Harnessing the potential of artificial intelligence in human capital management

Thanks to technology, a transformation in human capital management (HCM) careers and work processes is well underway. There is no need to throw half the resumes into the shredder or go through them one by one. When utilized effectively, technology allows us to be more efficient at focusing on strategic projects while leaving some of the more tedious aspects of work to the robots.

AI just makes cents for business

For years now, applicant tracking systems (ATS) driven by artificial intelligence (AI) have allowed recruiters to evaluate their recruitment channels and eliminate the ones with poor candidate returns in favour of those offering the best quality candidates. The algorithms screen for keywords to bring people with select skill, educational background, and professional acumen to the top of the pile and move the ones who don't fit the bill to the proverbial recycling bin. A recent McKinsey Global AI Survey revealed that AI is saving professionals time and companies a lot of money, with many executives who adopted AI reporting both an increase in revenue and a reduction in costs. However, 49 per cent of those surveyed in specific areas like human resources and recruiting post a more modest cost reduction of 0 to 19 per cent.

Enhancing employee engagement with AI

Automated chatbots and virtual assistants can serve HCM professionals in many distinct ways. They can provide instantaneous responses to simple employee questions about benefits and policies and monitor trends in employee questions and concerns, allowing HCM professionals to better communicate in these areas. They can also gather employee feedback through sentiment analysis after users put in a query. When used effectively, chatbots can free up HCM employee time to focus on other initiatives that require their attention.

AI-based training tools

First impressions matter. A highly publicized study for Glassdoor completed by Brandon Hall Group revealed that effective onboarding can boost retention of a new staff members by 82 per cent. Onboarding software has revolutionized how people are introduced to their new roles. Materials can be tailored to specific aptitudes, needs, interests, jobs and departments. These systems can match new staff with orientation buddies who can mentor new hires and send recommended reading. The gamification of these resources can also allow new staff to digitally see the progress they are making within the onboarding process and learn at their own pace. While many tout the benefits of using AI onboarding tools with new employees, company culture is a large part of the onboarding process and, in turn, a place where the human touch is crucial.

Performance management tools

AI performance management systems use data analytics to level the playing field and remove some subjectivity in performance management. Results from these systems can help managers to make educated decisions and guide staff in their professional development by recommending courses to fill gaps, improving training and flagging skillsets required for promotions and performance improvement plans.

But how can we harness AI's potential without falling into its traps and pitfalls?

AI learns from existing data, and, unfortunately, data on historical practices could be counter to best practices in diversity, equity and inclusion (DEI). Monitoring and addressing this concern when using AI is paramount to fostering a diverse and inclusive workforce. AI tools need to be continuously monitored for data security, biases and incorrect or outdated information.

AI is being integrated into the classroom as well as the workplace, and many people entering the workforce are relying on AI to perform a variety of tasks that they will expect to be able to bring these tools into their professional lives. David Rudoler, PhD, associate professor at Ontario Tech University, works extensively with his students to create policies surrounding the ethical use of AI in the classroom that can also translate to the professional world. Rudoler says, “One of the positive ways that AI impacts both academic and professional work is by providing a more efficient way to access information online and complete administrative tasks.” He cautions that “although AI could free up time for creative work, the benefits of these tools do not remove the responsibility for critical thinking and fact-checking.”

Conclusion

AI can be an effective vehicle for efficiency in HCM and will continue to impact how people do their jobs. Much like regular car maintenance, in addition to keeping up-to-date on the latest software and advances, it's also essential to spot-check AI outputs, modify for continual improvement and always remember who is in the driver's seat.

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