HR is a dynamic part of an organization tasked with recruiting, managing, and training a business’s most valuable asset: people. The multitude of tasks that land on HR desks often means they don’t have much time to develop or scale their processes. But with the urgent changes in business models related to digital transformation, remote work, and economic disruptions, inefficiency in the HR department will quickly spill over to negatively impact overall business operations. Unfilled roles, in particular, will drastically reduce overall business productivity, which, when left unchecked, will impact business revenue.
Talent acquisition and management have become challenging for businesses. Amid the volatile economy and changing preferences in work setups, the pressure is on the HR team to find and acquire the right people. One way to help is to harness the power of technology, particularly in the recruitment process, through artificial intelligence (AI).
What Is AI?
Artificial intelligence refers to the simulation of human intelligence by machines or systems. These systems can react to changes in their environment and adjust responses depending on the data received—without any human intervention.
AI has various roles in different industries. In the HR department, integrating machine-based intelligence can be the key to transforming core organizational processes, including recruiting the right people and retaining top talent.
How AI Helps in Talent Acquisition and Management
While AI will not replace HR managers and associates, it can support them in the work they do. Here are six ways AI can transform talent acquisition and management:
1. Screening Candidates
The HR team spends considerable time screening and filtering candidates. In the 2021 Recruiter Nation Report, one of the hiring challenges that staffing agencies describe is “too many candidates” compared to in-house recruiters.
Screening candidates creates a bottleneck in the hiring process. Recruiters often invest heavily in the recruitment process—spending inordinate amounts of time reading and sorting resumes and conducting interviews—only to discover that the candidate is not suitable for the position they are trying to fill. Not only does this hamper the hiring process, but it’s also costly.
Hiring misalignment is rampant. According to Glassdoor, as many as 30% of employees resign from their posts within the first 90 days of employment.
An AI-powered talent acquisition system can filter candidates effectively and without bias. It can evaluate candidates based on skills and credentials and against the job requirements. By focusing on a shorter list of better applicants, HR teams can gain deeper insights and better identify eligible applicants. This increases the quality of new hires and reduces overhead expenses.
2. Sourcing the Right Talent
AI can upgrade the talent acquisition process by sourcing and engaging the right talent. An AI-based sourcing technology can reach out to candidates using data scraped from different data sources and match aspiring candidates to job openings with high accuracy. Using the wording requirements on the job description, AI can learn related industry-specific terminologies and expand the search.
Furthermore, AI can also use deep learning to match skills required for the job. For example, if an applicant claims to have expertise in software the HR team can verify the claim by using the system to ask about the prerequisites of the skill and identify whether the candidate has the same or related skills.
3. Opening Doors for Hiring Global Talent
With AI, HR teams no longer have to limit their recruitment efforts to traditional in-office work, because with the ability to automate aspects of job posting, talent sourcing, and candidate review, it becomes possible to reach and accept more candidates, making it much easier to open the door to hiring remote or hybrid workers. Accessing a global, diverse workforce brings many benefits to an organization, filling jobs being the least of them. Expanded creativity, a modern culture, and attractive working arrangements help to fill those empty roles with people who are up to the challenge.
HR teams can explore ways to streamline time tracking and payroll tasks through technology. For instance, an online time tracking tool can support remote team collaboration. Additionally, the HR team can also be more open and flexible in hiring hourly workers. Employees can clock in and out without a thought about payroll and accountability.
4. Freeing Up Time
Another valuable advantage of implementing AI in HR is automating administrative tasks, such as payroll processing, data management, and report generation. HR teams spend most of their time on administrative activities, which leaves them with little time to focus on improving employee performance, productivity, and engagement. These are areas that can impact organizational performance.
According to Gallup, only 34% of employees feel engaged at work, with 16% reporting being actively disengaged. Employee engagement matters because it can impact productivity, retention, and reputation. Organizations with high employee engagement rates are 21% more profitable.
5. Measuring Performance
Getting the right people is only part of the puzzle. HR teams must also ensure that the new hires perform well within the organization. As roles evolve, HR must measure employee performance regularly, including defining roles, assessing fair compensation, planning promotions, and ensuring business goals are met.
These processes can be done digitally through performance management software. For instance, an AI-powered system can collect employee data to help quantify an employee’s performance, show areas for improvement, and explore other opportunities employees can take advantage of. Such systems also facilitate a more objective employee assessment.
6. Candidate Support
AI is also critical for ensuring that an organization maintains positive employer branding. This means ensuring that candidates have a good experience, since in a highly competitive job market, top talent can decide whether or not to join an organization based on their experiences during the hiring process. Weeding out unqualified candidates will help HR focus on the best prospects to maintain timely communication and give them what they need to stay in the running.
AI can also be instrumental in providing more clarity about the application process, such as through chatbots. A complicated application process, lack of clarity around job roles, and unclear instructions can cause candidates to withdraw their applications and leave a poor rating. AI can give applicants real-time direction and guidance to complete their application process. It can also provide them with updates on the status of their application.
Technology in Talent Acquisition and Management
AI will revolutionize HR. Introducing AI in the recruitment process does not mean eliminating the “human” in human resources. AI complements the talent acquisition and management processes and adds value to the operation by supporting HR in being more efficient and effective. AI can serve as a tool to assist and optimize productivity within the organization, from hiring the right people to ensuring they remain.
Dean Mathews is the founder and CEO of OnTheClock, an employee time tracking app that helps over 15,000 companies all around the world track time.
Dean has over 20 years of experience designing and developing business apps. He views software development as a form of art. If the artist creates a masterpiece, many people’s lives are touched and changed for the better.
When he is not perfecting time tracking, Dean enjoys expanding his faith, spending time with family and friends, and finding ways to make the world just a little better.