AI + HR = Human Capital.

AI + HR = Human Capital.

Peter Lawrence of Human Capital Department Ltd.

In a recent survey 66% of CEO’s believe that AI can drive significant value in HR. If CEO’s are saying AI is important then the HR Profession needs to wake up and pay attention in order to command the respect of those at the top table.

So what do we mean by “AI”; What impact has it had so far on People Management and Development; and where might we see it impacting HR further in the future?

AI or Artificial Intelligence is software and computer programmes that can “think” or mimic cognitive processes & that interact with the environment and react accordingly. AI enables the analysis of large amount of data, such as workforce data, checking for inconsistencies or missing information or errors.

If used positively AI can bring advanced insights that will lead to improved People Management & Development.

AI has the potential to transform the world of HR – in the same way that the Tesco Club-Card transformed the supermarkets understanding of customer behaviour, AI in HR can transform our understanding of Employee Behaviour, helping us as employers to attract and retain talent, and provide real competitive advantage to those that embrace this technology.

What impact has AI had on HR so far? AI is having an impact in Recruitment and Selection, reducing hundreds or man-hours filtering thousands of CV’s and reducing time to hire from 34 to 9 days. AI can locate passive candidates, those not actively looking and thought by many recruiters to be the most desirable. Online data can be collected through additional sources, for example, through social media profiles, assessment of educational qualifications, previous on-line applications which might indicate commitment to make a career change, availability and salary expectation, resulting in a more targeted and improved ranking of candidates, saving recruiter time. Predictive analytics can assess cultural and technical fit against a specific set of criteria and anticipate likely success in the role. Irrelevant criteria can be removed and data anonymised to reduce the risk of bias.

In terms of learning and development AI can augment or eliminate the need for a physical trainer to assess learning and can create online content & chat-bots to answer questions.

Organisations that have a Performance Management process will collate large amounts of data on employee performance. This could include an overall performance rating, a performance ranking [relative to others], and rating of [behavioural and technical competencies]. This data can be used inform decisions about training and career development, and succession.

The use of AI can help drive better and more well informed decisions relating to employees across the business which are likely to result in improved productivity.

e-HR systems are a source of employee data which can be utilised in identifying and predicting employee behaviour such as sickness absence and time-keeping and attendance.

Human Capital Department have developed a process we call Human Capital Due Diligence to assess the capability of management teams seeking equity investment. This involves an online assessment, behavioural event interview and assessment centre and results in a detailed report which identifies strengths and weaknesses of the management team and a recommendation on readiness for investment. Our client is looking to combine AI and Block-Chain to identify companies suitable for equity investment. It seems likely that future funding applications will be assessed online, reducing the need for human intervention.

Contact Peter Lawrence for more information

Peter.lawrence@humancapitaldept.com

www.humancapitaldept.com

Written by: Paul Withers

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