The impact of artificial intelligence is far-reaching in the business community. You can see the technology take off in the fields of healthcare, marketing, and finance. Once a company successfully uses the time-saving functions of AI to make tasks more efficient in one area, it’s only natural that its leaders seek to implement AI in other parts of the business. The field of human resources (HR) is one that can reap dramatic benefits from AI in the coming years.
What is Artificial Intelligence?
Artificial intelligence (AI) is the technology that allows computer systems to learn and perform tasks that are normally done by humans. With AI, computers recognize words, images, and speech and make decisions based on sets of algorithms. If you think AI is relegated to the realm of computer geeks and math geniuses, think again. When you use your phone’s smart assistant to search the internet, rock out to music streaming services, and conduct online banking business, you’re using artificial intelligence.
Advances in technology have raised expectations for both customers and employees in today’s businesses. HR managers are under increasing pressure to woo the best talent and offer the right mix of perks and benefits to retain them. Their jobs often include sifting through thousands of qualified applicants for a handful of positions. Many HR professionals also generate compensation and benefits packages, craft training plans, and process payroll for hundreds of thousands of employees. Two major benefits of AI include high-capacity data processing and laser-accurate data analytics. AI platforms that are used in the right ways save HR managers time, reduce human errors, and end personal bias during decision making.
Impact of AI in Recruiting
HR managers at most organizations spend a great deal of their time screening resumes as part of their recruiting functions. To hire one employee for a single position, talent acquisition experts say that HR managers spend up to 23 hours of screening resumes. When they post a position, they get hundreds of applications that they must review in a timely manner. Unfortunately, nearly half of those candidates aren’t qualified for the advertised job.
How do HR specialists decide which resumes move through the pre-screening process? Good HR managers use their experience, training, and critical thinking skills to quickly scan resumes for qualifications that their companies want for advertised positions. Besides checking for skill sets, HR managers notice academic and career qualifications, current and past employers, and start and end dates for positions. In the end, many HR managers use their intuition to decide which resumes are passed to hiring managers for interviews.
Today’s AI-based HR technology uses programs that automate the resume screening process. HR managers use these tools to select candidates who have distinctive skill sets based on programmed keywords. When scanning resumes with the help of an AI system, an HR manager can also generate a pool of hiring candidates based on the applicants’ years of relevant work experience or earned certifications. They complete these tasks in a fraction of the time that it would take them to screen each resume manually.
Advanced HR technology also makes the recruiting process more efficient for HR managers through automated job matching features. A candidate, who may not be a good fit for one position, maybe the perfect employee for another job at your company. When that ideal job needs to be filled, HR managers already have several pre-screened candidates who have been flagged by the AI-based recruiting system.
The benefits of using AI-based systems to screen resumes go far beyond time savings. HR managers are the first line of defense against hiring the wrong people. Hiring a person who just isn’t a good fit for a position costs companies in the long term. According to one source, the average cost of a bad hire is about $18,700.
This price includes costs in areas such as:
- Severance pay
- Productivity losses
- Customer service mistakes
AI platforms take human bias out of the recruiting process by allowing HR managers to make decisions based on data instead of gut feelings. This change to the HR decision-making process gives HR managers more credibility in the eyes of senior leaders at their companies.
Impact of Artificial intelligence on Employee’s Learning Process
With HR managers, it’s all about improving the employee experience. Many times, that involves giving employees the tools that they need to master difficult aspects of their jobs. Including AI-based features into employee training programs allow HR managers to quickly create personalized training modules that are effective and timely. Within these modules, virtual training assistants are available to answer questions that are specific to different areas of study. Training managers also design these AI-based modules to get progressively more challenging as employees master difficult concepts.
If you’ve spent any significant amount of time in a competitive corporate environment, you know that brains and work ethics are only part of the success equation for aspiring business leaders. Having a mentor helps you to understand the nuances of your industry, the unwritten rules of your organization, and how to highlight your job performance without looking like the office shark. In the past, an employee was blessed to have one mentor who could guide them through career minefields. With AI-style virtual mentoring programs, an employee can connect with several mentors who are experts in select knowledge areas.
Impact of AI on Metrics and Analytics
When considering the rising impact of artificial intelligence on HR practices, improved performance tracking always comes to mind. AI-based technology gives HR professionals the opportunity to redefine their role in the corporation through the power of people analytics. People analytics involves using data about your employees to create a dynamic, innovative workforce, which is the ultimate corporate strategic asset.
People analytics allows HR managers to discover which employees work best in different roles within a company. For instance, your HR manager sends out an employee climate survey. After collecting survey responses, the manager uses an AI tool to learn more about each employees’ personality, work ethics, and temperaments. Business leaders can then match employees to project teams that let their talents shine.
Impact of AI on Compensation and Benefits
What is artificial intelligence? For some HR managers, AI is a technology that will help them to raise the standard of service that corporations have come to expect from their HR departments. Today’s HR managers follow industry and societal trends closely to generate compensation and benefits packages that are attractive to top talent. Wells Fargo is a leader in creative employee benefits, and its paid parental leave perk is just one example of its innovative perks. At Wells Fargo, all employees get paid time off to care for their new biological children, adopted offspring, or elderly family members. Primary caretakers get 16 weeks of paid leave, and secondary ones receive six weeks of paid time off.
The rising impact of artificial intelligence on HR practices has business leaders excited about the future. HR managers expect AI-based systems to predict the benefits that are most desirable for different employees in the future. This means that personalized benefits packages are on the way for tomorrow’s rising corporate stars.
Make Your Impact
While some organizations seem to be afraid that using AI will take the human out of human resources activities, most of them are embracing these automated systems to reap efficiency gains and remain competitive in the marketplace. AI systems are only as good as their human-generated programs. Continuous improvements to AI systems make HR managers and their senior leaders more confident that AI will work as planned.