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How AI is Impacting Graduate Recruitment

How AI is Impacting Graduate Recruitment

Applications to graduate schemes are up 59% compared to 2023, according to the Institute of Student Employers (ISE). Despite applications being on the rise, demand for graduates is down, as seen in the decrease in graduate vacancies in all sectors – including Healthcare & Nursing and Scientific & QA – except for Teaching and Customer Services.

As reported by the Financial Times, the result of this is that UK graduates face “the stiffest competition on record,” where they are being left to fight for limited opportunities in a slowing labour market. To aid them in this fight, many graduates have been turning to emerging AI tools to get as many applications out as possible, which has, according to Stephen Isherwood, ISE Joint Chief Executive, pushed the quality of applications down.

From this, several key questions emerge:

  • Why is demand for graduates declining?
  • How are graduates utilising AI in their job search?
  • How can recruiters effectively handle such large volumes of applications, without missing out on top talent?

The Declining Demand for Graduates

57% of UK businesses are hiring fewer graduates this year, with 39% citing tighter hiring budgets as the main reason for this. Graduate and entry-level hiring has also not taken off this year as would be expected in the pharmaceutical industry, despite a recent report by the ABPI highlighting how careers in the space are extremely compatible with what young people are looking for in their careers today.

Whilst there is undoubtedly still a demand for graduates in the pharma and life sciences industry, many companies remain hesitant to invest in early years talent due to the perceived risks and costs associated with onboarding and training. Graduates typically require more resources to bring up to speed, including mentorship, professional development, and skill building.

In today’s economy, many companies are focusing on their immediate needs, hiring experienced professionals who can quickly contribute to company goals without requiring extensive training. Where graduates are seen as long-term investments, hiring more adaptable and skilled professionals and upskilling the existing workforce presents a short-term solution to navigating the complexities of the current market.

However, as predicted by the Centre for Policy Studies, by the end of 2026, the UK will have more people aged 65+ than under 18 for the first time in its history. And based on current trends, the workforce is set to start shrinking in absolute terms as soon as 2043. With more of the older generations retiring, the need for early years talent will soon become too pressing to avoid.

How Are Graduates Utilising AI in Their Job Search?

A recent PharmiWeb LinkedIn poll found that jobseekers are primarily using AI for:

  • Creating cover letters (38%)
  • Rewriting CVs (36%)
  • Preparing for job interviews (24%)
  • Answering application questions (2%)

Our research has also suggested that jobseekers are using AI to help with things such as:

  • Keyword generation
  • Automated job applications
  • Job matching
  • Career counselling and mentoring
  • Networking
  • Application tracking
  • Company research and cultural fit analysis
  • Social media optimisation
  • Email communication
  • Salary benchmarking
  • Video interview analysis

What’s clear is that AI has become an essential tool for jobseekers today, and with new developments happening near enough every day, it’s here to stay.

23% of companies said AI was prompting them to restructure their selection process, while 45% were reviewing their recruitment methods as a result of generative AI. Interestingly, research by the ISE also found that 43% of employers said they had no issue with candidates using AI during the application process, with 61% of employers allowing the use of AI to create cover letters, and 33% permitting it to answer online applications. The overall consensus according to this research is that as long as AI is being used authentically to enhance the presentation of real information, rather than to create a false candidate persona, most employers are accepting of the fact that AI isn’t going anywhere.

One of the issues with AI as highlighted by the ISE is that by saving jobseekers time, it’s allowing them to send out more applications, resulting in volumes being pushed up and quality down. The result of this is not only more work for recruiters but more rejections for jobseekers, making it harder for both parties to target their search and find the right match.

How Can Recruiters Effectively Handle Such Large Volumes of Applications, Without Missing Out on Top Talent?

Competition for jobs right now is tough – not only down to the increasing use of AI – as is reflected in our own data. The response rate for jobs posted on our job board in September 2024 was 6% higher than in September 2023, despite the average jobs live decreasing over this period. This is also reflected in the same research by the ISE, which found that for graduate positions, firms are receiving an average of 113 applications per job, representing a 66% increase from the previous year.

As recruiters in the life science industry, managing such large volumes of applications can be challenging to say the least. To effectively handle this, AI and automation tools to streamline the initial stages of the recruitment process may be the key. Whilst caution must be taken to ensure adherence to GDPR and to avoid discrimination as a result of biased data, AI tools can help with screening, filtering, ranking, candidate communication, and more. Take a look at the below resources we’ve put together to help you learn more about the tools currently available on the market, and the pros and cons of implementing them:

Remember that whilst AI and automation tools are valuable, personalisation remains crucial in maintaining candidate engagement. Using AI-driven tools to send tailored communications at different stages of the recruitment process will ensure candidates feel valued, and personalised email templates, interview invites, and feedback requests will prevent talented candidates from being left in the dark. Combining the efficiency of automation with a personal touch will lead to a more streamlined yet human-centred approach to managing large volumes of applications, ensuring top talent is identified and nurtured efficiently.

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