AI has been the talk of the business world since the launch of ChatGPT in 2022. A survey from the World Economic Forum reported that 75% of businesses are planning to integrate AI into their workflows by 2028 or even sooner.
The consensus is clear: With AI adoption on the rise, businesses that fail to find meaningful applications for AI are bound to fall behind.
Human Resource Management (HRM) in particular stands to gain an incredible boost in efficiency and cost optimisation. The potential applications of AI in HR span the entire employee lifecycle, from recruitment to retirement. Among HR departments that have begun using AI, talent acquisition is the highest priority with 64% of respondents reporting cost savings, followed by learning and development (43%) and performance management (25%).
HR departments also play a key role in leading the charge in AI adoption by setting an example for other business segments to follow. As drivers of organisational change, HR has a unique role in familiarising employees with AI technology and supporting the development of technological skills to make the most of it. This process starts with an increase in the use of AI for key HR functions.
Recruitment and hiring
Given the global demand for top talent, and the urgency behind securing high-quality hires, it is no surprise that recruitment has seen the highest use of AI in HR in 2024. 70% of HR departments are already implementing, testing, or scaling their use of AI for recruitment.
AI is already being integrated into Applicant Tracking Systems (ATS) and is used to screen resumes a lot faster. This allows HR departments to choose from a larger talent pool, streamline screening parameters and reduce human bias without driving up costs.
Generative AI can provide interview assistance that enables recruitment teams to find the right fit for their organisation’s needs. Some examples include using AI to record notes during live interviews and summarising key takeaways from interview panels. This reduces the need for multiple follow-ups, or additional interviews.
The use of AI can also improve the experience of candidates by generating pre-interview materials tailored to job roles, administering specialised screening tests, and sending actionable feedback after the interview.
Onboarding and offboarding
A comprehensive onboarding experience can boost employee retention by 82%. By combining the speed and cost efficiency of AI with a human touch, HR teams can provide a well-rounded support system to workers entering an organisation and ease their transition into their new role.
AI assistants can guide new recruits with filling essential forms, create handbooks and organisational policies tailored to job roles or seniority, and schedule training sessions. This will reduce productivity losses in the early phases of onboarding and empower new employees to quickly integrate themselves into the organisation.
Similarly, offboarding processes can be streamlined to ensure a positive experience for employees and minimise the risk of losing important knowledge or assets. By using AI to tailor exit surveys to job roles, document the return of physical and electronic assets, remove access to organisational inboxes and ensure clearance compliance, HR teams can shorten offboarding timelines.
Workforce management and HR analytics
Ensuring effective workforce management with manual processes poses a significant challenge for HR departments. With limited access to real-time data, analysts struggle to accurately forecast workforce demands. They must also simultaneously balance the needs of employees and the organisation. These processes can be streamlined and automated with AI, allowing HR personnel to focus their efforts on edge cases and crisis management.
As companies begin to rely more on freelance and contract workers, the challenge of integrating all contributors into the system is compounded. With AI, HR teams can automate standard processes such as processing payroll, monitoring productivity, and assigning projects. This frees up time and resources to focus on other areas such as employee engagement and personnel development that require a more hands-on approach.
Powered by AI, workforce analytics can not only provide insights into past performance but can also predict potential losses in productivity based on real-time trends. This allows HR leaders to anticipate and plan for contingencies that may impact their organisation and optimise workforce management.
AI is particularly useful for identifying skill gaps and assigning relevant training materials to employees. Jobs roles are increasingly becoming highly specialised, and this poses a challenge to HR professionals who are not equipped with the same degree of domain knowledge. Using AI to tailor learning and personnel development ensures that employees are regularly upskilling and reskilling based on individual needs.
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Administrative functions
According to a recent study, employees spend up to 40 million hours each month on HR-related tasks across large companies combined in the United States and the United Kingdom. From recording time, to requesting PTO, to accessing benefits, employees around the globe are increasingly demanding a centralised platformmakes completing administrative tasks simpler.
HR departments are burdened with the oversight of these tasks and companies expend considerable time and resources to ensure compliance. AI-powered HCM solutions can reduce the overhead costs associated with internal administration by automating core HR functions.
HCM solutions also improve employee experience by providing a standardised process to complete everyday tasks. AI chatbots and virtual assistants can instantly answer queries from employees about leaves and benefits, reducing the need for manual intervention.
AI-powered HR tools help track goals and achievements of employees and can generate congratulatory emails, allowing HR teams to provide timely feedback and recognition. AI can create and administer employee surveys and produce Insightful reports that facilitate agile people management.
Integrating AI in HRM does more than just cut down on overhead and labour costs associated with HR functions, it also improves overall productivity by helping HR transform into a strategic powerhouse that drives organisational change.
Are you looking for AI-powered HRM solutions that can improve employee engagement, automate routine HR tasks, and provide real-time data analytics to better manage your workforce? At Zalaris, we provide professional consulting services and a wide suite of solutions that are customised to meet your organisation’s unique needs. Get in touch with an expert today!