The Future of HRM: Leveraging Automation and AI in HR Processes

The Future of HRM: Leveraging Automation and AI in HR Processes

According to a recent report by Gartner, about 30% of organisations use Artificial Intelligence (AI) for at least one of their major human resource (HR) processes. The increased usage of AI and automation in HR processes has helped organisations save hiring and training costs, thereby optimising the revenue of the firm.

AI and automation can aid in identifying the most suitable candidates for a position, simplify the onboarding and training processes, handle repetitive assignments, and offer valuable insights to enhance performance management. By harnessing these technologies, HR professionals can dedicate their time and efforts to more strategic and value-added responsibilities. Today, in this blog, we shall understand how automation and AI can be leveraged in HR processes:

Recruitment and Talent Acquisition

A recent survey by LinkedIn claims that 77% of talent acquisition experts often resort to AI and advanced technology to optimise their recruitment processes. These experts often use AI-driven software to scan resumes and job applications. These tools help them to identify key qualifications and experience, allowing the recruiters to focus more on the promising candidates. The recruiters are also using automated tools such as chatbots for the initial screening of the employees. These chatbots are equipped with natural language processing (NLP) that can engage with job applicants, ask preliminary questions about qualifications and provide information about the company and its job openings.

Employee Onboarding

A leading HR portal called BambooHR conducted a survey where 75% of HR professionals believed that automating the onboarding process helped improve the working experience of new hires. Several HR leaders are adopting automation to create a digital onboarding checklist for new joiners. The process involves sending required forms and documents electronically, thereby assigning tasks to various departments or individuals involved in the onboarding process. Moreover, AI-driven systems are deployed in the training and development activities of the new joiners. These activities offer personalised and effective learning experiences to these new joiners based on their skills, performance, and career goals.

Employee Engagement

Several firms have deployed AI-powered tools and applications to monitor employee well-being and mental health, providing resources and support when needed. Furthermore, companies are employing AI to analyse responses from employee surveys, identifying patterns and trends in employee feedback. Based on the feedback received, HR managers take action to address concerns and improve overall engagement and satisfaction. Chatbots are also used to handle routine HR inquiries, such as vacation requests, and escalate simple queries to HR executives when necessary.

Performance Management

A recent survey by PwC stated that 62% of companies were using predictive analytics to identify performance trends and predict future performance, often with AI assistance. AI is used to assess employee performance by analysing various data sources, such as project outcomes, KPIs, and peer feedback. With the help of these data sources, HR managers will gain a more comprehensive view of an employee's contributions to a project or assignment. Automated systems will be used to schedule feedback sessions, track progress, and recommend coaching or training opportunities. These AI-driven systems are based on performance data, which in turn helps foster continuous improvement among employees.

Compliance and HR analytics

The adoption of AI in HR analytics and compliance will help HR professionals streamline their processes, improve decision-making, and enhance overall efficiency. AI-powered systems will be used to maintain an audit trail of HR actions, ensuring that compliance-related records are up-to-date and accessible when needed. AI-driven analytics also provide deeper insights into HR data, enabling organisations to make data-driven decisions regarding employee retention, diversity and inclusion, turnover rates, and various others. AI algorithms are often used to scan and analyse data to identify sensitive or personally identifiable information (PII). These automated algorithms help organisations maintain data privacy compliance by flagging potential breaches or violations.

Wrapping Up

The future of HRM will see a continued integration of automation and AI to streamline processes, enhance employee experiences, and enable data-driven decision-making. While these advancements offer numerous benefits, they also pose challenges related to ethics, data privacy, and the need for ongoing professional development for HR practitioners. HR departments that embrace these technologies strategically are likely to be better equipped to adapt to the changing landscape of work and talent management.