Decoding the C-Suite: Part 3 - The Money
Recruiting Future with Matt Alder - What's Next For Talent Acquisition, HR & Hiring?Show Notes
This is episode three of Decoding the C-Suite, a five part miniseries from Recruiting Future about how leadership really thinks about AI, recorded with the leadership team at SmartRecruiters seven months into their acquisition by SAP.
If you've ever struggled to get AI investment signed off, this episode is for you. Tom DiDesidero, CFO at SmartRecruiters, explains exactly what he wants to see in a business case, why he backs short, measurable pilots over big commitments, and how to bring evidence rather than instinct. He also lifts the lid on the real economics of AI, from unpredictable inference costs to gross margins far below anything the SaaS world is used to, and makes a prediction about how the AI and SaaS worlds inevitably come together.
More from Recruiting Future with Matt Alder - What's Next For Talent Acquisition, HR & Hiring?
If you've not listened to Round Up before, it's a short review of the episodes that I've published in the last month to make sure you don't miss out on the valuable insights that my guests are sharing.
AI is moving from a specialist technology to something employees in large parts of the organization are increasingly expected to be using. Skills, mindsets, and long-established habits are much harder to change than software, which is why meeting that expectation is proving difficult. If the challenge is mainly a human one, AI readiness is as much a matter for HR and talent leaders as for technology teams. So what does it take to get a workforce ready for AI, and what opportunity does that create for talent leaders?
Redundancies have become a constant feature of the talent market. AI is taking a lot of the blame, but the drivers behind this are much broader. Jobs and skills are changing faster than most organizations can keep track of and the conventional response is to restructure the workforce and then hire in the new skills that are needed. That approach relies on a ready supply of perfectly qualified candidates, and in a fast-moving skills market those candidates are increasingly hard to find. It also assumes that employers already have a clear view of the skills and potential within their existing workforce, which is rarely the case.
There is a lot of pressure on talent acquisition to adopt AI, and the discussion about how to do it tends to focus on tools and skills. With layoffs attributed to AI in the headlines, the people in TA teams have good reason to feel anxious about the technology they are being asked to use. That anxiety makes people less willing to experiment, and addressing it has less to do with the technology than with how leaders handle uncertainty.
TA leaders have to keep delivering for the business while they use AI to transform how hiring works. At RecFest USA in Nashville, AI was the main topic of conversation, although the people I spoke to talked about much more than the technology. So where should TA leaders be focusing their attention?