The digital world is transforming our lives. Precipitously, our work is changing, the way we handle business, and even our daily activities. And just as it impacts all areas and aspects of this accelerated world, digital transformation has also proven to have fundamental consequences in Human Resources management.
Human Resources (HR) is a function driven by people, the name says so. Therefore, it is understandable to think that artificial intelligence (AI) is useful for other departments. After all, a machine can never reproduce the nuances, comfort, and empathy of a relationship between people. You cannot search, recruit, hire, train, direct, advise and fire human beings with algorithms, or at least, not without facing considerable problems. However, AI has its place in the future of HR. If the departments do not accept it, they might fall behind and not keep up with the change. Companies and their HR teams, therefore, have to think about how to use AI to structure and direct the work. If you are running an HR department.
Companies today are going through a process of adaptation to the new Digital Trends, specifically incorporating Artificial Intelligence in Human Resources, for example, to face problems, streamline processes and make daily tasks more efficient. And it is thanks to this transformation, that Human Resources can help managers and employees to change towards a digital mindset.
Digital human resources can also configure the entire experience of employees by changing procedures, structures, and relationships within an organization, through new advanced systems, applications, and tools.
Human resources management has been completely transformed thanks to the digital connection. Helped, for example, to reduce the turnover rate and increase the retention rate, among other improvements.
One of the great advantages of process automation is that it can save the time of the members of the HR area. The task that an employee spends hours doing could be reduced to minutes through automation, allowing his work to focus on more creative and strategic tasks.
It’s quite simple, AI cannot discriminate unless it has been programmed for it. He does not care about gender, experience, race, sexual orientation, or any other prejudice that may consciously or subconsciously influence a recruitment process or HR decision.
Machine learning algorithms already help in the blind recruitment function with the most appropriate candidates. For example, Unilever, the international consumer goods company, to protect itself from the inevitable prejudices, has created an AI system in which each candidate is entrusted to make a series of games and compares their performance with a personality profile settled down. This redirects the decision making around relevant capabilities, which makes all candidates equal in the eyes of the recruiter.
However, not all recruitment and HR departments will have the Unilever budget level, but there are systems and processes inspired by AI that can help soften the effects of prejudices in the process of recruiting and managing people. Take advantage of them!
It is very easy to think of AI as a technology primarily focused on job substitution. But globally, this is a plan with little vision for the future. The invention of the mechanical loom did not cause massive unemployment, even if it made some papers obsolete. However, technological unemployment is a real phenomenon, even if, as John Maynard Keynes said, it is a temporary state of ‘ maladjustment ‘ rather than an immutable status quo. A department cannot think only of the myriad process improvements that AI can bring, it also has to think about people. Some of them will inevitably lose their jobs because of the advances in this new technology. As long as possible, this should be avoided.
Thus, a clear operational priority should be to identify which individuals are most at risk due to technological redundancy and think of possible other uses for them. Whenever possible, opportunities for capacity renewal and training should be made available. Each employee deserves to have the opportunity to develop emotionally, economically, and intellectually in their work, and few deserve to lose their jobs because of an employer who has not done enough to prepare for new technologies.
Consequently, if you are playing an HR function, you may have to change your thinking. When the AI automates the processes that people used to perform, the HR department has to focus on those processes that the machines cannot perform, so that it does not become an exclusively administrative function. So, customize the HR function offered for the people you have and will continue to get the most value from them if it is no longer possible for them to perform their original work.
Peer Management Systems
Finally, AI will not replace the need for you to manage your interactions with colleagues in other departments, but it will make it easier to do so. For example, frequently asked questions and problems can be handled automatically and technologically, thus saving your department time and giving you more space to deal with major problems. Besides, with machine learning, these systems will only improve when dealing with common problems and requests.
The fact of freeing employees from performing operational tasks leaves them time to concentrate on more important jobs. In a short time, you will notice the great increase in the productivity of organizations due to the incorporation of Artificial Intelligence in Human Resources. Also, employees become more active and motivated when they are exempted from operational tasks, reducing the risk of a high turnover rate.
Incorporating Artificial Intelligence in HR can help find solutions for the main issues related to employee demotivation, how to reduce it, among others. But how?
Human error can cause a lot of damage to a company. The loss of personal data of employees could cause legal conflicts and other problems with the tax authorities. Automation reduces the risk of error and can help store any worker’s data for as long as required.
The functions of digital HR have become crucial for companies to retain and attract talent, and in this regard, employees expect much from HR leaders. Artificial intelligence has already earned a place in the world of HR and will be increasingly important.
Artificial Intelligence in Human Resources: Improvement of different processes
The incorporation of Artificial Intelligence in the management of Human Resources helps to improve different processes. There are several objectives that a human resources manager has to fulfill, such as promoting the organizational culture, quantifying and controlling the retention rate and employee drop-out rate, etc. AI has proven to be impacting the human resources area in an organization effectively.
Benefits of the Integration of Artificial Intelligence in HR:
1- The role of AI in the recruitment and hiring process.
No matter how much a person abstains from being partial, there will always be some kind of impartiality when it comes to human beings. The use of AI in recruitment reduces the risk of biased recruitment. Enter merit by the algorithm and knowledge-driven data.
In the future, job seekers will apply only to companies that implement job searches with digital AI processes. This technology can help find the right candidates without any human interference. Automation is also useful for the job interview instance since it allows multiple data sources to be processed by providing more information about the candidates. Also, during the process, you can maintain permanent communication with the applicants by answering their queries simply and authentically.
In this way, it is very likely that by 2019 the hiring process will be based mostly on the talent of the candidate, which will make the recruitment process more reliable and simple.
Digital technologies improve the efficiency of the recruitment process, without favoring candidates and at the same time, guaranteeing not losing talent. Automation ensures that each curriculum is analyzed in-depth and without bias.
2- Identify and attract talents
Artificial intelligence in human resources attracts the best talent for organizations as it allows you to review the CVs identifying the most deserving candidates without any bias. There are great possibilities that, in the coming years, mobile technology and applications will be used for talent acquisition.
This important change in talent management transforms the way employees value their jobs, the relationship with their leaders and how they perceive that their work contributes to the growth of the organization.
Keeping employees’ turnover and demotivation rates low are some of the main concerns of human resources managers and, at the same time, focusing on enhancing the best talent and retaining star workers are their most important functions.
Some companies may have trouble keeping one of the most important indicators of their human resources management: demotivation. Because it is a determining indicator, the Human Resources area must have an efficient tool to analyze and reduce the demotivation rate, and Artificial Intelligence is the best option in this regard. Human Resources teams can take advantage of the predictive capabilities of Artificial Intelligence so as not to let the workforce disintegrate or demotivate, and to convince workers to stay in the company if they are not very determined.
3- It improves the organizational values and strengthens the organizational culture
Each organization has a set of organizational values that guide the day to day of the company. With digital HR, it helps improve organizational values and strengthen corporate culture. Digital human resources focus on data, providing standardized services and freeing employees from hard work.
Being able to access the correct data available is crucial in Human Resources. For example, digital human resources management allows you to keep track of what health insurance each employee has and how many days of annual leave they have left, avoiding tedious searches for data in paper documents.
The introduction of Artificial Intelligence offers the opportunity to think about new Human Resources solutions. Solutions with analytical capabilities, unlike traditional basic systems that are used today. And most importantly, Digital HR allows an integrated platform for systems and applications processing.
4- Artificial Intelligence and talent retention.
Personnel turnover is the most crucial problem for any company. When a person leaves his position for any reason, it is very expensive for the organization; it takes time and effort to identify, hire and train a person to cover the position. This time-consuming process could affect the profitability of the business.
To prevent the company from losing talent, you must first automate processes to save employees time. This will improve retention by allowing them to concentrate on the most important tasks instead of focusing on basic tasks. Companies that plan to grow in the future are considering AI capabilities to simplify work in the organization. IA helps to analyze the data of the systems quickly, allowing for example that the Managers identify areas of improvement, or identifying which employee deserves a promotion and when; or why he is going to leave.
Artificial intelligence has proven effective for all sectors, generating significant results for all companies that have incorporated it into their different business activity processes. And, therefore, it would not be incorrect to state that the companies that have adopted Artificial Intelligence have grown exceptionally well, positioning themselves favorably in the face of competition.