Outdated vs Modern IT Recruitment: What Actually Works - Part 2

Why Old Hiring Fails & How to Boost Efficiency with AI 

Recruiting in IT used to rely on CVs and job boards—but those methods are no longer enough. In this article, we explore what still works, what’s obsolete, and how new tools streamline hiring to win top talent. If you didn't read part I, here is the link: Outdated vs Modern IT Recruitment: What Actually Works - part I

Methods that still deliver

Employee referrals: Enduring value in cultural fit and retention

Despite their reputation as “old school,” employee referrals remain one of the most reliable recruitment channels in the IT sector. According to Business Insider, referred candidates are significantly more likely to be hired and, crucially, to stay longer with the company.

In the UK tech market, a 2023 LinkedIn Talent Solutions report found that referred employees have a 45% higher retention rate after two years compared to those hired from job boards or agencies.

Referrals are effective because existing employees understand both the company’s culture and the role’s technical requirements. As a result, they’re more likely to recommend candidates who can integrate well and perform. Additionally, by leveraging networks, companies can avoid costly agency fees, which can reach 15–25% of annual salaries in competitive sectors like software development.

However, it’s quite possible to fall into the unconscious bias trap, and miss out on the advantages of diversity and inclusion.

Skill-based assessments: Raising the bar for hiring quality and speed

In today’s fast-paced IT landscape, technical proficiency is paramount—and companies can no longer afford to rely solely on what’s listed in a CV. Instead, skill-based assessments have become central to modern recruitment. According to a 2024 Business Insider analysis, nearly 76% of companies (globally and in the UK) now use some form of skill assessment to screen candidates before interviews. The various forms of personality tests can however present numerous challenges as we explore below.

Why do these assessments work?

• Reduced time-to-hire: By frontloading the evaluation of technical skills—through coding tests, take-home projects, or cognitive challenges—companies can eliminate unsuitable candidates earlier. Some UK fintechs, for example, report a 50% reduction in time-to-hire by using automated technical challenges in the first stage of recruitment.

• Predictive validity: Skill-based hiring increases the chance of long-term success on the job. Candidates who pass rigorous technical assessments are not only more likely to perform but also less likely to leave due to skills mismatches.

• Scalability and fairness: Platforms like HackerRank, Codility, and TestGorilla allow recruiters to screen hundreds of candidates using standardized, objective criteria—minimizing unconscious bias and levelling the playing field.

It’s important to ensure that tests are job-relevant and candidate-friendly. Overly generic or irrelevant assessments can lead to dropouts, as candidates (especially experienced developers) may be unwilling to complete lengthy or outdated challenges.

Targeted social ads: Precision outreach in a crowded market

With traditional job boards losing their edge, targeted advertising on professional and social platforms has become one of the most effective ways to reach qualified IT talent. Platforms such as LinkedIn, Facebook, and even Instagram now use AI-driven algorithms to match job openings with passive and active candidates who fit the required skills, experience, and even cultural values.

How does it work?

• Data-driven targeting: Companies can use highly specific criteria—such as particular tech stacks (e.g., Python, AWS), location, years of experience, or even interest in remote work—to ensure their ads are only seen by relevant professionals. According to LinkedIn, sponsored job ads that use AI-enhanced targeting result in a 25% higher click-through rate compared to standard postings.

• Brand visibility: Beyond simply advertising jobs, targeted campaigns help position companies as attractive employers—vital in the competitive IT market. Showcasing benefits, projects, and team culture can persuade passive candidates (those not actively seeking new roles) to consider making a move.

• Retargeting and analytics: Modern recruitment ads allow for retargeting—re-engaging candidates who have previously interacted with your careers page—and provide detailed analytics on ad performance, helping HR teams refine their messaging and strategy.

Targeted social recruitment is especially valuable for hard-to-fill or specialist roles, such as DevOps engineers or AI specialists, where traditional ads often go unnoticed.

Why some modern methods in IT recruitment also fail

Generic testing is off‑putting

While skill-based and cognitive assessments are increasingly effective, the use of generic or irrelevant personality tests—especially at early recruitment stages—can seriously backfire. According to a Business Insider analysis, between 10% and 20% of candidates will abandon the application process if asked to complete lengthy or intrusive assessments before even speaking to a human.

The problem is twofold:

• Candidate experience: Highly skilled IT professionals, who are often in short supply, may find generic personality tests frustrating or even insulting—especially if these tests have little direct relevance to the role. This can quickly signal to candidates that a company does not understand their field, and they may withdraw from the process or even share negative feedback in the tech community.

• False negatives: Overreliance on personality algorithms can inadvertently screen out strong, diverse candidates whose personal profiles don’t match a narrowly defined “ideal.” In the UK, where diversity and inclusion are top priorities, this not only harms employer brand but also exposes companies to reputational and legal risks.

  
  

A 2024 Puls HR survey of Polish and UK-based IT employers found that almost 40% reported losing high-potential candidates at the pre-interview testing stage due to poor candidate experience—often because of unnecessary or poorly designed assessments.

AI chatbots gone wrong

AI-powered chatbots are increasingly used to streamline candidate communication, automate interview scheduling, and answer FAQs. However, if implemented poorly or left unsupervised, these tools can create serious problems:

• Scheduling errors and confusion: As reported by Business Insider, Chipotle’s recruitment chatbot “Ava Cado” mistakenly scheduled candidates for non-existent roles and at impossible times. Similar issues have been reported in UK-based recruitment, where candidates were double-booked or invited to the wrong location, leading to frustration and damaged employer reputation.

• Lack of empathy: Basic chatbots often fail to respond appropriately to nuanced questions or special circumstances. This is particularly problematic in IT recruitment, where candidates may have unique requirements (e.g., needing visa sponsorship or remote work flexibility).

• Technical glitches: Automation gone wrong can result in missed messages, lost applications, or even sending rejections in error—all of which can rapidly alienate the very talent companies are trying to attract.

  
  

A 2023 LinkedIn UK study found that 1 in 5 candidates who encountered major chatbot issues said they would never apply to that company again. This is a stark warning: while automation can speed up recruitment, it must be implemented carefully, with human oversight at key touchpoints.

The new approach to IT hiring

As the IT talent market becomes more competitive and candidate expectations evolve, traditional approaches are no longer enough. Forward-thinking companies are now adopting an improved, data-driven approach to attract, assess, and secure top tech talent faster and more effectively.

1. Smart, skill‑led screening

   • Use targeted technical assessments only after an initial screening step. Tools like TestGorilla, Canditech or Criteria can cut interview volume by up to 80%.

   • Combine coding challenges (e.g., HackerRank) with role‑specific tests to ensure technical competence.

     
     

2. AI‑assisted sourcing & unbiased ranking

   • Employ AI to analyse CVs and profiles, detecting actual skills rather than keyword stuffing. AI can also reduce bias by focusing on performance indicators.

   • Use tools like Employment Hero SmartMatch for SMEs to prioritize diverse and capable profiles.

     
     

3. Human‑AI hybrid interviews

   • Automate logistics (scheduling, transcription) while keeping decision‑critical interviews with humans.

   • Apply asynchronous video or chatbot pre‑screens to filter out unsuitable candidates quickly, reducing recruiter workload.

     
     

4. Transparent job ads & expectations

   • Spell out precise responsibilities, required skills, salary bands, and obligatory requirements upfront. This improves the quality of applications and candidate experience.

   • Avoid generic titles and descriptions—make ads speak to developers’ motivations and growth.

     
     

5. Speed + candidate‑centric experience

   • Retain top candidates by minimising friction: assessments, interviews, and offers should follow quickly. Meta’s internal AI assistants help expedite interviewer matching and ensure inclusive questions.

   • Provide feedback even to rejected candidates—this builds employer brand credibility.

     
     

6. Internal reskilling vs fresh hiring

   • Reskilling existing employees avoids long external searches—Puls HR notes a shift toward investing in in‑house development.

   • Use apprenticeships, MOOCs, bootcamps to source talent for AI/ML roles, where skills matter more than degrees.

Old recruitment relying on CVs, generic tests, and referrals is inefficient and biased. Modern IT hiring demands skill‑based assessments, AI‑powered sourcing, transparent ads, and hybrid interviewing. This saves time, improves quality, and enhances candidate experience.

Ready to modernize your IT hiring? Book a free consultation to audit your process and see how we can improve your IT recruitment process.