Main challenges in HR
For many years, one of the main challenges of Human Resource managers has been converting the information gathered from employees into useful insights for decision making, as well as to effectively measure the return on investment in human talent.
"91% of organizations currently use basic data analysis tools such as excel spreadsheets, data visualization tools, among others. While only 6% use cognitive tools for support in decision making within the HR department." Deloitte Study
The Vice President of Talent at Deloitte Consulting in San Francisco, Kathi Enderes, stated that in order to generate a high return on investment in technology, the data that is entered into the systems must be accurate and updated. The team that analyzes this data needs to have broad experience in analytics. Moreover, those in charge of making data-powered decisions need to have real time access to these insights”.
According to the report published by HRPA called "What does Artificial Intelligence mean for HR Professionals?" Human Resource professionals clearly aim to incorporate new technology into their work in the upcoming years. However, they claim that they still do not fully understand the capabilities nor the benefits of using such technology, preventing them from taking full advantage of it.
How can AI be useful in Human Resources?
Artificial Intelligence is a technology that is dedicated to imitating human intelligence with the help of machines that are trained to collect and interpret information. Through trial and error, machines learn and refine results to obtain answers and recommend optimal solutions tailored to the requested task. Thus, AI finds recurring patterns throughout the entire set of collected information to be able to predict trends, and help automate routine tasks, with the help of regular human training and feedback.
The current HR challenges that can be addressed by AI are the following:
- Helping to reduce and optimize the time that recruiters spend on administrative tasks.
- Making the recruiting process more objective, finding the right candidate whose skill set is the best match for the position.
- Supporting the onboarding process, helping new employees improve their integration experience in the company.
- Improving employee retention. Depending on which AI tool is used, this aspect can be covered in different ways, such as: (1) Promotion of internal mobility by evaluating the skills and the potential of employees; (2) Measuring the level of employee well-being and preventing high levels of staff turnover, by analyzing employee mental health.
As a matter of fact, a forecast made by McKinsey consultancy regarding the future of Machine Learning states that by 2030, the impact that AI will have on the global economy is estimated to be $13 billion USD. This estimation makes sense, as we are already witnessing an exponential growth in the AI industry that is expected to grow even faster.
From candidate selection and onboarding process to employee retention and productivity, the unprecedented rate of technological advancement allows executives and HR managers to make data-powered decisions that not only simplify routine tasks, but also encourage the team to focus on strategic planning and to minimize the operating costs.