Generative AI (artificial intelligence) has undeniably changed the way HR departments operate. In fact, recruiters alone save an average of 4.5 hours per week by using AI, not including all of the general administrative duties that can be automated.
A study from the UK Department for Education recorded which sectors were expected to be the most supported by AI based on the abilities required to perform them. As you can see from the graph below, HR is one of the top industries for AI exposure.
(Image source: CIPD)
In this article, I will discuss how generative AI is being used in HR software and how this can transform a business strategy. I will then explore the challenges faced and why AI alone is simply not enough when managing a team.
How is Generative AI Being Used in HR Software?
The integration of generative AI into your HR software can rapidly transform how you carry out traditional HR practices, introducing new time-saving features and streamlining processes. The ability to automate daily tasks that were once taking up large chunks of time for HR departments has freed them up to focus on the elements of the role that require a more human touch.
Let’s discuss some of the key features of generative AI in HR software that can be used to improve your operations.
CV Screening
The process of reviewing job applications and CVs before scheduling first-stage interviews is incredibly time-consuming for HR departments, especially in larger businesses that are hiring for multiple positions.
Generative AI allows you to screen all applications and pick out the top candidates based on their experience and qualifications. It can also be used to carry out initial video interviews. In fact, 43% of large companies use AI to interview candidates. This can be done using a combination of your predefined questions as well as follow-up questions based on the responses given by the candidate.
Onboarding
Once the new starters are ready to join the team, the process can be simplified with the help of generative AI. A personalized onboarding plan can be generated to supply documents for the candidate to sign virtually. It can then be used to compile the most relevant training schedule based on the job description. By generating a custom training plan, time is not wasted on irrelevant materials. Since the interactive content can be completed virtually, materials can be revisited if needed, and progress can be tracked.
Reporting
Generative AI is able to produce in-depth reports in short periods of time, allowing you to gain numerical insights that would otherwise be incredibly time-consuming and complex to achieve.
Historical data can be used to produce reports on staff turnover, productivity, and employee satisfaction, allowing any trends or sudden changes to be identified and acted on. These insights can highlight issues that otherwise would’ve gone unnoticed, allowing you to discover any improvements that need to be made.
Appraisal Management
Following an appraisal meeting between an employee and their manager, generative AI can be used to generate a report. By combining the notes submitted by both parties, listing any goals, and combining data with reports from previous appraisals, you can get a comprehensive record of each appraisal meeting within the business. Without having to write up each and every meeting manually, a significant amount of time is freed up.
Why HR Software Alone is Not Enough to Manage a Workforce
Although the capabilities of AI are revolutionizing HR, there are certain aspects that still need the human touch. The personal elements of HR simply cannot be recreated, even with the most impressive software advancements.
Although AI can be used to screen candidates during the recruitment process, an HR professional still needs to carry out an interview of their own. Being able to spend time speaking to the candidates will allow you to get to know their communication style and attitude towards the role. Knowing whether a candidate will be a good fit for the culture of the company is something that can only be learned through human interaction.
The HR department’s ability to support employees is another aspect of the role that AI cannot take over. Whether an employee needs to discuss personal issues, raise an issue about another colleague, or even hand in their notice, having an HR professional to talk to is a necessity. Since HR software does not have an understanding of the dynamics within the team and any conflicts, a physical HR department is needed to maintain a central point of contact.
In a similar way to how the human touch is needed to be able to support HR-related issues in the workforce, HR professionals are also required to make judgments about situations. For example, if an employee requests a pay review or if an employee is not fulfilling their duties. In these types of scenarios, human judgment is necessary to decide on the next course of action.
Finding a Balance Between AI Automation and Human Expertise
To remain competitive in a technological world and maximise the resources available, your business needs to embrace the power of generative AI. The ability to automate tasks that previously took up hours of employee time every day means the HR department can focus its efforts on the duties that require a human touch.
Allowing your HR team to spend their time on tasks that need some human judgment will not only better balance their workload but will also help create a better working environment. Since they will not have to worry about the daily duties that used to take up hours of time, more focus can be spent on ensuring the workforce is happy and supported. For employees, these human interactions are incredibly valuable and will help ensure they have somebody to go to when they need to discuss their job role or personal issues, improving job satisfaction.
Ultimately, the implementation of generative AI in HR software is to make the role of HR staff simpler, not replace them. By automating tasks that do not require a human touch, daily operations are made much more efficient, so effort can be focused on the more collaborative tasks.
