How AI is Transforming HR Management

2019-12-19 00:00:00
5 min read

People often misunderstand the role of artificial intelligence in the workforce of the future. They view AI as a potential replacement for -- and hence a threat to -- human employees. After all, AI systems can perform most tasks that involve human-like cognition, analysis, and decision-making with greater speed and accuracy. And they can perform these tasks at an unprecedentedly greater scale.

However, despite these advantages, the role of AI in enterprises is not to replace humans, but to help them perform better and deliver greater value to enterprises. And the biggest way in which AI is adding value to human resource management is by enhancing the HR functions.

By helping enterprise HR teams to manage the entire life cycle of employees from recruitment to retirement with greater ease and effectiveness, artificially intelligent automation for HR management is offering them benefits like:

  • improved employee experience and engagement,

  • higher job acceptance rates by new candidates,

  • increased employee retention,

  • reduced employee turnover, 

  • effective training, development, and appraisal of employees, and

  • higher productivity for HR teams.

Ultimately, AI-driven HR automation is enabling HR professionals to focus less on routine tasks, and more on supporting employees and improving their performance. As a result, more and more enterprises are adopting AI technology to aid their HR teams.

How enterprises are leveraging AI for HR automation

Traditionally, a majority of the work done by human resources personnel has involved routine tasks like crafting internal communications for employees, resolving employee queries around company policies, constantly keeping track of their companies’ HR needs, analyzing recruitment performance, hiring employees based on requirements, and managing the payroll, among others.

By using AI to automate these tasks, businesses are now able to conserve their HR teams’ time and effort. As a result, the HR teams are able to direct most of their time and energy towards more strategic and creative ends by entrusting the repetitive tasks, as follows, to AI:

1. Automating employee communications

Using AI-enabled chatbots, HR teams can ensure that all internal communications are automatically and efficiently handled. These chatbots can ensure that every bit of information that needs to be conveyed to employees, such as

  • policy changes, 

  • announcements, 

  • special instructions, 

  • SOP changes, and 

  • leave approval/rejection messages,

are delivered to the concerned people promptly. This not only saves a lot of time for the HR personnel but also minimizes communication lags and errors.

2. Measuring employee engagement

Employee engagement is a key driver of organizational performance and profitability. In fact, it has been proven in the past that companies that report the highest employee engagement levels also report a significant edge in terms of profitability.

To achieve high employee engagement, it is first essential to measure the engagement levels of existing employees. And to do so, enterprises are using AI-enabled tools that can gauge the engagement levels of individual employees. By using such HR automation tools, employers can identify employees who are on there verge of leaving. As a result, they can minimize employee turnover.

3. Generating recruitment reports

A key aspect of an HR team’s KPI is its recruitment performance. The amount of time and money spent on hires, the number of candidates attracted, and the quality of new hires together determine the effectiveness of recruitment teams. However, measuring these performance indicators for large enterprises can be difficult, as they have to go through large volumes of data for the same.

And the result of these analyses needs to be communicated to senior HR leaders so they can make improved hiring decisions. By using AI-enabled HR analytics and natural language generation technology, these enterprises can generate insightful recruitment performance reports.

These NLG-enabled reports written in an easy-to-comprehend human-like language, minimize the chances of misinterpretation. And also enable standardization of information, minimize the risk of clerical errors and ensure compliance. Using such reporting automation in HR management, HR leaders can have the necessary insights at their fingertips to make optimal decisions using real-time information to stay ahead of the curve in terms of hiring the best talent.

The debate on whether artificial intelligence can completely replace humans in the workforce still rages on. However, what is certain for now is that by using intelligent automation for HR operations, leading enterprises can ensure that they hire the right people, keep them for longer, and help them contribute more to organizational success.


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