The current business landscape is rife with competition and very demanding. Each month, thousands of small businesses and startups emerge from different parts of the world only to fail eventually.
One of the main reasons why businesses fail is poor efficiency along with a lack of talented personnel. Besides, a lot of companies are also falling behind in adopting new technologies to stay ahead of the competition.
While there are a host of reasons which can influence a company’s growth or downfall, we will focus on only one aspect today, and that is human resources (HR).
Today, trends suggest that companies of all shapes and sizes are looking to increase their HR investments by leveraging the benefits of artificial intelligence (AI)-powered HR tools.
While the sales and marketing teams have been at the forefront of using advanced tech to stay ahead of the game, the HR department is late to the party.
With the growing popularity of AI and machine learning, a plethora of HR tools driven by AI has been developed in recent years. Besides these HR platforms, a bunch of standalone applications which directly or indirectly assist in one or multiple HR functions has garnered immense popularity.
Today, we will explore how AI is changing the game in the corporate world and conquering more minds and hearts at workplaces.
Let’s take a look at some of the key areas of human resource management which AI is transforming for the better.
SEE ALSO: “It’s Not HR Tech” – Ryan Ross Talks About AI’s Pros & Cons in Human Resources
Critical areas of HR and how AI is transforming them
As investment in advanced and state-of-the-art HR technologies grows, we are seeing some interesting innovations in the HR space.
1. Artificial intelligence (AI) in recruitment
AI has made candidate screening, matching, and sourcing a breeze for companies. Apart from boosting efficiency levels, AI has also empowered HR leaders to tackle human bias in informed decision-making.
Typical recruitment and talent acquisition is a time-consuming process. This process is slowed down by a range of activities including waiting for approvals, candidate screening, and more.
AI can help companies find the right talent at the right time. It is no secret that companies need to market their open positions due to the increasingly tight labor market. This is where AI can step in and help companies in sourcing the right resource at the right time.
AI can be used to search for the most ideal candidates, recommend jobs to candidates, and also predict how the candidates will perform. Apart from sourcing, AI offers tremendous potential during the interview stage, providing an engaging experience to the candidates.
2. Artificial intelligence in talent management
In the current scenario, employee retention is one of the biggest challenges for companies. One major area which continues to receive the spotlight is talent management, inspired by a workplace where four generations work alongside each other.
Not many companies have capitalized on the opportunities of modern talent management and continue to see high turnover rates. Some of the major reasons include conventional succession planning, passive career development, compensation expectations, and rigid learning.
In this case, AI can add considerable value with smart suggestions for reading and courses that will equip employees to perform better in their day-to-day duties. Besides, AI can also help organizations gather valuable insights related to each employee’s career progression and display them in a customized manner.
Another growing concern within the labor market is compensation. As employees are becoming increasingly confident in seeking jobs in other organizations or asking for a pay rise to enhance their quality of life, employers find themselves in a catch twenty-two situation.
Here, HR leaders can leverage AI to work strategically and study competitor trends to ensure they secure the services of the best talent.
3. Artificial intelligence in developing and learning
The stakes for efficient learning and development have never been higher before. The evolving nature of technology is transforming the definition of employment, which is why companies cannot treat skill acquisition and learning as luxury.
As harsh as it may sound, the World Economic Forum predicts that automation will replace at least 75 million jobs. The good news is that it will also create around 133 million new jobs across the world in 2022 [1]. Hence, employees should adapt and eliminate the possibility of becoming irrelevant.
Empowering yourself with new skills and knowledge is one of the best ways to stay competitive. It also enables companies to get rid of skill gaps, retain the top talent, and promote development.
However, currently, even organizations that are prioritizing learning are facing challenges as the curriculum is primarily focused on boosting compliance instead of workforce development and performance.
Employees from different departments should learn together and exchange knowledge, and AI can help them pair up.
Besides, artificial intelligence (AI) can also provide personalized training, optimize learning administration, and encourage collaborative learning.
4. Artificial intelligence in employee benefits
We will keep this one short and sweet.
Automation along with artificial intelligence (AI) can simplify the implementation, administration, and management of employee benefits.
HR bots are being deployed by companies to understand the pulse of their employees and identify the areas for improvement. These chatbots offer human-like and natural communication tool that engages users with personalized conversations.
At the moment, AI in benefits administration includes benefits compliance, communication, personalization, and automation.
AI in human resources (HR) is here to stay
Progress in artificial intelligence and machine learning are playing an important role in transforming HR. The introduction of AI in HR management has led to some interesting developments in how companies hire, retain, and manage their employees.
On the other hand, these technologies have helped candidates find relevant jobs and get hired effortlessly. We are seeing a noteworthy shift in how companies are interacting with technology and their employees.
The introduction of automation driven by artificial intelligence (AI) will continue to benefit HR leaders for years to come. Besides, companies need to focus on personalizing their approach to implement AI successfully and fulfill the evolving expectations of their employees.
For more latest news and updates, keep reading iTMunch
SEE ALSO: Machine learning in human resources: how it works & its real-world applications
Feature Image Source: rawpixel.com
Image 1 Source: rawpixel.com
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Source:
[1] (2018) “The Future of Jobs Report 2018” World Economic Forum [online] [accessed April 2022]
