Human resources

AI in HR revolutionizes job markets and recruitment

AI in HR revolutionizes job markets and recruitmentIvana Georgievska
June 2, 2022

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How AI in HR and AI recruitment will revolutionize job markets

Juniper Research reports a growth of 230% in machine learning spending between 2019 and 2023 across industries.

And how does AI impact Human Resources and employment?

In this article, we cover:

Artificial Narrow Intelligence (ANI) is the only form of AI on the market now. ANI can solve a single problem and perform one task to satisfaction.

Such a function could be suggesting a matching candidate for a job position or tracking and measuring performance levels in comparison to a set goal.

Artificial intelligence (AI) has the potential to improve workflow and increase productivity. This technology is fast transforming the human resources industry. 

It allows organizations to improve in tracking and understanding their employees’ behavior patterns. 

AI in HR and AI recruitment have come a long way - and it will revolutionize job markets on a global scale. What does AI recruiting look like? Find out in this article.

Here is an infographic to give you an overview of AI in HR, based on a ResearchGate study.

Automation of repetitive tasks makes HR more productive

HR professionals can use artificial intelligence (AI) to automate monotonous processes like onboarding new workers, payroll processing, and employee attendance. 

This way, they can concentrate on more strategic activities and human communication. 

Artificial intelligence (AI) streamlines HR operations while assisting employees with their jobs.

It assists them in reorganizing their staffing plans to develop more effective hiring processes.

AI recruitment simply makes it easier for HR professionals to hire candidates.

Beyond automation and streamlining of the processes, AI can analyze a wide range of datasets and learn how to adapt them to your area of interest.

Source candidates faster with broad outreach

Prospective candidates need to learn about your opening and your organization. 

That means reaching the right audience and getting job descriptions and openings in front of the right people. 

AI makes this process more effective by presenting job openings to the right target candidates, resulting in more appropriate candidate applications. 

AI can programmatically buy advertising that will reach specific demographics, industry segments, and interest profiles. 

AI tools can also adjust phrasing and language in advertisements to optimize engagement.  

Matching qualified talent with the job requirements

Determining the fit of candidates for specific jobs requires that they get assessed across multiple dimensions. 

Many flavours of assessment can address different criteria such as behavior style, communication approaches, propensity to take risks, learning style and ability, and technical and cognitive skills. 

The value of these types of assessments is in understanding how candidates will interact with supervisors, managers and coworkers and whether their soft and hard skills will match the needs and style of the role, position and team. 

AI compares the candidate’s assessment with the results of past or currently successful people in the same job. For example, an introvert may not be suitable for an outbound sales position. 

Increasing efficiencies during the candidate pre-screen phase

With the use of AI-powered chatbots, the initial prescreen phase can be streamlined by matching candidate skills, availability, salary expectations, and demographic information with suitable and available jobs.

HR software powered by Artificial Intelligence helps enterprises and staffing firms automate outreach and communication with candidates throughout the AI recruitment process. 

This removes a huge administrative load off the hands of recruiters, who can then focus their energies on engaging more efficiently with candidates. 

Let the software focus on AI recruiting, and recruiters focus on the human aspect with candidates.

Managing the talent pipeline of future prospects 

It’s important to retain the results of interviews and assessments as well as ongoing communications. 

A great candidate may be interested in the organization (and vice versa), but the timing may not be right. 

Candidates compare opportunities in part based on how they are treated during the process.

A negative experience will impact not only whether they take a position but how they communicate their experience to peers, colleagues, and the broader market. 

To improve the candidate experience, the HR staff must acknowledge receipt of the application and promptly communicate status updates. 

This includes answering routine questions and scheduling and managing the interview and assessment logistics.

However, large numbers of job seekers or the many interactions generated by hard-to-fill positions often make this too costly to do manually. AI tools can help automate each of these tasks. 

Chatbots can provide routine answers to questions, but they should be tested thoroughly and include features that allow escalation to a human. 

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Direct impact on HR-driven results

Reducing turnover

Applying AI throughout the hiring stages can also help predict the success of a new hire. 

By applying predictive analytics early on in the hiring cycle, AI can help determine whether or not a candidate will be a good long-term fit for the position.

Accurate assessment and predictive analytics help inform the candidate on whether or not the role will be a good fit for them while helping predict their on-the-job performance. 

This is a huge help for hiring managers to select the right candidates for the right job while reducing organizational turnover.

Tracking and improving employee onboarding, training, and skill development

AI can help ensure greater job satisfaction and retention, even after recruitment tasks are complete and the candidate has been handed off to the hiring manager. 

The tools that assess and predict job skills and ultimate success can also identify knowledge and skill gaps. 

Customized e-learning programs can fill those gaps; many AI tools are available to support on-the-job training. 

For example, call centers use AI simulations to train new call center representatives. Helper bots can provide real-time answers for new workers. 

AI-powered knowledge tools that better leverage organizational knowledge and expertise will increase job satisfaction and retention. 

Performance tracking and management 

Right from goal setting and management, to employee evaluations, to performance assessments, the performance management process must be designed to be objective and aligned with business goals. 

HR must design an AI-driven PMS that invites collaboration from all stakeholders. 

Continuous feedback mechanisms and 360 degrees feedback loops with the right notifications and intelligently linked with manager outcomes can help set up people for high performance. 

Improving the employee experience and engagement

Beyond the common engagement survey and pulse check, it’s hard to measure what is really helping drive the employee experience. 

However, AI recruitment is helping reduce the “gut feeling” when it comes to decision-making around employee engagement.

AI-powered HR provides real-time insights on the impact and effects of collaboration and productivity tools (think Slack, email, Google Drive, etc.) on your employees. 

The gathered data from all your company’s tools are analyzed for employees’ work habits and then provide recommendations to drive positive change.

Employee surveys are also helpful to identify changes, which can be used to boost the happiness of a company’s workforce. 

Certain AI-based apps send employees prompts that are meant to promote better decisions that will lead to happier outcomes.

Beyond hiring and engagement, AI is helping HR departments offer better learning experiences, through gamification, personalized learning pathways, virtual reality, learning experience platforms, and more.

Distribution of employee benefits and rewards 

Employees today want choice in every aspect of their work-life. 

This means that they must also be able to selectively choose the benefits that suit them from a readily available “basket of benefits”. 

An AI-based digital rewards platform where employees have individual sign-ons, can suggest suitable benefits to employees as per factors such as life stage, past behaviors, lifestyle preferences, and more. 

Employees have the power of choice. 

HR operations

Many administrative HR activities such as payroll and benefits administration, time and expense management, invoicing, business commute monitoring, customizable workflows, configurable policies, etc., are best enabled through AI-driven tools. 

The idea is to streamline the repetitive tasks to enable human workers to focus on value-adding work. 

Is using artificial intelligence in HR ethical?

This is a department that handles extensive amounts of personal information about employees. As a result, safety and data security have become a number one challenge. 

The employees need to be reassured that their information is safe, beyond the reach of hackers and even the people who don’t need to see it.

Tweaking the AI algorithm intentionally or unintentionally can instantly change the system from an unbiased and well-thought-out structure to a tool that creates inequalities and biases within the workplace. 

You can prevent this from happening by choosing software development companies (or hiring developers) who know the industry and provide an AI framework that is transparent, extremely safe, accountable, and fair. 

So AI in HR is here to stay, and it all comes down to how we use it ethically. AI recruitment will be the new normal, and we're ready to embrace that.

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