Every organization, regardless of its size or culture, follows its own internal practices. However, now a day, especially after the significant surge in resignations due to the COVID-19 pandemic, organizations have started to realize this reality. According to a Forbes report in the year 2022, there was a phenomenon called the ‘Great Resignation,’ with a staggering 47 million people globally leaving their jobs in just one year.
The trend of employee resignations, coupled with the onset of digital disruption, has compelled organizations that haven’t adopted technology and various tech resources to step up their game, particularly in the HR and recruitment domains. Many companies are now seeking to invest in technology to aid HR functions. According to data from Fortune Business Insight, the market value of HR-related technology is projected to grow from 24 billion USD to 35 billion USD within the year 2027 in the United States. Additionally, there is a rising trend of companies prioritizing AI investments to enhance workflow efficiency and reduce costs.
5 Key Roles of AI that Will Transform HR Working Methods
1. AI providing HR teams with abundant data and enhancing work efficiency
First and foremost, AI technology can add value to the HR and recruitment processes by predicting the number of employees required within a company or a specific department. Using AI-powered deep learning-driven predictive capabilities, data related to vacant job positions and the requirements of new teams can be efficiently collected and analyzed. This aids HR teams in prioritizing hiring needs effectively.
Once the number of required new hires is determined, AI systems can assist in finding potential candidates through AI-generated job advertisements. AI can help the recruitment team target the right candidates from various job portals. Additionally, AI can outperform traditional tracking systems in candidate tracking, as AI systems are trained with large datasets to understand candidate attributes and quickly identify suitable candidates from multiple platforms such as GitHub or Quora.
Furthermore, AI can be a valuable asset in the hiring process by using AI-driven tools to track and rank resumes. This technology can significantly reduce the recruitment team’s time spent on reviewing general applicant data. For instance, communication skills can be assessed through a Virtual recruiter or a simulated new employee recruitment process. In some cases, AI systems can also aid in evaluating technical skills by using automated systems designed to score specific types of coding tests or simulating real work environments for remote hiring purposes.
2. AI enhancing employee engagement
In the context of dissatisfaction with salary and work-life balance issues, employees may choose to resign from a company due to various reasons. Businesses invest significant time and resources in training and helping employees grow. Therefore, it is crucial for companies to assess why employees decide to leave. AI technology serves as a valuable tool for organizations to understand the reasons behind employee resignations.
Currently, there are AI-driven tools designed to boost employee engagement which can gather data and identify trends related to employee dissatisfaction or needs. For instance, companies may use chatbots to answer questions related to new employee hiring, enabling the HR team to collect insights from surveys focusing on employee motivations and what they value, such as differences and sustainability. Additionally, HR teams can leverage AI systems and data to comprehend the training needs of various departments, creating opportunities for re-skilling and up-skilling for employees within the organization.
Moreover, AI can be a powerful tool to combat employees burnout or allow employees to have more time for creative and challenging tasks by automating repetitive or mundane tasks. This directly relates to HR’s effort to enable each department to work efficiently and use AI functionalities across various teams within the organization, such as customer service, finance, and legal departments.
3. AI that facilitates convenient and speedy employee onboarding
The onboarding process is crucial for organizations as it sets the tone for new employees and helps them integrate into the work culture. According to a report by Work Institute, more than 40% of new employees leave a company within their first year due to various reasons, such as dissatisfaction with salary and work-life balance issues. The report also suggests that improving the efficiency of the onboarding process could prevent three out of four employee resignations. AI can play a significant role in achieving this goal through the following ways:
Lightening the workload: AI assists in managing the delivery and receipt of necessary documents, such as company policies and login information, automatically. AI can track which documents an employee has read and automatically detect electronic signatures at each step, reducing the need for HR teams to manually verify these steps.
24-hour onboarding: Digital assistants powered by AI elevate the onboarding process by providing new employees with guidance at every necessary step and proactive recommendations for the next stages to ensure they are ready to start work promptly.
Enhanced efficiency: AI-driven digital assistants can recommend relevant learning materials based on the success of past employees in similar roles, suggesting content such as books and articles to facilitate rapid learning and skill development.
With AI’s assistance, the onboarding process becomes more seamless and efficient, contributing to higher employee satisfaction and reduced turnover rates.
4. AI for Talent Management
Retaining employees is an ongoing challenge for organizations aiming to foster employee engagement across different generations and driving organizational objectives. Talent management, driven by workplace collaboration with up to five generations working side by side, has become instrumental in propelling organizations forward.
Despite this, many organizations have yet to fully embrace the potential of modern talent management and continue to face high employee turnover rates. AI can help organizations address talent management challenges in the following ways:
Creating a work environment that meets employee needs: AI can use data to recommend career development paths, succession planning, and bridge skill gaps for individual employees. It can also devise strategies for performance rewards to motivate and retain employees.
Supporting management in employee development: AI can assist managers and leaders in developing and promoting skilled employees, contributing to a strategically advantageous workforce.
5. AI for Employee Development and Learning
The investment in learning has never been more crucial as the rapid advancement of technology has reshaped the definition of employability. The World Economic Forum predicts that automation will displace 75 million jobs, but will also generate 133 million new job opportunities worldwide by 2022. This requires employees to adapt and possibly transition into new roles that have significant value to organizations.
Learning is essential in fostering competitiveness in the business landscape, filling skill gaps, encouraging learning, and promoting employee retention. However, even organizations that prioritize learning and development (L&D) face challenges due to fixed curricula that may not be agile and efficient enough to cater to individual employee needs.
AI can support learning and development initiatives in the following ways:
Personalized learning: AI can gather data on employees’ learning preferences, skills of interest, working styles, and project responsibilities to recommend suitable courses that enhance their potential and abilities.
Promoting collaborative learning: AI can pair employees from different units to learn together and benefit from each other’s experiences, fostering teamwork and elevating the capabilities of the entire organization.
Enhancing learning management efficiency: AI can manage administrative workloads by tailoring curricula based on roles, locations, and business formats. It can also provide deep insights into learning participation, interaction, and results, enabling efficient HR team management and reporting.
Embracing AI in HR operations
AI plays a significant role in HR management, particularly in a challenging landscape encompassing recruitment, skill development, and talent retention. By incorporating AI into HR workflows, HR teams gain efficient and rapid support in managing various tasks, ultimately contributing to organizational success.
Credit : https://aigencorp.com/ai-in-human-resource-management/