Employers Lag on Hiring Automation as Vacancies Drag On

Phenom

PHILADELPHIA, PA — Phenom recently released a hiring automation benchmark report showing most employers still rely on delayed post-application screening processes despite increasing investment in artificial intelligence tools designed to speed recruiting and reduce candidate drop-off.

The report, produced with Aptitude Research, analyzed hiring workflows and candidate application experiences across eight industries, including healthcare, retail, manufacturing, hospitality and financial services.

According to the findings, companies have focused heavily on attracting applicants but have been slower to automate qualification and screening steps during the application process itself, creating delays that can cause candidates to abandon opportunities before recruiters engage them.

Phenom cited Aptitude Research survey data showing 72% of organizations rated their inline candidate experience as “effective” or “very effective,” while audits of actual hiring workflows for frontline roles found limited use of automation tools during applications.

The report found 94% of organizations do not offer automated interview scheduling during the apply flow, while 99% do not use AI voice screening agents or one-way video interviews inline. Another 89% do not use pre-hire assessments during applications, and 65% do not verify credentials at that stage.

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Organizations scored roughly twice as high on attracting candidates as they did on qualifying them, according to the report. While 37% of organizations received high maturity scores for attracting and converting applicants, only 1% received high marks for using hiring automation during the application flow.

The report also found little variation in automation practices between frontline and knowledge-worker recruiting despite differing hiring requirements.

Although 57% of organizations reported increased urgency around adopting AI in hiring, many companies are deploying similar automation processes across job categories, the report found.

“The invisible space inside every company where work either flows or stalls starts with hiring,” Mahe Bayireddi, chief executive officer and co-founder of Phenom, said. “Automation and AI agents only work when they’re applied with context at the right moment, for the right candidate, inside the right workflow.”

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Phenom described its “Hypercell” framework as a system designed to tailor hiring automation based on factors including industry, geography and job function while maintaining human oversight in hiring decisions.

The report outlined several areas where organizations are increasing automation efforts, including interview scheduling, inline credential verification, screening and role-specific qualification workflows.

Recruiters spend about 35% of their time coordinating interviews even though automated scheduling adoption remains low, according to the report, with usage rates of 6% for frontline roles and 4% for knowledge-worker positions.

“Automation urgency is rising, tool ownership is widespread and the business case for inline qualification has never been clearer,” Madeline Laurano, founder and chief analyst at Aptitude Research, said. “What this audit reveals is that owning the tools and deploying them where they create value are two very different things.”

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Phenom, which develops AI-driven hiring and workforce management technology, described the report as a framework for employers seeking to identify inefficiencies in recruiting workflows as competition for workers and hiring speed pressures increase.

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