Startups and corporates around the world, and in India have acknowledged the mettle of artificial intelligence and have been deploying it to streamline their business processes furthermore. As the organisations around the world adopt AI, human resources are at the centre stage of this change.
Most of the big players have started deploying AI-based HR solutions in their organisations. However, it’s the startups and the SMEs which might benefit from it the most. How? Keep on reading.
For a young-age startup, the people joining their team might even be the most valuable asset. An up and coming organisation’s HR and work culture go on to shape how it’s perceived in the market in the longer run.
The HR technology space is touted to be a $34 billion market, with a sizable $3.6 billion worth of investment arising from Asia. Organisations are deploying AI-based machines and software to aid their processes by performing cognitive functions.
So how can AI help make your organisation’s HR strategy much more efficient? Read below to find out.
An amalgamation of AI & HR: How It’s Shaping The World Around Us
In a recent report, released by IBM, called The Business Case For AI in HR, the tech giant reflects on the functions that AI is reshaping in the HR department. From preventing unwanted turnover ratios to employee hotspots, eliminating manual tasks and more.
A certain degree of upskilling and the organisation’s ethics can actually help the HR department to embrace the change of artificial intelligence. According to a report by Deloitte, nearly 40% of companies have employed AI in their HR department in some of the other forms.
Artificial Intelligence is already playing a big part in reducing human-based errors or characteristics which make affect the workforce and the decision-making process. Reducing human bias, sorting through CVs, improved compliance etc are just some of the essentials which can be looked into.
As of now, recruiting and talent acquisition are the two pillars which are solidifying the base for AI in HR. A report by PeopleStrong has predicted that Indian companies and startups are expected to save up to $600 million by 2021 using HR technology.
Many startups have shown a keen interest in investing in HR technology. A large number of startups and companies in India have already been deploying AI in their recruitment and talent acquisition divisions. From unicorns like OYO to upcoming startups like Lendingkart.
According to Deloitte India’s fifth Annual Global Capital Human Trends report, 53% of companies are transforming their HR departments to deploy AI and digital tools. Moreover, 22% of these companies have successfully deployed AI to provide HR solutions.
“With some upskilling, ethical operating guidelines, and a healthy dose of technical curiosity, the HR function is now positioned to truly drive strategic advantage while better supporting the workforce we rely on to put the strategy into action.” – Diane Gherson, Chief Human Resource Officer, IBM
The AI Effect: HR Functions Being Reformed By AI
- Resume Screening: Resume screening turns out to be one of the toughest steps in the recruitment and talent acquisition process. While it might seem like an easy task, to begin with, a certain degree of human bias and other factors might make the process a tad more cumbersome.
With a list of certain filters and sorting factors, AI can help the HR managers to refine the resumes based on the location, years of experience, core skills and other vitals.
Moreover, with the assistance of AI, a startup can fulfil the vacant roles in a better manner, with a reduced screening time and concentrating only on the relevant candidates.
The final selection of a candidate is impartial and devoid of any degree of bias. This turns out to be one of the highest outsourced HR services for any startup, considering the cost to effort ratio involved. - Source of Talent Acquisition: Startups turn out to be one of the most sought-after workplaces for many candidates.
However, it certainly does not imply that the organisation doesn’t source the talent themselves. While a generic search might get a company the candidate they’re looking for.
But the chances of that happening has reduced drastically in the ongoing age. With an AI-based system deployed at the right place, the recruiters can look at a variety of data points and identify the suitable candidates. - Personalisation: AI can help recruiters personalise their line of communication. In order to provide a newly-recruited candidate with an introductory learning graph in the company, the algorithms can personalise the chart for every candidate based on their behaviour.
By a thorough analysis of their CV, past experiences, and performances, the data-backed AI tools can help the candidate get a more personalised experience, hence providing an impetus to the HR goodwill of an organisation. - Reduced Employee Turnovers: AI-backed tools and software are likely to make the HR personnel more accessible. A receptive HR department can do wonders for the employee retention rate in a startup or an SME in its introductory stage.
- Prediction-Based Models: The startups in today’s business environment have to be agile and dynamic. Keeping the government codes, company culture, new compliance and much more in mind, a prediction model can turn out to be handy.
A prediction model can help any company to predict the turnover rates, employee concerns, and areas of pain in any organisation. A prior prediction based model, dependent on data can help the HR managers of a startup or a company can help improve their strategies for the long run.
Conclusion | Artificial Intelligence in HR
Artificial intelligence-based tools and services are turning out to be more reliable in the longer run, considering their data-driven characteristics. This data-backed process bypasses the hurdles of human bias and individual opinions, hindering the final decision making.
In order for a startup to cross the hurdles of the new-age business ecosystem, it has to be agile and dynamic. For a young startup with less than 100 or so employees, outsourcing the HR services can turn out to be a vital move.
Keeping the cost-benefits analysis in mind, it becomes imperative to outsource the talent acquisition, screening and other parts of the HR function. This allows any upcoming SME or startup to focus on their company culture, as well as get an expert’s opinion.
From chatbots pertaining to the organisations’ FAQs to employee engagement activities, AI has turned out to be dependable enough, as of now. The future of AI in HR is one with creative inputs from humans, combined with data-driven insights from AI to deliver an efficient and seamless experience.
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