8 Ways AI is Transforming Talent Management in 2021
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The pandemic has transformed the way people work, forcing HR managers to leverage AI and other new technologies and processes that support a more adaptive, flexible, and fluid workforce.
There have been ‘seismic shifts’ in the way organizations operate, says Sage recent survey of 500 HR and HR managers. A third of HR leaders said they are changing the way they hire by creating better experiences for candidates, new hires and newcomers and focusing on workforce experiences. While 24% of companies are currently using AI for recruitment, that number is expected to grow, with 56% saying they plan to adopt AI within the next year. Sage’s findings suggest steady growth over the years, while Gartner Artificial Intelligence Survey of March 2020 revealed that 17% of organizations were using AI-based talent management systems in 2019. The pandemic has likely accelerated the pace of change for many of these organizations.
Where AI adds value to talent management
Evaluate job candidates on potential. Organizations are streamlining recruitment by using AI to match employee capabilities and potential with the skills required for a new position. Talent intelligence platforms typically rely on augmented and autonomous levels of AI to personalize the candidate experience and guide the job seeker to the role that best matches their abilities. Most talent intelligence platforms anonymize candidate data in an effort to eliminate recruitment bias, evaluating candidates solely on skills and abilities. But improvements to training algorithms can give organizations insight into biases in their data and how to fix them.
According to a recent AI study from PwC, augmented AI systems support human decision-making and continuously learn from their interactions with humans and the environment. Autonomous AI systems adapt to different situations and can act without human assistance. Major companies providing talent intelligence platforms include Claro, Eightfold, SeekOut, and Stratigens. Josh Bersin, a well-known human resources analyst, educator and technologist, recently published an interesting report on this area titled The Rise of the Talent Intelligence Platform.
Improve the results of virtual recruiting events. HR managers are creating a series of virtual recruiting events and using AI to guide candidates to the most interesting jobs. This is particularly useful for companies wishing to hire new talent, including senior graduates. Recruiters are using virtual event apps to upload resume books they receive from college and university recruiting programs to a talent intelligence platform. The platform analyzes each CV and ranks it according to the skills and abilities of the candidates. Instead of simply matching keywords like an Application Tracking System (ATS) would, virtual event apps built into the talent intelligence platform use machine learning to match candidates to available positions. according to their skills and potential. One example is Eightfold’s virtual event recruiting module.
Reduce biased language. Organizations are adopting AI-enabled chatbots and augmented writing in collaboration and workflow platforms. The fact that these platforms integrate with enterprise applications such as Microsoft Outlook, Office, and Teams, as well as Slack/Salesforce, can reduce the likelihood of biased language and support inclusive messaging. AI-based chatbots and writing assistants are trained to search for problematic terms, concepts, and phrases and recommend alternative words, concepts, and phrases that reflect less bias. HR teams say AI-augmented writing is useful for job descriptions, letters of recommendation, and improving marketing content. Top AI chatbot providers include Allie, Catalyst and #Biascorrect, while leaders in AI-augmented writing include Textio and Datapeople.
Career planning and mobility. AI can also be used in career path planning and to create mentoring opportunities. HR teams use AI features in talent intelligence platforms to provide personalized career advice to employees based on their innate abilities, potential, and future positions of interest. Companies are also able to match employees just starting their careers with mentors, sponsors and executive coaches. The idea of combining AI and human judgment to improve diversity and facilitate more inclusive leadership development is still in its infancy, however. Leading vendors in this space include Landit and Guild, as well as Talent Intelligence Platforms, Claro, Eightfold, SeekOut, and Stratigens.
Improve the experience of new employees. People leaders are leveraging AI to improve the onboarding process for new hires by providing a more personalized experience. This could help new employees get to work faster and improve retention. For example, AI could match a new employee’s preferences with recommendations on which health insurance benefits to select. Onboarding new employees during the pandemic comes with its own set of challenges and highlighted the need for greater process consistency and cross-functional communication, as each onboarding process needed to be personalized. Key players in this space include Axonify and Kea.
Retain top performers. Organizations can also use AI to improve internal mobility and reduce the risk of top performers leaving. AI models can be trained to spot patterns that suggest when employees will decide to leave for another job. HR teams can use the talent intelligence platform to identify when a top performer is ready to go and provide them with insights into new roles within the company and networking contacts who can talk about the department and the role. Providers offering this feature include Ascendify, Aimee, and Gloat.
Obtain fairer compensation. As HR focuses on equal pay for equal work, AI tools can use market factors, employee performance, and career success to help improve compensation programs. Organizations can set sales quotas, monitor progress toward those quotas, and suggest new strategies to improve results. For sales quotas to be effective, they should be based on historical sales trends, the latest market data by territory, a salesperson’s level of experience, the pace of new product introductions, and many other factors. . Leading companies in this space include Workday HCM, Paycom, and SAP SuccessFactors.
Listening to employees. Employee surveys give HR managers insight into which aspects of the organization’s culture are working and which need improvement. AI and natural language processing (NLP) tools can examine chatbot sessions and quarterly surveys to gauge employee sentiment. During the pandemic, many organizations have focused more on employee health, well-being, stress, well-being and how they deal with uncertainty.
HR managers and their teams need to learn about AI today if they want to stay competitive in the future. Automation combined with assisted, augmented, and autonomous intelligence has the potential to improve the employee experience, delivering personalization at scale. HR professionals would do well to start preparing for their changing roles and long-term goals as automation and AI become more widely adopted.
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