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The role of artificial intelligence in human resource management

Artificial intelligence has rapidly made its way into the business environment, and HR is no exception. In fact, the last couple of years have seen the use of artificial intelligence in human resource management boom. Not using this advancement could put organisations at a disadvantage, while making full use of this technology might bring a competitive advantage to your company. This article shows how artificial intelligence is transforming human resource management. We explore the use of AI in HR with a well-rounded view of all the HR functions and how they are affected by AI. We also provide some frequently asked questions that can help set you up on this digital transformation journey.

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The use of AI in human resource management

The human resource function has always looked at ways to reduce cost, increase productivity and improve efficiency. To do so, it has turned to digitalisation and automation. However, since the arrival of artificial intelligence, this transformation has taken another dimension. Indeed, AI technologies are revolutionising HR by increasing operational efficiencies, boosting productivity through automation and even enhancing human contacts. The content below looks into the different areas of human resources and explores the benefits of artificial intelligence for each of them.

Recruitment

Recruitment strategies and operations can highly benefit from the use of AI. For example, artificial intelligence can assist with the creation of job descriptions. It can also assist with creating the profile of the ideal candidate by using online resources.

But artificial intelligence goes one step further by assisting recruiters with the selection process, from evaluating existing candidates to creating the framework for interviews. As such, it saves time and brings structure throughout the process. It can also ensure that potential candidates are not overlooked and reduce human error.

Performance management

Leaders need to conduct performance reviews for their teams on a regular basis. This task is essential but may be time-consuming. With the use of artificial intelligence, managers can create systems, and track and analyse their team’s performance. The output may be a comprehensive report that highlights strengths, areas of improvement and any performance gaps. In this instance, AI can be used to do the heavy lifting work, while humans can focus on execution and decision-making.

Related: Performance management: data-point assessment and data triangulation

Onboarding and offboarding employees

Between the paperwork, new procedures and learning the job itself, new employees may feel overwhelmed when starting a new job. Having intuitive systems in place can help smooth this process. An AI-driven platform can walk new employees through the different steps when joining the organisation. As a result of this structure, the new starter is likely to feel less stressed and may be able to get started on their job faster. Similar process efficiencies apply to the offboarding process.

Employee engagement

Employee engagement is a hot topic. For organisations, understanding staff sentiment is important to know if they have the right values, leadership culture and much more. AI-powered surveys can be generated to understand employee satisfaction. Through automation, the process is streamlined and made more efficient. Employee satisfaction surveys should be engaging and aim to collect truthful feedback. The results can also benefit from the use of AI through the generation of automated analysis that will give HR teams the opportunity to move to a solution immediately.

Training and talent development

Learning and development are a priority for many employees. In their role, they want to grow and develop. Some AI solutions can analyse the existing skills of each employee versus their career ambitions. The result is a tailored training plan that increases the chances of reaching the desired career goal. In this instance, artificial intelligence brings a personalised approach that can be motivating for employees and support their career development.

Related: 5 steps to creating an effective training and development programme

Staffing and workforce planning

Managing task allocation and workforce planning are challenges faced by many leaders. Through data, it is possible to analyse industry trends versus the skills of the existing workforce. The results brought by an artificial intelligence tool might be a skills gap analysis. This can highlight any training that the team might need to undertake or the need for a new employee profile to fill the skills gap.  

HR admin

Administrative tasks can often be automated to increase efficiency. Imagine an AI chatbot that is available at all times to assist employees with their queries. Having such a solution in place allows human resources teams to focus on other tasks and provides employees with an effective self-service solution.

There is much more that AI can bring to the HR function. However, the snapshot above demonstrates that artificial intelligence can bring many benefits to HR and transform it.

FAQs on artificial intelligence in human resource management

Some questions surface when it comes to the use of artificial intelligence in human resource management. These may range from the pros and cons of such solutions, to how to implement it or the challenges to watch out for. If you are asking yourself any of these, then our FAQs are for you.

What are the pros and cons of AI in HR management?

Like with any solution, there are some pros and cons to AI in HR management. Amongst the advantages, we can clearly note the increase in efficiency and accuracy of administrative tasks, but also cost reductions, streamlined screening processes, improved employee engagement, personalised training and development planning and much more.

From a disadvantage perspective, it is important to consider that the use of AI technology may lead to disruption when technology fails. Additionally, it is recommended that HR teams have a good understanding of AI algorithms. Doing so can lead to better-informed decisions and ensure transparency. Another pitfall to be aware of is that AI tech does not always ensure compliance with labour laws and regulations. HR employees are responsible for ensuring that these critical components are accounted for.

How can artificial intelligence solutions be deployed in HR?

Implementing an AI solution within your HR department needs to be done with caution. Ensure that sufficient data is collected, aggregated and analysed. Doing so can form the baseline of the desired output. To implement the solution, a specific skill set is required. Contract experts if your organisation does not hold these specialised skills.

As for any change in an organisation, the implementation of the solution may require a structured change management process that can educate the stakeholders involved and ensure that the solution is adopted. Some will prefer a phased implementation that gradually introduces different modules, whereas others can go for a more intensive approach. Nevertheless, once the solution is in place, reflect and assess: Were the desired goals achieved? Is there room for improvement? This reflective approach can help lead to continuous improvement, which is beneficial in the long term.

What are the key challenges to watch out for when it comes to AI in HR?

Artificial intelligence is shaking up the business environment and transforming it. This technology has evolved rapidly and requires a specific skill set. Reskilling is important to ensure that the appropriate expertise is present in the team and that no role has become redundant as a result of the implementation. Another item to watch out for is data privacy. Data management strategies should be discussed and anticipated before the deployment of the solution. Finally, successfully rolling out its implementation can help users adopt it.  Keep it intuitive and associate the deployment with a change management plan.

Artificial intelligence can be a significant advancement for organisations. It can transform and enrich the human resource function. However, using AI technology requires planning and support by professionals who have a good understanding of it. Read more to optimise your HR function with our content on how to reduce time-to-hire with Indeed’s recruitment automation.

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