Why AI is needed in Human Resources
Why should you use Artificial Intelligence to control the availability, happiness and retention of your staff? And will this data-driven strategy result in a human approach? These questions were asked during several projects we have carried out, and we shared some answers in a previous blog post: AI Chief Happiness Officer.
The recruitment landscape, like many other sectors, is in a very disruptive period. There is a big general problem: companies are finding it increasingly difficult to fill vacancies. The digital evolution is currently progressing at a roaring pace, creating an ever-widening gap between supply and demand in the labour market.
The corona crisis has also made us all more mobile, but this also requires many new skills. And that’s where the shoe pinches for a lot of companies. An ever-shrinking number of available (and suitable) candidates per position prevents companies from growing further and may even lead to downsizing.
But this also offers our Flemish companies opportunities to innovate with new technologies. Those who can deal with this have the opportunity to outperform their competitors in key areas.
There are two ways to achieve this: the first is the classic way and that is simply to become more productive. A second way is to organize the recruitment process of talent within a company more efficiently. Through Machine Learning, production or business processes can be optimized in such a way that each employee also delivers more productivity. AI has only just started entering the HR domain, but according to Deloitte Human Capital trends the possibilities are already promising. However, there are still many ethical issues that need to be clarified.
Companies that can fill positions faster will also grow faster, which is a golden rule in the HR world. But at the moment, many opportunities are being missed by not fully embracing automation. There is still too much focus on writing and making vacancies that reach fewer and fewer people attractive. We can’t change much about the fact that the vacancy landscape is becoming more fragmented. What we can change is the efficiency and quality of the selection process. We believe that AI is the key to an optimal HR policy that can save companies a lot of money and time.
For example, the selection procedure can be drastically shortened. A lot of time and money is still spent on recruiters who read all resumes and choose who they want to talk to. Today you have technology that can do that for your company. Instead of wasting time on administration, focus on what’s important, such as interviewing candidates. AI can serve as the first filter that can quickly see why a particular person might be of interest to a company. With these first recommendations, you have the right cards in hand to talk to the candidate and ask the right questions. Both HR and the candidate will have to waste less time on a lengthy process for a job that ultimately does not suit them.
Another advantage is the internal mobility that can be promoted by AI within the company. Retaining people can be more important than hiring new people, which is also very expensive. To retain staff, you need to be able to offer enough incentives, but above all, you need to give prospects for career advancement. AI can help find out which people would be interested in a new job or suggest a position that is tailor-made for them. We don’t want to argue for an AI system that selects people completely autonomously and determines who gets a job or promotion because that would be kind of creepy. By the way, there are still far too many risks of bias in technology (e.g. Amazon, Google, …). But it can be a useful tool for faster processing.
With AI you can also simply create a better experience for the applicant which will automatically attract other candidates. Also, today we live in a world where everything evolves very fast. Skills, jobs, positions and titles are constantly changing. Sometimes someone can do a certain job one year while the same person suddenly has to do completely different things the next year. For example, someone who has been a bank clerk or driver for years suddenly has to look in a sea of vacancies and websites to see which job would suit them best. This is an impossible job for many people. AI can quickly match your skills and competencies to different options that fit your profile.>
The early adopters in this technology will be the ones who will get the most competitive advantage. Feel free to contact us for more information on how we can unburden your HR department to the maximum so that your employees can focus on the essentials.