HR STRATEGY

AI in HR and Why It's Super Important for Your Organization

Shefali Vasave | January 27, 2022

AI has evolved dramatically in the past few years and is still not a replacement for HR. When used right, it can be a powerful tool in the HR toolkit. AI can process data much faster than humans, but it is still in its nascent stage and is far from understanding the emotional side of human relations. AI can in no way replace the human touch required to demonstrate human emotions and empathy. For a people-oriented process like HR, this is an imperative requirement. Although AI in HR has a long way to go, it can currently be combined with other software and skills to completely redefine HR practices.

HR Technology Trends that Include AI

The use of AI in human resources is not new. HR professionals are familiar with a wide range of HR technologies. They have been using it for a while now to make their jobs easier, but the real game changer is the introduction of chatbots.


Chatbots

Chatbots are AI-powered virtual assistants that can help you with your HR-related inquiries. They can answer queries, schedule interviews, and contribute to data collection. They are very easy to use and cost-efficient since they don’t require any human resources input. This means that they will be able to provide an excellent customer service experience without costing you anything more than the initial setup fee.

AI has also been a great help in simplifying other aspects of HR practices, specifically recruiting, retention, and engagement. It can be used to predict job performance, automate hiring decisions, and even predict employee turnover.

Hiring

In the recruitment process, AI helps by analyzing and screening thousands of resumes in a fraction of the time it might take HR teams to do so. By incorporating smart algorithms, resume keywords, and skill screening, AI can help in finding and shortlisting candidates that are most likely to be good fits for the company. It can also provide insights about candidate skillsets and what kind of role they would be the best fit for.

Employee Engagement

Employee engagement is essential to any HR process. Shaping efficient employee engagement initiatives is one of the most significant benefits of AI. It can identify potential bottlenecks before they happen by analyzing data from surveys and interviews.


Employee Retention

In employee retention, AI is used to analyze data from pulse surveys, employee feedback, and even exit interviews to find out what employees are looking for in a company, thereby minimizing the attrition rate. This has helped in developing employee retention strategies that enable HR to retain talents for longer. In turn, it helps lower hiring costs and maximize resources.


Leveraging Machine Learning Techniques for HR Practices

Machine learning is the future of HR. It can be used to predict employee performance, identify talent, and develop training programs. When combined with artificial intelligence, machine learning is a powerful tool that can be leveraged by HR professionals to make better decisions and improve HR practices. It can help them identify talent and predict employee performance. Machine learning recruitment software and hiring software are becoming increasingly popular in the workplace.

“Machine learning algorithms are the key factors to automate the entire talent acquisition process, right from onboarding to the critical decision-making process. Machine Learning powered HCM solutions enable organizations to derive intelligent insights that help navigate these challenges, reduce the cost of a bad hire, and maximize the ROI on the resource time and cost spent on recruiting.”

- Ravi Kikan, Director, Marketing, Online Sales & Growth at ZingHR

HR professionals have a lot of data on their employees. This data can be used in a variety of ways, but it is often difficult to understand the correlation between different pieces of data. AI in HR solves this problem by providing an easy way to aggregate and analyze all the information that HR professionals have.. The business case for AI is compelling especially due to its ability to save businesses money in both the short-term and the long-term. For instance, according to a PwC study, companies that used AI were able to save up to 30% on their cost-to-hire.


Why have AI researchers been so focused on developing AI for HR?

From finding the right candidates for job openings to keeping track of employee data to ensuring a healthy workplace culture, HR professionals have various things to look into. In addition to this, they also manage the company's budget and have to ensure that they are meeting their goals.

When AI came on the scene in 2000, numerous studies were conducted to research its application across different fields. Human resource development was just one of them. However, it was only in 2018 that the advancement in AI and its actionable usage in automation piqued the interest of HR solution providers and technologists worldwide. The new demands and challenges of a fierce business landscape have led to a boost in AI research.

Every year, the HR technology industry grows at a rate of 5.8%. According to Fortune Business Insight research, the HR technology market is set to hit $35.68 billion by 2028, up from $24.04 billion in 2021. Researchers and HR solutions providers are recognizing the financial, social and economic opportunities that AI-powered tech is set to unleash.

The interest is clear from the development of solutions such as the chatbot called CoachBot for UK’s NHS. Another example is Ellen, an AI app that connects people seeking mentors with people, which want to mentor. Then there’s tech giant IBM, who uses AI to increase the engagement of job applicants.


IBM’s AI Watson Candidate Assistant (WCA)

IBM’s aim was to engage job applicants from the get-go and deliver an unmatched candidate experience that really boosted its employer brand. Considering the company received over 7,000 job applications per day, this wasn’t just a difficult feat, but a crucial one.

With its rich history of tech innovation and world-renowned capabilities, IBM developed the Watson Candidate Assistance (WCA), an AI chatbot that revolutionized the application process. The chatbot became the first point of interaction, helping job seekers zero in on just the right roles for them based on their skills. A study of the process found that this personalized experience led to a conversion rate, from the exploring stage to application of 36%, compared to 12% for a static website.

WCA helped IBM drastically cut down the time-to-hire, improve candidate-job matching and increase the Net Promote Score (NPS).


Conclusion: The Importance of an Effective Strategy to Implement AI in HR Practices

Initially, there may have been buzz about the risks of AI and its impact on the job market. But as it advances, it has created a compelling business case for its use in organizations. Implementing AI in human resources isn’t just a matter of deploying certain hiring software. It has the power to transform HR practices or adversely turn HR into a complicated, clunky process.

This is exactly why it is important to implement an effective strategy to adopt AI in human resource development. Deploying it in phases is now possible thanks to the range of AI-based solutions on the market. Organizations can test AI-powered chatbots to initiate their journey of integrating AI more deeply into the organizational framework. Who knows the possibilities that artificial intelligence and machine learning are set to uncover? The benefits of AI are undeniable, and organizations must plan and strategize how they are going to adopt this technology.


Frequently Asked Questions


What are the risks of AI in HR?

There are a few risks with AI in HR. Some of these include the risk of bias, data leakage, and the vulnerability of AI algorithms.


How can these risks of AI be mitigated?

The risks of AI can be mitigated by ensuring that the AI is programmed to act ethically and not violate HR practices and policies. The AI should be programmed to make decisions based on what is best, and this requires a rigorous review process at all levels.


How can AI be used for recruitment?

One of the most common use cases of AI in recruitment is when it is used as a tool to filter resumes. When recruiters upload their job description, they will get back an automated list of resumes matching their criteria.

Spotlight

Human Resources Management Association

HRMAC began in 1915 with a group of seven people who met informally to discuss common problems, but within a few months, it had grown considerably and became known as the Employers' Advisory Group. This group became formally organized and instituted corporate memberships. The Employers' Advisory Group had several more names and for a very short period, was a chapter of a national group. The chapter hosted the national organization meeting in Chicago in 1921 for 2,000 people. In fact, on the first day of the event, the wait staff at the conference hotel went on strike. Bag or box lunches were obtained and lunch was eaten at the delegates' seats in an auditorium. The organization then became known as the Industrial Relations Association of Chicago and kept that name until 1982 when it became known as the Human Resources Management Association of Chicago.

OTHER ARTICLES
HR STRATEGY

Five Most Promising Areas of HR Tech Investment in 2022

Article | March 25, 2022

Introduction: Why Investment in HR Technology is Surging? HR technology is much more than a buzzword. It’s a necessity. HR technology has transformed processes over the past decade, providing organizations with the tools, insights, and capabilities to be more agile, efficient, and connected. However, today’s HR technologies are required to keep up with the unprecedented pace of the market.Thefuture of HR tech will include comprehensive solutions that help with recruitment and selection, on-boarding, performance reviews, learning management, and more! As businesses look for ways to become more efficient in an increasingly competitive environment, let’s explore some of the areas where technology investment is currently focused. “AI is our friend, if we use it in such a way. But never forget that it’s people who hire people, so we’ll always need a human element in the end.” - Arran Stewart, Co-Founder and CVO Virtual and Augmented Reality in Recruiting Virtual reality (VR) and augmented reality (AR) have been around for some time and their use in recruitment and employee experience is growing rapidly. VR technology is a high-potential area for HR tech investment, and the rise of remote hiring and hybrid work cultures has only made it more significant. For instance, Jet.com, an ecommerce company, is making the most of VR to showcase its corporate culture and office space. Jet.com has been able to connect with its new hires by showing events like its ‘happy hour’ celebrations to provide a glimpse into its every day operations. KFC has been using VR since 2017 to train its staff to cook its signature fried chicken. The German railway company, Deutsche Bahn used VR to attract and engage the young talent pool. The company reported a significant increase in applications from young, skilled professionals after this move. Blockchain in Employee Benefits Blockchain finds mention in almost every discussion about game-changing technology trends worldwide. And blockchain-driven HR technology isn’t far behind. For HR professionals who manage large volumes of employee transactions, blockchain HR technology could be a catalyst in ensuring robust cybersecurity. In 2020, APG and PGGM, asset managers of the two largest pension funds in the Netherlands, reported that they were testing a system based on blockchain to simplify administering pensions. Blockchain enables HR managers to provide on-demand pay, allowing employees to withdraw their accrued earnings any time they want. In addition to providing 360-degree control, blockchain has a feature called ‘smart contract’ that allows companies to automate their payments to independent contractors and vendors. These clear advantages have made blockchain a subject of future-proof technology investment. Intelligent Chatbots for HR Support and Service Delivery With the scope of global HR management expanding during the pandemic, recruiters need all hands on deck to attract, hire, and retain talent. Tech giant IBM developed chatbots to address this issue. IBM’s Watson Candidate Assistant (WCA) has transformed candidate engagement for IBM. The organization receives 7,000 resumes every day. WCA’s ability to match applicants with the right opportunity helped convert 36% of applicants compared to a website without the chatbot. The business case for AI-driven chatbots is clear. As chatbots become the norm on technology platforms and career pages, investment and research in the area will only grow. Personnel Today reports that over 62% of organizations plan to start using AI in 2022. Automation Improves Applicant Tracking Applicant tracking systems, or ATS, are a staple in every recruitment process. Just as global HR management software eliminates the need for paperwork and repetitive tasks, resume screening can be enhanced. With the advancement of HR technology, it has become imperative to use automation for screening applicants. For instance, leading cloud data management provider, Informatica integrated automated reminders into their ATS. This was done to reduce manual follow-ups between recruiters and hiring managers. 80% of hiring managers responded quickly and enabled recruiters to experdite their candidate search. This is just another case of HR technology yielding real-world results. Predictive Analytics in Recruitment Processes HR tech investment continues to boom in the field of data analytics. Predictive analytics is a relatively new tool that can predict an applicant's potential to succeed in a job and recommend them for a specific position. HR departments use predictive analytic tools to identify high-potential candidates, who are likely to succeed at the company. The predictive model uses data like skills and experience and factors in personality traits like openness and conscientiousness. This also enables employers to develop a fit index to match an applicant’s resume with an ideal-match candidate profile. In fact, LinkedIn uses predictive analysis to match candidate resumes to existing job openings. With an increase in technology investment, predictive analytics will be able to do much more for recruiting managers in the near future. In a Nutshell HR processes are completely different than they used to be a few years back. Transformative technology and HR solutions have changed the way HR processes are managed. The future of HR tech investment is not about lowering costs but about optimising it for benefits. While the main objective is to increase business efficiency, many areas of HR technology need to be disrupted to achieve new heights of employee engagement and experience. HR tech investment is a way to make sure that the company can stay competitive in the digital era. With a lot of opportunities available and rising competition, companies need to invest in HR tech to stay ahead of the curve. Frequently Asked Questions What is the top obstacle preventing organizations from making HR tech investments now? The top obstacle preventing organizations from making HR tech investments currently is a lack of understanding. Many companies are still unclear about what HR technology platforms can work for them and how to use them in their organization. What are the industry trends in HR Tech? HR tech companies are focusing on how to make it easier for managers to hire and retain talent. They aim to provide a more personalized experience for employees. Additionally, they want to make it easier for HR professionals and managers to find talent in their own backyard. What does the future of global HR management look like? The future of global HR management looks bright. With new technology, it’s easier for HR managers to keep track of their workforce and streamline the entire hiring process.

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DIVERSITY AND INCLUSION

Inspiring Quotes from Women Leaders Creating a Difference

Article | March 8, 2022

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RECRUITMENT & RETENTION

5 Proven Ways Employers Can Simplify Applying for Jobs Online

Article | March 4, 2022

Why Abandoned Online Job Applications Result in Poor Hiring? Applying for jobs online has been the go-to process of finding jobs for millions of applicants. Online hiring has come a long way with the rise of job boards. It has become easy to apply for jobs worldwide and across industries for applicants whose skills match. This also means recruiters must sift through an unusually high volume of resumes to find the relevant job applicants. To do this, many employers have developed a lengthy online application process. The belief that this will filter out applicants that don’t match the job requirements and that serious, well-matched talent will complete the lengthy process has slowed down online recruitment. According to CareerBuilder, 60% of job applicants abandon their applications midway. They also don’t complete applications that take longer than 20 minutes. So, are employers sabotaging their recruitment process with lengthy forms? Is there a way to capitalize on online recruitment while also hiring better talent? This article will give you five tips on how you can design your online recruitment process without losing top talents. #1 Develop a Clear Hiring Process It goes without saying that it is important to be clear on what you are looking for in a candidate. Numerous traditional job postings are generic, ambiguous, or don’t communicate the right message. Apart from communicating the skills and qualifications you’re looking for, here are just some things that can make your online job posting stand out: Be specific about the level of skills you need. Some jobs don’t require candidates to be experts in certain areas. Make it clear what is expected from them. Add a human touch to ensure candidates know there are people, not just software systems, that are seeking their skills. Set up a system for responding to online job applications. 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Simple screening questions like a candidate’s willingness to move or start immediately can help recruiters save huge amounts of time and money. Whether you’re screening LinkedIn profiles or job boards, using candidate profiles is a smart way to ensure you find the information you need while also making background checks easy. #3 Make the Interview Process Easier and More Interactive Technology has transformed the way companies hire. Integrating interactive ways for people to apply can do wonders for your recruitment process. This is especially true for job roles that require creativity and outside-the-box thinking. For instance, Kforce, a job board, enables applicants to submit online applications with audio and video clips. Another case in point is the leading research organization, PricewaterhouseCoopers. The firm has an online recruitment process that uses psychometric screening to help HR managers review applicants’ suitability. “When we create a positive experience that fosters connection and builds trust, we increase the probability of a future business transaction.” - Carrie Missele, Director at Inspirant Group #4 Embrace New Technologies for an Effective Online Recruitment Strategy Premier financial services organization, J.P. Morgan Chase is leading the way in the use of technology when it comes to hiring job seekers fresh out of college. The company uses a game that tests applicants on their job-hunting motivations as well as investment decisions. This helps recruiters get a deep insight into applicants’ interests, skills, and attitudes. Is finding the perfect candidate possible? Allstate, a leading insurance firm, is aiming to recruit the best match. 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In addition, a 2019 survey by Jobvite revealed that 35% of respondents learned about new opportunities from social media. Therefore, integrating social media into your online recruitment process can help you leverage its reach. In Conclusion Attracting and recruiting the right candidates goes beyond the regular recruitment process. In fact, according to WetFeet.com, 20% of job seekers apply to companies after having viewed their product ads. Branding and marketing in HR are more important than ever before. However, this doesn’t mean that you neglect the foundation of the online hiring process. Whether you use traditional job application methods or an online application process, ensure that it is user-oriented. It should encourage the right people to apply and make your company seem like a good place to work. Frequently Asked Questions What are the advantages of the online recruitment process? The online recruitment process has many advantages. First, it is accessible to a much wider audience than traditional methods. Second, it allows companies to process and interview more candidates in less time and with fewer resources. Third, it reduces the cost of recruiting and hiring new employees. What are the disadvantages of the online recruitment process? Online recruitment that uses AI is known to be discriminatory. In addition, the lack of face-to-face interaction in an online recruitment process can lead to well-matched candidates being screened out in the first step itself. How to implement a clear hiring process? The following steps will help you create a clear hiring process: Define what you need Create job descriptions Define the qualifications for each job description Prepare for interviews by doing background checks and preparing interview questions

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RECRUITMENT & RETENTION

3 Companies Acing the Remote Onboarding Process And What You Can Learn

Article | March 3, 2022

Organizations worldwide had to reimagine their hiring processes almost overnight in 2020. As a result, the role of human resource professionals has become increasingly challenging. From optimizing hiring processes to cultivating new remote-friendly company culture, the transformation was unprecedented. However, as the grip of the health crisis loosens, companies are increasingly acknowledging the value of remote work. Virtual workers are the focus of new policies, strategies, and even processes, even as remote offices move to hybrid workplaces and virtual workers become more important. But looking forward, human resource teams still have their work cut out for them. There is much to calibrate, and it must be done quickly. And it all starts with a sound onboarding process. In this article, we talk about how recruiters can fine tune their remote onboarding process and leverage the advantages of the new hybrid working culture. Definitive Remote Employee Onboarding Checklist According to a Global Workplace Analytics study, businesses lose approximately $600 billion to workplace distractions. It also states that remote workers report being 35-40% more productive than those who work in an office. Understanding what your remote workers need to do their job well is the key to achieving your productivity goals. Here’s the new hire onboarding checklist to help you do just that. Virtual Paper Work Paperwork is the bane of HR professionals everywhere. But it doesn’t have to be tedious. Make your HR process agile by using automation technology like e-signature, which lets new employees sign, edit, and view forms. It automatically fills in candidate information across different documents to make the process faster and more efficient. Logistics While many organizations could smoothly transition to remote work, some need more planning. For example, if your employees require specific equipment and systems to do their work, you need to streamline the process of delivering equipment and integrating new hires into the new systems . Welcome Kit Engaging employees is a top priority for human resource professionals today. With remote work, it becomes even more imperative. Include a welcome kit as a part of your new hire’s onboarding checklist. It can provide a sense of direction for new remote workers. Additionally, you can include a company handbook with company information like benefits, points of contact, and maybe a voucher for free lunch. Buddy System Fitting into an existing social office system can be daunting for a new hire. A buddy system can mitigate new workplace anxiety to a great extent. Assign a go-to person when onboarding new employees. They will guide the new hire to settle in, ensuring that the new remote worker doesn’t feel disconnected from the rest of the organization. Orientation Orientations should continue to be a to-do on every virtual onboarding checklist. Conduct a virtual orientation when onboarding new employees to address the company overview, history, the roles and responsibilities of the new hire, and HR procedures and policies. Company Culture Briefing your HR team about onboarding best practices should cover company culture as an essential topic. You want to make new hires feel welcome and align with your company’s culture as quickly as possible. Feedback Check with your new hires about their progress and seek feedback about their remote onboarding process. Conducting a survey is a great way to identify pain points. You can then tweak your employee onboarding process accordingly. “It may sound simple, but we need to listen to our employees in order to be a force for change.” - Brandy (Rosner) Zimmerman, Vice President of People Operations at TaskUs How Three Industry Leaders Are Using Onboarding Best Practices HubSpot HubSpot, a leading marketing software provider, pivoted to a remote onboarding process by developing remote work guides. The company also tracked the live participation of new hires on its internal education system, Learn@HubSpot, to map out learning and immerse new hires in the process quickly. Vistaprint As part of their onboarding best practices digital printing giant Vistaprint makes extensive use of live orientation and a new hire social. Also, the company plans to implement a 100-day training program that will provide a remote-first learning experience for new hires. Salesforce The tech giant is leading the virtual employee onboarding process, having recruited 10,000 people. Salesforce integrated networking opportunities for new hires to get acquainted with current employees. The organization also has a dedicated business technology team to handle the logistics of setting up remote workers with the necessary systems. Conclusion: Automating the Employee Onboarding Checklist The process of onboarding new employees is a time-consuming and expensive task for any company, especially those with a remote workforce. According to Digitate, new hires are twice as likely to look for other opportunities if they had a bad onboarding experience. It is an essential step towards hiring and retaining talent and reducing overall hiring tasks. Not every component of the virtual onboarding checklist has to be manual. With automation and artificial intelligence, you can streamline the employee onboarding process. Frequently Asked Questions What are the most important factors to consider when onboarding new employees remotely? The most important factors to consider when onboarding new employees remotely are: How well the company knows the new hire before the employee arrives How well the company can assess and train remote employees The company’s culture and how it is expressed in different locations What is the best way to start a remote employee's first day? A remote employee's first day is just like a regular employee's first day. First, they should be introduced to the company and the team they will be working with. What documents should be sent to a remote employee before they start work? Some of the documents to send as part of your remote employee onboarding checklist include: Employee handbook and contract of employment Processes, procedures, and policies Guidelines on how to use the company's equipment or software Company's intranet site Company's social media profiles Policies on email usage in the workplace

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Spotlight

Human Resources Management Association

HRMAC began in 1915 with a group of seven people who met informally to discuss common problems, but within a few months, it had grown considerably and became known as the Employers' Advisory Group. This group became formally organized and instituted corporate memberships. The Employers' Advisory Group had several more names and for a very short period, was a chapter of a national group. The chapter hosted the national organization meeting in Chicago in 1921 for 2,000 people. In fact, on the first day of the event, the wait staff at the conference hotel went on strike. Bag or box lunches were obtained and lunch was eaten at the delegates' seats in an auditorium. The organization then became known as the Industrial Relations Association of Chicago and kept that name until 1982 when it became known as the Human Resources Management Association of Chicago.

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