Banking Finance 2023, Banking Finance April 2023

Artificial Intelligence – An Enabler for HR Analytics

Human Resource (HR) management has undergone a disruptive transformation in the recent past with the advent of big data, machine learning and artificial intelligence (AI). The massive, complex datasets, commonly referred as big data in the techno-parlance is the powerhouse for machine learning. The advanced logarithmic learning of data patterns to arrive at useful insights find its use in almost all the sections of an organization. With a humongous pool of data regarding its employees, organizations have started investing in data analytics driven decision making to effectively use its resources including the core – human resources.

AI in HR is having a wide spectrum of benefits ranging from inception of an employee’s career journey with the organization to her retention; supplementing her professional growth; enabling her continuous learning etc. and the list extends further.


Talent Acquisition to Experience Enhancement

Staying ahead of the peer competitors needs to attract the talented workforce with required skillsets to outperform the rest. Using AI based applications enable HR managers to quickly interpret the nuances across the candidate applications by transforming resumes into insightful data. Ample amount of time and cost thus get saved in efficiently identifying the right talent fitting their requirement.

The recruits have varied expectations about work experience and want tailored offerings from employer. AI can be leveraged to identify the distinct characteristics of every employee through engagement surveys, feedback methodologies and similar tools to match their nature with particular job roles, departments, and other employees in the organization. Better support to employees through improved employee experience motivate them to grow in their career along with the organization and hence, assists in employee retention, which is a pain of late for so many organizations.Major human resource and cost consuming processes of HR involved in recruitment, employee engagement are hence simplified by the AI assisted data analytics.


Skill Gap Closure for Career Development

Aligning skills of employees with the business needs as per organization strategy by analyzing their data yields better results for an organization. There is a need for employees too to continuously upgrade their knowledge level and skills which becomes cardinal to reach to senior managerial roles handling diverse teams. The gap in the current skillsets of employees vis-a-vis required skillsets need to be assessed regularly which require long manhours from HR.

This can be minimized to a larger extent by putting AI in analyzing employees’ learning datasets for personalized module creation, enrollment, completion rates, and post course measurement of learning outcome in productivity. Inclusive learning for all the employees who differs individually based on their academic background, age and other interwoven factors warrants AI integrated analytics. It provides candid information on the learning curve of employees and positively skew it towards employee driven career development in the long run


Better, Unbiased Resource Management

Administrative works which are repetitive in nature and are less significant can be automated using algorithms which relieve the HR managers to focus on strategic and innovative processes, furthering efficiency. Chatbots for employees to resolve their queries instantly and periodic surveys with AI based assessments add to the employees’ job satisfaction and their loyalty towards organization.

Employees can be reassigned between job roles by analyzing, using AI, the employee headcounts to the activities based on the past datasets. It will effectively allocate employees across the departments in organization so that overstaffed/ understaffed issues do not arise.

Besides helping the organization in establishing and improving relationships with the existing workforce, it reduces inherent human perception and emotional bias as the decision making is assisted by dependable data in lieu of humans. From eliminating bias in hiring to performance appraisal, AI augment HR processes considerably.


Proper Feed for Accurate Insights

Intelligence developed in any AI models are based on the data which is fed to train the algorithms and hence the AI assisted HR analytics is not free of intrinsic bias in connection with the data used. Moreover, the personality traits and characteristics of employees cannot be completely measured using data models available at present. It is a limitation which has to be corrected by human interventions. Real time working of the models and AI technologies need to be consistently monitored and rectified to achieve highly effect analytical solutions for the organizations.


Truly an Enabler

Harnessing the huge potential of data resting with organizations with the AI based HR analytics will be symbiotically beneficial for organizations and employees. Data driven decision making, free from human biases helps organizations to work in smooth, efficient ways. By leveraging the data derived from AI based HR analytics, performance improvement occurs by properly aligning its human resources with the organizational strategies.

From reducing attrition rates in organization to increasing its productivity through enhanced employee engagement, the artificial intelligence technologies and models are truly an enabler for human resource analytics to create dynamic workplaces of tomorrow.


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