Why Should Your Business Invest in AI Based HR Tools?

Human resource management is seeing a more sweeping transformation with evolving technologies. Businesses and HR functions specifically have largely replaced traditional methods with methods that redefine their talent management practices.

While automation in human resource management (HRM) is not new, HR software tools are now creating miracles by leveraging artificial intelligence (AI) and machine learning (ML). AI and ML-based HR systems can act as virtual HR assistants and efficiently manage routine and repetitive HR work.

AI-based tools can emulate human behaviors by identifying patterns in the data available. The right sampling in terms of relevance and volume enhances the efficacy of survey results. So, with larger volumes of relevant data made available, these systems get more accurate and perform better.

The use of AI in HR is gaining momentum much faster than expected. According to Gartner, 17% percent of organizations used AI-based solutions in their HR function in 2019, and another 30% will do so by 2022. As a result, businesses must adopt advanced AI-based HR software to enhance their business profits at a nominal cost.

Still wondering, how does AI contribute to HRM?

5 Ways AI Is Revolutionizing Human Resource Management

There are numerous AI-powered HRM tools available for businesses. We will take you through the top applications of AI for the HR industry here.

1. Chatbots and Virtual HR Assistants

Vast companies with too many employees face a massive load of employee queries and issues routinely. Delays in resolution can create a lot of distress among employees and increase attrition. Consequently, businesses need to hire too many people in the HR department to manage this and keep their employees satisfied.

AI-based virtual support agents or chatbots can imitate HR personnel on virtual chat platforms and perform their task of communicating with the employees and solving their queries. These virtual HR assistants can detect employee emotions from the words they use in the chat/query. Besides, these tools leverage NLP (natural language processing) to interpret employee requests and queries from email and live chat platforms and ask additional/probing questions to understand employees’ concerns or needs better.

Virtual HR assistants can thus solve simple queries and route the complex ones to human resource personnel after gathering detailed information about the issue, thus saving time and reducing loads for the HR department.

2. Talent Acquisition

With the ability to manage voluminous data in less time and with higher accuracy, AI-based HR tools help human resource personnel in various stages of the recruitment life cycle, including candidate sourcing, screening, creating job descriptions, and more. AI-based talent acquisition tools offer keyword-based job description writing automation, saving enormous time for talent acquisition executives.

Among a vast pool of candidates, AI algorithms can crawl speedily and select the best-fit profiles. HR personnel just need to set the requirements or keywords, and AI-based recruitment tools can screen through and hunt out the resumes that satisfy all such requirements. Based on the available employee data, AI tools can also suggest additional skills to look for in the candidates that human resource professionals would have missed providing.

3. Employee Retention

Often underestimated, employee retention is another complex function of human resource management (HRM). Acquiring the right talent consumes significant time, resources, and costs. So, it becomes further essential to retain the best talent and reduce re-hiring costs.

AI-based talent management tools enable easy, systematic, and engaging on-boarding. It ensures an enhanced joining experience to new hires, building trust in their minds to develop a long-term bond with the company and improve retention prospects.

Retention of high-performing employees has always been a challenge for businesses. AI can analyze patterns and catch changes in employee behavior through employee’s communication with the company management, superiors, and peers. It also issues alerts to the HR department about any good performers planning to quit. The HR department can counsel these employees, solve their problems, and offer them alternatives to retain them.

4. Employee Performance and Productivity Management

Modern HR software tools leverage artificial intelligence to measure employee performance and productivity. Software enables easy tracking of employee work hours and productivity. With the routine data for work quality and time tracking for employees, the tools provide comprehensive insights, analytics, and reporting on employee performance over a specified period.

Detailed analytics also enable the identification of employees’ strengths and weaknesses. The data collected from the software can be used by the HR teams for performance appraisal of employees. Comparison data also enables them performance assessment with quantitative and qualitative information.

The tools provide detailed reporting, which allows greater insights into the issue. With all this information, the HR department can take prompt measures or counsel the employees accordingly and resolve workforce performance issues.

5. Strategic HR and Informed Decision Making

Not just core HR functions as discussed above, AI-powered HR tools are taking over strategic HR roles too. AI is ruling the world for its exceptional capabilities in leveraging data. Using big data and past data of a business and its competitors, AI-based HR systems can recognize patterns, detect abnormalities, and calculate the probability of future outcomes.

AI can detect the slightest deviation or anomaly against the patterns and trends in the bars, charts, and graphs that humans cannot catch. Thus, informed decision-making through AI-based HR tools is accurate, practical, and reliable for businesses.

Wrapping Up

Today, artificial intelligence is all set to create a revolution in HRM. AI-based HR systems and tools have caused great convenience to HR professionals, thereby creating strategic advances to the organization. It has essentially shrunk the need for HR personnel for businesses. Leveraging these tools helps companies save time, reduce costs, increase productivity, meet employee needs, enhance performance, improve retention, and ensure profitability in the long run.

As quoted by Jeanne Meister, “AI will augment HR and give HR time to work on more strategic business issues.”

Artificial intelligence is undoubtedly the future of HR! So, adopt AI-based HR tools to streamline your business, achieve steady growth, and upsurge profits.

Author Bio

Lisa Brian is a Sr. Content Writer with GoodFirms. She has 5+ years of experience in content writing and marketing. Lisa loves to write about business, cutting-edge technologies, and emerging trends in the software industry.

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