ARTIFICIAL INTELLIGENCE IN HUMAN RESOURCE MANAGEMENT

 Introduction

Artificial intelligence (AI) is rapidly transforming various aspects of our lives, and Human Resource Management (HRM) is no exception. HRM encompasses a wide range of practices, including recruitment, talent management, employee engagement, performance management, and HR analytics, which can all benefit from the integration of AI technologies.

AI refers to the ability of machines or computer systems to perform tasks that typically require human intelligence, such as visual perception, speech recognition, decision-making, and problem-solving. With the advancement of AI technologies, HRM is witnessing a shift towards more data-driven and automated HR practices, which can significantly impact how HR professionals carry out their roles and responsibilities.

A recent survey conducted by Oracle and Future Workplace found that human resources professionals believe AI can present opportunities for mastering new skills and gaining more free time, allowing HR professionals to expand their current roles in order to be more strategic within their organisation. (Scott W. O'Connor, 2020)

This article provides an overview of how AI is being utilized in HRM and discusses its implications for the future of HR practices.

Applications of AI in HRM practices

1.   1. Recruiting and On-boarding:

Recruitment involves identifying and attracting qualified candidates to fill vacant positions in an organisation. AI has been increasingly used in recruitment processes such as job posting, resume screening, candidate short listing, and interview scheduling.

AI-powered recruitment tools leverage natural language processing (NLP) and machine learning algorithms to analyze job descriptions, screen resumes, and match candidates with job requirements. These tools can quickly scan and analyze a large number of resumes, saving HR professionals significant time and effort in the initial screening process.

For example, some companies are using AI-powered chatbots to engage with potential candidates, answer their questions, and provide information about job openings, which can enhance the candidate experience and improve the overall recruitment process.

 

1.    2. AI in Talent Management:

Talent management involves attracting, developing, and retaining high-performing employees in an organisation. AI supports talent management by providing data-driven insights and recommendations for employee development, performance evaluation, and succession planning.

For instance, AI-powered performance management systems can automatically collect and analyze data on employee performance, such as key performance indicators (KPIs), feedback from managers and peers, and other relevant metrics, to provide real-time feedback and coaching to employees and  also identify skill gaps and suggest personalized learning and development opportunities for employees.

2.    3. AI in Employee Engagement:

AI can help HR professionals measure and improve employee engagement by leveraging data analytics and machine learning algorithms.

For example, AI-powered sentiment analysis tools can analyze employee feedback from various sources, such as surveys, social media, and performance reviews, to identify patterns and trends in employee sentiment. This information can help HR professionals gain insights into employee perceptions, needs, and preferences, and tailor engagement strategies accordingly. Chatbots and virtual assistants can be used to provide personalized and timely communication with employees, answer questions and address concern on a real-time basis.

4. AI in HR data analytics:

AI can automate data collection, cleaning, and analysis, allowing HR professionals to gain insights from large datasets and make data-driven decisions.

 

Benefits of AI in HRM (Oracle Corporation 2019)

• Improved recruitment efficiency and on boarding processing made faster
• Enhanced talent management where recommendations (based on data) are provided for performance evaluation, training and development and succession planning
• More time saved on the administrative process allowing the HR employees to focus on strategic tasks
• AI provides market insights on how employees should be banded and compensation ne decided based on salary data points relative to local market and available competitor data.

 

Drawbacks of AI in HRM (Oracle Corporation 2019)

“People will need to be aware of ethical and privacy questions when using this technology,” Hohgrowe says. “In human resources, [AI] can involve using sensitive information to create sensitive insights.”

• AI algorithms are trained on historical data which may not be accurate or may contain biases such as gender, race or age. These can be incorporated into the AI algorithms which may lead to improper decision making
• AI lacks the human touch of dealing with human emotions, conflicts and complex situations that require empathy and human judgment
• Ethical concerns related to privacy, security, and transparencies are issues in AI in HRM
• With AI is use, there is a potential risk of job displacement for HR professionals who may face redundancy in tasks that can be automated by AI, leading to workforce restructuring and job loss
• Incorporation and maintenance of AI systems to the HRM would be a costly process to the organisation. Finding the right skills on the AI integrated HR functions is another challenge.

Conclusion

AI-based HRM can strongly help HR professionals boost employee performance and experience. HR applications powered by AI can analyze, predict and support decision making for key stakeholders. Employees will be eventually impacted by the AI function in multiple ways and can claim to have a fast-paced and accurate user experience.

Data privacy should be properly considered in AI development and appropriate guidelines must be set up to administrate AI driven HR applications. The guidelines should also focus on the legal aspects of data privacy and employee management.

References

Jyoti Kapoor (No date)

Understand the role of AI in HR. CuteHR (online).

Available at https://www.cutehr.io/ai-in-hr/#:~:text=AI%20enables%20HR%20teams%20to,crucial%20as%20Human%20Capital%20Management.

Accessed on 05^th March 2023

 

Oracle Corporation (2019)

AI in human resources. Oracle (Online).

Available at https://www.oracle.com/a/ocom/docs/applications/hcm/oracle-ai-in-hr-wp.pdf

Accessed on 05^th March 2023

 

Scott W. O'Connor (Jan 2020)

Artificial intelligence in human resource management. Northeastern University (Online).

Available at https://www.northeastern.edu/graduate/blog/artificial-intelligence-in-human-resource-management/

Accessed on 05^th March 2023