The impact of Artificial Intelligence on Human Resources is much more than what we can imagine.
Global Human Resources is estimated to be a USD 38 Billion industry by 2027 with an ever-increasing need to smartly influence decisions & strategies. The new times have changed the playing field by enforcing industries to go remote & digital, making the role of Artificial Intelligence in HR Management crucial than ever.
The future of the workplace is remote. Here are 5 changing dynamics where AI is paving the way to a smarter & un-opinionated HR industry.
Smarter ways of Hiring
The impact of the AI-influenced processes is felt more in hiring the right candidate for the job. For instance, The Job Intelligence Maestro (JIM) for DBS Talent Acquisition Team reduced the screening time from 30 minutes to 8 minutes per candidate.
AI helps in creating an ideal applicant profile for a job based on previously hired applicants and suggests jobs for newly added applicants after matching his profile and the ideal profile. AI can be leveraged to predict hiring needs of a company using previous years’ data and while hiring, show some questions to the interviewer that can be asked based on candidate profile.
Reducing Employee Attrition
A smarter process will not only allow the right candidates for the job but also reduce the cost to replace an undesirable hire.
With the help of AI, HRs can now track the satisfaction levels of their employees. They can address their pain points and challenges long before the red flag appears. They can examine subtle cues and rely on AI to highlight shifts in their employee’s behavior and the managers can intervene at the right time, before it gets too late.
Promoting Employee Wellness
As the size of your workforce grows, it becomes imperative that you rely on trustworthy data that allows your business to have a happier employee population while reducing employee dissatisfaction. Sentiment Analysis can help understand the general mood of the employees, the general satisfaction with the way things are & can potentially notify the management of the smallest challenges faced by employees.
AI helps to create personalized schedules & reports that focus on empowering the availability of your employees & allowing them to maintain a healthy work-life balance.
AI Enabled Chatbots
Chatbots are the prime application of AI in establishing long-lasting and solid processes. Chatbots can be leveraged to resolve frequent queries from employees, providing documents as per employee request. They are also useful in verifying employee documents. New joiners can understand the company policies by just asking the bot.
They maintain candidate engagement throughout the onboarding process and also aids in the pre-screening process during recruitment. Chatbots are also being used to share the load of recruiters, thereby providing them the freedom to focus on the human element of HR.
Impact on Payroll
The demand for AI in the payroll space is massive, the cloud-based payroll software market was valued at roughly $7.88 billion, a figure that’s expected to balloon to $13.37 billion by 2026.
Payroll processing is dependent on managing massive data sets, all of which are subject to heavily complicated and constantly changing compliance rules. This is where AI steps in. AI significantly reduces the likelihood and severity of human errors while ensuring compliances are met.
Predictive analytics can help understand what might happen in the future based on current and historical data. Predictive models are often used to assist with finances, such as budgetary assistance, and cutting down on unnecessary expenses. These tools can be used to predict unforeseen circumstances, allowing leaders to think of creative solutions well before time.
It can also suggest increments considering appraisal history, peer scores, team rating and current trend in the organization.
To summarize, AI in HR management is not a question of if, but a question of when. However, with AI already starting to pull its weight in the HR industry, it remains our responsibility to maintain the human element in Human Resources.
It is, thus, right to say that AI applications not only help in simplifying the HR functions but also the lives of various HR professionals. However, it is crucial to choose the right HRMS.
We, at happierWork, commit to providing a user-friendly HRMS that covers all the above awesomeness and adds an employee engagement platform as a topping on the muffin. We, the team of happierWork, work hard to spread happiness by futurifying HR and taking the stress out of an HR’s life.