Daily Papers

Conventional Applicant Tracking Systems (ATS) tend to be inflexible keyword-matchers, and deny gifted candidates a role due to a few minor semantic mismatches. This article describes a new two-step process to design a more refined resume evaluation model based on a small language model (<600M parameters) that is finetuned using GRPO on a custom reward function. To begin with, Supervised Fine-Tuning (SFT) was used to build a solid baseline model. Second, this SFT model was also optimized with the help of Reinforcement Learning (RL) through GRPO under the guidance of a new, multi-component reward function that can holistically assess candidates beyond simple keyword matching. We indicate that the RL application presents a critical problem of reward hacking due to the initial experiments of aggressive penalties, which produces faulty, excessively negative model behaviors. We have overcome this challenge by refining the reward function repeatedly and training hyperparameters into a stable "gentle polishing process" of the reward function. Our resulting GRPO-polished model demonstrates significant real-world efficacy, achieving a final accuracy of 91% on unseen test data. The model shows a strong ability to correctly identify qualified candidates (recall of 0.85 for the 'SELECTED' class) while also showing exceptional precision (1.0), confirming its reliability. These results indicate that a properly executed, two-step fine-tuning procedure can indeed effectively refine a small language model to be able to conduct fine-tuned and human-like candidate scoring, overcoming the drawbacks of both traditional ATS and naive RL usage.

Prevailing methods for training Large Language Models (LLMs) as text encoders rely on contrastive losses that treat the model as a black box function, discarding its generative and reasoning capabilities in favor of static embeddings. We introduce GRACE (Generative Representation Learning via Contrastive Policy Optimization), a novel framework that reimagines contrastive signals not as losses to be minimized, but as rewards that guide a generative policy. In GRACE, the LLM acts as a policy that produces explicit, human-interpretable rationales--structured natural language explanations of its semantic understanding. These rationales are then encoded into high-quality embeddings via mean pooling. Using policy gradient optimization, we train the model with a multi-component reward function that maximizes similarity between query positive pairs and minimizes similarity with negatives. This transforms the LLM from an opaque encoder into an interpretable agent whose reasoning process is transparent and inspectable. On MTEB benchmark, GRACE yields broad cross category gains: averaged over four backbones, the supervised setting improves overall score by 11.5% over base models, and the unsupervised variant adds 6.9%, while preserving general capabilities. This work treats contrastive objectives as rewards over rationales, unifying representation learning with generation to produce stronger embeddings and transparent rationales. The model, data and code are available at https://github.com/GasolSun36/GRACE.

One of the challenges in applying reinforcement learning in a complex real-world environment lies in providing the agent with a sufficiently detailed reward function. Any misalignment between the reward and the desired behavior can result in unwanted outcomes. This may lead to issues like "reward hacking" where the agent maximizes rewards by unintended behavior. In this work, we propose to disentangle the reward into two distinct parts. A simple task-specific reward, outlining the particulars of the task at hand, and an unknown common-sense reward, indicating the expected behavior of the agent within the environment. We then explore how this common-sense reward can be learned from expert demonstrations. We first show that inverse reinforcement learning, even when it succeeds in training an agent, does not learn a useful reward function. That is, training a new agent with the learned reward does not impair the desired behaviors. We then demonstrate that this problem can be solved by training simultaneously on multiple tasks. That is, multi-task inverse reinforcement learning can be applied to learn a useful reward function.