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Artificial Intelligence in Talent Management

October 4, 2024

In today’s uncertain market, HR managers, directors, and other senior HR leaders find that they need to achieve more with less. This imperative for heightened efficiency fuels an embrace of artificial intelligence (AI) solutions among HR leaders, especially around talent management. AI makes it easier for HR teams to attract, train, and retain employees across the talent lifecycle. 

In fact, 76% of HR leaders believe that if their companies put off AI implementation for another 12 to 24 months, they’ll have fallen behind their competitors as a result. Here, we’ll be taking a look at some major impacts AI is having on talent management for HR leaders. 

AI is Helping HR Leaders Streamline Recruitment 

For HR managers, recruiting is often one of the most stressful phases of the talent management cycle. Not only is it time-consuming and labor-intensive, but there’s a lot of pressure involved. After all, poorly made hires can harm employee morale and your company’s performance. 

Forward-thinking HR leaders are moving away from a purely manual approach to recruiting and streamlining key workflows by:

  • Using AI to speed up the candidate screening process.
  • Automating recruitment processes to save time, such as automatically managing candidates not selected, sending feedback, managing calendars, and collecting insights. 
  • Leveraging predictive analytics to maximize employee fit and retention. 

Incorporating AI into your recruiting practices helps free up your time for the more valuable aspects of recruitment, like second and third-round interviews. This results in stronger hires and more productive teams. 

Learning Management Systems are Revolutionizing Employee Training

As an HR leader, you’re no stranger to the challenges of employee training across your company’s teams and departments. A learning management system (LMS) is a cloud-based software product that can help you centralize, organize, and automate your organization’s training programs. 

LMS software can help you achieve key training objectives more effectively: 

  • Personalize employees’ learning paths: An LMS with AI functionality can personalize employees’ training material to match their unique learning styles and personal strengths. This helps HR teams proactively ensure that employees are properly oriented, knowledgeable, and confident in their new roles. 
  • Monitor key learning metrics in real-time: HR leaders can gain timely insights about the success of their training efforts. Keep tabs on essential metrics like learner engagement, training cost per employee, training satisfaction rates, and other KPIs. 
  • Test your employees’ knowledge and progress: AI can present employees with customized tests about the training material they’ve covered and automatically grade their test performance, saving HR teams hours of time.  

AI can help you set your employees up for lasting success, fueling the growth of your organization’s top line. 

Predict and Quantify the Impact of Your HR Initiatives on Key Business KPIs

AI is helping HR leaders quantify the results of their talent management strategies and initiatives. This is an incredibly important part of creating lasting organizational change and making sure your company is making progress toward its key goals. 

With AI software like atwork, HR managers can proactively monitor vital KPIs like Net Promoter Score, Employee Engagement, Intention to Stay and other key metrics and understand how they impact mission-critical business metrics such as Employee Turnover, Absenteeism, Overtime and Performance. atwork has developed a unique Machine Learning based Prediction Engine that predicts and quantifies the impact of HR KPIs on business KPIs. With the help of atwork’s comprehensive and holistic measurement solutions that take common HR KPIs into account, more clarity is provided on the impact of your HR initiatives.

This proactive approach allows HR leaders to implement targeted retention strategies, significantly reducing turnover costs. Companies that implemented atwork saw remarkable results within six months, including a reduction in time-to-hire, an increase in Employee Engagement scores, and a decrease in turnover rates. 

AI Turns Employee Surveys and HR Data Into Targeted Action Plans

For today’s HR leaders, the essential question is, “How do you interact with your data?” Do you have a way to transform survey responses and other raw data into strategies that drive your organization toward desired outcomes? AI is helping HR leaders pinpoint the most effective path to organizational change while also being more creative in the actions they consider. 

Amongst other technologies, atwork’s HR software uses Natural Language Processing (NLP) to analyze and summarize qualitative employee survey responses and other HR data in real time. The software then uses a three-step process to create a customized action plan based on its findings: 

  1. Impact framework: atwork leverages a holistic scientific framework to conduct the assessment of organizational effectiveness and deciding where action is needed most according to scientific statistical correlations between influencing factors and HR KPIs being measured.
  1. Company-specific inputs: The software utilizes a series of prompts to gather company-specific information like organizational characteristics, business context, and desired objectives to make sure the action recommendations are considering your unique organizational context.
  1. Customized action plan: In under 5 minutes, atwork delivers a customized action plan with descriptive, predictive, and prescriptive analytics leveraging your survey results, desired objective and organizational context suggesting clear actions with resources needed, responsibilities, goals, and a timeline. 

AI is making it possible for HR managers to work with their data on a deeper level than ever before and implement strategies they can have confidence in. 

AI Helps HR Teams Limit Biases During Internal Promotions

HR leaders know that promoting from within has a wide range of benefits. It’s less expensive on average, it fosters company loyalty and improves retention, and it reduces the need for lengthy new-hire onboarding and training. However, it’s not easy to gauge a current employee’s level of aptitude for an upwardly mobile role filled with new and more complex responsibilities. Also, unconscious biases can harm your decision-making.

AI can objectively evaluate your employees’ skill sets and experience, and deliver recommendations about who’s best-suited for your company’s available promotions. Incorporating AI can help you avoid common biases when promoting from within, such as: 

  • The Halo Effect: This occurs when one positive quality about a candidate outshines shortcomings that might hinder their success in the new role. 
  • The Horn Effect: This is the opposite of the halo effect, and it involves a single negative perception souring your view on an otherwise highly qualified candidate. 
  • Affinity Bias: Affinity bias occurs when an interviewer prioritizes candidates who have similar qualities, personal or professional experiences, or some other affinity with themselves.  

Complementing human reasoning and insights with AI interpretation of employee data can help you limit biases during the promotion process.

Optimize Talent Management With AI

Automated software enables HR leaders to manage talent more effectively, less expensively, and with greater objectivity at every stage of the employee lifecycle. HR tools equipped with AI facilitate deeper insights into what’s working for your company and employees, what needs to change, and the best way to approach those changes considering your company’s unique situation and goals. 
To learn more about how AI is transforming the world of work, head over to our blog.