The digital world has a huge impact on our lives. It is rapidly changing the work we do, the way businesses are run, almost everything including our everyday activities. Just like how it affects every business in this fast-paced world, digital transformation has proven to have substantial effects on Human Resource Management as well. Today, companies are shifting to a new paradigm, to the use of digital technology, specifically the use of Artificial Intelligence(AI) in HR departments in order to manage issues and make things work more diligently. The use of automated HR has not only made the whole HR processes easier but quicker. Based on this, HR can help business leaders and the workforce to shift to a digital mindset. Digital HR can also set up the whole employee experience by changing their procedures, frameworks, to new advanced systems, applications, and methods for conveying HR administrations.
Digital HR produces these essential challenges. HR has been completely changed by digital transformation. Digital involvement has entirely altered the way HR deals with the issues, it has helped with the turnover rate, the retention rate, and the way they find out the employee attrition metrics, etc. One of the biggest contributions in the HR department is the use of AI in recruitment. It has made things quicker and more efficient for the HR officers.
The digital revolution raise up a huge debate in the HR Community. “Are we analogic?” The greatest thing in favor of this HR digital transformation is that it can save the HR representatives time. The work an HR employee spends hours on, can be quickly done by Artificial Intelligence HR in minutes. This way HR representatives can focus on more creative and valued work.
The main objective of AI is to save time by improving processes. By this, it gives HR people time to concentrate on more important tasks. It won’t take long for productivity to increase in a huge way. Employees are more likely to be motivated when they are involved in diverse task and the risk of high turnover rate might also slow down if not completely fade away. Moreover the need of HR AI, can answer all you HR related prime queries such as what is employee attrition, how to reduce attrition of employees and etc.
Human error can cause a lot of unnecessary challenges to the organization. Loss of personal employee data can result in legal troubles and other problems with the tax authorities as well. Automation reduces the risk of human error and can help store the data of any employee for as long as desired.
Digital HR functions have become crucial for companies to retain and attract employees since workers expect a lot from the department itself. AI has already won a place in HR, and is going to be even bigger in 2019. In fact, big companies such as Unilever has already started using AI to hire employees. The use of AI can save up a lot of time from scanning resumes, scheduling interviews, and to even select a candidate.
According to research AI in HR has helped change the working practices and has proven to be very profitable in bringing efficiency and effectiveness. It has helped to reduce employee attrition and retention, and it will be a source multiplier in automating business processes specifically HR and will provide development of insights to the business. This will benefit the HR managers to spend more time with business partners and employees and to think of new plans to incorporate in the business.
Artificial Intelligence also has the capacity to enhance efficiency, reduce the risk of preference decision making, evaluate the current workforce and focus on a strategic work plan. Furthermore it can cut down the administrative weight on the board shoulders. It can also take care of other functional and deriving things of the HR department such as the turnover rate, the retention rate and many other inclusive things as well.
AI in HR: Enhancing Different Processes
The involvement of AI in Human Resource management is there to enhance HR in different processes. There are a number of things that an HR manager has to see and control such as the employee retention rate, its attrition rate, etc. AI has proven to be impacting the HR department in an organization effectively.
Following are ways in which AI can enhance HR.
1- The role of AI in The Recruitment and Hiring Process
No matter how much a person assures remaining partial, there will always be some sort of preference when it comes to people. The use of Artificial Intelligence in recruitment reduces, in fact ends, the risk of favoritism. It introduces merit by algorithm and data driven insights. In the coming time job seekers will be searching only for companies that are AI-enabled and are digitally connected. AI can help to find the right candidates without any human interference. Automation and AI in recruitment is also useful when interviewing because it can help organizations go through multiple data sources and discover new employee insights. Artificial Intelligence in recruitment can provide ongoing feedback to candidates and answer their queries easily and authentically. Some companies are also using tools manufactured by vendors such as Mercer and SAP to prevent bias regarding race, gender, and LGBTQ employees. This way, 2019 will most likely encounter the talent based hiring which will make the process of recruitment simpler and improved.
The method of digital hiring is very trustworthy. AI in recruitment enhances the efficiency of recruitment processes. It is really important for an organization to hire employees without favoring any party since this way an organization might lose the talent. Automation and AI in recruitment ensure that every resume is analyzed thoroughly and without tendency.
2- Artificial Intelligence in HR Helps Focus on the Star Talent
Artificial Intelligence in HR brings the better talent to work. Automation prevents the loss of stellar talent which might happen due to human error or negligence. AI can run through the resumes, highlight and identify the most qualified candidates without any bias. AI in HR can be a good tool to identify talents. Automation makes it possible to enhance human talent and experience which benefits the candidates as well as the organization. It increases speed, quality and efficiency without any fail and sacrifice of the valuable time which brings out the best possible outcome. There are great possibilities that in the coming years, mobile based technology and apps will be used for talent acquisition. This important modification in talent management changes how employees view their jobs, their relationship with their managers, and their contributions to the growth of organization.
Employee turnover is one of the prime focuses of the HR managers and simultaneously focusing on better talent is the most important function as a company. Moreover, the company also wants to reduce its attrition rate to retain back its star employees and workers.
Some companies might have trouble keeping down one of the most important factors of its HR practices what is attrition but the fact that it is the driving factor, the HR department needs to have a solid tool to track and work down the attrition rate and AI in HR is the best help in this regard.
Human Resource teams can take advantage of the predictive capabilities of Artificial Intelligence to not let the workforce become disinterested or disengaged, and to convince them to stay if they plan on leaving.
3- Enhances Organizational Values
Every organization has a set of organizational values. The values guide the company’s perspective. Digital HR helps to enhance and improve these organizational values. Digital HR is data driven and focuses the employee hard work providing standardized services. Increase in use of technology give a boost to the marketing strategy. To be able to have the exact access the right data readily available is crucial in HR. Digital HR management keeps the track of what health insurance each employee has, and how many days of annual leave they have remaining. This way you will not have to scrabble through paper records. AI has helped the digital HR to help with its employee retention as well.
The introduction of AI gives the opportunity to represent a completely new way of thinking about HR solutions. Digital HR services are way more analytical than the current traditional HR services. Digital HR enables integrated platform for processing systems and applications.
4- AI and Retention in HR
Employee turnover is one of the biggest challenges in any business. If a person leaves a position it results in a high cost and time consuming for the organization. It takes a process to identify, acquire and train a person to fill that spot. To stop the company from losing employees they must save time by automating processes, which will lead to avoid doing menials task. Doing so improves retention and allows people concentrates on the bigger tasks rather than focusing on the basic ones.
Companies that are looking forward to be more successful in the future are considering AI-enabled proficiencies to simplify the work in the organization. AI helps analyze the data the recommend solutions in a timely manner. All of this can be achieved in just a matter of minutes. This intelligence also lets managers know where improvements are due and how to work on success.
AI in HR opens all means of internal communication. It creates a systemic and continuous flow to identify which employee deserves promotion or when or why are they going to leave.
HR Digital Transformation
Artificial Intelligence has proved itself to be effective in all industries and has generated substantial results for all the businesses which have incorporated it in their processes. Therefore, it would not be wrong to say that businesses that confirm the use of AI have grown exceptionally well and stand at a higher position in the industry. AI benefits the organization in every possible way. Stats show that Human Resource companies that work along with Artificial Intelligence have benefited in a number of ways.
The change of mindset within the HR organization initiates the HR’s digital transformation. It is a groundbreaking opportunity for HR or the organization as a whole to transform to automation. Digital HR focuses on the experience of the employee and develops the organization. Digital HR makes the HR processes more analytical and data based.
It is important to keep in mind that automation cannot completely take over HR since human brain is still required for making strategic decisions.