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44% of Aussies Reject AI-Heavy Recruitment Prompting SMEs to Balance Innovation and Interaction, According to Capterra

Capterra Australia

Sydney, 16th June 2025 - In an effort to tackle the talent crunch, Australian SMEs are leveraging artificial intelligence to transform recruitment practices. As the job market intensifies, these businesses are redefining how they source and secure top candidates in today’s competitive landscape. Leveraging insights from its recent survey, software marketplace Capterra unveils three pivotal trends designed to empower Australian recruiters, enabling them to outpace larger competitors and attract elite talent.

Trend #1: Innovative Candidate Sourcing is Crucial

Australian SMEs must innovate their sourcing strategies. Capterra's Job Seeker AI Survey reveals 68% of HR leaders find current efforts inadequate for identifying critical talent. With competition rising, SMEs need to move beyond traditional job boards.

 

Key strategies include leveraging AI to discover untapped talent on social media and job boards, engaging with talent networks, and valuing returning employees. Notably, 92% of HR leaders are considering a skills-first approach by tapping into thriving communities based on particular talents or characteristics, and 77% plan to enhance diversity recruiting resources. These strategies are vital for SMEs to secure top talent in a competitive landscape.

Trend #2: Balancing AI and Human Interaction in Recruitment

AI is reshaping recruitment globally, yet Australian job seekers still crave a human touch. According to Capterra's survey, 65% of job seekers welcome AI, but 44% would reject a job offer if the process is overly reliant on it, the highest rate among surveyed markets, signalling caution for SMEs.

 

While 68% of candidates appreciate AI for ensuring equal opportunities and 65% for skills assessments, 37% express unease when AI is used for final hiring decisions. To address these concerns, SMEs should transparently communicate AI's role in recruitment and prioritise human interaction.

Trend #3: Rising Prevalence of AI-Enhanced Job Applications

The surge in AI-embellished job applications presents a challenge for recruiters. Capterra's survey shows that 73% of Australian job seekers use AI tools in their job search, with 90% admitting to embellishing skills. This trend underscores the need for SMEs to be vigilant.

 

To counter AI-enhanced application fraud, SMEs should use anti-plagiarism tools, prioritise visual interviews, and intensify reference checks to ensure candidate authenticity. By setting clear expectations on acceptable AI usage in the interview process and leveraging technology to flag misleading applications, SMEs can mitigate the risks associated with AI-enhanced applications.

 

Andrew Blair, analyst at Capterra, says, “Australian SMEs are uniquely positioned to harness the power of AI in recruitment while maintaining the human touch that defines small business culture. By adopting innovative sourcing strategies and balancing AI with personal interaction, SMEs can attract top talent and thrive in a dynamic job market.”

 

For more insights and tools to enhance your recruiting strategy, visit www.capterra.com.au to read the full report.

Key Facts:

• There is an urgent need for innovative candidate sourcing beyond traditional job boards.
• The importance of balancing AI-driven efficiency with genuine human interaction.
• The growing challenge of AI-embellished job applications and how SMEs can respond.

About us:

Capterra is the #1 destination for organisations looking to find the right software. Our marketplace offers 95,000+ solutions across 900 software types and access to over 2 million verified reviews, helping organisations save time, increase productivity, and accelerate their growth.

Contact details:

Garry Steel | [email protected]