. home.aspx

home.aspx
   

How AI technology is influencing talent trends in 2020

April 23, 2020 / SUJATA BONDGE


A quote that describes the role of recruiters says, “Human resources is not just a profession. It is an extremely important thing that runs businesses.” Moreover, it is the first thing to build a strong workplace which means a powerful and profitable business.

And what stands as obstacles in the way for HR professionals? Time-consuming tasks like finding a suitable application from the ocean of applicants and identifying the right fit for a particular role. Well, that is just one. To deal with tons of data is a daily routine for recruiters. Thanks to the innovative technology like artificial intelligence that has tremendous benefits for every field and HR is no exception.

Learn more: HR tech startups that are leveraging AI for recruitment

Table of Contents:
- What is AI Individually and in the HR Field?
- AI in the Hiring Process
- AI in Employee Experience
- AI in People Analytics
- AI in Internal Recruiting
- AI in Managing Multi-generational Workforce

What is AI Individually and in the HR Field?

What is AI technology in general? To describe it in a very simple language— it is a field of computer science that reduces human efforts by solving problems related to human intelligence by activities like learning, identifying patterns, etc. It is helping recruiters maximize the work limit and build the organization to its full capacity. Now there are lots of discussions about the good and adverse uses of artificial intelligence in human resources, let’s take a look at how it is impacting the recruitment industry.

As of now, the actual use of AI is yet to come into existence and that is surely going to take some period but what we are seeing right now are considered as examples of AI subsets that include machine learning, natural language processing, deep learning, machine vision, etc. These applications are hugely influencing talent trends in 2020 as described below.

AI in the Hiring Process

According to statistics, each corporate job offer attracts 250 resumes. Out of which on an average 4-6 people are called out for an interview and among them only one person gets the job. Now with this data, recruiters are surely going to take at least weeks to read and evaluate every resume. All this will be going on when candidates eagerly want to hear back. This task is tedious and the study says, 52% of recruitment leaders say that identifying the right candidate from a pool of applications is the most challenging part. That’s where AI is coming to the rescue. When scanning applications using people's power alone is not enough, AI-powered technology like an Applicant Tracking System (ATS) that scan CVs. The system uses keywords and phrases to filter out the data and makes it easier and time-saving activity for HRs.

Now there are arguments around this because of the judgment of applicants being categorized as either Yes or No for a job position. Many people say that the decision should be based on the quality of their experience and/or personality traits which is a different aspect of looking at the use of technology.

Moving ahead, it’s an undeniable fact that AI is building a special place in the HR field and there is a lot more to be invented. Its applications are helping with sourcing, pre-selection and on-boarding parts influencing the hiring whole process.

AI in Employee Experience

EX stands for employee experience and means thinking about everything that an employee goes through. What HRs can do to enhance employee experience is to collaborate with employees to understand their motto and design experiences that allow them to perform their best work. According to stats provided by LinkedIn, 96% of professionals say employee experience is becoming a more important trend in 2020. This talent trend can be worked upon more by using AI. How? By using the right recruiting platform that can boost EX by availing data and predictive analytics about employees who are ready for promotion, hike in the salary, eligible for an internal job change or other benefits provided by the company. This technology is helpful to HRs in managing a large number of people effectively within a company, providing training to shape employee skills, etc.

AI in People Analytics

Meaningful data insights can help HR professionals at every stage to take necessary decisions. People analytics provides the exact necessary information to empower recruiters with decision making capability. It takes data points of your employees and explains how they are moving through your organization. Answers to questions like are you putting the right people in the right roles, are they growing in the organization, what is employee turnover rate, etc. can give you a broader picture to take necessary actions. And how it can be done? Using statistics, predictive reporting and advanced AI recruiting algorithms.

As said above, the data provides you information about the employee turnover rate. It means you can understand why people in your organization are leaving, how is their performance, is there any way you can retain them, etc. And all this can be done after using data and data analytics skills. Knowing employee performance and their reason for leaving the organization can help you fix upstream issues that can cause an organization to bleed talent.

AI in Internal Recruiting

Finding one suitable candidate for an organization is not as easy as it seems. It involves job posting (free or paid), running ads, getting a bunch of resumes, shortlisting, inviting for interview rounds, and then selecting the candidate.  Ahead, knowing their expectations and time they join the organization is something that can’t be overlooked.  The whole process demands both i.e. time and money. This frustration can be avoided if you know decide to go for internal recruiting. And this can be effectively done using AI’s ability to deal with the data. Insights taken from this data can help you better analyze a suitable candidate to fill the role without the need for going outside of the company. LinkedIn data says, 80% of employees are ready to leave if the right opportunity came their way. If these employees can reduce employee turnover rate, cost of new hiring and then why not go for internally hiring? AI recruiting algorithms can help you giving strong insights about existing employees to know the eligible candidate with the necessary qualifications for a particular job profile.

AI in Managing Multi-generational Workforce

What we call generation Z (Employee with age 23 and younger) is now all set to enter the corporate world with their newest ideas and baby boomers (employee age 55-73). According to statistics, 89% of HR professionals say a multigenerational workforce makes an organization more successful. Some companies are trying to understand how teams with wide life experience and different perspectives can drive more success. With variation in priorities to choose to work in an organization, many organizations have already started attracting employees by giving more benefits and make them comfortable to share their intelligence. To gain a deeper look into what employees from different ages and experience levels may need to, AI can be useful. It tells recruiting experts which employees need training, who among them are ready for promotion, who is about to retire, what should be done to fill the skill gaps and other people-focused metrics.

One thing in HR is that it will keep growing by generating and requiring more data day by day. Alongside, hiring trends are also changing because of the evolution of technology. Wise action to be taken will be understanding these hiring trends and the impact of AI on it that will help you stay competitive in and beyond 2020 and be agile in the hiring world.