5 Ways AI is Reshaping the Human Resources Industry

Innovative technologies have changed the way many industries function, and human resources is no exception. Software can now replace many of the most common recurring tasks. Further, the industry is now generating large troves of data that is providing insight into some of HR’s most pressing challenges.

Here are a few of the ways that HR professionals and departments are leveraging artificial intelligence to improve the hiring and employee management process.

Candidate Screening

On average, HR departments receive hundreds of applications per listing. In some industries, there are an average of 250 applicants applying for each position.  Vetting all of these candidates by hand is a time-consuming process.

Applicant Tracking Systems (ATS) streamline candidate screening. When applicants enter the system, the ATS scans their resumes based on mandatory or preferred qualifications. These AI-enhanced screenings quickly remove unqualified candidates from the running.

Complementary software can improve ATS by tracking the candidates who are hired and excel in each position. For example, rather than relying on quarterly or annual reviews, HR departments can use performance management software to continuously provide feedback to employees. This enables HR to identify the skills and experiences that are the most reliable indicators of new hire success.

Automated Onboarded

New hires typically go through an onboarding process that includes orientation and signing essential documents. In companies with dozens or hundreds of employees, managing hires at various stages in the onboarding process can be complex.

HR departments have adopted virtual platforms to deliver and track new hire onboarding. These systems can be tailored to a company or department’s needs. For example, the system may contain a messaging system, calendar, and training video library. New hires may also be able to receive, sign, and store forms digitally.

Many of these platforms also automatically request employee feedback. As a result, HR can evaluate the success of its onboarding program in real-time, and make adjustments as necessary.

Benefits Administration

HR personnel are responsible for managing employee benefits. This includes those mandated by the government. Benefits administration is also essential for proper worker classification. Systems must accommodate both contractors and employees to avoid ambiguity between the two designations.

Any errors in benefits administration can lead to, at minimum, employee dissatisfaction and delays. At worst, companies can incur serious fines and even face legal action.

In order to calculate and distribute benefits accurately, companies should implement software that tracks employee hours, payroll, taxes, and other deductions. A virtual HR ticketing system allows benefits administrators to respond to employee questions and concerns in a timely manner.

In addition to educating employees about their benefits, HR departments must also coordinate with benefits vendors. Tracking software can assist with procurement and managing recurring costs.

Employee Tracking

HR departments are tasked with measuring employee engagement to cultivate talent and reduce retention. The signs of employee disengagement are often noted too late.

Burned-out professionals are much less productive than their engaged counterparts. Replacing employees is also expensive. Industry surveys have shown that employees are highly motivated by professional development opportunities and recognition programs.

HR personnel can use AI models to track employee productivity and offer effective incentives.  For example, employee monitoring systems can track employee behavior, analyze productivity, and provide individualized learning opportunities.

These models can also identify employees in the early stages of disengagement. This ensures that retention plans, such as flexible work or different job responsibilities, can be offered as soon as possible.

Employee tracking is also essential for managing remote employees. Advanced productivity tracking systems have enabled many companies to pivot to distributed teams. As the ability to work from home is a desirable benefit, companies that integrate AI into their workflows are much more competitive.

People and Data Analytics

As the HR industry implements AI technologies into its processes, the sector is gaining valuable data-driven insights. The prevalence of data collecting software has given rise to the field of people analytics.

HR departments can now use employee data to identify contributors to issues such as hiring bias, employee retention, and talent development.

For example, studies have shown that recruiters’ unconscious biases can affect the candidate selection process. This can reduce employee diversity and make it more difficult to recruit from wider talent pools.

AI software scans and evaluates data for forms of bias. Studies using data analytics found that job descriptions with masculine language attracted fewer women. As a result, HR departments now invest in tools to track and reduce gendered wording in job advertisements and descriptions. Companies that implement these changes have noted an increase in women and female-identified candidates.