Manual and repetitive administrative tasks take up a lot of HR professionals’ time. A CareerBuilder survey found that HR teams lose an average of 14 hours a week in manually completing tasks that could be automated. They spend 40% of this time on answering phone calls and emails, re-entering data from one system to another, and performing other repetitive tasks.
AI applications in HR can automate many functions, including communications, recruitment, onboarding, time tracking, report generation, and more. McKinsey estimated that 56% of HR-related tasks can be automated without the need to drastically change processes. This will free up HR professionals’ time that can be spent on developing strategic initiatives and enhancing overall workforce management. Automating repetitive tasks also reduces human error and increases productivity.
Artificial intelligence will lead to significant time and cost savings for your People teams and your organization. Let’s examine the benefits of implementing HR automation tools and AI technology for workforce management.
Benefits of AI in HR
Implementing AI in HR produces significant efficiencies and improvements across every step in the employee life cycle. Human resources leaders have been automating processes to increase productivity and lower costs long before AI came along. However, AI has demonstrated it can perform many low-value tasks, including answering frequently asked questions, benefits management, data entry, document processing, and more. A report by Harris Interactive and Eightfold.ai found AI is 19% more effective in reducing HR’s time spent on administrative tasks.
Additional research on implementing AI in human resources functions found:
Streamlining HR with AI also produces a significant return on investment. For small to medium-sized enterprises (SMEs) with 50-200 employees, ROI on AI technology ranges from 2.5x to 6.6x; for organizations with 201-1000 employees, ROI ranges from 8.5x to 19.6x.
AI Impact on HR Management
There are numerous ways to implement AI technology for HR functions, all of which will increase productivity and lower costs.
Recruitment
Recruitment is time-intensive, as it involves repetition and a lot of paperwork. There is also a lot of bias built into the process, which deters equitable hiring. AI technology for HR improves fairness throughout the recruitment process and removes the need to perform many manual tasks. AI can streamline the recruitment process by:
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Removing unconscious bias from job descriptions to expand candidate pools and support diversity
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Analyzing potential candidates via their social media profiles (also known as passive candidate sourcing)
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Scanning and shortlisting resumes that match job-specific criteria to support skills-based hiring
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Scheduling interviews and communicating with candidates using chatbots and natural language processing
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Conducting and scoring aptitude and skills-based tests
AI technology for HR can also help to create a more diverse and innovative hiring pool by expanding recruitment across borders and time zones. For example, Alberni is an AI agent for global employment. In seconds, Alberni can answer questions about global labor laws and compliance.
Onboarding
Onboarding is integral to new employees’ success, as it sets the stage for a smooth transition. However, the process is time-consuming and repetitive. Onboarding is also difficult for remote and distributed teams to implement. AI-driven HR solutions can improve the onboarding process by:
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Automating the delivery and receipt of documentation (e.g., company and job-specific policies, login details, benefits packages)
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Using chatbots to answer new employees’ questions on job duties, company policies, and other concerns
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Scheduling online and in-person meetings
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Creating customized onboarding and training packages based on individuals’ learning style, skill level, and role requirements
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Tracking new employees’ progress throughout the process
Training
With technologies evolving rapidly, there is a constant need to upskill and reskill employees. Traditional in-person classrooms are not always practical, and different employees learn in different ways. Providing personal learning and development also helps to attract and retain talent. AI-powered technology can improve training by:
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Collecting skills data from internal and external sources to identify skills gaps
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Customizing training to different employees’ learning styles
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Enabling employees to access training resources wherever they are located
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Guiding and supporting employees’ development throughout their careers
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Creating immersive learning experiences by simulating real-life scenarios and providing immediate feedback
Engagement and Retention
Engaged employees are satisfied and productive, which keeps hiring costs low and helps your company succeed. When managing distributed and remote teams, communication, collaboration, and engagement can be challenging. AI-driven HR solutions can improve engagement and retention by:
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Employing HR analytics to predict employee sentiment and customize intervention
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Providing virtual and online meeting tools to support communications
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Supporting synchronous and asynchronous collaboration across in-person and remote office locations
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Using chatbots to answer questions and resolve issues
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Identifying opportunities to reduce inefficiencies and streamline workflows
Performance Review and Career Development
Performance reviews require significant time and paperwork and with the evolution of traditional work structures, it can be difficult to help employees achieve their career goals while addressing organizational needs. AI can streamline and improve performance management by:
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Conducting, analyzing, and reporting on real-time employee assessments
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Using predictive analytics to identify employees’ weaknesses and customize training solutions to support their development
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Analyzing individual and team performance data to suggest areas of improvement
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Providing direction on training to upskill or reskill employees for future opportunities
Wellness
Employee health and wellness are essential for maintaining a productive and satisfied workforce. It’s difficult to monitor and address the mental, physical, and emotional health of employees, especially remote and distributed teams. HR teams can use AI to support employees’ health and wellness by:
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Eliminating or reducing repetitive and time-consuming tasks
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Monitoring, tracking, and analyzing user activity via health monitoring tools and IoT sensors
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Notifying HR managers of potential physical and mental health concerns among their staff
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Customizing health and wellness solutions based on AI analytics of employees’ performance
Conclusion
HR process automation has come a long way, and the future of AI in HR promises to create even greater efficiencies. AI-driven HR solutions will save countless hours for People teams, enabling them to spend more time on activities that add value to the organization. Investing in AI for human resources can transform recruitment, onboarding, training, employee engagement, performance management, employee wellness, and other HR functions.
Alberni can answer global employment questions, generate employment contracts, and streamline the employee experience. Book a demo today.