The Potential of AI to Improve Human Resource Management (HRM)
The Potential of AI to Improve Human Resource Management (HRM)
H.R. is just one of the many fields transformed by A.I. Recent studies agree that the future of HRM involves the collaboration between a man and the machine. A.I. can complement human workers’ efforts and free up their time. H.R. professionals can use this opportunity to pay more attention to the needs of individual employees.
Advantages of Using A.I. for H.R.
As with every other field, A.I. really shines when it comes to performing tasks that require data analysis. It might not look like it, but A.I. involves a lot of data processing. With the help of A.I. vendors, companies can implement solutions to optimize their HRM processes.
H.R. is a field that requires interpersonal communication skills, so A.I. will not replace human workers, but complement their efforts. This can free up H.R. professionals’ time to focus on the employees’ happiness.
Thanks to years of software developers and A.I. vendors, these days, A.I. can perform a wide variety of tasks. For example, it can analyze the text and make sure it fits into an organized data structure. When trained on a large volume of data, A.I. can also handle reasoning and make business decisions.
Software that incorporates machine learning can analyze its own past performance and correct the mistakes to achieve even higher levels of accuracy. Companies can use these features to streamline their hiring process and make faster decisions.
Applicant screening is an excellent example of a process that can be streamlined using A.I. Sometimes, companies are flooded with applicants and need an impartial, yet effective judge to filter the candidates. A.I. vendors can provide perfect solutions for this problem, and, if necessary, even help you set up custom criteria for filtering the candidates.
The only drawback of A.I. is that it lacks the human empathy of H.R. professionals. For this reason alone, ultimately, the most important decisions should be made by humans. Despite this, A.I. can still play an essential role by collecting and presenting insights from data.
Most of the time, the quality of the information provided by A.I. depends on the quality of data fed into it. If the data is organized and rich with detailed information, the output will contain valuable information as well.
With that being said, let’s look at specific applications of A.I. for HRM.
AI relies on data analysis to conclude, making it more impartial than human workers. In the best-case scenario, A.I. can rate the strengths and weaknesses of each candidate and present them to H.R. professionals who will make the ultimate decision.
Some companies tend to use unnecessarily complex language when posting job announcements, such as industry jargon or company terminology. A.I. vendors offer tools to streamline the job description and remove unnecessary jargon. It can also detect gender-specific language and remove them since jobs shouldn’t be limited to either gender.
Improve Online Listings’ User Experience (UX)
Employers can also use A.I. to detect areas for improvement in their UX. For example, issues like complicated forms and poor input organization can deter excellent candidates from applying to your jobs. A.I. vendors offer software to analyze your website and point out these inefficiencies.
Solutions powered with machine learning can learn by looking at different landing pages and figuring out which features work and which don’t. Based on this information, it can also suggest improvements to your listing.
To Find Passive Candidates
Sometimes, the best candidates are not actively looking for a job. A.I. can predict who might be interested in a position and suggest the factors that could motivate them. Recruiters can use this information to target a wider pool of candidates. This way, companies can potentially hire the best talent and achieve optimal performance.
Solutions provided by A.I. vendors can also suggest where to buy advertising to grab the attention of the highest-potential candidates. This way, the company can direct its advertising budget towards acquiring the best quality candidates.
A.I. can also reduce delays in communication within the H.R. department. Streamlined communication channels can lead to faster decision-making, which is a must-have to attract the best candidates.
There’s a common saying that first impression is everything. This principle applies to the hiring process as well. Once the recruitment process has finished, the H.R. manager’s responsibility is to introduce the new employee. The transition into the new position should be smooth. This involves providing sufficient base training, covering both general and company-specific knowledge. The H.R. manager must also ensure that the candidate receives all study materials or booklets applicable for the position.
A.I. can report whether or not the employees were provided with information about company policies, whether they were introduced to their working space, and the people they’re going to work with.
Thanks to these features, A.I. can provide a personal onboarding experience for every individual, regardless of the area of work or seniority level. For example, junior hires might need different onboarding processes, such as customized instruction.
After finding and hiring the best talent, you also need to manage them. The importance of this step cannot be overstated. Realizing this, startups like Enaible have started developing AI-powered tools to utilize them throughout their HRM processes. This specific startup measures and quantifies the productivity of every employee. Identifying key metrics to measure employee productivity, especially since most jobs have moved online.
Once they’re sufficiently trained, A.I. tools can also detect when the employees are about to quit. Moreover, such solutions can also recognize the factors that lead to this outcome.
By measuring employee performance, A.I. tools can provide valuable data for HRM. For instance, they can help you define the relationship between pay, motivation, and performance among your company employees.
A.I. vendors can provide solutions (such as HackerRank) to help you identify exceptional talent. Then, H.R. teams can use this information to invest more money, time, and energy into developing said talent. This way, high-potential employees can bring more value to the company.
The impact of A.I. on Human Resources Management
The developments in A.I. affect HRM the same way any new technology affects the industry where it’s applied. It will change the way businesses arrange their operations and how they respond to outside factors. The most critical changes for regular people will affect their jobs. The technology will create new jobs and eradicate some of the existing ones. The day-to-day tasks of people working in HRM will change in varying degrees.
For instance, the job of A.I. trainer does not currently exist, but soon the demand for this profession will skyrocket. People who take this role must be experienced with the industry, in this case, HRM. They should also be familiar with the technology behind modern tools. Finally, the solutions that do the tasks previously performed by humans must be trained by the most experienced employees.
One area of Human Resources Management where the benefits of using A.I. are the most noticeable is talent acquisition. That’s why there are many existing solutions to help businesses implement a more efficient process for finding prospective candidates.
Businesses that utilize AI-powered solutions see dramatic drops in screening time and an increase in the number of candidates who fill out the job application form. By following this process, they can improve candidate satisfaction, and free up the recruiter’s time to focus on tasks that require a personal touch. In this scenario, humans also become responsible for training the AI-powered chatbots to collect the candidates’ responses.
With the help of A.I., hiring managers have more free time to go through a much wider pool of candidates. It is due to this change in technical factors that companies are changing their approach to sourcing talent.
In the past, it was common for them to demand a relevant college degree, but now, an increasing number of organizations prioritize skills-based hiring. This is especially true for the software development industry, where prospective employees often come from coding schools, boot camps, or without any formal training at all.
Many software developers are entirely self-taught. As long as candidates can demonstrate their talent, companies are more than happy to hire them without college degrees.
The outlook for the future
From the perspective of professionals currently working in the field of HRM, the development of A.I. tools presents both a threat and an opportunity.
It’s hard to deny that the development of A.I. technology is bound to change employment opportunities for professionals in all areas of work, including HRM. A.I. can threaten the jobs of people who perform repetitive, labor-intensive tasks. This categorization includes physical and routine office jobs that require little to no mental effort.
If the above description fits your job, don’t lose hope yet. The change will be gradual, and the development of A.I. will create plenty of jobs as well. Even if you’re an experienced professional in the field of H.R., you can acquire new skills and become more technically proficient at staying competitive in the job market for the long run. From this angle, the development of A.I. technologies is an opportunity for every professional to gain new skills.
Computers and machines are strong in some areas of work but lack the key characteristics to completely replace H.R. professionals. Emotional intelligence is a prime example of such skill, and people who possess high levels will be even more appreciated than they are now. This includes skills like interpersonal communication and other interpersonal skills.
From companies’ perspectives, it will be essential to encourage the HRM professionals to learn how to work with A.I. and get more comfortable with technology in general. This involves sponsoring training courses and educating the employees on the value of using A.I.
If the professionals working in the field of HRM can see the value of A.I., they are more likely to rely on technology to perform their everyday duties. Therefore, companies should hire, or promote leaders who will ensure a positive reception from the team members.
As the industry is transformed, high-ranking managers need to understand the role of A.I. in the employee lifecycle. First, people working in the HRM department should have a clear idea of the recruitment and employee management goals. Then, it will be the leader’s responsibility to communicate how A.I. can help them meet those goals.
Companies should dedicate a significant amount of resources to training the employees working in the fields of HRM that are heavily influenced by A.I. We have already mentioned the impact of A.I. on the field of recruiting. The technology also affects other aspects of HRM, such as onboarding and training initiatives.
Professionals who work in these fields will have to work closely with various A.I. tools and solutions. Therefore, companies must ensure that these people know how to make the best use of the technical solutions at their disposal.
3 Startups Developing A.I. solutions for HRM
Before we finish, let’s take a look at three startups developing an A.I. technology that has the promise to transform the field of Human Resources Management.
The team behind this startup thought of an easy way to help companies find candidates that suit their requirements. Mainly the startup is focused on skills-based hiring and assisting the companies in fielding individuals with specific sets of skills.
Once the employee is hired, the manager needs a reliable way to keep track of their performance and progress towards the goal. Dockabl offers a diverse variety of tools that help companies manage the experience of their employees. In addition, it aims to guarantee equal treatment for all team members.
The solutions offered by Dockabl can be used to set up personalized goals and enhance the communication between employees and managers.
This startup offers tools to address diverse problems faced by HRM professionals. For example, it helps companies measure the individual performance of every employee track their engagement and other core processes. Tools are mainly hosted on the cloud.
Fortune 1000 companies use Darwinbox for their recruitment. It helps managers set up criteria for hiring and find the best candidates that match the requirements.
By now, you are probably convinced that the possible applications of A.I. for HRM are endless. But, most importantly, A.I. can help H.R. managers be proactive in handling problems and resolve issues before they become serious.
Image Credit: Husna Miskandar; Unsplash; Thank you
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