skills align with the organization’s values, cover letters assist recruiters in understanding candidates on a deeper level. This personalized touch facilitates a more holistic evaluation, helping recruiters gauge not only a candidate’s qualifications but also their potential cultural fit within the organization. 

CVs have long been claimed to be an inefficient tool for comprehensive candidate assessment.
CVs have long been claimed to be an inefficient tool for comprehensive candidate assessment.

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2. Are cover letters and CVs effective at candidate selection?

Schmidt and Hunter’s Validity Ladder, introduced in their influential 1998 study, provides a framework for understanding the predictive validity of various selection methods in the hiring process. 

CVs and cover letters, while widely used in recruitment, find themselves at the bottom of the validity ladder. While these documents offer valuable insights into a candidate’s past experiences, qualifications, and communication skills, their ability to predict future job performance is limited. Research indicates that relying solely on CVs and cover letters may lead to subjective decision-making and increase the risk of biases.

Schmidt & Hunter Job Performance Prediction Table
Schmidt & Hunter Job Performance Prediction Table

Cognitive ability tests, positioned higher on the ladder, have demonstrated higher predictive validity for job success – as much as 26% of workplace performance is attributed to cognitive tests. These assessments, designed to measure a candidate’s problem-solving skills, learning ability, and critical thinking, provide objective and standardized data.

67% of hiring decision-makers agree that AI’s main advantage is saving time.
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Incorporating cognitive ability tests and other pre-employment assessment tools into the hiring process helps organizations make more informed and objective decisions. These tools bring a level of standardization and objectivity, reducing the influence of personal biases that may inadvertently seep into the evaluation of resumes and cover letters. 

68% of recruiters believe using AI in the recruitment process will remove the unintentional bias.
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3. How does A.I. affect the reliability of CVs and cover letters?

The development of AI and tools like ChatGPT has revolutionized the way candidates draft CVs and cover letters. These technologies offer assistance in crafting compelling and articulate application documents, providing suggestions, grammar corrections, and content refinement. They can help candidates tailor their materials to specific job descriptions and industry standards, potentially saving time and enhancing the overall quality of their applications.

90% of enterprises now use AI-based software to automate workflows and reduce administrative time.
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However, while AI-driven tools aid candidates, their effectiveness poses challenges for recruiters. Automated content generation may lead to uniformity across applicants’ documents, making it difficult for recruiters to discern genuine individuality and unique qualifications. 

86.1% of recruiters using AI say it speeds up the hiring process.
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The risk of generic, template-driven applications increases, potentially diluting the authenticity of candidate skills and capability. Recruiters may find it challenging to identify candidates who stand out in a crowd, relying on standardized AI-generated content rather than nuanced, personalized insights that can be crucial in making informed hiring decisions.

AI might replace all other assessment methods in the candidate selection process.
AI might replace all other assessment methods in the candidate selection process.

How should CVs and Cover Letters be used in modern recruitment:

In modern recruitment, CVs and cover letters serve as valuable tools for collecting essential candidate data, offering insights into qualifications, experiences, and motivations. Automated candidate screening leverages this data efficiently, streamlining initial evaluations.

Around 79% of recruiters believe that people will not have to be involved in recruitment in the future.
Tidio

However, while CVs and cover letters provide valuable context their use should be of limited importanted when compared to, pre-employment assessment tools. These assessments emerge as the most significant factor in predicting candidate job performance. These tools, such as cognitive ability tests, offer objective and standardized measures, enhancing the precision of hiring decisions by focusing on the specific skills and abilities crucial for success in a given role.

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4. Why hire using Assess Candidates assessments?

In a competitive talent landscape, Assess Candidates stands as your strategic ally, empowering you to make informed, efficient, and unbiased hiring decisions. Here’s how our platform can help you elevate your recruitment strategy.

3 ways in which Assess Candidates will transform your organizations’ hiring.

  1. Tested Methods: Benefit from Assess Candidates’ industry expertise, incorporating tested and proven methods to enhance the effectiveness of your hiring process.
  1. High Predictive Force: Utilize validated cognitive ability tests, as identified by Schmidt and Hunter’s influential 1998 study, to ensure a more precise evaluation of candidates’ problem-solving skills and critical thinking abilities.
  1. Cheater Detection Systems: Enhance the reliability and security of assessments through advanced cheater detection mechanisms, promoting a trustworthy and fair evaluation environment and safeguarding the integrity of your recruitment process.
Robust candidate assessment platform with cheating detection

Example of client problem and Assess Candidates solution.

Client Problem:

A growing fintech company relies on cover letters to evaluate candidates’ motivational reasons for joining the company before having them take a series of assessment tests. Hiring managers consistently find that the final choice of candidates that are interviewed have insufficient knowledge about the company’s mission and are lacking a cultural fit.

Assess Candidates Solution:

We would recommend the client to include motivational based video interviews as part of their assessment process to analyze candidates’ pre-recorded responses on their alignment with company culture and their motivations for a career in fintech. Coupled with a situational judgment test specific to the company’s context this new process streamlined on one recruitment platform with a smart dashboard makes for more efficient hiring decisions.

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5. FAQs and Glossary of Terms

FAQs

  1. What are the traditional limitations of CVs and cover letters in recruitment?
    • CVs and cover letters are limited in providing a comprehensive view of a candidate’s professional journey, lacking insights into interpersonal skills, adaptability, and cultural fit. They introduce subjectivity through self-presentation bias, fail to assess real-time skills, offer limited context for achievements, result in a time-consuming review process, and overemphasize formal credentials.
  1. What are the main modern assessment tools used to complement CV and cover letter screening?
    • Employers use various modern assessment tools, including aptitude tests for objective evaluation, personality tests for deeper insights, situational judgment tests to assess decision-making, Game-based Assessments for interactive evaluations, and video interviews for a dynamic understanding of candidates.
  1. Can AI assessment tools replace traditional recruitment methods?
    • AI assessment tools are increasingly considered to replace traditional methods due to their objective evaluation, efficiency, unbiased screening, predictive analytics, dynamic adaptability, holistic candidate profiling, continuous improvement, enhanced candidate experience, and cost-efficiency.
  1. How do modern assessment tools address the lack of comprehensive insight provided by CVs and cover letters?
    • Modern tools like aptitude tests, personality tests, situational judgment tests, Game-based Assessments, and video interviews delve deeper into candidates’ skills, behaviors, and real-world capabilities, offering a more holistic view beyond the limitations of traditional documents.
  1. Can traditional recruitment methods keep pace with the dynamic and evolving job requirements of today’s professional landscape?
    • Traditional methods, such as CVs and cover letters, struggle to capture real-time skills and adaptability demanded by rapidly evolving industries. Modern assessment tools and AI-driven solutions offer dynamic adaptability to ensure assessments stay relevant with changing organizational needs.
  1. How do AI assessment tools contribute to a more efficient and cost-effective recruitment process compared to traditional CV and cover letter reviews?
    • AI assessment tools automate candidate analysis, swiftly ranking applicants and reducing time-to-hire. The efficiency and accuracy of AI-driven assessments lead to significant cost savings by streamlining the recruitment process, minimizing manual labor, and improving decision-making.

Glossary of Terms

  • Aptitude Tests: Objective assessments focusing on practical skills and cognitive abilities.
  • Personality Tests: Evaluations diving into individual traits for cultural fit and team dynamics.
  • Situational Judgment Tests: Assessments presenting real-world scenarios to evaluate decision-making skills.
  • Game-based Assessments: Interactive evaluations using game-like scenarios to assess skills and behaviors.
  • Video Interviews: Dynamic platforms assessing communication skills, non-verbal cues, and overall presence.
  • AI Assessment Tools: Automated systems utilizing AI for objective, efficient, and unbiased candidate evaluations.

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