If you thought that the growing popularity of AI was just a tech thing that didn’t affect you as an HR professional, then you might need to reconsider your stance on artificial intelligence in human resource management. The adoption of AI in HR has not been as fast-paced or noteworthy as other industries, but its presence and use case is undeniably diverse. Whether it’s in the use of AI in HR management or in everyday work, there are many ways to incorporate these smart tools into designing a more efficient HR team and overall workforce.
According to the Business DIT research summary, the HR market adoption is growing at a pretty steady pace, with a Compound Annual Growth Rate (CAGR) of 35.26 percent. The website also states that the use of AI in HR is higher in organizations with more than 5000 employees at 42 percent, while employers with less than 100 employees are at 16 percent. The numbers make sense as bigger organizations have a much larger need for it as well as the necessary revenue to support it, however, smaller businesses are also prioritizing the adoption of AI.
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Artificial Intelligence in Human Resource Management
Depending on the nature and business of the organization, AI use in HR can vary significantly. A marketing organization might have more overall use for it than a restaurant or a local cafe, however, all organizations can see a simplification of the work processes with the involvement of AI in HR management. Let’s take a look at some AI in HR examples and see if they can inspire you to incorporate artificial intelligence in human resource management at your organization as well.
Recruitment and Talent Identification: Common Use of AI in HR
AI tools in HR have primarily been used for the simplification of recruitment practices in many major businesses. Artificial intelligence in human resource management requires training to use, but once the HR is fairly comfortable it can greatly simplify every step of the recruitment process, from designing the job description to sifting through resumes quickly.
AI tools in HR are able to scan resumes for keywords defined by the HR team and create a smaller pool of resumes that have the qualifications and skill sets that an employer is looking for. Contacting these candidates can be a much more efficient way of hiring than interviewing every applicant. Society for Human Resource Management (SHRM) found that automation and AI tools are used by 64 percent of HR professionals to filter out unqualified applicants.
While there are no laws regarding AI in HR hiring and recruitment, the Equal Employment Opportunity Commission (EEOC) has guidelines recommended for the use of artificial intelligence in human resource management and other workplace decisions. The EEOC’s “Four-Fifth Rule” is one of the important additions here, to ensure that there is no substantially different rate in the hiring of two groups—the ratio should not be less than four-fifths or 80 percent.
Robotic Process Automation: AI in HR Examples
AI in HR management is critical when it comes to the automation of manual time-intensive tasks. The HR team is in charge of overseeing an entire organization and its performance, while also handling leave calculations, pay cuts, salaries, bonuses, promotions, feedback records, contract negotiations, interviews, exit interviews, conflict and their consequences, updating employee records, etc. There are a lot of numbers to get right while also ensuring it happens simultaneously, especially as most wages are due at the same time. Doing all of this manually takes a lot of work and it can also be very easy to make a mistake and let details slip through the cracks.
According to a Deloitte Global RPA Survey, 53 percent of their respondents had already adopted RPA practices with near universal adoption numbers predicted for the next five years. RPA practices can greatly simplify administrative tasks and free up the HR team for more creative and growth-focused pursuits.
Onboarding with AI
Artificial intelligence in human resource management can be used after hiring, to develop and execute the onboarding process as well. With chatbots designed in-house, companies can make data available to new employees instantly, making it much simpler to explore and understand the organization and its practices. Instead of waiting for a good time to talk to their supervisors, new employees can just seek and access data instantly. Gamification is a fast-growing concept and employing it in the HR routines is also something for companies to look into. AI tools in HR can provide assessments of skill sets and learning patterns and also provide data in a way suited to each employee to ensure clarity of understanding.
The use of AI in HR onboarding rituals can also help streamline the process of document sharing and data collection for the employee records, instead of manual effort to do the same. Routine tasks, such as setting up workspaces, granting system access, and scheduling training sessions, can be automated with AI, reducing administrative burdens on HR teams.
Explore AI Tools in HR for Performance Management
Performance management is another elaborate and demanding HR responsibility and it requires the investment of a lot of resources. AI resources can assist from the first step in planning for reviews and assessments to the last, ongoing step of goal setting and progress tracking. AI tools in HR like IntelliHR are great for goal management and talent retention. This tool, for example, allows its users to break down goals and set measurable targets, all while keeping managers in the loop. This way, managers and supervisors have a chance to assess data in one place and readjust goals accordingly.
360-degree feedback mechanisms are very useful assessment processes that collate data from a variety of angles. By incorporating AI tools, the process can be easily automated, so reviewer selection, feedback metrics, feedback channels, etc can be set up with ease. Additionally, to an extent, artificial intelligence in human resource management can also aid in a more quantitative assessment of employee engagement by tracking various metrics such as collaboration patterns, frequency of interactions, participation in training programs and internal activities, etc. Here, however, a more discerning human perspective is a necessary factor for qualitative data.
Workforce Analytics: Leveraging AI tools in HR
Data is a godsend for those trying to build a company, but overwhelming amounts of it can provide misguided, overly complicated results. Using AI in HR, companies can prioritize metrics that mean the most to them and study correlations between data points efficiently. AI systems seamlessly integrate data from various sources, including HR databases, employee surveys, performance metrics, and external market data in order to provide comprehensive but clear results.
The predictive capabilities of artificial intelligence should not be ignored by human resource management either. These ingenious AI tools can read data and provide predictions of future company needs, from budgets to hiring, and also provide clarity on what goals to set for the business as a whole. AI tools conduct scenario analysis for workforce planning, considering factors like market trends, organizational growth, and technological advancements.
These are only the beginnings of what AI can achieve when utilized efficiently. While the initial stages do require some amount of investment with regard to resource planning and monetary allocation, however, the future benefits are likely to be worthwhile in the long run. With a large majority of the world, whether in HR management or outside of it adopting AI, it is time for you to seriously consider how your company can benefit from the versatility of artificial intelligence in human resource management.