How to Integrate AI into HR: A Short Guide

Shefali Vasave | November 22, 2021 | 16 views

AI in HR News
Artificial intelligence technologies have been doing many things for us lately - from driving our cars to serving us food. But one area where it has not made a splash is the HR industry.

As HR professionals, you know that people are our most valuable asset. So, artificial intelligence has a lot to offer in the HR space. Learning how to transition into incorporating AI in HR systems and the benefits you stand to gain from it can provide you with a cutting edge.

Organizations are increasingly looking for ways to integrate AI with their current systems to boost efficiency and accuracy. The process is straightforward: data is collected from various sources and fed into an algorithm that churns out predictions or insights in response. These insights can range from recruitment or hiring decisions to performance reviews.

“Let’s welcome AI replacing the mundane tasks who wants to sit and figure out where to advertise a job opening? Or which resume is a true statistical match? 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 of Job.com


HR's Role in the Era of AI

With the help of AI in HR processes, hiring managers can make better judgments to make the best possible hires. They can also predict downtime for employees before it happens and become more proactive in managing their team. HRs don't need to waste time doing mundane tasks like data entry or payroll processing anymore. Instead, they can focus on higher-level tasks like managing the organization's team structure. HR managers need to keep up with technological advances to deploy AI-based systems that will meet the needs of their company's unique culture.


Steps for Integrating Artificial Intelligence into HR


Gather Business Requirements
An AI company's success depends on the degree of its adoption by HR departments. Therefore, companies need to identify business requirements and the accompanying needs in human resources management to integrate AI into HR.
  • Determine what is a priority for your company in terms of implementing artificial intelligence in HR
  • Define your priorities and assumptions about how AI can help achieve them
  • Define your expectations about the investment that will be required for this project, both human and financial resources
  • Evaluate whether it is worth investing in AI or not based on these metrics.

Map HR Processes to the Technology
Determine which tasks can benefit most from the integration of HR. To start with, here are just some day-to-day operations that can be automated:
  • Transferring paper documents to online records
  • Maintaining online records and database of employee information
  • Training employees on new technology
  • Updating records with new information

Design the User Interface
AI design is a discipline that concerns the application of artificial intelligence to designing user interfaces. It's a hot topic in the tech world as many companies are looking for better ways to create user interfaces without going through the painstaking task of designing everything from scratch.It is important to note that the interface should not be too disruptive and unappealing for the user, leading to unintended consequences.

Plan for Scalability
Before the rise of artificial intelligence technologies, HR and other front-line functions were traditionally seen as routine and routine tasks. However, as AI and machine learning continue to advance, these tasks become more complex. With this in mind, HR departments need to have a plan for scalability. This includes training employees with the necessary skillsets to address increased algorithmic complexity. AI will also increase the demand for IT infrastructure skillsets to provide the required compute power needed by HR personnel and AI systems.

Establish an Integration Plan
You will need an integration plan to ensure your organization transitions smoothly into the use of new tech. HR can benefit from using AI in many ways. To start with, automation of tools like applicant tracking systems (ATS) can prove helpful for HR to streamline their workflows as well as train staff on AI. For example, the ATS can automate reviewing resumes, contact candidates for interviews, schedule interviews, interview candidates (to some degree), and even make job offers to qualified applicants.


In Conclusion: The Importance of Creating an AI-Powered Hiring Process

The recruitment process is a valuable but time-consuming and tedious task. The current process requires a lot of manual tasks such as sourcing, screening, and scheduling interviews. And in today’s world, where people are more attracted to organizations with an interactive culture, the recruitment process needs to be more innovative and technologically advanced.

Using an AI-powered hiring process can help you create a very scalable and personalized recruiting strategy and reduce your workload by automatically dealing with routine tasks.

The automation of hiring is an essential tool for any business looking to build a competitive advantage. It will not only make your HR processes more efficient but save you time and money. Hiring automation software can be implemented in any phase of the recruiting process, from sourcing to screening to interview & offer.

Moreover, with hiring automation software, one can substantially reduce the time required for HR management tasks. As a result, the software has made it possible for companies to manage their entire recruitment process without investing large amounts of resources or manually managing recruiting processes.


Frequently Asked Questions

How can chatbots be used as an HR tool?

Chatbots are a great way to reduce the amount of administrative work in a company. They can be used to handle customer service, lead generation, and recruitment. Chatbots can manage HR tasks such as information requests from candidates or distributing updates from managers to employees.

How can HR professionals stay competitive in the era of AI?

AI has the potential to disrupt HR practices. With AI in HR, recruiters can focus on candidate assessment rather than manual sorting. HR professionals are expected to stay competitive by upgrading their knowledge about the latest tools and workflows introduced in the industry.

What is the future of AI in HR, and what skills will be needed?

With the arrival of artificial intelligence in HR, careers in this field are changing rapidly. HR managers are now expected to know about everything from data science to psychology. This means that HR managers need to be skilled in many more fields than they might have been in the past. Cross-functional skillsets, technical knowledge, and understanding of machine learning and algorithms are going to be a huge plus.

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Purposeful Employee Well-being: Making Data-based Decisions

Article | March 30, 2020

The pandemic uncovered several insights into the significance and connection between health, wellbeing, and productivity at work. Whether you work from home or in an office, without employee well-being, there is no organizational resilience. HR leaders are recognizing this bare truth and are focusing on more than just physical health. There is a push to promote holistic wellness, which includes physical, mental, social, financial, and psychological well-being. Employee Well-Being and the Modern Organization Studies have proved that employee well-being has a direct impact on revenue and profitability. It affects the overall employee morale, productivity, and employee experience. Focusing on employee well-being leads to a 41% drop in absenteeism, as well as more innovation, better retention, and lower healthcare costs. As workplaces have undergone much transformation in recent years, employees’ expectations from a health and wellness perspective have taken on a new shape. Forward-looking organizations are committing to developing meaningful initiatives that foster well-being in the workplace. Organizations do not intend to stop providing health coverage and benefits. They are proactively infusing well-being into the work culture, employee experience, and career growth as these factors are most likely to take precedence in the near future. In fact, according to a study by TeamStage, 78% of employees were more likely to continue working because they liked the benefits. In this context, data and a handful of key metrics will set the tone for HR professionals to deliver more value to their employees. Mapping the Metrics That Matter So what metrics will play a key role in bringing modern, employee-oriented wellness and health programs? According to a Paycor survey, 17% of HR professionals were able to provide a concrete response to changing their approach to well-being in 2022. Some initiatives include: Mental health awareness and training Discount on mental health apps Virtual exercise programs A 24/7 support helpline Employee Assistance Program (EAP) The first viable option is to implement a meaningful way to measure employee happiness in the workplace. For instance, international electronics giant Hitachi used wearable devices to monitor a range of activities, including sitting, standing, talking, and even typing, to create a measuring algorithm. Hitachi identified and pre-empted stressors and health concerns in the workplace by offering corresponding benefits. However, implementing benefits isn’t enough. Many employers are calculating employee interaction with their wellness offering through online portals. This key metric is used to determine whether or not employees are making the most of their benefits. In turn, this demonstrates their engagement levels with the company. Parting Words As the work landscape has shifted from the office to homes and job markets have become more volatile; stress, anxiety, and mental illnesses are mainstays of employee concerns. The pandemic underlined the importance of having a robust grip on employee well-being for organizations to be able to survive such drastic transformations. However, employee wellness has proven to be a cornerstone of sustainability and resilience all along. Organizations that hope to thrive and grow well into the future will need to highlight employee well-being as an integral part of their workforce strategy.

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Article | June 13, 2022

Assembling a winning recruitment tech stack is much like recruiting the right candidate. You’re bound to find people who match some of your requirements. There will be a few candidates who seem like a match but don’t tick every box. Then there are those that stand out because of a single quality. The recruitment tech stack has long served the HR departments in large organizations to streamline their people management. However, for small businesses, using an HR tech stack can be a big decision. According to a study by Goldman Sachs, 44% of small businesses had only three months of cash reserves during the pandemic. This forced them to be smarter with their resources when it comes to staffing. HR Recruitment Tech Stack for SMBs: The Status Quo Considering how HR as a department can be loaded with work in small and medium-sized organizations, it is imperative to have a tech stack that is well-rounded and cost-efficient. Since 2022, small businesses have faced the brunt of a talent shortage during the Great Resignation. “It's about capitalizing on the tailwinds as the economy heals and fully reopens.” Courtny Cloeter, Chief Revenue Officer at OneSource Virtual Talk about the great resignation, retention problems, and underfunctioning tech stacks. A National Federation of Independent Business report found that over 51% of small businesses couldn’t fill all their job openings in October 2021. According to Oracle’s report on the state of HR tech stack in 2020, HR managers of only 33% of small businesses consider HR tech stack as one of their top three issues. In addition, only 31% of small business HR teams report automating their people management processes. This leaves a lot on the table for SMBs who want to get the most bang for their buck. How HR in SMB’s Can Use Recruitment Technology to Improve Profitability SMBs that currently have a non-existent HR tech stack can look forward to gaining immediate benefits. According to Oracle’s report, 66% of SMBs reported seeing a significant improvement in efficiency. But efficiency is just the first step. In the age of talent shortages, remote workplaces, and mass resignations, SMBs can leverage a tech stack or tech recruiting platform to develop a winning hiring strategy. Let’s discover some of the benefits that could do wonders for the growth and revenue of SMBs. Attract Top Talent It goes without saying that quality workers benefit an organization much more than average workers. But the contrast between the two can mean either savings or a loss of thousands of dollars for small businesses. A McKinsey study reveals that in low-complexity jobs, high performers are 50% more productive, while the difference is 800% for high-complexity jobs. Developing a robust recruitment technology stack can drive high-qualified candidates faster to SMBs. Improve Employee Experience Hiring top talent is just the beginning. You need to retain that talent to save on hiring costs. That’s where employee experience comes in. A case study by Great Place to Work demonstrates how essential employee experience is. Brains on Fire, a creative agency, used employee surveys to increase their engagement score from 74% to 92% in just two years. Armed with the data from the survey, the small business refined its hiring process and boosted trust and engagement exponentially. SMBs will benefit greatly from a tech recruiting platform that includes engagement initiatives in its stack. Increase Productivity Increased productivity means higher revenue. In fact, Harvard Business Review reports that organizations that report 40% more productivity than average also have a 30–50% higher operating margin. That makes a massive difference for small and medium-sized organizations. How SMBs Are Using Recruitment Technology to Overcome Talent Shortages Recruitment Marketing The battle for qualified candidates starts way before a job application comes in. Many small businesses are making inroads into quality talent pools with recruitment marketing. For instance, many recruitment marketing tools allow organizations to instantly advertise on premier job sites. This saves time and helps SMB HR teams reach more candidates faster. Recruitment marketing tools are critical in the HR toolkit of SMBs. AI in Recruitment Tech Stack AI is a cross-functional technology in HR processes. With AI in recruitment, small businesses can maximize both time and resources to automate areas of hiring, candidate screening, interview scheduling and performance management. Data analytics can help uncover crucial insights into challenges, which can then be addressed with AI-based HR solutions. Conclusion: What Can Small Businesses Anticipate in the Future of Recruitment Technology? With technology recruitment, small businesses learn to tackle everything from hiring talent, managing performance and productivity, and shaping employee engagement. With technology, recruitment becomes more functional, performance-driven, and efficient. Small businesses can script tailored HR strategies that get the most out of their resources and deliver impressive results like it did for Brains on Fire. As SMBs continue to adopt modern tech recruiting platforms as their go-to HR management solution, they can shift their efforts towards strategic scaling. With a recruitment tech stack that scales with growing businesses, SMBs can sit back and focus on what matters: driving revenue. Frequently Asked Questions What are the technologies used in a tech recruiting platform? 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How Key HR Metrics Can Inform Business Decisions

Article | June 21, 2022

Numbers tell a story, and with analytics at the center of decision-making, businesses are increasingly turning towards data to uncover insights. When it comes to people, organizations are warming up to people analytics to find insights that go beyond operational efficiencies. Although workforce analysis in HR has become a coveted skill, can its insights be concrete enough to inform major business decisions? The Crucial Role of HR Data and Analytics in Business Decision-Making As the role of HR expands from being mere record keepers to helping organizations achieve business objectives, uncovering human resources metrics becomes critical. Achieving synergy between HR goals and organizational objectives is crucial. Key HR metrics can benchmark performances, identify KPIs, forecast requirements, predict employee tenure, and design new initiatives. In addition, they can be used to secure more resources for HR initiatives. “Hiring is still a very subjective process, and one size does not fit all.” - Arran Stewart, Co-Founder and CVO 5 Strategic HR Metrics to Follow Closely The right people metrics can reveal critical gaps and even uncover patterns that need to be corrected. In addition, key HR metrics can inform senior leaders about the overall health of HR practices. Time to Hire According to SHRM, 42 days is the average time it takes to fill a vacancy and costs $98 per day on average, in addition to other recruitment costs. Needless to say, time to hire has a crucial impact on costs. Improving the time to hire will have a cascading effect on the entire hiring process, including candidate experience, talent sourcing, and even training. Time to Productivity Time to productivity is the time it takes, on average, for your employees to become accustomed to their roles. The lower it is, the better it can mitigate the damage done by employee turnover. When a new hire joins an organization, they are not completely hands-on yet. This impacts the team’s performance as other team members have to fill the gap. Retention Rate Considering how expensive it can be to hire an employee, losing them is just as costly, whether they are high performers or simply the wrong fit. Bad onboarding practices, culture, and low engagement are some of the reasons that create flight risk. Improving retention rates can have a dual impact on both hiring and turnover, which can save millions of dollars. Absenteeism Many organizations continue to consider employee absences as part of their business. However, this keeps them from understanding the direct and indirect impacts of absenteeism. Tracking the nature of absenteeism will help design better leave policies. Revenue per Employee In the end, running an enterprise is all about revenue. The revenue per employee metric quantifies the quality of the hired workforce. An Expert Market report revealed that tech giant Apple ranks first, making an impressive $1,865,306 per employee. This demonstrates the organization’s productivity quotient in a tech economy. What C-Suites Can Achieve by Entwining Finance and HR A synergy between HR and finance isn’t unknown, although in most organizations, it comprises finance shooting down HR’s spending requests. By opening up association channels between the two departments, C-suites can make the most of workforce intelligence and important HR metrics. It can help reveal critical gaps in process costs and the impact of HR strategies on financials. By monitoring strategic HR metrics and adopting a data-driven approach, HR teams can connect with finance teams about business strategy. The key is to demonstrate the value of different types of HR metrics. According to a Gallup study, high employee engagement directly impacts profitability with a 21% increase. It also improves productivity by 17%. Such important HR metrics build a compelling case for finance to approve investment in employee engagement software and initiatives. Conclusion: Making a Business Case with Important HR Metrics Building a business case is a matter of communicating in the language of finance: numbers. Insights into workforce intelligence can be used in many ways. For instance, data analytics firm Nielsen used HR analytics to decode the organization’s employee retention metrics. It conducted a financial impact study that found every percentage point decrease in its employee attrition rate could save the firm $5 million in business costs. The organization then got to work devising impactful retention initiatives that resulted in a 2% decrease in employee turnover and a corresponding savings of $10 million in costs. This is just one example of how HR teams can bring finance teams on board to develop HR initiatives and align with business strategies. Frequently Asked Questions How can an organization measure the importance of HR strategies? A combination of mapping important HR metrics and using predictive analytics for forecasting their effectiveness can help HR build a compelling case for the effectiveness of their strategies. What are the different types of HR metrics? The three types of key HR metrics include recruitment, performance, and HR cost. What is the most effective way to use HR metrics? Human resources metrics can be used to get insights but can also be used for benchmarking and predicting future performance and strategies.

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4 Powerful Examples of HR Data Analytics in Action

Article | April 25, 2022

Data Analytics Applications That Are Positively Impacting HR Data analytics has some critical and timely applications in people management. According to SageHR, global data and business analytics revenues have grown by about 36% in just four years. The importance of HR analytics can be felt today more than ever in everything from attracting and onboarding talent to boosting employee morale. Diversity, Equity, and Inclusion It is possible to leverage HR data management to improve the diversity quotient of an organization. For example, companies can expand their candidate search with big data and present a clear picture of pay structures to uncover bias and create more diversity. Training and Development Skill gaps are a significant aspect of core HR responsibilities. Human resources analytics aims to dive deep into the organizational skill structure and draw insights that can help HR shape better learning and development initiatives. “Now AI, blockchain, robotic process automation, and machine learning provide opportunities to leverage technology to improve efficiencies for organizations and the HR experience for individuals.” - Scot Marcotte, Chief Technology Officer at Buck In addition to these crucial areas of HR management, data analytics in HR is driving growth and transformation across the human resources landscape. Let’s look at some of the ways industry leaders are using it to impact key HR metrics. Tackling Employee Turnover at HP With over 300,000 employees, Hewlett-Packard (HP) could not afford to dismiss HR data analytics as part of its efforts to retain employees. A turnover rate of 20% wasn’t unheard of in the organization’s sales division. HP naturally aimed to increase the average amount of time people stayed. Employees who leave an organization are leaving with their knowledge base, network, and even customers at times. For a company like HP, this means a loss of millions of dollars. With data scientists at the helm, the HR data analytics team took up the task of identifying employees who might be at risk of leaving. The exercise revealed several intricacies that would allow managers to build better retention strategies. For instance, if a promotion didn’t come with a significant raise, promoted employees were at a high risk of leaving. Siege reported that HP saved an impressive $300 million with data analytics in HR. People Analytics at Every Step at Google Google is the youngest firm in a league of industry leaders who attribute its success to having decades of history and reputation. Google owes much of its success to people analytics and data analytics in HR. The firm’s people analytics team reports directly to the VP. With predictive analytics, Google identifies hiring problems like salespeople leaving the company if they haven’t gotten a promotion within four years. In pursuit of better retention, Google has also developed an algorithm to predict which employees will be difficult to retain. In addition, the search giant uses analytics to analyze rejected resumes, so no top-notch candidates fall through the crack. The company has used data analytics to compare the value of top performers versus average ones to enable HR leaders to make a business case for better resources to hire, retain, and develop talent. Boosting Hiring Decisions with Facebook “The great thing about data is that it gives you a comprehensive view of the organization. It’s just not possible to get this 360-degree look on our own for most organizations.” -Alex Fink, VP of People Analytics and Workforce Strategy at Facebook Social media has long been used by companies to supplement screening and background checks. But can a platform like Facebook be used to predict personalities and work performance? A study by Kluemper, Rosen & Mossholder thinks so. The hiring rate provided by participants based on Facebook profiles in this study predicted a manager-rated job performance of 8%. Although a standard personality test delivers a higher predictive value than this, studies have shown that multiple predictors like IQ tests, interviews, and personality quizzes contribute to the most accurate predictive models for future work performance. Adding a Facebook personality test might just be the edge needed to predict job performance. Increasing Employee Retention at Nielsen Organizations using HR data management and analytics have seen a major breakthrough in employee retention. Data analytics firm Nielsen was among the first to do that. One of its financial impact studies found that a percentage point decrease in employee attrition leads to a whopping $5 million drop in business costs. Guided by these statistics, Nielsen’s data analytics team succeeded in identifying 120 key employees at risk of leaving. By running multiple programs to arrest the retention rate, Nielsen was able to reduce employee attrition by two percentage points and save $10 million. Conclusion: How Can Human Resources Analytics Continue to Be a Game Changer The importance of HR analytics is undisputed. These examples clearly demonstrate the business case for using data analytics applications in HR and using them to predict performance, identify patterns, and eventually develop HR management strategies. It helps to identify negative patterns and course-correct work strategies to maximize resources. From optimizing day-to-day HR operations to attracting top-notch talent to delivering a positive employee experience, HR data analytics is helping build agile HR processes. Frequently Asked Questions What are the areas of data analytics in HR? HR data analytics include descriptive, predictive, diagnostic, and prescriptive analytics. Who is responsible for HR data management and analytics? As data grows in importance, the role of HR expands to include data analytics skills as an integral part of them. HR analysts typically use data to draw actionable insights. What metrics are used to analyze HR data? Key metrics like absenteeism rates, overtime expenses, training expenses per employee, productivity, and employee happiness are the most significant data points in HR.

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