The Power of AI in HR: 5 Ways to Boost Your Business
When applied thoughtfully, AI has the power to transform and inspire great workplaces. It can influence how your organization attracts, hires, and retains talent.
According to The Society for Human Resources Management, 25% of organizations use AI to support HR-related activities. That number is only expected to grow over the next five years.
But, as global consulting firm McKinsey explains, a “human-first” approach is key. While data forms the backbone of AI, using generative AI in HR can only be effective when applied in an intentional, safe, personalized, and thoughtful way where people are always in the driver’s seat. All of this starts with the initial design, where AI and data is used ethically and responsibly following core principles ensuring people and workplaces thrive.
As you develop your AI strategy, keep these five ideas top of mind to help you boost productivity, adapt to and anticipate employee needs, and develop a more thoughtful people strategy.
5 ways to apply AI in HR to boost your business and your people
1. Personalized career and professional development
In 2022, 50.5 million people quit their jobs in what became the Great Resignation. Most cited feeling disrespected, low pay, and no opportunities for advancement as their primary reasons for leaving. So, it’s no surprise that career growth and retaining top talent has reached a new level of urgency.
Increasingly, companies recognize the value of on-the-job training and employee upskilling because there aren't enough candidates with the necessary skills and expertise. Using AI algorithms to analyze employee data can help you identify an employee’s strengths and weaknesses.
This allows you to create personalized training programs according to an employee's needs and learning style. It’s also critical in supporting your essential frontline workers. AI-powered training programs have made upskilling scalable and cost-effective.
Generative AI in HR has the highest potential to supercharge learning and identify growth opportunities. In fact, career development can start before a new hire’s first day. When new employees are onboarded, they’ll understand possible career trajectories within the organization and the skills needed to grow.
2. Streamlined candidate sourcing
Seventy-nine percent of HR departments already employ AI and automation for recruitment and hiring to save time and money. AI automates repetitive tasks like interview scheduling and resume screening and can be used to reach a larger pool of candidates.
AI excels in a few areas:
- Improved and optimized job descriptions: Certain AI programs can analyze your job descriptions and suggest changes, such as using inclusive language and improving SEO, or they can write job descriptions from scratch with optimized information that ranks high on search engines.
- Applicant tracking systems (ATS): From finding potential candidates to successfully onboarding new hires, this system utilizes advanced machine learning algorithms to automate and simplify recruitment.
- Personalized communication: AI chatbots can answer inquiries, arrange interviews, and inform candidates of their application status. Generative AI in HR allows personalized communication at scale. As a result, the candidate experience is streamlined and pleasant, which improves the chances of attracting top talent.
- Tailored interview questions: AI can also develop role-specific questions that are more engaging and relevant. Questions can be tailored to determine technical proficiency and assess soft skills.
3. Unbiased and adaptive aptitude testing
In the past, recruiters manually conducted pre-employment assessments. Now, AI-powered tools administer tests, evaluate responses, and provide results quickly, saving time and money.
But, more than that, conventional screening methods are susceptible to unconscious bias, resulting in the oversight of qualified candidates based on gender, ethnicity, or socio-economic background.
In contrast, AI algorithms created objectively analyze candidate data, solely focusing on relevant qualifications and abilities. This fosters a diverse and inclusive workplace, ensuring equal opportunities for all candidates to demonstrate their talents.
Such an approach optimizes assessment accuracy and comprehensively evaluates an individual’s abilities. Research from Stanford University found companies that use AI-driven candidate scores increase female hires by 72% and underrepresented ethnic groups by 58%.
Keep in mind: AI detection is also needed to determine if a candidate's response is nothing more than a machine. Hence, the importance of implementing AI correctly and the need for human oversight.
4. Improved onboarding and performance management
An employee’s initial training can greatly impact their success in their new role.
Once a new employee is hired, generative AI can play a vital role in their onboarding and training process. AI can assist by generating personalized training materials and resources according to the employee’s background, skills, and learning preferences. This aids in quick and efficient acclimation to their new role, improving productivity, engagement, and job satisfaction.
Previously, managers were heavily involved in conventional performance reviews. They were responsible for gathering employee feedback and rating their performance, ultimately deciding a person’s career trajectory.
When managers must evaluate a large group of employees, it can be taxing and result in personal biases and human errors. In other words, conclusions may be based on incomplete data and favouritism.
Because AI-powered performance management is data-driven, it eliminates human error and helps managers provide objective feedback that benefits employees and the business.
It also means performance appraisals can occur more often, creating more agile and flexible workforces. AI continuously captures data and can show real-time insights, saving time for assessing and preparing performance reviews.
5. Efficient reporting
And finally, AI offers the opportunity for conversational reporting. Instead of searching for answers, managers and employees can input questions and queries that return accurate and timely reports and summaries.
It also enables leaders to get real-time feedback on their management and leadership effectiveness with key recommendations and action plans.
Evaluating generative AI in HR
When you’re evaluating how AI technology can support your HR strategy, consider these questions:
- How will the technology enable me to improve employee engagement, performance, feedback, growth opportunities for my employees?
- How will it help me be more efficient in the recruiting process?
- How will it support me in reporting, analyzing, and understanding my people data?
- How will it help me advance the careers of my employees, particularly my frontline employees?
Using generative AI to improve your employee experience
At UKG, our comprehensive tools and technologies provide HR leaders and managers with valuable insights to optimize employee engagement, performance, and overall business success.
With advanced AI-assisted search capabilities, conversational reporting, and job description and feedback assistants, our solutions empower you and your team to inspire greatness in your workplace.
Explore AI-powered HCM suites designed for large organizations and small-to-medium businesses to see how we’re transforming the workplace experience with AI.
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