AI in HR

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As the size of human resource departments decline and workforces become increasingly dispersed and difficult to monitor based on remote and hybrid work models, artificial intelligence is making inroads in helping human resources do their job. Even though 81% of human resource leaders say they find it challenging to keep up with the pace of technology at work, one in four human resource departments have begun to use artificial intelligence in their recruitment process. Here are the pros and cons of implementing AI in HR.

Automation of Administrative Tasks

The most effective utilization of AI in HR so far seems to be in the automation of low value, easily repeatable administrative tasks. A study by Eightfold found that HR departments who did this were 19% more effective than HR departments who did not use AI technology.

AI Technology is able to streamline application processes by designing more user-friendly forms that a job applicant is more likely to complete. It effectively reduces the number of abandoned applications. Background checks are also more efficiently conducted using AI. Onboarding is another area AI is providing more value. Through the use of chatbots and remote support applications new employees can go through the onboarding process at their own pace at any time of day reducing HR’s administrative burden and helping with faster integration.

Internal Mobility and Employee Retention

HR departments are finding that AI can pull together their disparate systems to provide insight in a timely manner on employee behavior. Personalized feedback surveys and employee recognition systems gauge employee engagement and job satisfaction helping identify who is promotable and who is going to quit. Very good risk management for key personnel.

Recruitment

For the specific finding of candidates for open positions 85% of HR professionals feel that AI saves them time or increases their efficiency, while 64% feels the technology is effective at automatically filtering out unqualified applicants. Nineteen percent also reported that the AI tool inadvertently overlooked or screened out qualified applicants, too. There seems to be more success with effective candidate rediscovery – where the AI tool analyzes the existing, saved applicant database and identifies those that are good fits for new roles.

With 81% of HR leaders believing their organizational processes for recruitment are standard or below standard and only 6% believing they have the best-in-class recruitment processes, there is definite room for improvement and advanced use of AI. Of course, the concern over the lack of transparency and anti-bias being built into the systems along with legislation addressing just that, AI in HR may not yet be ready for wide-spread use.

Interested in discussing your hiring needs? Contact the Executive Recruiters at Smith Hanley Associates.

 

 


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