AI: Impact on human capital management & people analytics

Aishwarya Sinha Ray
min read
AI: Impact on human capital management & people analytics

AI is in the minds of businesses worldwide. They have been experimenting and innovating to gain competitive advantage.

In fact, U.S. startups developing AI systems has increased 14X since 2000. This data is given by Artificial Intelligence Index 2017 Annual Report by Stanford University.

Here's what business professionals have to say about AI.

  • 50% of HR executives back this finding by saying that they recognize the power of cognitive computing as it can transform key dimensions of HR.
  • 54% of them believe that cognitive computing will affect key roles in the HR organization.
  • Business leaders believe that they will double the the rate of innovation with AI by 2021.
  • In an IFS study, 70% of participants suggest that AI will improve productivity at workplace and build a robust workforce.

This year, we have seen major advancements in AI for business. Next year, we are expecting further modifications to create a more impactful digital workforce.

AI for Business and Workplace

Personalised employee experience

Employee expectations must be set right from the beginning. This must happen before the employee joins the organisation and enters the new work environment.

For this, HR can effectively integrate AI with an employee’s on-boarding program. It will provide an open communication platform where new employees can fearlessly talk with the management.

Further, a personalised employee experience means new employees will get an opportunity to know their new coworkers on an individual level.

For example, if a person works in the Data team but later sometime faces an IT-related issue then the employee must know where to go. Employees can find this information on one single automated platform and not feel lost.

In the end, companies must look to create an automated system where both new and old employees can find important information.

Exclusive on-boarding experience

We know that the on-boarding process includes employee training too.

So, an AI system will provide training suggestions to new employees. It will ask them to share their experience and feedback.  The AI integrated system will store all this information in one place to open channels for improvement.

This could be another way to promote and maintain transparency in the organisation. There are multiple touch points to maintain the journey for new employees, both digital and physical.

New employee journey is similar to a new customer journey for a business. AI can determine how smoothly this transition takes place from new-to-settled.

Large corporate leaders are mostly occupied with their own work. Therefore, an automated AI system in HR will critically evaluate its impact on the overall employee journey at each stage of the lifecycle by their existing touch-points, specifically digital. This will further check for the efficiency in the AI system.

AI: Impact on human capital management & people analytics | peopleHum

Better decision-making at the leadership level

There are mostly 2 kinds of decisions that leaders and managers have to make-

  1. Long-term decisions
  2. Day-to-day decisions

Irrespective of whether the decision will impact the company’s sales figures in 2020 or on the very next day, AI will help employees take intuitive decisions backed with data. While the team has time to ponder upon long-term decisions, AI will help take day-to-day decisions in a much better fashion-

  1. Leave approval: Usually, team members apply for their own individual leaves however, at times they tend to be cancelled because others might also want to apply for a leave around that time-period. So, an AI integrated HR system will let the employee know how likely their leaves are to get approval.
  2. Performance: A team member may conduct a meeting, onboarding session, demo, or some other important discussion. If the member receives regular feedback then it will help the member improve in the future. “Was I confident?”, “Did I sound too nervous?”, “Was I able to answer the client’s query in detail?”, “Should I focus on my tone?”, all sorts of questions pop up on our minds when we conduct meetings. Therefore, the AI system will ensure that we receive regular feedback.
  3. Training: An automated system will maintain a list of available training opportunities to choose from for the new employees. The team leads or reporting managers will be able to keep a track on the progress and measure results accordingly.
  4. Recruitment: Maintaining and streamlining a hiring pipeline is very important for growing businesses. AI-integrated HR system will ensure that the concerned team members receive information regarding interview scheduling, feedback sharing, and other updates.

Automated tasks that offer low-value

HR professionals worry about becoming redundant with the coming of an AI integrated HR system. However, what they don’t realise is the fact that they will get an opportunity to perform higher-value tasks. They will learn new skills to upgrade their output and bring more value to the company, like employee engagement, retention, mentoring, etc.

AI: Impact on human capital management & people analytics | peopleHum

Recruitment drives through AI

If you are a budding company looking for great talent to join your organisation then there are companies out there too, who are targeting the exact same great talent. How do you ensure that you customise an experience tailored to their needs?

  • Offer a seamless platform for applicants to apply
  • Allow them to choose the benefits of their choice
  • Let them explore development opportunities to grow
  • Automate interview scheduling through AI recruiters to save time and effort
  • Provide regular feedback to engage them better
  • Integrate an AI system that answers queries in real-time

Effective people analytics

Co-creation is a large part of the company culture. Popular belief is that a person must be selected for a particular position based on their previous experience. However, does that mean that the candidate isn’t cut out for some other role? How sure can we be that the candidate won’t be able to pull off a challenge that belongs to a different department? This is where AI helps the HR out to enable them to take intelligent decisions.

No doubt, companies have been collecting data to gain insights about employee behaviour and expectations but there’s a lot more work that needs to be done. HR can leverage the power of people analytics to track, analyse, manage and protect employee data to keep improving the employee experience. That’s how companies meet the candidate’s digital expectations and distinguish themselves from other companies.

No personal/emotional bias

In the survey by the Human Resources Professional Association, researchers found that even when employers strive to be inclusive, they may subconsciously lean toward candidates who are most like them. This is purely what we call ‘unconscious bias’. The interviewer and the candidate might-

  • Share common interests
  • Belong from the same city
  • Have inclination towards the same art/artist, etc

Especially in a country like India, the huge diversity creeps in the possibility of even more unconscious bias.

AI is strictly data-driven and free from any sort of bias or gut feeling. It will ensure that the competency of the candidate is presented to the hiring manager.

AI: Impact on human capital management & people analytics | peopleHum

Identification of employees who might quit

Identifying those employees who might quit is a highly advantageous process that comes under retention practice. IBM suggested that its HR AI system accurately predicts 95% of the time if people might want to leave the company.

“It has saved the company over $300 million!”, says the company’s CEO.

AI And Human Capital Management

We are extensively using AI in human capital management. In fact, we are now starting to focus on machine learning, deep learning, analytics, etc, as well.

This is helping businesses automate routine HR tasks and manage all the factors that we have discussed above in the blog. That's why businesses are beginning to focus on increasing their investments on AI for business performance that's better.

AI in HCM is showing promising impact on talent acquisition, on-boarding, employee engagement, performance management and more.

Some business professionals have shared their concerns regarding ‘keeping a constant watch’ on individual employee behaviour and activity. It’s better to collect regular feedback from employees and discuss their day-to-day work.

The whole point of introducing an AI system in human capital management is to automate manual surveys and give more time to the HR to talk to employees.

This is to restore 'human' in human resources and business workflows.

Scott Morgan, Director of Information Technology & Administration at Infor, says, “HCM of the future will be transparent and limitless to the user. Rule and integrations will be too complex or compound. In fact user experience will come under a seamless cloud service. Native capabilities for HCM will no longer be a distinction. This is because functions and capabilities will be synchronized across the many platforms. We will leverage these platforms to deliver the expected outcomes of HCM e.g., labor planning, execution, and analysis."

AI And People Analytics

People Analytics is an excellent way to build people relations and build business.

It will not only improve the entire on-boarding experience but boost employee retention as well.

Data and AI technology will do their work in identifying when an employee is planning to make an exit but only an HR manager will be able to have a one-to-one conversation and retain employees.

Further, this doesn't just limit to work or business. It is about ethics as well.

Data and people analytics will majorly work around 4 pillars. Privacy, Security, Bias and People Impact.

We have heard the news where big companies such as Facebook, Yahoo, etc, have got into trouble. This happened because they didn't manage customer data really well. However, that shouldn't and cannot be the case when it comes to your people.

Their data, experiences and safety carries the greatest importance because they are the ones who are building your business.

Conclusion: AI for Business

The combination of artificial intelligence and HR will have a promising impact on employee engagement. The process will be productive as long as HR finds out a way to balance between cognitive tech advances and human intervention.

There can still be bias in decision-making; however, the percentage will considerably reduce when HR professionals have a clear understanding of the program that their company introduces. More than ensuring efficiency it is perhaps necessary to build some level of trust among employees and departments that the technology will work out.

In the end, it all counts when you are able to clearly measure improvement. Businesses can have all the big ideas and execution as well but it all boils down to ethics and discipline. Therefore, Human Capital Management and People Analytics along with AI for business will create a huge impact, and bring more safety and security.

We hope you got some great insights from this blog. Its now time to apply it. Get started with peopleHum for free today. No credit card needed.

human capital management
people analytics
strong team
artificial intelligence

Blog > Latest Articles

No Search results found

About peopleHum

PeopleHum is an end-to-end, one-view, integrated human capital management automation platform, the winner of the 2019 global Codie Award for HCM that is specifically built for crafted employee experiences and the future of work.

Get Started Free
Follow us on