The Complete Guide to AI and How it Disrupts HR Processes

Shefali Vasave | November 22, 2021 | 259 views

AI News
The use of Artificial Intelligence (AI) in recent years has seen tremendous growth due to the speed at which it’s progressing. Four significant milestones have led to AI reaching its peak momentum.

First, the introduction of neural networks is a type of machine learning that allows computing systems to approximate complex patterns or relationships that are not always possible using traditional programming. Secondly, the development and perfection of Deep Learning- a process that allows machines to learn instead of being programmed with rules and instructions by humans.

This technology has unlocked what was thought impossible in AI up until this point, allowing machines to learn complex tasks without explicit programming. Thirdly, applying deep learning methods in speech recognition, image classification, and natural language processing opens up new areas for artificial intelligence and automation.

Human resources technology has evolved over the years, and AI is gradually transforming the HR landscape as it reaches its pinnacle moment. However, Artificial Intelligence in HR has been around for a lot longer than we think. AI-powered HR software has made it possible for companies to track, analyze and predict workforce data more efficiently, which has created a competitive advantage for some organizations.

HR departments can now optimize their data by using machine learning algorithms, predictive analytics, and visualizations. This has led to improved decision-making skills, reduced turnover risk, and increased efficiency in all aspects of HR strategy.


How AI will Impact HR Processes in the Future

AI and machine learning are gradually disrupting and transforming HR and recruiting processes. This section discusses how AI will impact HR processes in the future. With information sharing, decision-making, and analytical tools, AI can automate many of the tasks that human resources’ professionals traditionally do such as recruitment. This has helped drastically reduce the time and resources spent on screening resumes, finding skill matches, and much more. AI makes it easier to find new hires by cross-referencing data from LinkedIn with information from social media channels like Facebook and Twitter. This means that employers can make better decisions about hiring based on a candidate’s online presence and networks.


What are the Pros & Cons of Artificial Intelligence in HR?

AI in Human Resources has attracted top companies interested in its benefits, such as processing large volumes of data, automating repetitive tasks, and providing more accurate insights than human professionals. However, some companies are skeptical about AI’s precision and accuracy. They believe that humans can better understand their employees’ needs and concerns.

The Pros
AI can help to process a lot of data that would take a human day to do. This is especially helpful in HR departments that need to make business decisions quickly. It is used to analyze HR data and generate reports on-demand. This empowers HR departments to make predictions and find insights about the company’s workforce.

The Cons
AI algorithms are not perfect, and they may have biases in their programming. One example is when an algorithm was used in criminal sentencing, which showed bias against certain races. Other cons include the fear of job loss due to automation, a lack of transparency in AI decision-making, and concerns about potential security vulnerabilities.

AI in HR is here to stay. The question is not whether AI will replace human HR professionals but how it will impact how they work.


3 Ways AI Enhances Human Resources Functions

AI can enhance human resources functions by optimizing data collection, improving staffing decisions, predicting employee turnover rates, and providing greater efficiency in all aspects of HR strategy. The three key advantages of using AI in HR are data sourcing, task distribution, and employee engagement.
  1. Data sourcing: AI can use machine learning to identify which employees are in charge of specific tasks to determine what training they may need.
  2. Task distribution: Data generated by AI allows HR departments to distribute tasks more efficiently.
  3. Employee engagement: A survey conducted by Deloitte found that companies with AI-powered HR systems had higher levels of employee engagement than those without.


“AI is a clear benefit to running analytics on a company’s contracts. Beyond that, we use NLP (natural language processing) to interpret each contract and extract relevant key legal obligations, critical dates, and financial implications. AI also provides the capability of near-instant quick translations of documents for those working internationally. These examples merely scratch the surface of some of the automation capabilities that help boost a legal team’s productivity and capabilities within the organization.”

- Charles Dimov, VP Global Marketing at ContractPodAi


To Sum Up - AI & The Future of HR Management

AI has been a part of the HR world for a long time. But up until now, it has been relegated to small tasks that are not as important as they may seem. However, AI in HR will soon be widespread as the technology becomes more integrated into our daily lives and helps us with more complex tasks.

AI is changing the way we live and work, incorporating robots into every sphere of life to make our lives easier. It is already keeping us healthy with better diagnoses and treatments, making driving safer with self-driving cars, and even providing emotional support to those who need it most. It’s not difficult to imagine that this trend will continue into HR management, where AI can take on some of the most complex tasks today's companies face - like recruiting employees or training them.

Frequently Asked Questions

Will AI take over HR?

AI is expected to bring about a new era in human resources, changing the way companies recruit and manage their workforce. With AI taking over tasks like recruitment and management, HR professionals may find themselves in an advisory role rather than an operational one.

What role will AI play in HR?

AI can also be used for payroll functions like calculating hours worked or issuing paychecks. As AI becomes more knowledgeable about human resources functions, its scope could expand further into employee sentiment analysis and provide insight into how employees feel about their jobs.


What is the future of AI in HR?

From the perspective of HR professionals, AI is a powerful tool for recruitment and talent acquisition. It helps them find the best possible candidates for their organizations and narrow down their search on a more specific level than ever before.

Spotlight

TRC Staffing Services, Inc.

TRC Staffing Services, Inc. is a full-service staffing solutions provider with over 30 years of industry experience. Established in 1980, TRC is one of the largest privately-held staffing firms in the country. Like his father, President and CEO Brian Robinson, remains focused on the idea that the marketplace continues to need a staffing agency built on principles and values, and is committed to providing the highest level of service in the industry.

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TALENT ACQUISITION, HR STRATEGY

Maximize Your Budget: 6 Strategies to Improve Efficiency and Contain Costs for Your Business

Article | August 24, 2022

The current economic climate and ongoing labor challenges have created a tough environment for employers of all sizes. In order to weather the storm, many employers are looking for ways to reduce their expenses and save money. However, in their efforts to do so, many organizations make the mistake of cutting costs without a clear plan, which can result in lost productivity, reduced morale, unhealthy company culture, and negative long-term effects on the company’s growth and people. Successful organizations, on the other hand, take a more strategic approach to contain costs. They understand that simply slashing expenses, or their workforce can be counterproductive in the long run. Instead, they focus on optimizing their resources by identifying areas where they can reduce expenses without compromising productivity or future growth. Ultimately, the key to successfully managing your costs is to strike a balance between reducing expenses and maintaining productivity and growth. Organizations that adopt this approach are more likely to thrive in a challenging economic environment and come out stronger on the other side, with a team that is committed to the long-term success of the organization. The following article outlines six proven strategies that your business can implement to reduce expenses and optimize your resources: Strengthen Employee Retention Prioritizing employee retention can be one of the most effective cost-containment strategies for your business. Replacing workers is often extremely expensive. Employee retention is a critical issue, as losing employees can be costly and disrupt business operations. Employee turnover not only increases an organzation’s recruiting and training costs but also usually results in decreased productivity, lost proficiency, and a big impact on revenue. You can strengthen employee retention with the following strategies: Provide opportunities for career development and advancement: Offering training and development programs, mentorship opportunities, and promotions can help employees feel valued and invested in their future within the company. This can improve employee satisfaction and loyalty. Offer benefits to meet workers’ evolving needs: As the workforce becomes more diverse, businesses of all sizes need to offer a range of benefits that meet the needs of all employees. This can include flexible work arrangements, healthcare benefits, retirement plans, and paid time off. Improve employee engagement: Employee engagement is crucial for retention, and it can be improved through several methods. For example, encouraging employee feedback can help employees feel heard and valued, while providing flexibility in work schedules and locations can help employees achieve a better work-life balance. Strengthening workplace efficiency can also reduce employee frustration and improve overall satisfaction. Bolster workplace culture through public recognition and reward programs: Improve retention by creating a positive workplace culture that recognizes and rewards employee contributions. This can include public recognition programs, such as employee of the month awards, as well as reward programs that incentivize high performance. Be transparent when communicating with employees to help them understand important decisions and establish opportunities for two-way feedback. Invest in New Technology Adopting new technology is becoming increasingly important to stay competitive and thrive in today’s digital age. Technology can help save time and money by streamlining operations and allowing your business to operate more efficiently. Here are some key ways technology can help your business manage costs: Customer relationship management (CRM) software: CRM software can help manage customer relationships and sales processes, reducing the time and cost associated with manual sales tracking and management. Cloud-based software: Cloud-based software solutions allow you to store data and access software applications from anywhere, reducing the cost and time associated with maintaining and updating software systems. E-commerce platforms: E-commerce platforms enable you to sell your products and services online, reducing the cost and time associated with traditional retail operations. Digital communication tools: Digital communication tools, such as email, instant messaging, and video conferencing, can help to improve collaboration and communication between employees, customers, and partners, reducing the time and cost associated with travel and face-to-face meetings. Human resources management systems: HR management systems can help to automate and streamline HR processes, reducing the time and cost associated with manual data entry and paper-based processes. Low-code solutions: Low-code solutions can help to create custom software applications and workflows with minimal coding expertise, reducing the cost and time associated with software development. Artificial intelligence: Artificial intelligence can help to automate and optimize repetitive or complex tasks, such as data analysis, customer service, and supply chain management, reducing the time and cost associated with manual processes. Additionally, many businesses are turning to open-source software alternatives as a cost-effective alternative to brand- name software applications. By adopting new technology, you can gain a competitive edge, save time and money, and improve customer satisfaction, ultimately leading to increased growth and success for your business. Manage Health Care Costs Managing healthcare costs is a major concern, as rising healthcare expenses can have a significant impact on their bottom line. Finding cost-effective solutions is vital for your business to maintain affordable benefits and reduce costs. Solutions may include reevaluating plan designs and offerings, directing employees to cost-effective services, and improving employee healthcare literacy. Employers can leverage their relationship with their insurance brokers to explore cost-saving solutions, like obtaining details on organizational healthcare spending and educating employees on shopping for healthcare services. Here are some ways your business can focus on managing healthcare costs: Encourage wellness programs: By encouraging healthy lifestyle habits and providing wellness programs, you can reduce the risk of chronic health conditions and lower healthcare costs. Wellness programs can include fitness classes, healthy eating options, smoking cessation programs, and stress management resources. Promote preventative care: Encourage employees to get preventative care, such as regular check-ups, vaccinations, and cancer screenings. Preventative care can catch health issues early, when they are less expensive to treat. Consider telemedicine options: Telemedicine is an increasingly popular option for healthcare, as it allows employees to access healthcare professionals remotely. This can reduce healthcare costs and improve access to care for employees in remote locations or with mobility issues. Use technology to manage healthcare expenses: Technology can be used to manage healthcare expenses by using online portals to access healthcare information and track expenses. Additionally, consider using data analytics to analyze healthcare costs and identify areas for improvement. Partner with a benefits consultant: Partner with a benefits consultant who can help navigate the complex world of healthcare and find ways to reduce costs while maintaining quality care. Overall, your business needs to be proactive in managing healthcare costs to maintain financial stability. By encouraging wellness and preventative care, promoting telemedicine, using technology to manage expenses, and partnering with a benefits consultant, your business can reduce healthcare costs while continuing to maintain a healthy workforce. Embrace Outsourcing While performing tasks in-house can often be cost-effective, there are instances when outsourcing key responsibilities and tasks can be more economical and efficient helping to reduce in-house costs.. Manual, time-consuming tasks—such as payroll, HR, compliance and benefits administration—may be better suited for an HR outsourcing firm than managed in-house. Outsourcing these kinds of tasks can enable your employees to focus on their core responsibilities that have a greater and more direct impact on the business. Here are some reasons why outsourcing can be highly beneficial and cost-effective: Cost savings: Outsourcing can help save on costs, especially for tasks that are nonessential or not core to the business. For instance, outsourcing payroll, HR, compliance and benefits administration can be more cost-effective than hiring an in-house staff to perform these tasks. Time savings: Outsourcing time-consuming tasks can free up employees to focus on their core responsibilities that have a greater impact on the overall growth and revenue. This can help increase productivity and efficiency within the organization. Access to expertise: Outsourcing provides access to a team of experts who have specialized skills and experience in a particular area. For example, outsourcing IT services can give your business access to the latest technology and technical expertise that you may not have in-house. Scalability & flexiblity: Outsourcing can provide the flexibility to scale up or down quickly as business needs change. For instance, outsourcing customer service can allow your business to quickly ramp up during peak periods or cut back during slow periods without having to hire or lay off employees. Reduced risk: Outsourcing can also help dramatically reduce and mitigate risk, as some outsourcing contracts include guarantees of service levels, quality, and data security. This is especially true when working with an HR outsourcing firm to manage your benefits, payroll, and HR compliance-related initiatives and tasks. Adopt Flexible Work Arrangements The expense of having a physical workspace can add up. Each month, employers must pay rent, utilities, cleaning costs and other expenses. While these expenses are often unavoidable, some businesses are transitioning to remote and hybrid work arrangements to contain costs. These solutions may not be suitable for all industries or job positions, and if going hybrid or remote isn’t possible, consider downsizing facilities to reduce rent and utility bills. Your business can also explore other alternatives, such as co-working arrangements and renegotiating leases to term, to try and better manage costs. Here are some additional ways adopting flexible work arrangements can help reduce or contain costs for your business: Transitioning to remote work arrangements: This can help cut down on rent, utilities, cleaning costs, and other expenses associated with a physical workspace. While this may not be suitable for all industries or job positions, many businesses can consider offering flexible scheduling and improved benefits to lower overhead expenses. Downsizing facilities: If converting to a home-based business or going remote isn’t possible, consider downsizing. Additionally you can consider subletting excess space or renting out unused areas to generate additional income. Exploring alternative workspaces: Explore alternative workspace options, such as co-working arrangements, to reduce the cost of renting an entire workspace. This can help reduce rent and utilities, as well as provide networking opportunities and access to shared amenities. Overall, you should carefully evaluate your workspace needs and consider all options available to reduce overhead expenses. By doing so, your business can allocate more resources to growth initiatives, maintain positive company culture and drive long-term success. Reviewing Expenses Maintaining healthy cash flow is essential for your business to operate and survive, especially during difficult times. Reviewing expenses regularly can you help identify areas where you can adjust costs and optimize your spending and overall financial resources. Here are some ways in which reviewing expenses and building relationships with providers, suppliers, and vendors can help your business contain costs: Reviewing contacts with providers, suppliers, and vendors: Try reviewing your contract with their providers, suppliers, and vendors to see if there is any way to adjust your license, or services provided to try and reduce overall expenses. Identifying and eliminating unnecessary costs: By reviewing expenses regularly, you can identify and eliminate unnecessary costs. For example, eliminate subscriptions or services that are no longer used or needed. Building strategic partnerships: Building relationships with providers, suppliers, and vendors can help cultivate allies and strategic partners. These partnerships can potentially reduce your costs by sharing resources and collaborating on cost-saving solutions. For example, you can partner with a supplier to get better prices for materials or with a vendor to share marketing costs. By implementing these strategies, you can reduce expenses and optimize your financial resources, which can help you weather challenging times and achieve long-term success.

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Listen and act: how to get employee experience management right

Article | December 7, 2022

As the science behind employee engagement evolves, it’s become clear just how much businesses can gain from a happy and involved workforce. From improved performance, to reduced attrition, increased revenue and even a better customer experience, employee engagement is at the heart of business growth. Given these benefits, it’s no surprise that the role of HR departments is moving beyond just managing people and towards managing experiences.

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5 Things HR Can Do To Improve Employee Output

Article | February 17, 2023

Employees are companies most valuable asset – Without the talent, knowledge and expertise those employed bring to an organisation, it’s safe to say that the business world would be a very different landscape. Human Resources is often held responsible for owning the employee value strategy, where we’re now embracing tremendous improvements in how the value that employees bring, can be achieved. Here we’ll explore how data analysis, learning & development, employee engagement, 360 feedback and flexibility all offer a significant opportunity to improve employee output within every organisation in 2020.

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6 Reasons To Invest In Employee Onboarding In Your Organization

Article | February 10, 2020

You never get a second chance to make a first impression. This holds particularly true when it comes to employee onboarding. It's a new hire's introduction to the organization and the experience has a significant impact on employee retention. Unfortunately, that's why it's rare to see many employees with years of tenure. Research by Future Workplace found that 91% of Millennials expect to stay in a job for less than 3 years. Companies lose 25% of all new employees within the first year, according to SHRM, but almost 70% of employees are more likely to stay with a company for 3 years if they experienced great onboarding.

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Spotlight

TRC Staffing Services, Inc.

TRC Staffing Services, Inc. is a full-service staffing solutions provider with over 30 years of industry experience. Established in 1980, TRC is one of the largest privately-held staffing firms in the country. Like his father, President and CEO Brian Robinson, remains focused on the idea that the marketplace continues to need a staffing agency built on principles and values, and is committed to providing the highest level of service in the industry.

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Melita Group Launches Suite of Turnkey HR, Benefits, and Payroll Service Packages

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Proliant and Schoox Partner to Enhance the Employee Experience

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Explorance Launches General Availability of BlueML and Free Feedback Analytics

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Explorance Launches General Availability of BlueML and Free Feedback Analytics

Explorance | March 03, 2023

Explorance, a leading provider of People Insight Solutions, has announced the general availability of Explorance BlueML and a special free offer for the award-winning workforce and student sentiment analysis solution. BlueML, a prominent ML tool trained on employee and student answers, provides meaningful insights from enormous datasets of comments and feedback in minutes. Businesses and academic institutions can better understand employee and student needs and expectations, and take proactive steps to support a more satisfied, engaged, and well-trained workforce or student population. It is expected to eliminate time-consuming manual review and data organizing processes. Explorance machine learning methods also reduce human bias in large data sets. MIT News reported that MIT and Harvard's researchers showed that training machine learning models on varied data sources minimize bias. BlueML categorizes thousands of staff and student feedback responses consistently, supporting this idea. Samer Saab, Explorance Founder and CEO, said, "With BlueML, organizations can now bring to light the uncommon connections, and deep insights, about employees or students, that are otherwise, not easily accessible. With automated and intelligent analysis, the time and effort it takes to unlock data-driven decisions is significantly reduced, empowering organizations to act by evidence and not by assumption." (Source - CISION PR Newswire) Explorance BlueML for Employee Experience HR is becoming more strategic and may represent employees in boardroom discussions. HR can improve employee retention, engagement, and performance through data. The brave conversations that HR leaders have, informed by employee sentiment and organized by diverse workgroups, provide insights into decision-making. Explorance BlueML for Student Experience The Student Experience Categorization Model helps academic leaders and administrators focus on student success. BlueML powers the complete educational experience of students viz: application, student life, learning, and alumni. "The technology innovations that Explorance is coming out with are vitally important. Our research shows that most organizations (62%) do not have a strong understanding of the needs of their workforces, their skills, motivations or what they value – and don't value – in their employment. It is impossible to make great business and talent decisions without insights borne from people data. Many organizations are sitting on rich data that they don't have the expertise or tools to analyze. Solutions like Explorance BlueML can be a real game-changer," said Claude Werder, Senior VP and Principal Analyst at Brandon Hall Group. (Source- CISION PR Newswire) About Explorance Founded in 2003 and headquartered in Montreal, Explorance is an industry-leading provider of People Insight Solutions, which facilitates effective decision-making for businesses by gauging their employees' and students' requirements, expectations, abilities, knowledge and skills. Individual development and business adaptability can both benefit from an environment that encourages exploration since it speeds up the cycle from insight to action. They partner with 25% of the Fortune 100 and 25% of the top Higher Education institutions, including 8 of the world's top 10 business schools.

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