New-age technologies — Artificial Intelligence (AI), Machine Learning (ML), Blockchain, Cloud Computing, and so on, are the next big frontier, even in Human Resources.
A significant number of HR leaders propound that they are interested in applying AI in their talent management operations — from HR service delivery to employee management. According to a survey by Gartner,
About 23% of organizations piloting the use case of AI in HR and recruitment.
Organizations often adopt new technologies in human resources after having seen the proof of concepts in other business domains. In human capital management, AI and ML applications are being adopted in the employee as well as candidate facing situations.
Here is a quick study of why organizations are adopting HR technology or HR analytics, and the top three use cases of AI and ML in human resources management.
5 Reasons Why HR is adopting New-Age Tech
There is a combination of direct and indirect benefits that leaders see in new tech. They are positively impacting HR operations and infrastructure. However, one challenge that most faces is that of cost. That said, the solutions have proven to be paying for themselves after a few years. Here are the benefits of HR technology or HR analytics:
From the magnanimous number of resumes received by an organization, a few are selected, and more importantly, most do not fit the bill. An automated process of screening the resumes can help HR professionals separate the wheat from the chaff. This aspect, in fact, is considered the hardest by most human resources pros. The AI-powered resume screening process can reduce manhours, and make the process efficient.
The employee life cycle — from screening and recruitment to retention — can benefit from automation. It can improve productivity by reducing the costs of every screening and decision. Other than that, with the right inputs and information to the software, it can give out better candidates provided the tech is self-learning and adaptive.
👉Improve candidate experience.
Most organizations complain of being short of providing the right candidate experience. In many small organizations, interviewees are made to sit for hours before they are attended to, which is just one form. Bringing AI and other new technologies to home can improve the candidate experience. As they say, the first impression is the last impression, it can be quite useful in reducing employee turnover as well, due to a good first impression, and efficient matchmaking.
One of the soft effects of HR technology or HR analytics is the elimination of bias. Often, unknowingly, biases enter recruitment processes. Inclusion of new tech in HR processes can bring about hiring practices that are unbiased and standardized — thereby improving the accuracy of hiring across and, possibly, improving diversity.
👉Set sustainable standards.
By permeating company mission and vision across all recruitment and hiring stages, new technologies create standards that sustain for long. These processes have not impinged on human interventions, and thus can be replicated across geographies (in case of multinational organizations). Standardized processes can lead to many other benefits within one organization.
Top 3 Use Cases of HR technology or HR Analytics
Recruitment is one of the first aspects of Human Resources Management that’s talked about as the candidate for automation and other analytics. HR leaders prior to automating this aspect usually begin with:
- Labor market analysis
- Skills matching
- Bias detection
- Forming a candidate ranking framework
The first phase of application and screening can now be done by built-in AI software. For instance, a large hospitality behemoth has been using automation to improve candidate experience and improve the efficiency of their HR professionals and recruitment team — much beneficial since they hire in volume.
HR analytics for the use of employee engagement is another most popular area of interest in most organizations. An example of how organizations are leveraging it, an organization discovered the cause of their employee turnover from an employee engagement survey. They figured the reason for decreasing employee engagement in the company is the work uniform. Of course, once figured it was easy to fix it.
The tech-enabled process helped the organization to avoid the costs of attrition.
An obvious, but highly sought-after aspect of automation in HR are chatbots and virtual assistants. However, they still are in the early stages of adoption.
Answering employees’ queries, delivering talent metrics insights, conducting workflows in the employee lifecycle, are a few of the areas imagined for the use of virtual assistants in HR.
Currently, they are being used in helpdesks. These conversational agents can be easily kicked off with an automated FAQ, let the assistant self-learn, adapt and develop.
Often wondered, will a shift to new technologies replace human resources professionals. The answer is no. Automation will most definitely reinvent tasks performance by talent management professionals, but replacing entire jobs, not so much.
It’s not a threat, but redesigning and augmentation of jobs. In addition, it will help existing professionals upgrade their roles and divert efforts to more value-adding tasks.
Where do you stand in bringing technology closer to human resources?
Originally published at https://datafloq.com.