ai hr software

ai hr software

 ai hr software

 Artificial intelligence (AI) is spreading globally, and the fact that it is vastly available is pushing an increasing number of businesses to use it. The HR Department is one such division. Today every business must have a Human Resource department to take care of management, hiring, and administrative tasks. The amount of manual labor required by the Human Resource depart is now being reduced, thanks to AI-enabled solutions.

In this article, we will talk about the Artificial Intelligence-powered tools that assist the Human Resource department in various ways. But before going to the tools, let us know how Artificial Intelligence (AI) helps in Human Resource (HR) management.

Here is artificial intelligence used in HR?

In 2020, as part of the study “Application of artificial intelligence technologies in personnel management of modern organizations”, Doctor of Economic Sciences Oksana Chulanova conducted a survey on the role of artificial intelligence in modern business.

More than 150 owners and employees of Russian companies took part in the survey (69% large, 21% medium and 10% small businesses) 3 . 

The research work was carried out online using a Google form. 77% of respondents showed interest in the topic of artificial intelligence, 17% have a poor understanding of AI, and only 6% remained indifferent to it.

According to 69% of respondents, artificial intelligence can significantly improve the efficiency of the company. 73% voted for the fact that he is able to save employees from routine work, and 48% voted for the fact that AI helps in decision-making.

At the time of the study, 54% of respondents answered that they have not yet applied AI in personnel management, and 25% are already using the benefits of artificial intelligence in their company.

Role of AI in HR Management:

Thanks to the refinement artificial intelligence have brought to Human Resource, there have been significant technical improvements. Artificial Intelligence-based systems support Human Resource efforts by handling tasks including employee engagement, hiring, and training.

According to ECOPSY Consulting 4 researchers, neural network technologies make it possible to solve HR tasks at almost any stage of an employee's life cycle, including:

staff recruitment,
formation of salaries,
goal setting and performance evaluation
career development (Talent Management),
culture and engagement management.
The only exception, according to ECOPSY experts, is the stage of dismissal of an employee.

What are the benefits of neural networks in personnel management?

Based on research data, we can conclude that AI can greatly facilitate team management and problem-solving in HR at all levels: from ordinary specialists to CEOs and business owners. And how do neural networks help in managing employees in practice?

#1 Optimizes the search for suitable candidates for an open position in the company.

In 2018, HR platform Ideal 5 reported that most of the world's recruiting teams use artificial intelligence to select candidates. The company's experts believe that the trend for AI in HR will continue to develop in the future. Over time, employee management will be unimaginable without the active participation of artificial intelligence.

Already, AI tools allow for a 94% increase in resume processing speed. Algorithms select potential employees based on formal features: education, competencies, and track record analysis.

You can find similar functionality on HeadHunter, but AI-based platforms use not one, but many bases. For example, CleverStuff 6 helps an employer build a database of professionals from 15 data sources.

CleverStuff artificial intelligence integrates with mail, job search sites and LinkedIn creates a report for the employer or customer about suitable candidates. During the analysis, the system initially examines the criteria for a vacancy and then finds specialists who have indicated similar key skills in their resumes.

In addition to assessing competencies, neural networks identify gaps in the knowledge and skills of job candidates. So AI tools help to attract more qualified staff than if the search for applicants was conducted manually.

Sever.AI CEO Vladimir Li 7 said that in addition to AI recruitment, HR functions are actively used to automate calls. In the work of the retail network of an oil company, during the New Year holidays, the robot received 571 calls from job seekers and transferred the resumes of 332 people to the personnel department. 

Similarly, you can automate the distribution of invitations to an interview with an HR specialist. At the same time, the candidates themselves gradually get used to such robots and react to communication with the neural network without shock.  

I would like to note that AI does not at all replace HR, which will have to evaluate the character and personality of the applicant, but greatly facilitates its work in screening and sorting candidates according to the desirability of the company.

#2 Evaluate the skills of employees and selects the best solutions for staff training. 

An HR-Portal study states that the average employee only has 25 minutes a day to train. Neural networks help to use this time to good use.

For example, the Degreed platform allows a company to select training courses for staff based on the competencies and career ambitions of employees. The system helps the employer to identify the potential of employees and, if the company focuses on a new field of activity, not to hire new people, but to train the existing team 8. 
The EdCast platform works similarly. Its goal is to keep Hi-Po employees inside the company, offering them career growth through training. The digital library of the system contains the experience of specialists from various business sectors. The employer will be able to choose exactly those courses that meet his goals.

In addition, the artificial intelligence of platforms determines in what format it is better to improve the skills of employees. For example, Netflix's algorithms help students acquire the competencies they need in an entertaining way. 

A similar approach is used by the aforementioned Degreed and EdCast, where personal recommendations for the employer are created by artificial intelligence, and short video lectures are selected so that students learn more easily than many hours of lessons. 

#3 Simplifies the formation of a reasonable wage system. 

Companies have been trying to bring payroll management under a single universal logic for a long time. Organizations are grappling with the question of how best to balance the skill level, experience, performance, and reward of an employee. And not always this dilemma is solved by KPI.

According to Sergey Andreev, President and CEO of ABBYY Group of Companies 10, an overly formalized team performance evaluation (KPI) system can ruin even an effective team. Plans for employees are often put forward by specialists who are little familiar with the real subject of the work of the team.

A 2012 CEB study showed that due to the "swing" in raising and lowering KPI thresholds, a company may face a performance crisis when even the achievement of numerical targets does not reflect the real business result. You can learn more about this in the article “APublic KPI: How to Do Right Metrics Lead to Wrong Conclusions?”. 

Artificial intelligence can solve this problem. Technological solutions are known 4, when AI revealed patterns in the formation of employees' wages, compared them with their results based on the company's historical data, and showed which employees the organization significantly overpays and which underpays, and this increases the risk of their leaving. Further, management can decide on the optimization of the salary fund and changes in the remuneration policy.

Also, artificial neural networks can contribute to solving the problem of discrimination in this matter. In 2010, experts from Hegewisch & Liepmann found that in almost every business area, women receive 20% fewer fees than men for similar duties. It should be noted that trends regarding such stereotypes change slowly.


If a company is trying to adhere to the principles of equality and inclusiveness, then artificial intelligence can be useful, as algorithms evaluate the effectiveness, competencies, and career expectations of employees regardless of gender and objectively suggest the most promising candidate, for example, for promotion.


#4 Helps manage employee engagement and performance

The range of applications of analytical data on employees covers all stages of the life cycle of an employee in a company, which is confirmed by a study by Adam McKinnon and Mikael Vorno from Insight222 (USA) 11.

These are operational efficiency, recruitment, onboarding/offboarding, talent management, strategic planning, career growth, managerial changes, and much more. others

A separate large area is behavioral HR analytics, within which artificial intelligence solves such team management tasks as:
  • increasing staff engagement,
  • increase in well-being and well-being of employees,
  • improving the experience of employees in the company,
  • stress reduction to prevent burnout and layoffs,
  • identifying and solving key problems in business processes,
  • identifying and empowering Hi-Po employees and more. others
The diversity of approaches and high demand for PAT technologies is confirmed by a study by RedThread Research covering at least 120 vendors from around the world, including, Inc.

The big discovery for many organizations is that AI-powered behavioral analytics creates value not only for companies but also for employees themselves. 

The diagram below shows areas where skills data can be used to benefit both the organization and the individual. 

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