The advanced machine learning technology continues to grow due to its cost savings and increased revenue factors. This type of technology has entered the world of HR. A CareerBuilder survey reveals 55% of managers assume automation and artificial intelligence (AI) in HR will be put to good use. So, this emerging technological system will certainly reduce HR tasks since almost everything is done automatically.
Therefore, what is the use of automation and AI in the HR division? What are some of the challenges?
Automation and Artificial Intelligence (AI) in HR— A Brief Overview
In the current digital transformation, automation is not only involved in the processes of executing tasks manually. However, it can also be combined with artificial intelligence (AI) to increase productivity and make better decisions. Thus, using as little human intervention as possible, especially in the human resources (HR) division. These processes consist of tools that automate HR manual tasks, including recruitment, onboarding, analytics, and performance management.
Some of the main goals of automation and artificial intelligence (AI) in HR include:
- Reduce repetitive work tasks.
- Eliminate manual human errors.
- Allow employees to access HR services 24/7.
- Provide a clear overview of all the processes involved, including individual responsibilities, thereby improving communication and teamwork.
- Enable improvement for complex processes.
The Use of Automation and Artificial Intelligence (AI) in HR
Generally, HR is mainly about increasing productivity, improving the HR processes that may be time-consuming, and increasing efficiency. Many HR managers are still trapped in the manual processes for a number of tasks. This can hamper the movement of the company’s workforce. Since, it is expected to be more agile in responding to fast-paced changes in today’s digital era. Therefore, these are 4 uses of automation and artificial intelligence (AI) in HR:
Optimizing the recruitment process
Oftentimes, conventional recruitment methods were no longer effective for HR professionals to apply. With automation and AI technology can be used to reduce the time and cost required in the employee selection process. Here, HR professionals can conduct an initial screening on applicants’ resumes. Also, assess the skills of their prospective employees through virtual interviews or online tests. Therefore, not only helps HR professionals to automate the recruitment process, it also provides applicants with real-time application status.
Employee Onboarding process
The next step after recruitment is to carry out the onboarding process of new employees. An automated and AI-integrated onboarding process makes it easy for new hires to access any information they need to know. This includes information about the company’s policies, team and divisions, and tasks. It’s important for new employees to integrate with the organization and interact with co-workers to increase productivity. Therefore, it allows HR professionals to adapt to the socialization process. Thus, having a more tangible impact on the employee side.
Learning and performance management
The automated and AI systems can analyze data on the employee’s performance. At the same time, to provide recommendations on appropriate training and development to improve their skills and productivity. Here, HR professionals are assisted in designing a learning and training style with conversational interfaces and analytics for e-learning.
With the development of technology, data analysis is also transitioning into descriptive, prescriptive, and predictive analysis. To perform all of these 3 HR analytics, HR professionals often rely on automation and AI capabilities. It will quickly collect and analyze data from multiple sources. This technology can make better and faster decisions with access to HR analytics. Companies that do not rely on HR analytics in making decisions have the risks that can affect the company. For instance, employee turnover rates and poor employee productivity.
5 Main Challenges of Automation and Artificial Intelligence (AI) in HR
The main difficulty in HR tasks is to balance technological advances with the needs of their employees. Although the transformation of automation and artificial intelligence (AI) in HR brings many benefits, there are challenges that may arise. From data privacy to cost considerations, these are the 5 HR challenges you need to be aware of:
Investing in AI
For the companies wishing to allocate budgets for automation, AI investments are often expensive up front. However, there are a number of subscription-based solutions that companies can try. Many apps offer free trials to test out before fully committing to a more expensive software solution.
Integrate AI into existing internal infrastructure
This challenge involves an automation expert who can provide the best integration assistance. Since, it’s essential to understand today’s advanced digital ecosystem and how new tools can integrate with it. Meanwhile, companies must be prepared to drop their old infrastructure systems. Frankly, old technological infrastructure is most vulnerable to cybercrimes.
Security and privacy issues
Most HR professionals identify cybersecurity as the main barrier to their automation. For HR systems, data breaches are disastrous. These files contain private employee information, including their home addresses and evaluations. Cybersecurity should be one of the main points of any automation system, including end-to-end encryption and authentication. Therefore, employees require special training to responsibly navigate AI systems.
Nothing scares an HR professional more than a compliance issue. Either a tax filing error or an underpayment, for example. What’s scarier is the different labor regulations, policies, and scattered resource information. Oftentimes, these websites are not updated.
Data collection and reporting tools
Since different types of technology evolve at different levels, HR systems might need separate dashboards for specific needs. This problem makes it difficult for companies to collect data effectively and create accurate reports. However, it is important to regularly evaluate existing tools that can handle specific tasks.
Is automation and artificial intelligence (AI) in HR the answer to future employee management? The answer is yes, only if it’s done right. It takes a lot of careful planning and investment to undertake an HR automation and AI program.
However, it will never replace the actual professional HR duties. AI excels at tasks that rely on processing data more quickly and efficiently than manual methods by humans. But, not with the “human” aspect of HR that cannot be performed by AI. Specifically, working closely and ensuring employees receive support to thrive.