AI is transforming a plethora of industries in various ways and at a rapid pace. From personalised learning in classrooms to automation in HR data processing, AI is in every sector.
In fact, with research by Accenture highlighting that 73% of companies are prioritising artificial intelligence over other digital investments, and with global spending on AI-related forecasted to surpass $300 billion in 2026, it’s clear that AI is fast becoming the norm in driving workplace transformation.
Crucially, AI is powering the future of work by augmenting human capabilities, not replacing them.
With AI taking over mundane tasks, employees can fully develop their skills and unleash their true potential. Instead of seeing AI as a threat, we can view it as an ally that helps us leverage our unique human strengths.
But what can AI do in HR?
The applications are endless, but here are 9 ways AI is transforming HR processes and helping HR professionals work more efficiently and effectively:
Automated resume screening and candidate matching
Resume screening has traditionally been time-consuming and tedious for HR departments. With hundreds or even thousands of resumes to review, this task can be overwhelming. However, with AI-powered resume screening tools, HR and Talent Acquisition teams can quickly and accurately screen resumes based on specific job requirements, keywords, and qualifications. This leads to a more objective selection process and saves HR professionals valuable time.
Not only that, but AI automation can also analyse and rank resumes for candidate matching based on a company’s previous successful hires, helping HR to find the best fit for their organisation.
Of course, you must train your AI algorithms with non-biased data to avoid perpetuating any existing biases. Without taking full responsibility to do so, the consequences of AI usage in recruitment can be dire. Take, for instance, the case of Amazon’s AI recruitment tool, which was discovered to be biased against female candidates in 2018. However, with the right data and training, AI can greatly enhance resume screening processes and create an efficient recruitment process.
Effortless interview scheduling and candidate coordination
In HR, AI tools are quickly becoming a go-to for automating interview scheduling and coordinating availability between candidates and interviewers.
With seamless integration into calendars, these AI tools make scheduling interviews simple and efficient. Not only that, but they can also send automated reminders to ensure timely communication between all parties involved. This benefits HR by saving valuable time and creating a better candidate experience by keeping them informed and engaged throughout the interview process.
Seamless employee onboarding and orientation
First impressions matter. And when it comes to new employees, their onboarding experience can set the tone for their entire tenure at your company.
Imagine a platform that could guide new employees through documents, training, and orientation in an engaging and personalised way from the outset. That’s exactly what AI-powered onboarding platforms do. By providing new hires with a virtual assistant, HR can ensure that the onboarding process is smooth and efficient, enabling employee engagement from the moment they step through the door.
Insightful employee engagement surveys
Wouldn’t it be amazing if you could analyse thousands of employee engagement surveys in just minutes, and derive valuable insights to improve your company culture and boost employee retention. With AI, this is now possible.
AI can collect and analyse survey data to identify trends, patterns, and areas for improvement. Some AI platforms can even be set up to send out pulse surveys at each milestone, tracking employee sentiment and engagement over time. This helps HR to develop targeted improvement strategies to improve overall employee satisfaction and retention rates.
Nevertheless, with AI analysis on engagement surveys, HR gets an objective view of the organisational culture and potential issues, allowing them to address these problems effectively. Plus, with localised LLMs, AI can provide real-time feedback on employee morale, enabling HR to respond swiftly and proactively.
For instance, with ELLA (elementsuite Large Language Model), people managers or HR professionals can prompt ELLA with “How are my team’s engagement levels?” – and ELLA will generate a report that provides actionable insights on your employee’s overall satisfaction, motivation, and productivity levels. Pretty neat, right?
Data-driven performance reviews
Performance reviews are a crucial part of any successful organisation. However, conducting them can often be subjective, based on individual perceptions and opinions rather than objective data. But now, with AI analysis at the tip of our fingers, HR and people leaders can conduct performance reviews that are data-driven and unbiased.
With access to employee performance data, such as goals, KPIs, and other metrics, AI algorithms can analyse and aggregate this information to provide valuable insights into employee performance in a quick and efficient manner. And suppose you match this with collaboration data derived from people analytics tools such as organisational network analysis (ONA) and other business data such as sales revenue or customer satisfaction surveys. In that case, the power of AI to provide insights becomes limitless.
In essence, this allows for a more objective and fair performance review process, ensuring that employees are evaluated based on their measurable contributions and not just perceptions. It also allows for more accurate identification of top performers, making rewarding and retaining high-performing employees easier.
Precise payroll processing
Payroll is a critical HR task that requires accuracy and timeliness to ensure employee satisfaction. However, manual payroll processing can be time-consuming, tedious, and often susceptible to errors.
In the current economic climate, where many workers are living paycheck to paycheck, any payroll delays and mistakes can significantly impact employee morale and trust in the company. This is where AI steps in to automate calculating paychecks, tax deductions, and direct deposits.
It can even act as a reassuring partner to employees by providing them with direct access to their payroll information, reducing the burden on HR in responding to individual queries and concerns.
For instance, with ELLA, employees can ask, “What will be my overtime pay this month?” and within seconds ELLA will respond accurately based on their working hours and company policies. This not only saves time for HR but also instils a sense of transparency and trust in employees.
Accurate time and attendance tracking
When you have staff working on different schedules, shifts and locations, tracking employee attendance and work hours can be a challenging task, to say the least. However, AI-driven time tracking and attendance management systems make this process more manageable and accurate.
AI can also identify patterns in employee attendance and highlight any potential issues, such as excessive absences or tardiness. And with hybrid working on the rise, AI automation can provide real-time insights into when employees are coming into the office or working remotely. This allows HR to address these issues proactively and ensure that employees are fulfilling their work obligations while informing their scheduling and workforce planning decisions.
Efficient benefits administration
When you hear the “open enrollment” period, do you break out in a cold sweat as an HR professional? With AI, you no longer have to dread this time of year. AI can automate the entire benefits administration process, from enrollment to communication and management.
With its data processing capabilities, AI can analyse individual employee data and provide personalised recommendations for benefit options that best suit their needs. It can also assist in managing the entire open enrollment process by sending reminders and notifications to employees, thus reducing HR’s administrative burden.
Moreover, with AI-tools, HR can streamline the communication process and address employees’ questions or concerns regarding their benefits.
“Hey, ELLA, can you give me an overview of my current benefits plan?” – this is all it takes for employees to access their benefits information through the AI assistant, making it a hassle-free experience for both HR and employees alike.
Automated exit interviews and offboarding
No matter how bulletproof your employee retention strategies are, employee departures are inevitable in any organisation. This is why conducting exit interviews can be crucial in understanding why an employee chose to leave and identifying any potential issues within the company.
AI tools can ask open-ended questions and collect feedback from departing employees. It can also analyse this data and generate reports for HR to better understand the reasons behind employee departures.
This allows HR to identify any recurring issues or patterns, take corrective actions, and improve employee retention in the long run. It also eliminates any bias or human error that may occur during manual exit interviews, ensuring a more accurate and objective analysis of employee feedback.
Enhancing HR efficiency with AI integration
In conclusion, AI has revolutionised HR tasks by automating time-consuming and complex processes, allowing HR professionals to spend time on what really matters to them.
The above examples are just a few ways AI can automate HR tasks and enhance efficiency, ultimately leading to better employee experiences and overall company success.
And as technology advances, HR professionals must embrace the power of AI and continuously adapt to stay ahead in the competitive business landscape.
If you want to see how ELLA, our AI-powered HR assistant, can help streamline your HR tasks and improve efficiency, book a demo today.
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