6 Ways to Use Artificial Intelligence in HR

Artificial intelligence (AI) is creeping into our daily routines more than you may realize. Every time you ask Siri or Alexa a question, AI is at work. Have you received a text or email from your bank asking about a suspicious purchase? AI is at work there too. These are simple examples, but data scientists are constantly working on new ways to accumulate, store, and assess data that is relevant to the industries they are working in. HR solutions are proving AI is relevant to the workplace in many aspects of human resource management.

How AI impacts industries

“Artificial intelligence” can refer to any task a computer performs that normally requires human intelligence. What that entails will depend on the industry and company, but the use of data is at the heart of AI. For example, autonomous cars collect hundreds of thousands of data points in order to be able to determine whether something is in danger of being hit while driving. But it is not just expensive gadgets that collect data. Technology has allowed the Internet of Things (IoT) to grow. IoT is the network of pretty much anything that is embedded within electronics, software, sensors, and connectivity that allows things to exchange data. From your fitness tracker to your smart home thermometer, the internet of things is everywhere. The commercial appeal of this technology is apparent, but HR consultants can use it to increase employee engagement and streamline HR processes.

How AI impacts HR

Human resource management involves all of the activities around an organization’s people: how the organization interacts with its people and puts in place the systems and processes to help employees succeed. Traditionally, many HR activities were transactional, such as payroll solutions and benefits administration. These activities are often outsourced to specialized firms, such as VantagePoint, because of the level of expertise they provide. Companies are beginning to see the advantage of implementing HR technology in order to maximize the value that HR provides as a business function. As the use of technology to make business decisions expands, we expect its use in HR will continue to grow. VantagePoint specializes in these solutions and offers cost-effective way to implement technology with the level of expertise needed to make it effective.

1. Talent acquisition

Often one of the first points of contact that people have with an organization is through the application process. This process can really set the tone for employee engagement for those ultimately selected and hired by the organization. AI provides organizations with tools that can really tailor the experience to the particular candidate’s needs and interests, which improves their experience with the organization. For example, take the traditional job search. A candidate scans through online job boards in order to find positions that they may be interested in. There may be some automation in the process, such as using a pre-filled profile on a job board or using a LinkedIn profile, but it is time consuming and tedious process for the applicant.
On the flip side, HR consultants or recruiters must filter through all the resumes received. Most recruitment software allows the company to use screening questions to filter out some candidates who do not meet the basic requirements, but these tools are often limited. Looking forward, AI can be used for many different purposes. Natural language interfaces can be used to “read” resumes without the need for tedious keywords, which ultimately only identifies the candidate that can best use keywords instead of those that are truly qualified.

2. Onboarding

One of the biggest challenges someone faces when starting at a new organization is the lack of institutional knowledge. A new employee doesn’t have the network to find answers to questions about “how the organization works” when they are just getting started. AI provides HR solutions to this challenge by providing tools that can anticipate and facilitate what was traditionally unspoken organizational knowledge that employees learned as they meet new people within the organization. When employees have answers to their questions, they can spend more time learning their new job and less time worrying about the little things, which provides a good experience for the employee and helps them become productive, faster. From the company’s perspective, many employees already use similar technology on their smartphones or at home. The technology exists and it is easy to implement with a provider that provides HR solutions, eliminating the need for the organization to build its own technology.

3. Training

Training and development allow a company to hone a competitive advantage in a fast-paced business environment. As technology changes, it is important that companies ensure that their employees are up-to-date in order to be efficient and effective in their jobs. AI can help HR consultants with the goal of giving employees the tools needed to remain competitive by making content accessible faster and with more coaching than traditional training methods. In addition, it can also be used to plan training to fit the preferences of employees and the needs of the organization.

4. Performance analysis

Managers often set KPIs for their employees and use the results to evaluate performance. However, it can be difficult to measure results for many jobs today, especially when the feedback is not immediate. For example, how can a call center truly measure the impact of customer satisfaction after a single call? Every experience that customer has with the organization has an impact on how they perceive customer service, yet a call center agent is measured based on the few minutes they may spend on the phone. One way AI can help with performance analysis is through the elimination of biases that is inherent in performance evaluation. This is a new and exciting development in the use of technology in HR.

5. Retention

According to a 2016 Society for Human Resource Management survey, the average cost-per-hire was $4,129 and the average time to fill a position is 42 days. Of course, this cost depends on a number of factors that are unique to the company, industry, and the role itself. There are many HR solutions to issues of retention, but AI can provide insight as to which employees may be considering an exit from your company. While this is a reactive approach to retention, the organization can be better prepared for the inevitable turnover that happens within companies while exploring proactive ways to improve retention.

6. How AI will impact and transform the employee experience

Technology has allowed companies to automate repetitive tasks. Advances in AI will impact and transform the employee experience by freeing up limited resources of the HR department to focus on strategic initiatives that improve employee engagement, which has been shown through case studies to drive results. In addition, technology allows the organization to personalize the experience to the individual employee.

At the same time, technology is expensive to implement and requires knowledgeable employees to maximize the impact of the insights garnered through HR technology. By using the services of a specialized insurance company that provides HR solutions, employers can feel comfortable that their investment will generate a return through insights, while employees feel like their needs are being met.

 

For more information please contact Mike Moncada:  516.599.2120 ext. 114 or mike@vantagepointbenefit.com.