Role of AI in Human Capital Management
Tech trends in the HR industry:
For a long time, the focus of CPOs / CHROs in terms of HR technology was on automating HR functions, or in other words adopting HRMS systems. This is no longer the case as HRMSs are the norm even in smaller businesses of a few hundred employees. Rapid advancement in technology over the years including AI, Machine Learning, IoT, etc. are reshaping how Human Resources departments see technology now. Combine this with changes in the global business environment like globalization, changing demographics, the need to integrate diverse systems, regulation, and cost are driving the need for re looking the approach to human capital management. Modern HR Management Systems are therefore leveraging new technologies to meet these challenges.
Human Resource management systems are increasingly using technology based tools to enhance their workforce experience in HR processes. The HR space is fast moving from just automation of processes to intelligent use of technology to improve the efficiency as well. The process automation while still remains as the focus for 45% of the companies according to Forbes’ High Impact HR
Interventions driven by Tech:
In this article, we will discuss some of the use cases where Organizations are benefitting by application of AI tools.
Recruitment and Onboarding:
Organizations are using AI tools to source the right candidates from social media, data banks and other sources. The ML algorithms would screen the right talent from hundreds of thousands of available candidates. Once identified, these applications use virtual assistant enabled with NLP to engage these candidates with personalized aids, interventions and engagement.
RPA significantly automates the employee on-boarding processes across systems and organizations for physical access, seat allocation, hardware, physical card, asset allocations, bgc, travel, manuals, FAQ, contact points and others providing employees a positive employee experience on their first day.
Payroll and shared service
AI automations improve the efficiency of payroll with synchronized data flow & reduced errors. It also helps in proactive error detection and remediation. Also, AI tools help ensure compliance and aid auditing as these significantly reduce manual interventions. Further NLP tools provide self-services capabilities for payroll query resolutions reducing manual repetitive volume for HR and Servicedesk.
Talent Management
AI tools helps in Talent management for recommending and assigning trainings based on inputs coming from competency mappings in CDP/ succession planning or performance cycles. These help create the right guided learning path for employees to reach desired competency levels for their skills.
Virtual assistants with NLP provides the intuitive self-services to employees 24*7 for their immediate queries on policies, information updates and queries freeing up more time for HR valued policy works.
Machine learning based algorithms can identify employee sentiment and predict employee engagement levels and predict flight risk. This can help organizations to identify possible attrition for top talent and plan interventions.
Disruptions are in the HR teams too!
The disruptions and shift scales up as the teams also adapt themselves around the latest technologies available. The IT service providers are challenged at every step to meet these expectations. It is not just about sourcing, selecting, attracting but also retaining best talent for the team which can now be tracked through the analytical tools. Enhanced employee experience for motivated & engaged workforce all this while lowering the TCO.
