What is the Impact of Artificial Intelligence on Human Resources

Human resources is one of the departments where technology, with artificial intelligence at the forefront, has gained greater prominence in recent years. Automate processes, algorithms, big data, talent management… New concepts for many organizations, but they should be familiar if we want to improve the employee experience. The use of artificial intelligence in human resources, for example, has allowed these teams to save time and resources by automating daily tasks such as scheduling interviews and managing resumes. 

According to the latest Personio study, which surveyed 500 human resources leaders and 250 executives in Spain, 70% of managers are receptive to the potential of artificial intelligence and believe that it will significantly impact the efficiency of their departments.

What is artificial intelligence applied in human resources?

The analysis of processes and large amounts of data are part of the daily tasks of human resources departments. And this is where artificial intelligence plays a primary role. Not only because of its speed in processing information, it also allows you to automate processes and free those responsible from the most tedious and repetitive tasks. In this way, they can dedicate their time to work that provides more excellent added value to the organization. 

With appropriate algorithms, people management will be much simpler than through endless spreadsheets or other tools that are not typical of transformation. Ultimately, integrating artificial intelligence into human resources processes increases efficiency and leads to a better understanding of employee needs and motivations.

How artificial intelligence is applied in human resources

The proper use of artificial intelligence allows us to automate many human resources tasks. It does not mean that the department will disappear or that it is necessary to dispense with its professionals. On the contrary, they will have more time to dedicate to high-value-added tasks while letting artificial intelligence take advantage of its full potential better than any human being would. 

Algorithms facilitate recruitment by streamlining and automating tasks, such as analyzing professional profiles. Artificial intelligence can efficiently analyze all the resumes registered for our vacancy and select those that best fit the position’s requirements based on the information they share. This saves time and allows you to quickly identify the most suitable candidates.

Big data analysis becomes more straightforward and more accessible because we can quickly handle massive amounts of data and uncover correlations that were previously hidden. All thanks to the information commands that we request from artificial intelligence. This makes it easier for companies to find the best talent and make better decisions about deploying their resources, optimizing processes, and increasing profits. 

Artificial intelligence integrated into human resources helps adapt training plans based on the skills and experience of each employee. Thanks to the data collected, strategic goals can be created for all company members. This allows employees to develop their skills and knowledge in a personalized way. 

Thanks to automated suggestions, information on skills gaps, sentiment analysis, and predictive analysis, human resources departments can make smarter decisions regarding performance evaluation, a crucial aspect for the success of the companies.

1. Recruitment and selection of personnel

Some of the critical activities driven by this technology in personnel recruitment and selection are:

• CV Analysis: Artificial intelligence enables deeper and faster CV analysis, effectively identifying skills, experience, and qualifications relevant to the vacant position.
• Searching for talent with specific attitudes: AI algorithms can help identify candidates who not only possess the necessary technical skills but also have attitudes and values ​​that align with the culture and goals of the company’s corporate culture.
• Candidate social network analysis: Artificial intelligence can analyze a candidate’s social networks for relevant information, such as their online presence, posts, and connections, providing a more complete view of their profile.
• Personalizing the experience during the selection process: AI helps tailor the selection process to the individual needs of each candidate, resulting in a more personalized and engaging experience.
• Set up automated interviews with chatbots to interview candidates: AI-powered chatbots can conduct preliminary interviews, helping to qualify candidates and free up recruiters’ time.
• Plan onboarding and offboarding tasks: Artificial intelligence can help automate the planning and execution of employee onboarding and offboarding activities, ensuring a more efficient and transparent process.

2. Payroll processing

Payroll management is one of the most repetitive tasks in human resources, and it can take longer if the qualities of technology are not taken advantage of. Automating this process, as well as other similar ones provides a good number of benefits to the members of the department and the organization as a whole. 

Having an appropriate technological solution provides particular benefits. Precision, legal compliance, efficiency, security, and analytics are some of the qualities associated with correctly using algorithms. For example, with adequate artificial intelligence, we can make accurate and safe calculations on employee salaries, taxes, and other deductions, reducing the risk of making errors when processing changes and paying excessive or insufficient amounts.

3. Training for employees

Artificial intelligence integrated into human resources helps adapt training plans based on the skills and experience of each employee. Thanks to the data collected, creating strategic plans for all team members is easier and more precise. 

In this way, employees can develop their skills and knowledge in a personalized way. As a result, they will be more committed and motivated, increasing their work productivity and performance. For example, if we collect accurate information, we will easily detect any areas where a skills or knowledge gap needs to be addressed.

4. Talent management

Effective talent management is essential to the success of any organization. Artificial intelligence has revolutionized how companies approach this task, allowing more precise control focused on the needs of employees. Below, we explore how AI is changing talent management :

• Analysis of employee sentiments and satisfaction levels: AI can analyze employee surveys and feedback in real-time, providing valuable information on team morale and satisfaction.
• Recognition of worker work: AI can automatically identify and recognize employee achievements and contributions, promoting a rewarding work environment.
• Performance Measurement: ​​AI algorithms can objectively evaluate employee performance and provide accurate data for staff decision-making.
• Improving employee experience: AI can personalize employee experiences by tailoring benefits and development programs to individual needs using the data collected.
• Accurate assessments of company members: AI can provide detailed and objective evaluations of team members’ skills and abilities, facilitating decision-making regarding promotions and assignments.
• Individualization of the employee experience: Thanks to AI, companies can offer unique employee experiences tailored to the preferences and goals of each team member, increasing retention and engagement.

5. Improved employee experience

Employee experience is an essential factor in employee retention and performance. Artificial intelligence is changing how organizations improve this experience, offering more productive and satisfying work environments. Below, we highlight the positive impact of AI on the employee experience:

• Provide personalized skills training: AI uses personal data to deliver training programs tailored to employees’ needs and goals, maximizing their professional growth.
• Chatbots offload routine and repetitive tasks: Chatbots and process automation free employees from boring and repetitive tasks, allowing them to focus on more meaningful activities.
• Provide personalized recommendations tailored to your work preferences: AI uses data to make specific recommendations for projects, tasks, or responsibilities tailored to each employee’s preferences.
• Identify job dissatisfactions: AI can detect job dissatisfaction through data analysis, allowing companies to proactively solve problems and improve the work environment.
• Improving the “emotional salary” (promotions, flexibility, or training) of the workforce: AI makes it easier to identify personalized opportunities for growth and development, which improves employees’ emotional compensation and overall job satisfaction.

How artificial intelligence impacts human resources

The impact of artificial intelligence on human resource management is profound and multifaceted. From making better decisions to improving equality in the selection process, here we highlight some critical aspects of its impact:

1. Informed decisions: Organizations that adopt AI to manage their talent have achieved better results through more informed and strategic decisions.
2. Less bias: AI has helped reduce bias in the selection process, thereby promoting more equitable and diverse hiring.
3. Accurate Prediction: AI predictive analytics reveals valuable insights into areas that would otherwise go unnoticed, enabling more proactive and effective management.
4. Personalization in onboarding: AI makes it easy to create unique onboarding processes for each employee, improving fit and retention
5. Increased productivity: According to the McKinsey Global Institute (MGI), AI has the potential to significantly increase labor productivity globally.

However, despite these advances, there is a knowledge gap regarding the potential of AI in human resources, with only 40% of companies aware of its applications, according to Sesame HR. This highlights the importance of further education and adoption in this field.

Regardless of the impact technology has (and will have) on the human resources department, it is advisable to recognize the need for teams to know how to take advantage of the potential of artificial intelligence while maintaining job security and the value of human capital.

Machine learning systems in people management and artificial intelligence fully affect all company parts, from payroll management to worker motivation and talent incorporation. 

Central elements of any organization in which algorithms and new technologies will determine the success of human resources departments. With greater or lesser development, depending on the needs of each one, artificial intelligence has already earned its own place within companies.