AI hiring tools challenge tech talent retention

AI hiring tools are changing how companies recruit, but workers are increasingly questioning their fairness. According to new Dice data, nearly one-third of tech professionals are now reconsidering their future in the industry. The survey collected insights from 212 technology workers.

More than half of respondents reported dissatisfaction with hiring practices. In fact, over 90% believe AI hiring tools often ignore qualified candidates who fail to optimize their resumes with the right keywords.

As a result, nearly two-thirds of technologists said they revised their resumes to meet AI filters. Moreover, three-quarters admitted to exaggerating skills to stand out in competitive IT hiring processes.

However, frustration with AI recruitment is not limited to tech workers alone. A recent ServiceNow study revealed that more than two-thirds of job seekers feel uneasy about AI reviewing resumes or making hiring decisions. Many participants emphasized the importance of transparency, urging employers to disclose the use of AI hiring tools.

Beyond AI-related issues, stagnant salary growth is deepening the dissatisfaction. Dice data shows that nearly six in ten IT professionals feel underpaid. Salaries in the technology sector rose only 1.2% last year, falling behind inflation and fueling discontent.

Art Zeile, president and CEO of DHI Group, Dice’s parent company, said layoffs, economic instability, and limited career growth opportunities further amplify worker concerns. He noted that hiring frustrations combined with financial stress raise questions about long-term stability in the tech industry.

To counter these challenges, experts highlight the role of leadership. Transparent communication and fair recognition can make a critical difference. “CIOs who prioritize transparency and respect during hiring will gain a competitive advantage,” Zeile explained. “Talented professionals value respect, recognition, and compensation, and they will choose organizations that meet those expectations.”

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News Source: Hrdive.com