CUs prepare for the onset of AI.
Human resource professionals are strategically leveraging artificial intelligence to transform the way they support both employees and organizational leadership. This significant change uses data analytics, automation, and machine learning to enhance efficiency and provide higher-quality reports for management. Nevertheless, organizations continue to need HR professionals in roles that require strategic thinking, sound judgment, human connection with employees, and management of AI utilization to maintain security and ensure accuracy of employee data.
Variance in AI use
HR varies in its use of AI depending on an organization's objectives, budget, and capabilities of HR professionals. While some HR departments are in the beginning stages of establishing AI usage policies for employees, other HR departments are using Agentic AI to proactively manage processes. Most HR departments fall somewhere between these two approaches.
No matter their AI use, HR aims to increase engagement and productivity in the employee life cycle at all stages, including recruiting, onboarding, career development, performance management, total rewards, and retention.
Examples of AI use
Initially, AI is utilized for routine tasks, which allows HR professionals to focus on the areas where they can add more value to their organizations, such as coaching, development, workforce planning, innovation, and communicating with employees. AI is transforming HR functions across the employee life cycle. Key applications include:
- Recruitment & hiring
- Analyzing resumes and matching applicants to job descriptions
- Sourcing candidates with non-obvious but relevant skills and experience using algorithmic tools
- Onboarding
- Streamlining the onboarding process for new hires through automation and personalized workflows
- Workforce optimization
- Identifying areas of untapped productivity to help management refine staffing and development strategies
- Employee experience & retention
- Enhancing career development, benefit planning, and retention efforts through data-driven insight
Workforce planning and development tool
HR prepares for and facilitates the significant changes that are happening in the workforce and drives employee use of AI. AI can help HR professionals champion employees by enhancing their work experiences and making it easier for them to do their jobs.
It is critical that employees understand AI and are able to make objective decisions about its implementation. Regarding development, some employees learn how to adapt and embrace AI to increase their productivity and value to the organization. Other employees must reskill to expand their career possibilities because portions of their roles are performed by AI, and their job functions shift. As some roles become augmented by AI, HR recruits employees with experience in using AI to increase quality and productivity, while maintaining human interaction.
Increased credibility
The Society for Human Resources Management (SHRM) predicts that AI will increase credibility for HR. SHRM states, “It will allow HR to move away from velocity metrics to value metrics.” HR uses this appropriate data to support upper management for workforce planning and enables HR to use a more comprehensive perspective to analyze individual employees regarding the possible correlations between compensation, performance appraisals, skill levels, development, and retention. Additionally, AI analyzes unstructured data and provides reports for total rewards, such as the distribution of compensation and how it relates to performance appraisal ranking, years of experience, and participation in development programs.
Transparency about job security
As HR professionals use AI to enhance performance, they must keep in mind that many employees are anxious about job security. Employees desire transparency regarding workforce plans and their potential impact, as well as training opportunities for enhancing current skills or developing new skills for future positions.
As HR professionals strategically use AI to transform the way they support employees and management, they must facilitate an environment that increases engagement and productivity in the employee life cycle at all stages.
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