As companies are entering a digitalized form of functioning there are several significant changes seen. The credit of this transformation is been given to the evolution of technologies such as artificial intelligence (AI). Technology advancements like AI are reshaping the way companies recruit, retain and engage with their workforce. As HR professionals look to the future, their primary aim is to rethink what they need from the workforce. They also consider how implementing the latest HR technology can reinvent the role of HR and the importance of future-proofing their workforce will help to drive change.
It has been estimated that one-third of the skill sets required for today’s jobs will be completely new. Moreover, it is predicted that 65% of children entering primary school today will end up with jobs that don’t even exist yet. To back this up, HR executives say they recognize that cognitive computing has the power to transform key dimensions of HR. And 54 % of HR executives believe that cognitive computing will affect key roles in the HR organization.
Since changes are seen in HR due to the use of AI, there are certain problems being talked about. One of them being, HR can navigate the business disruptions on one side and the change in the social, emotional fabric of the workforce on the other side. This itself is a big paradox. With changing the business model and more disruption where the fundamental construct of people is changing, HR is striving to be in the centre of it trying to mitigate both the situations – creating greater complexity for itself.
The Rise of Artificial Intelligence in Human Resource
The use of AI in HR is on the rise. Many popular companies have implemented AI software to help them manage their workforces. This software is used either through acquisitions, building their own platforms, or using third-party offerings. As start-ups everywhere are building software to help companies take a more data-driven management approach, which has resulted in HR and AI to becomes a booming market. The advent of AI has given birth to a new wave of re-skilling, which is the need of the hour among the existing workforce. Around 120 million workers in the world’s ten largest economies would require re-skilling in the next few years to utilise the full potential of the AI-driven market.
Each of these AI software specializes in tracking and analyzing different metrics, and each one of them is superbly calibrated to solve a particular HR challenge. But what they all promise to do is help enterprise users boost employee productivity, reduce costs, and help companies stay competitive in an increasingly digital economy. However, a vast populace is still going through a sluggish pace of adapting to AI-based innovations. Hence lack confidence and preparedness to adopt them. Many companies are, therefore, failing to bring fruitful results in today’s competitive business scenario. They look for AI, want to invest in it, but somehow fail due to inefficient teams with a scarcity of talent. But the number of such failures is gradually decreasing which proves that the effect of AI in human resource function is here to stay.
Current State of AI in HR
We are already increasingly using chatbots and virtual assistants in our personal lives and now we can expect to use them in the workplace as well. As much as AI is being used in our personal lives, the use of it in companies is equally increasing. This technology is transforming HR in numerous ways by increasing efficiency in candidate assessment, improving compliance, relationships with employees, increasing adoption of metrics, improving workplace learning and reducing human bias. These are some of the major benefits organizations are experiencing today by adopting AI.
HR leaders are beginning to rely on AI to deliver greater value to the organization by using, chatbots for recruiting, employee services, employee development, and coaching. As a result, investments in AI are growing exponentially. It is predicted that the market for AI will grow from $12.5 billion in 2017 to $46 billion by 2020, impacting all business practices across almost every industry.
Ways in Which AI is Transforming Human Resource Functions
The impact of artificial intelligence on human resource functions has not only been huge but extremely beneficial. AI is transforming HR in the following ways:
Smarter People Analysis
Companies have been collecting data on their customers to gain insights to predict future behaviour for years. In the never-ending war for talent, companies will look to find innovative ways to attract top talent. HR teams have a lot of catching up to do in leveraging these people analytics. Technologies like AI enhance the candidate experience and meet the candidate’s digital expectations will help distinguish companies from one another.
Fewer Administrative Tasks
HR professionals recognize that AI will never replace the human element in hiring. However, it will relieve some of the burdens of handling administrative tasks such as screening, sourcing and conducting preliminary interviews. This will allow more time for hiring managers to build meaningful relationships with candidates, leading to a shorter time to fill and improved employee retention.
If AI could take on look at data for when companies need to hire, be it through KPIs involving productivity, volumes, turnover, labour hours and so on, HR can get to recruiting much faster than they can when working to identify when and how many new people to hire. By giving teams back the hours currently spent on deciding if, when and how many people they should hire, AI would streamline the process.
The most notable impact of artificial intelligence is on the recruiting and hiring process. Since it is eliminating unconscious bias when assessing candidates, it is providing a more diverse and inclusive workforce on an organization. This is ultimately resulting in hiring talent that is fit according to an organization’s culture who is envisioned to bring benefits in the future.
Researchers have found that even when employers strive to be inclusive, they may subconsciously lean toward candidates who are most like them, or what they call “unconscious bias.” But thanks to AI, algorithms can be designed to help employers identify and remove these bias patterns in the language they use to improve their hiring communications and welcome diverse applicants. It also helps in avoiding the human errors caused during the process of hiring leading to bias-free recruitment of new employees.
The Future of HR Function with AI
AI and automation can complement every HR worker’s day-to-day role to improve the employee support element of HR, the more human side of the job. Talent acquisition and new hire onboarding are ripe areas where intelligent assistants can tap multiple data sources to develop candidate profiles, schedule interviews, and make decisions about prospective job candidates. There are already different AI technologies like chatbots designed to augment the HR processes that source job candidates. It is an intelligent assistant which helps to augment mid-level HR professional’s job so he/she can focus on more strategic HR issues.
AI would save many hours in recruiting and onboarding new hires and would enhance the employee experience. As we all know that improving talent acquisition and new hire onboarding is a priority for, AI is one of the huge helps to HR professional for making their tasks simpler and less complicated. With the use of AI, The future of HR has arrived and it is now. Using artificial intelligence will help better HR functions like understanding what keeps people engaged, which culture drives the most productive workplaces and what equation truly enables the merging of human capability with technology.
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We are entering into an era of human-machine partnerships. After all, technology is most effective when complemented by humans, not replacing them. With the advent of technology and AI, HR has the opportunity to rethink work architectures and to re-evaluate how they retraining and recruit people. AI is the future of work and will continue to have a significant impact on the workplace. And if combined with human capabilities, would bring on more intelligent HR solutions. More importantly, HR can help rearrange the organisational framework in a way that harnesses technology to transform business.
As much as the HR technology landscape continues to be disrupted by AI, it is noted that HR teams need to balance these cognitive tech advancements with transparency. To support this, HR leaders and practitioners need to have a clear understanding of how decisions are being made to mitigate unknowingly injecting bias into their programs. This transparency will be essential in making sure that employees trust the new technology.
Whether organizations are ready for this transformation, both on an individual and organizational level, remains to be seen. The groundwork is already laid out; it’s just a matter of taking the necessary steps. All in all, digital shouldn’t be owned by a specific department; going digital is everyone’s job. It is up to HR to upskill their workforce and themselves to be fluent in tech if they want to be eligible for the future of work.
via IT Munch