Artificial intelligence, a transformational innovation across many industries, has proven that it is here to stay. One of the sectors where this technology is making an impact is human resources.
AI has made HR more data-driven and personalized, as seen in processes like talent acquisition and employee management.
This content examines how AI in HR works and the benefits it brings. It also reveals practical ways companies use AI to revolutionize their HR processes.
What Is AI in HR?
Generative AI in HR employs technologies, such as advanced algorithms and machine learning, to automate time-consuming HR tasks that would otherwise have been done manually.
It can be simple automation of repetitive tasks or complicated decision-making processes aimed at improving the overall HR efficiency.
For example, during the recruitment process, tools powered by artificial intelligence are useful in filtering large amounts of data to identify the best candidates for a job. This would reduce the time and effort HR personnel would spend on this aspect of their work.
Additionally, AI in HR can be used to manage schedules, track employee performance, and even predict future HR needs based on existing data.
With how far AI has gone in helping the HR workflow, it is clear that this innovation is not just about efficiency. It is also about providing HR services that are flexible enough to meet the needs of modern businesses.
What Are the Benefits of AI in HR?
Using AI in your HR process opens the door to better productivity and smarter decision-making.
Let’s take a closer look at other benefits that AI brings to HR.
1. Better Decision Making
With AI, HR experts can have data-driven insights so they can make better decisions.
Traditional HR decisions often depended on either intuition or limited data. With AI, HR professionals can now access large amounts of data to make more informed and objective decisions.
For example, they can analyze historical data to predict future trends to make good decisions on matters like hiring, promotions, and workforce management.
Moreover, AI reduces the possibility of biases as people are judged primarily by data and qualifications rather than the HR manager’s subjective judgments.
2. Improved Efficiency
AI frees up more time for professionals to focus on more strategic activities by taking over time-consuming repetitive tasks.
AI can handle tasks like scheduling interviews, sending out routine emails, and managing payrolls to reduce the administrative burden on the HR team.
Furthermore, instead of manually scanning through hundreds of resumes, AI-powered Applicant Tracking Systems (ATS) can automatically search for specific keywords on resumes to shortlist the right candidates for the job.
3. Personalized Employee Relationship
AI can help with providing tailored learning and development programs for employees.
Instead of compelling every employee to go through the same training, AI can analyze everyone’s performance and career goals to recommend training that addresses their specific needs. This can also help businesses build positive relationships with their employees.
For instance, AI can identify an opportunity for recognition, such as when employees complete a challenging project so that they are rewarded accordingly.
4. Talent Acquisition and Retention
With AI, HR teams can attract and retain top talents so that the company remains relevant in the competitive market.
For example, by analyzing job descriptions alongside candidates’ resumes and profiles, the HR team can identify the best match for a role.
Additionally, AI can proactively identify high-potential employees who can be leaders in the organization in the near future to secure the success of the company in the long term.
5. Proactive Employee Management
Instead of annual reviews done using traditional performance management processes, AI can monitor the performance and engagement levels of employees in real time.
As such, performance issues can be promptly addressed before they affect the company’s productivity.
Based on the data collected, the management can decide to either provide additional resources, adjust workloads, or provide extra coaching to get their employees back on track.
Real-Life Use Cases of AI in HR
AI automates tasks that are time-consuming and prone to human errors, making HR processes more accurate and efficient.
The following are some practical examples of Al tools being used in HR today.
1. Sourcing Talents
AI tools can scan massive amounts of social media data and even professional networks to establish which prospects match a specific job description.
These tools can analyze LinkedIn profiles, published articles as well as other publicly available information. From the data, it can identify people who may not be actively looking for a job yet have the skills and experience necessary for the roles.
With this, HR teams can further optimize job postings to attract the right audience. This, in turn, increases the quality of applicants and improves hiring timescales.
An example is Unilever, which uses AI for talent sourcing. Their AI-driven recruitment system uses machine learning algorithms to scan online resumes and match candidates with the relevant job openings.
2. Sifting Through Applicants
AI-powered Applicant Tracking Systems (ATS) can streamline the process of screening applications to avoid inconsistencies and unnecessary time-wasting.
These systems can be programmed to search for specific keywords, skills, and experiences to narrow down the sifting process to the pools of candidates with the best qualifications.
Companies like IBM use AI-powered systems to screen the resumes of their applicants. They also use AI to assess candidates’ cognitive abilities and personality traits so the company can successfully and efficiently identify top talents.
3. Interview Scheduling
Planning interviews between applicants and multiple interviewers can pose a challenge to large organizations. AI can simplify this process by automating interview scheduling.
They can integrate calendars and email systems to find a time that suits both the interviewer and the interviewee. This arrangement helps to avoid unnecessary delays and to handle rescheduling if the need arises.
Companies can use GoodTime to coordinate interviews and automated emails to both candidates and interviewers. This will help to finalize meeting times so that interviews are done smoothly and efficiently.
4. Interview Preparation and Matching
Asides scheduling of interviews, AI tools can examine an applicant’s profile to recommend interview questions that suit the specific role they are applying for.
This would ensure that interviews are precise and focused on providing insights as to whether a candidate fits the position or not.
Additionally, AI can help match candidates with interviewers who have the necessary experience to accurately assess their qualifications.
HireVue uses AI to analyze video interviews to provide insights into candidates’ communication styles and personality traits to ensure a comprehensive hiring process.
5. Onboarding
AI-driven onboarding tools can help new hires get quickly acclimatized to their new role and the existing company culture.
For instance, AI-powered chatbots can provide answers to frequently asked questions by new employees.
They can also answer questions on how to find certain documents and complete specific tasks. Since these chatbots are available 24/7, they will provide the support that new employees need at any time.
In practice, companies like Accenture have AI-powered onboarding programs to provide personalized support for employees using chatbots. This has led to faster integration of recruits into the company and higher overall job satisfaction.
6. Employee Relations and Management
AI tools can monitor employee sentiment and track their performance to give insights into how HR teams can better manage employee relations.
These tools can analyze employee feedback from communication channels like emails and surveys to identify patterns of dissatisfaction.
By detecting these trends early, HR experts can address them before they escalate.
Furthermore, AI can monitor employee performance data like goal achievement, productivity metrics, and peer feedback.
Adobe uses AI to analyze employee data to get insights into employee engagement, performance, and turnover risks.
Conclusion
Now that we’ve examined the benefits and some examples of AI in HR, one thing is clear: businesses that want to stay ahead need to invest in AI-driven HR tools.
As AI matures, we can expect more innovative applications to ensure the efficiency and effectiveness of HR departments.
If you want to explore AI in HR but have no idea how it’s done, Zartis is here to show you the way. Our comprehensive AI Consulting Service will fill you in on all you need to know to get started.
Companies that are looking to improve their existing use of AI in their HR process are also welcome to reach out!
