Has Artificial Intelligence in Human Resource Management become a Necessity in 2023?

2023 has brought a transformation at the workplace with the introduction of Artificial Intelligence(AI) in Human Resource Management (HRM). It was earlier believed to be a science fiction concept, but HR managers consider it a disruption for the HR industry. 

Jeanne Meister, a well-known writer and author of  The Future Workplace Experience, "AI will assist HR in dealing with strategic business decisions. It helps streamline manual procedures and provides a customer-centric service to employees."

According to a study conducted by Oracle and Future Workplace, the usage of Artificial Intelligence is increasing in 2023 as human resource managers are trying to be more efficient with fewer resources and time. In this regard,  AI has increasingly been used in HR processes such as recruitment, identifying workforce skill gaps, analysing engagement survey data and responding to employee queries regarding leaves, payrolls, etc. 

Human resource managers are believed to frequently use AI tools to enhance employee skills in this challenging environment. HR Matters, in this regard, have introduced AI-based tools for eliminating irrelevant HRM tasks and enhancing employee experience and efficiency in organisations. 

Also read: What is an Integrated HR System? 8 Best Integrated HR Solutions.  

How has AI transformed HRM in 2023?

As per McKinsey and Company, approximately 56% hire to retire HR tasks can be automated by AI. It is also being used to align the role of HR in enhancing employee engagement and productivity.

Here are some of how teams are using AI to revolutionize their HR processes: 

• Recruitment and Onboarding:  The Role of AI in HRM has extended from employee recruitment to predicting when they are about to quit. It helps identify the relevant candidates for the company based on their skills and expertise. It learns words interchangeably used in resumes along with searching for keywords.            

AI can also leverage HR data to predict the possibilities of an employee's acceptance of the job position. It helps the hiring managers by sending alerts regarding upcoming interviews, providing candidate information and customized questions for hiring managers. 

Using benchmark data, AI in Human Resources compares prospects to the industry's top performers. It creates customized offers by providing a strategic perspective on employees' salaries in similar positions. It also predicts the possibility of the candidate accepting, performing and retaining that position. 

Onboarding is yet another aspect of recruitment in HRM. It is a significant stage as it sets the tone for the employee's tenure in the organization. As per research conducted by Work Institute, companies could have avoided 75% of employee turnover if onboarding had been managed properly. AI-based HR software can enhance the speed and efficiency of this process by providing relevant information to the recruits, such as job profiles, corporate rules, assignments, information on the organizational hierarchy and so on through an app or a platform. 

Additionally, it generates the need to recruit more employees and new job roles based on new projects. It also keeps track of all the important information related to the company and employees, such as legal documents. 

• Learning and development:  AI algorithms can assess the employees' past learning patterns, skills and performance and provide customized learning programs accordingly. These also provide on-demand feedback and support to the employees.               

The application of AI in HRM also extends to the prediction of the future performance of employees by identifying their learning trends. It would help managers to make informed decisions regarding employee development and training. 

•  Payroll Management: Some of the benefits of AI in payroll management are tracking working and working hours through biometrics and facial recognition. It also automates salary and tax calculations along with monitoring legal compliance. It also predicts payroll costs arising in the future based on current payroll data.    
• Scheduling: AI can plan and modify employee schedules based on real-time data related to their skills, preferences and schedules. It enables the employees to manage their work life by allowing them to trade shifts with one another. 
• Leave management: AI can analyze future staffing needs and modify schedules accordingly, reducing the risk of understaffing. It also monitors compliance with Medical and Leaves policy and allows the employees to submit leave requests and view their leave history and balance. 
• Request management: AI chatbots and virtual assistants can direct the employee request to the relevant HR managers. It can also create pre-written email responses approving or disapproving requests and suggest further processes. It also identifies future trends and patterns where requests are often denied or delayed and analyses their reasons. 

The benefits of AI in HRM also extend to anticipating request trends in the future and helping in predicting human resource requirements, preparing for requirements arising in the future and efficient allocation of resources.

• Employee engagement: AI algorithms enable employees and HR managers to continue engaging them in personalized conversations. These are natural and human-like communication tools. These communications are assessed to identify the requirements and concerns of human resources

Chatbots for HR enable managers to take action for fulfilling employee expectations by addressing probable roadblocks. It would let the workforce know that its voice is considered by the company, thereby boosting employee engagement and reducing employee turnover. 

Also read: 5 Best Facts: Why Payroll Management for Small Businesses?

Final Thoughts

Organizations should leverage AI to incorporate an innovative and holistic vision in their HR functions. This discussion indicates that AI has become necessary for HRM in the current era due to its role in shaping the future of HR functions. It is also evident that some HR professionals might worry about the probable effect of AI on their jobs. But AI is likely to augment their roles and help them to focus on strategic decision-making instead of replacing them. 

We at HR Matters enable organizations to optimize AI to disrupt their HR functions to boost employee experiences and engagement. We provide a week's trial before you ensure it's the appropriate service for your organization. Sign up for a free demo now at hello@joinHRmatters.com or call us at +966539796969