AI in Human Resources is rapidly changing how organisations recruit, manage, and develop employees. A study conducted by Deloitte showed that 33% of global HR professionals are using some form of AI technology, with another 41% expected to adopt it in the next couple of years. AI technology is becoming more affordable, accessible, and easier for businesses of all sizes to leverage its benefits. We will explore the impact of AI in Human Resources and how organisations use this technology to optimise their HR processes.
AI Technology in Recruitment
One of the many advantages of ulitising AI in Human Resources is its ability to automate repetitive and time-consuming tasks, which allows HR professionals to focus on more strategic and value-added activities. Adam Robinson, CEO of Hireology says, “AI-powered recruiting software can process thousands of resumes and job applications in a fraction of the time it would take a human recruiter”. He goes on to say, “This not only improves efficiency, but it also helps to eliminate unconscious bias in the recruitment process”. AI-powered recruitment software can analyse resumes, conduct initial interviews, and predict candidate success based on experience and qualifications. Thus saving HR teams countless hours of manual work and improve the quality of their hiring candidates.
Using AI Technology in Performance Management
AI technology is transforming the performance management area in Human Resources. Performance appraisals commonly have been conducted once or twice a year, with managers assessing their employees based on their subjective observations. This approach can lead to demotivation among employees. Jason Averbook, CEO of consulting firm Leapgen, explains, “AI can help managers understand what’s going on with their teams in real-time and enable them to make better decisions and provide more effective coaching.”
With AI-powered performance management systems, managers are able to collect real-time data on employee performance, including metrics such as productivity, quality, and attendance, helping managers provide regular feedback and coaching to their employees. As a result can increase engagement and productivity in any organisation.
The impact of AI Technology in Employee Engagement
Research by Gallup shows that only 15% of employees worldwide are engaged in their jobs and feel a sense of purpose at work. The use of AI technology can make a significant impact to employee engagement. “AI can help HR teams to understand what drives employee engagement and create targeted interventions to improve it,” says Ben Eubanks, author of “Artificial Intelligence for HR.”
One example of an AI-powered employee engagement platform is Humu, founded by former Google executives. The platform uses machine learning algorithms to analyse employee information and provide personalised recommendations for improving their engagement, which ranges from simple activities, such as taking a break, or going for a walk, to more significant changes, such as adjusting work schedules or changing job roles.
AI-powered engagement platforms can analyse employee data, including their interests, communication preferences, and work habits, to provide personalised recommendations and resources to improve their motivation and job satisfaction. Therefore, engaged employees become more productive, innovative, and less likely to leave their jobs.
Ethical Concerns of AI Technology in HR
There are some concerns that using AI in Human Resources could lead to ethical issues, such as discrimination, privacy violations, and lack of transparency. For example, AI-powered recruitment software may inadvertently discriminate against certain groups of candidates, such as those with non-traditional backgrounds or those with non-English names. Similarly, AI-powered performance management systems may collect data on employee behaviour that they are uncomfortable sharing with their managers, leading to privacy violations.
To address these concerns, HR professionals need to ensure that they are using AI technology ethically and transparently, are aware of potential biases and limitations of AI technology and taking steps to mitigate them. For example, HR teams can train their AI algorithms on a diverse range of data and regularly review the results to ensure that they are not inadvertently discriminating against any groups of candidates. HR professionals can also provide employees with clear explanations of how AI-powered systems work, what data they are collecting, and how they use the data to make decisions.
Working With AI Technology
The use of AI in Human Resources also raises questions about the role of HR professionals in the future of work. Some experts predict AI will replace many administrative and transactional HR tasks, such as Payroll and Benefits Administration. Others argue that AI will enhance the role of HR professionals, allowing them to focus on more strategic and value-added activities, such as talent development and organisational design.
As Tracy Maylett, CEO of decisionWise, explains, “AI will change the role of HR, but it won’t eliminate it. HR professionals will still be needed to provide the human touch, such as empathy, creativity, and strategic thinking.”
In order for HR professionls to prepare for this shift, they will need to develop new skills and competencies, such as data analysis, digital literacy, and AI fluency. They would also need to be more open to experimenting with new technologies and approaches.
Integrating AI in Human Resources processes is a game-changer for organisations looking to increase efficiency and productivity while improving employee experience. The advantages are significant but ethical considerations should not be overlooked. HR professionals will need to be prepared to adapt to the changing role of AI while also maintaining the human touch essential for creating a positive workplace culture. With careful planning, implementation, and ongoing assessment, AI technology can be a valuable tool for Human Resources, ultimately leading to a successful, innovative, and engaging workplace.
