A visionary in his ideas, Vikram Wadhawan is the Founder and CEO of Vasitum. A firm believer of “don’t preach if you can’t deliver”, Vikram is spearheading the business with his innovative strategies and growth-oriented skills and abilities. A business acumen, Vikram started demonstrating key business abilities at a young age. Starting his journey in 2001, Vikram took a plunge into entrepreneurship in 2004, turning into a serial entrepreneur with over 15 years of senior level management experience now. With strong expertise in business development, he has served clients globally from various countries. His entrepreneurial projects started in the corporate training industry which drove him to form Maven Workforce in 2008, a leading recruitment & executive search firm. He led leadership teams responsible for advancing the operational performance and profitability of the firm.
The developments in technological and digital space in the past years have significantly impacted a wide range of industries and companies. Some of the major technological advancements that have disrupted the corporate world are Artificial Intelligence (AI), Machine Learning (ML), Big Data, and Analytics etc. These technologies have influenced almost all corporate functions like supply chain with completely reshaped and fully robotized warehouses. In parallel, Human Resources have also caught this technological wave.
But, why is AI being integrated into HR functions or how it is influencing the employee search and employee on boarding experience? Well, retaining the company’s valuable resources i.e. its employees is one of the most crucial tasks as well as a challenge facing HR team and hence, HR leaders have adopted AI tools to solve this problem. Moreover, in the evolving job market, the requirements of companies are also changing. Today, companies want employees with unique skill-set, extra ordinary thinking ability and most importantly, to stay associated with the organisation for a long time. Therefore, there are numerous reasons and ways in which AI is influencing Human Resources functions.
The Potential of AI and Emerging Trends in HR
With advanced algorithms, high speed computation and a huge amount of quality data, AI’s potential to improve HR functions goes far beyond imagination. It can better anything including reporting, recruiting, payroll, self-service transactions and talent acquisition. Further, with Gen-Z and millennials comprising the biggest share in the workforce, employers across the world are exploring tech-powered ways to recruit, engage and manage their employees. Also, augmented analytics enables HR professionals to gain actionable insights about employees, ensuring informed HR decisions. The wide scope of AI is winning the confidence of HR managers that incorporating AI into HR functions will improve the overall hiring process as well as employee experience.
Further, the pandemic has sped up the level of AI-powered automation after highlighting the need for a powerful HR leadership amid a rapidly evolving workplace that relied on tech tools. These changes will enhance in the coming years, where AI will continue to influence HR on an industry-wide level. Let’s explore significant AI trends influencing HR functions today:
- AI Driven Skill Based Hiring
AI-based algorithms are being increasingly adopted to influence the way employers find talent. AI for recruitment helps understand people’s profiles to a degree not possible manually. This increases the scope for the right kind of matchmaking. Also, AI tools are being adopted to ensure diversity and inclusiveness in organisations – eliminating prejudice, bias and discrimination to set organizations on the path of equal opportunities.
Further, companies are shifting to skills-based hiring to widen the talent pool. To fulfil the evolving requirements of specific skills and competency for a job rather than relying solely on candidates’ qualification, AI as a solution doesn’t seem a surprise anymore.
- Employee Engagement
The use of AI in areas like employee performance and engagement is modernising the process. Through tools like customized learning paths and continuous performance management, the focus is on improving the lives of employees in a very substantial way and ensuring employees’ psychological safety while maintaining an environment where employees can perform at their peak. There are many other ways AI is being incorporated to ignite employee engagement – real time insights into feelings or state of morale of employees, ensuring inclusive culture, personalised recommendations on career advancement, and personalised experience to an employee such as conversational AI etc.
- Augmented Analytics
AI driven analytics are being used to understand and automate repetitive HR functions such as core HR administration, payroll, compensation and performance. This is freeing up more time for HR professionals who can instead focus on high impact and strategic tasks. Also, many large companies are tapping on AI-powered HR tools that enable easier access to visualisation and curated data to make strategic and insight-driven thinking a lot easier.
- Performance Management
AI in performance management plays a great role. The data driven review or appraisal system avoids any sort of misunderstanding or doubts and ensures genuine decision making. It also helps in avoiding bias as the process is data driven where data is collected from different sources. Further, AI driven performance management can help the HR teams to share real time feedback with the employees for improvement or recognition.
- Human-AI Collaboration for Better Decisions
HR managers are leveraging the integration of AI and human knowledge for the predictive work environment, an effortless work process and real time decision making. The data gathered is utilised to provide data-driven decisions across talent acquisition, on-boarding, training & development etc.
- Enabling Remote Work and Workplaces
The pandemic has enhanced the significance of AI in the workplace as they get more digital and dependent on technology. The right tech tools not only enable employees to connect better with each other and with work but also, strengthen the employer brand.
To remain competitive in the rapidly evolving corporate world, every organisation – big or small- need to incorporate AI into their key business transactions, HR being one of them. In addition to various benefits as discussed above, it will also increase the efficiency of HR professionals, help them become knowledgeable consultants and spare them time to focus more on strategic planning. Further, AI tools help HR managers to achieve an improved brand image. However, HR managers need to determine what results they expect out of AI incorporation because once adopted, it will affect the employees as well as the organisation in multiple ways. To conclude, it only makes sense to blend AI into HR.