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AI in HR

Application of AI in HR and why it is worth your money?

Human workflows and the new application of AI in HR are creating a responsive system to simplify employee management processes. This has expanded the HR department’s work from hiring and offboarding to a lot more in between. The new-age HR has to be smart enough to know where they need to invest their valuable time through intelligent automation. 

This blog will talk about all the applications that are prevalent in AI for HR, as well as AI for employee recruitment and career development that are being used today. It will also detail what makes AI for HR solutions a necessary investment.

Application of AI in HR

From talent acquisition to exit interviews, AI in HR helps address the common issues that crop up during the employee journey, and a lot more. Here are a few areas where conversational AI can bring about a change.

#1: Talent Acquisition

It is crucial to find a candidate that fits the role. Otherwise, it incurs unnecessary costs and creates futile issues within the organization. Therefore, talent acquisition is important for the growth of the company and must be meticulously planned. 

However, the major challenge while recruiting candidates is that it is a time-consuming process—filled with recurring processes and administrative tasks.  And if done manually, there are high chances of errors and delays. Thus, it is important that AI HR software steps in and takes the baton wherever human intervention can be skipped.

Here are a few ways AI in HR can be used for talent acquisition:

  • Targeting and shortlisting of candidates: AI is well adapted for using a combination of keywords and data to search for the relevant profiles. This helps reach the right candidate in a sea of job seekers. 
  • Making real-time first touch contact: AI for HR solutions excels in setting push notifications that go out to the relevant candidates who match the required skill set.
  • Prediction of employee performance and extrapolation: AI can help transform talent acquisition by predicting employee performance based on data collected from the candidate. This will help curb wrong hiring and reduce the attrition rate.

Apart from these functions, AI for HR solutions helps the HR person or department save both time and resources. It also sets up processes and sends out notifications and reminders of upcoming interviews. For more information on how AI is shaping the talent acquisition process, check out our report State on Employee Onboarding 2022.

#2: Interview Process

Creating an engaging interview experience is the first step for establishing a positive employee experience. Even if the candidate is not hired, a good and engaging experience, with the application of AI in HR, creates positive word of mouth for the organization, which helps in future hiring. 

Conversational AI and artificial intelligent automation for Human Resource functions are great at creating engaging conversations and collecting the relevant data from the candidates to fine-tune the hiring process. Here are some ways AI excels in supplementing the interview process.

  • Giving candidates and HRs flexibility of appointments: Automated processes by AI HR software can give control in the hands of the candidates and employees. Candidates can get the convenience of rescheduling and setting appointments themselves. And for HRs, it becomes easier for them to track interviews and plan the hiring process.
  • Real-time intimation and reminders: Instant updates to all touch-points and reminders are one of the greatest advantages of using AI in HR. They also get updated on upcoming events, and interviews, and can send out intimation messages to all relevant stakeholders in one go.
  • Data preparation and analytics for interview: AI for HR solutions also helps the managers prepare targeted questions based on candidates’ data and skills. This saves a lot of time for HR that would have otherwise gone into research and collection of data.

#3: Selection of Candidates

While employees are hired based on human judgment, AI for HR solutions can help candidates create mental and physical bandwidth for HR. With clear evaluation standards and data-based decision-making, AI helps HRs make better hiring decisions.

Application of AI in HR helps HR select candidates in the following ways.

  • Behavior anticipation: AI for HR solutions anticipates the candidate’s behavior and helps predict their performance. These decisions are based on the data collected during the recruitment process and are mostly unbiased.
  • Data collation: Artificial intelligence tools collate data regarding remuneration as per the industry standards, and attach them to various designations. This saves a lot of time on HR’s part in checking data to create an offer accordingly.
Selection of candidates

#4: Onboarding of New Joiner

The work of HR does not end when the right candidate is hired. Employee onboarding is one of the most important processes in the hiring lifecycle. The onboarding of the new hire should be comfortable and synced with the company’s goals and objectives. There are multiple documents, training, and procedures involved, including employee orientation.

The entire process can be a repetitive and redundant process for HRs. This is because no matter how diverse the departments, hiring practices remain the same. Here’s how AI HR management can help with the onboarding process.

  • Application of AI in HR reduces paperwork: The right AI tool eases the administrative burden by giving the new hire access to the right set of documents with ease. It also sends them reminders for the same, thus making sure that the paperwork completes on time.
    The employee onboarding tool also pushes out the preliminary formalities such as sending the welcome email, setting up meetings with the team, etc.
  • AI helps with better query resolution: Having a conversational AI in various languages puts the new hires at ease and also addresses all their common concerns. 

According to our report, ‘2022 – State of Employee Onboarding in the US’, we found that companies spend an average of USD 100 on getting new hires comfortable in the workspace, giving them a platform to get started with work. With the right AI-powered process, companies will be able to bring down these costs and at the same time bring more efficiency to the process. 

#5: Career Development

The insertion of artificial intelligence into human resource management is not only useful when it comes to hiring and onboarding, but also in escalating employee development. Employee training and development is an important aspect as it prevents stagnancy in growth, which, if not addressed, may lead to the exit of the employee. 

HRs with the help of AI and its various surveys can ensure that the management comes to know if there are employees who feel their growth is restricted. AI for HR solutions also goes a step further and suggests solutions based on data collected. This helps the HRs devise relevant employee development plans and other steps that keep the employees engaged and invested in their career development. This keeps unnecessary attrition in check as well.

AI is also helpful to the employees. Based on the data collected, it recommends courses and plans to different employees, encouraging them to carve their growth path in the organization. This individual career planning collectively benefits the organization, as each employee grows and becomes more productive.

#6: Compensation Determination

Figuring out the compensation and subsequent increment for each employee is a tricky business. It requires in-depth research, statistics, and a detailed assessment of the employee to figure out how much is their monetary and conditional worth within the organization. However, as the organization grows, it becomes impossible for HR to do it manually. Even with many people in the HR department, it becomes a complicated process. In worst-case scenarios, it may also be hampered by bias.

That’s why the application of AI in HR is better and more efficient in providing the right insights that help determine employee compensation. The right kind of software collects employee data and provides insights based on their skill set and performance. Whether it is a new hire or an employee who has been with the organization for a long time, the AI HR management software uses the same technique to provide near-accurate reports.

#7: AI in Remote Working

The COVID-19 pandemic has been a great disruption that changed the way of work. Among the changes it brought, remote working is one of the biggest and most significant. 

However, this meant connecting virtually, over various servers, and across the globe. Technology and AI have helped streamline it. Virtual calls and engagement activities helped employees feel connected to each other and their teams, enhancing the company culture. Work from home surveys further helped understand the employee psyche. The future is going to be similar.

In such a scenario, AI and HR will be crucial in managing a remote workforce. It takes care of the relevant paperwork and makes life easy for the entire organization. By removing the routine paperwork, AI allows HRs to focus on their employee’s welfare with ease. From automated query resolution, tracking of progress, and almost real-time updates on requests, AI makes it simple for HRs to bring the human side into their interactions.

Applications of AI in HR

Is AI for HR worth it?

The role of AI in Human Resource management is changing the way HR works. As per the Oracle and Future Workplace AI at Work Global Study 2019, nearly 50% of the employees use AI in HR in some form or other. However, it’s a positive change. As per the study, nearly 65% of the workers are more optimistic when there are robots or AI HR software at work due to the efficiency they bring in.

Trust and optimism are important when it comes to enhancing the employee experience, whether that of a new employee or an existing one. AI for HR solutions can deliver this without fail. Conversational AI not only helps elevate employee experience but also makes the life of HRs easier by saving their time and energy. 

A synergy between man and machine is crucial in the future. Any investment made in AI-powered processes and tools is therefore going to yield great dividends in the future. The need of the hour is to start today

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Rakesh Ningthoujam

Rakesh N is a content marketer at Leena AI. A mechanical engineer graduate from NIT Manipur, he has one rule for the content he pushes out—deliver value succinctly. When he is not writing, analysing trends and Pink Floyd are his thing.

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