Almost half of HR professionals report that using artificial intelligence (AI) in human resources (HR) has become more of a priority in the last 12 months. According to SHRM, 60% of HR professionals are optimistic about how AI can affect their workplace.
As new AI programs are developed, there will be more ways to incorporate artificial intelligence into HR practices. Organizations should spend time researching the latest technology and tools. Through AI and HR analytics, your company can develop a competitive edge and become more productive. Among other things, you can increase your turnover rate, improve your employee benefits, boost legal compliance, and simplify recruitment processes.
How Can Artificial Intelligence Improve HR?
AI is a term for a variety of technological tools that can mimic human intelligence. For instance, generative AI uses data sets to spot patterns. Then, the AI’s algorithms create new text, images, video, or other outputs whenever the system is asked for new content.
In HR, AI can be used to improve worker productivity, increase engagement, and boost retention rates. It can change the way you recruit employees, comply with legal requirements, and manage your wellness programs. Best of all, AI allows machines to take on a larger share of the workload, so you don’t have to compete for labor.
10 Techniques for Using AI in Your HR Department
In a recent Mission to Grow podcast on “How AI Will Disrupt HR: Tectonic Shifts in HCM,” host Mike Vannoy talked about the long-term struggle for top talent. As Vannoy pointed out, “Baby boomers are retiring faster than their replacement workers are being born.” Currently, an estimated 10,000 baby boomers are reaching retirement age every day.
Workplaces are facing a war for talent. Through AI and better technology, you can improve your HR processes, find better workers, and retain your most talented employees.
1. Spot Bias in Promotions and Recruitment
AI can use historical data to analyze your company’s track record of hiring, recruiting, and promoting different people. Then, it can show any patterns that may indicate underrepresentation or bias. If your workplace is striving to be compliant with Equal Employment Opportunity (EEO) regulations, AI is a cost-effective way to ensure you’re playing by the rules.
2. Personalize Your Company’s Wellness Programs
With AI, you can customize wellness programs for each employee. As AI creates the perfect program, it can incorporate the employee’s preferences, medical needs, and lifestyle factors.
Wellness programs are important because sick employees hurt your bottom line. They require more sick days, are less productive, and have higher health care expenses. Because of this, each $1 employers spend on wellness programs saves $6 in health care savings.
3. Forecast Your Talent Needs
Through AI, you can analyze each department to see if there are any skill gaps. You can also use AI to predict vacancies, so you can prepare for your talent needs in advance. Then, you can prepare early for your future requirements instead of scrambling for workers at the last minute.
4. Track Your Employees’ Well-Being
AI is able to analyze social media data, employee emails, performance reviews, surveys, and other data to determine someone’s mental and physical well-being. Depending on your workplace, you may want to use some or all of these data sources. Once it has gathered the appropriate data, AI will analyze it for trends and patterns that indicate burnout, depression, or other mental health problems.
5. Improve Your Applicant Tracking Systems
Some of the top job listings on Indeed bring in hundreds of applications. Screening all of these applications by hand would be time-consuming, especially if you are hiring for more than one position. While traditional applicant tracking systems are useful tools, AI completely revolutionizes these applications.
With this kind of system, you can determine the type of criteria you expect for a specific job title. Then, the platform will weed out candidates who are inappropriate for the role. In addition to saving you time, this type of AI-supported program can help reduce the risk of bias in your hiring decisions.
6. Determine Why Employee Turnover Occurs
AI can quickly analyze exit interviews, employee performance reviews, surveys, and other feedback to spot commonalities among your workers who quit. Then, you can use this data to avoid employee turnover in the future.
On average, organizations spend 33 hours and $1,252 on training new employees. If you can find ways to decrease your turnover rate, you can save money on training and recruitment costs.
7. Automate Your Company’s Performance Evaluations
AI can play a humongous role in your company’s ability to evaluate employees and give objective performance reviews. It can take data from the employee’s day-to-day work and create accurate feedback that you can use for promotions and raises. This helps to take the bias out of performance reviews and reduces the amount of time you have to spend on creating each review.
8. Use Predictive HR Analytics for a More Productive Workforce
Another way you can become more productive with AI is by incorporating predictive HR analytics into your workforce. Predictive HR analytics involves gathering data to make predictions about future needs. For example, HR analytics can determine if you will need to hire more employees because of a skill gap or performance issues.
With predictive HR analytics, you can improve your workplace’s productivity by reducing turnover rates. It can also help you redistribute workloads, so your workers are assigned to the tasks that they need the most.
9. Get Easy Legal Support
In the Mission to Grow podcast, Vannoy demonstrated a real-time example of how AI could be used to obtain legal information. He fed an AI program a prompt about New York labor laws and asked it to use a specific website as an authoritative source. In seconds, the AI program produced a concise summary of how New York labor laws might apply to his question.
Other than getting quick summations of laws and regulations, AI can also help with contract analysis and review. It saves your HR team time and money on legal issues. At the same time, AI can ensure you avoid legal problems by giving you up-to-date information about your HR questions.
10. Improve Your Compensation Packages
You don’t just have to use AI on internal processes. AI can also be used to analyze employee benefits at other companies. Afterward, you can use this data to determine if your benefits package is competitive and what type of changes you should make.
Additionally, AI can help you automate your payroll and benefits. Other than limiting the chances of human errors, AI-based programs can ensure employees are given their benefits and paid on time.
Learn More About New Technology in HR
Thanks to changing demographics, the war for talent is only going to continue for HR professionals. To stay ahead of the curve, you need to incorporate some of the latest tools and technologies into your workplace.
If you want to learn about adopting AI and other HR best practices, we can help. Reach out to Asure’s small business HR & payroll experts today.