How does AI Helps in Human Resources Management

In recent years, we have witnessed an exciting and remarkable development of artificial intelligence. There is mass adaptation of AI and machine learning here and there, forcing various industries to include it in their arsenal. AI adaptation becomes more evident in settings that include decision-making such as Human Resources.

Artificial intelligence such as generative AI has a huge potential to improve workspace. And we can take advantage of these technologies in HR departments. It can provide a productivity boost, making sure that routine tasks can be automated. This can also make data analysis faster and help personalize employee experience.

In addition, it can simplify HR processes, minimize the load of administrative tasks, and make a better and more informed decision.

Done with introductions, let’s explore more about how exciting AI tech is, and how can it help transform the human resources profession. 

Key Statistics in AI & Human Resources

The statistics shown below are a good sign that the adaptation of Artificial Intelligence is becoming more and more common in HR settings.

81 percent of HR heads are exploring AI to improve organizational efficiency. This number may indicate that HR leaders are confident with AI. This may also mean that many HR leaders aim to automate some parts of their process with the help of artificial intelligence.

65 percent are using it to help generate job descriptions. This highlights one of the use cases of generative AI in HR settings. Generative AI such as ChatGPT can be used to get useful information about job descriptions and possibly attract the best candidate for the position.

42 percent are using it to customize job postings. In connection with the data above, some HR use it to edit and optimize job postings. This may prove that AI can be used to personalize job posts so they will resonate with the target candidate.

33 percent use AI to review or screen applicant resumes, communicate with applicants during the interview process, or automate candidate searches. Since there are a variety of AI screener providers, many HR opt in for Applicant Tracking Systems that use machine learning to filter out good candidates.

How Human Resources is Using AI

Artificial intelligence could help HR in various processes such as recruitment, record management, employee performance, employee benefits, and HR assistance. Let’s explore it further down below.

Recruitment & Hiring Process

One of the most used cases of Artificial Intelligence in human resources is the recruitment and hiring process. It can be used in creating an ideal candidate profile, generating good interview questions, and filtering the resumes of candidates.

Since AI is trained on a vast amount of data, it can easily identify what should be the key traits of a candidate. It will list out possible qualifications of a good employee. This could help an HR to brainstorm the characteristics of the employee they are looking for.

At the same time, it can also help HR to prepare to do interviews. Generative AI can help in drafting personalized questions that could help HR connect with the candidate. In addition, generative AI can also create interview questions that are very specific to the opening roles. 

And lastly, AI can help in filtering and screening candidates. AI can quickly filter and screen candidates and their resumes, identifying those who best match the ideal candidate profile. By automating this step, AI saves HR professionals countless hours of manual review. It can also help reduce unconscious bias, ensuring a fairer selection process.

Employee record management

Another significant use of Artificial Intelligence is managing employee records. AI can summarize employee information, making it easier for HR to keep track of important details. Moreover, AI can scan through various documents and identify key information, such as employment history, skills, and performance reviews. 

AI-powered Optical Character Recognition (OCR) can also play an important role in employee record management. This technology allows HR to convert physical documents into digital formats quickly. This tech can help in creating a more organized and efficient digitalized system. This not only saves time but also makes it easier to access and manage employee records.

Assessing Employee Performance

Artificial Intelligence is also good at assessing employee performance. AI tools can extract useful insights from various performance metrics, making it easier for HR to evaluate how well employees are doing.

Many companies are now using AI and machine learning to analyze existing numbers and statistics. AI tools can take raw data and various KPI metrics, such as sales numbers, customer feedback, or project completion times, and turn them into clear, textual descriptions of findings. This helps HR professionals understand performance trends and identify areas for improvement.

Additionally, AI can pinpoint key performance indicators and track them over time. This continuous monitoring can highlight top performers, identify those who may need additional support, and ensure that everyone is meeting their goals. This can benefit companies to maintain a high level of performance and quickly address any issues that arise with the help of AI.

One type of AI that companies can also utilize is Natural Language Processing (NLP). This branch of AI can be extremely useful in drafting effective employee benefits. With NLP, companies can create clear, engaging, and personalized benefits packages that meet the diverse needs of their employees.

It can analyze employee feedback, industry trends, and market data to identify what benefits are most valued. This helps HR professionals design packages that attract and retain top talent. For example, if employees frequently mention the importance of work-life balance, NLP can highlight this trend and suggest benefits like flexible working hours or remote work options.

Furthermore, NLP can help in writing benefit descriptions that are easy to understand. It can take complex information about health insurance, retirement plans, or wellness programs and turn it into simple, jargon-free language. This ensures that employees fully understand the benefits available to them and how to make the most of these offerings.

HR Support Desk

AI-powered chatbots are becoming an essential tool for HR support desks. With GPT technology, companies can create chatbots that provide quick, accurate answers to employee queries, enhancing the overall support experience.

These chatbots can be trained on company-specific rules and regulations to ensure they offer relevant and precise information. For instance, they can help employees with common questions about leave policies, benefits, or company procedures, saving HR professionals valuable time.

Additionally, these chatbots can be used to create a comprehensive FAQ handbook. By analyzing frequently asked questions and employee interactions, the AI can compile a detailed and up-to-date resource. This handbook can be accessed by employees anytime, providing instant support and reducing the need for repetitive manual assistance from HR staff.

Implementing AI-powered chatbots in the HR support desk creates a smooth process, improves response times, and ensures that employees always have access to the information they need.

Benefits of Implementing AI in Human Resources

There are many benefits of using AI in the workplace. In this section, we will further discuss the benefits of implementing AI in Human Resources.

Improve HR Support

AI enhances the HR department’s ability to focus on human-centric tasks and provide better support to employees. With the help of automation in routine administrative functions, it frees up HR professionals to engage in more meaningful interactions with staff.

This allows HR to invest time in activities that directly impact employee satisfaction and well-being, such as developing personalized career development plans, addressing employee concerns more promptly, and creating a positive workplace culture. AI-driven insights can also help HR identify trends and potential issues before they escalate, enabling proactive support for the workforce.

Increase Time Efficiency

Implementing AI in HR processes leads to significant improvements in time efficiency. Routine tasks mentioned previously like resume screening, scheduling interviews, and processing paperwork can be handled swiftly by AI systems, reducing the administrative burden on HR professionals.

Since processes are efficient, HR teams can now focus on strategic initiatives and more complex problem-solving. On top of that, AI ultimately saves time by rapidly generating reports and analytics, providing valuable data that informs decision-making processes.

Remove Bias and Discrimination

One of the critical advantages of AI in HR is its potential to reduce bias and discrimination in hiring and other HR processes. We know that human emotions and unconscious biases can inadvertently influence decisions. Sometimes, this can lead to unfair treatment of candidates and employees. AI systems, on the other hand, can help mitigate these biases by making data-driven decisions based on objective criteria. This can be achieved when it is properly designed and implemented.

By consistently applying the same standards to all candidates, AI ensures a fairer and more equitable selection process. Furthermore, AI can continuously analyze and refine its algorithms to enhance fairness and inclusivity, promoting a diverse and inclusive workplace.

Concerns about using AI in HR

Even though AI can be helpful in human resources management, there are some concerns that need to be addressed. We will discuss that below.

Lack of Real-life Expertise

Even though AI offers numerous benefits, it lacks the ability to understand real-life experience and expertise that human HR professionals bring to the table. AI can only analyze data and identify patterns, but it may struggle to interpret complex human emotions, cultural contexts, and individual circumstances.

Over-reliance on AI might lead to decisions that are technically sound but lack the personal touch and deeper understanding that only humans can provide.

But since human HR professionals excel in these areas, their experience and empathy plus the objectivity of AI can make well-rounded decisions. 

May Compromise Privacy

The use of AI in HR processes raises significant privacy concerns. AI systems require access to vast amounts of personal data to function effectively, which can put sensitive employee information at risk. Since HR systems are based on internal data, there is always the potential for misuse or unauthorized access to this data, leading to breaches of privacy.

To combat these privacy threats, companies must ensure robust data protection measures and adhere to strict privacy regulations to safeguard employee information. Transparency in how data is collected, used, and stored is crucial to maintaining trust between employees and the organization.

Susceptible to Cyber Attacks

AI systems in HR are also vulnerable to cyber-attacks. As these systems store and process critical employee data, they become attractive targets for cybercriminals. A successful cyber attack can result in the theft of sensitive information, financial loss, and damage to the company’s reputation.

To mitigate these risks, organizations must invest in advanced cybersecurity measures to protect their AI infrastructure. Regular security audits, employee training on data security, and staying updated with the latest security protocols are essential steps in safeguarding AI systems from potential threats.

Conclusion

Wrapping it all, while AI brings substantial benefits to HR operations, it’s essential to address potential drawbacks for its safe implementation. Despite these challenges, AI undeniably plays an important role in human resources management, facilitating more efficient and effective handling of various workforce-related tasks.

References:

• https://www.ibm.com/blog/artificial-intelligence-and-a-new-era-of-human-resources/
• https://resources.workable.com/tutorial/artificial-intelligence-in-human-resources
• https://www.jobylon.com/blog/ai-in-hr/
• https://www.retorio.com/blog/5-benefits-artificial-intelligence-in-human-resources
• https://www.shrm.org/topics-tools/news/technology/ai-adoption-hr-is-growing