AI and HR
Almost every single day, we either use or hear terms related to AI (artificial intelligence) and Automation. In fact, these technologies/ideologies have unknowingly become an essential part of our lingo and lives as well. Right from booking a cab ride to getting a doctor’s appointment, everything can be done at a click of a button, and the credit goes to AI. Today the tech world is full of buzzwords related to AI that not just create noise but make a significant difference to the business world.
To begin with, it is essential to get the hang of technologies that came about 15 years ago and have drastically changed the way we share information today. Yes, I am talking about the basics— social media platforms such as Facebook, LinkedIn, and Twitter that are widely used to put information on the web and vice versa, where users also seek information from the web.
Therefore, it is time to evaluate how these technologies exploded in no time. Probably about 15 years ago, none of these technologies existed, and about five years ago, we did not use even half of these, but today we don’t just use these but have several others at our disposal.
So basically, AI is now everywhere. Well, some areas still need development, but elements such as natural language processing, machine learning, and other components of AI (artificial intelligence) have become a part of our daily lives.
Now it is time to see how AI translates for the HR function by looking at how technology improves efficiency and makes a clear choice between hype and reality. Another essential point that we would be touching in this HRTech article is how the use of AI helps companies tackle issues related to age discrimination in the modern corporate world.
What does all of this mean, and where is this headed to?
AI has successfully streamlined various human resource processes. AI-based sophisticated computer programs perform exceptionally well while recognizing patterns, planning, and adapting. Unlike humans, these AI-programmed machines never feel tired or make biased decisions; hence the results are fast, efficient, and reliable.
It is also observed that AI is exponentially used to automate HR processes. To back this up, a study by McKinsey observes a changing business trend with the adoption of AI, irrespective of the industry. The further study projects, “AI could potentially deliver an additional economic output of around USD 13 trillion by 2030, boosting global GDP by about 1.2 percent a year.” Well, the impact of AI (artificial intelligence) is huge. Isn’t it?
Ways in which AI is reinventing HR
1. AI sifts through a huge number of applications at a rapid pace
Finding the right person at the right time and for the right job is extremely essential for every organization. Vacant positions can hamper work and also hurt the company morale; hence it is imperative to fill the vacant position with the right candidate quickly.
The journey to finding that right person is not easy, as it demands rigorous sorting of incoming resumes and trust the task is arduous and vulnerable to human error. You would be surprised to know that AI can help HR departments save about 23 hours per hire by implementing algorithms to access and evaluate applicants on the parameters like knowledge, experience, and skills (that is a lot of time being saved).
2. AI helps hire qualified candidates and increases retention
AI is not just responsible for speeding up the hiring process, it also adds value to the HR processes by using the data available to match candidates with the right jobs. Additionally, AI has the potential to identify traits of successful employees and use similar parameters to look for the most suitable candidates for specific jobs.
3. AI automation adds to the precision
AI in HR is used increasingly to automate work that happens to be on repeat mode and, in return, increases focus on strategic work that demands more attention.
4. AI reduces hiring bias
Sometimes unknowingly, HR personnel doesn’t realize that bias is creeping into the hiring process. At the end of the day, we are only human. This is where AI does an amazing job by disregarding aspects such as age, gender, and race. This feature of AI helps reduce the element of partiality and increase opportunities for a more culturally diverse workplace.
Mentioned above are conventional aspects of the HR process taken care of by AI. Now it is time to shed some light on how AI handles age discrimination in a modern corporate setup.
Despite several researches that specify higher retention among older workers, we cannot deny the fact that ageism is more prevalent in workplaces compared to racism or gender bias. You would be surprised to learn that in recent years, older workers are seeking the attention of the court for solutions. This now demands companies to be more mindful when handling such delicate issues.
A few businesses implement unique solutions such as gamification and reverse mentorship to tackle the issue of diversifying workforces. But when it is the question of ageism, companies need more strategic, advanced, and comprehensive solutions to deal with the problem.
Experts believe that AI and automation can make an essential part of any forward-thinking corporate strategy, especially when it is the question of making the most of the job market amongst the older workforce.
Here are some interesting statistics that add to the importance of tackling age discrimination at corporate mindfully.
In 5 years, about 25% of workers are estimated to be over 55 years of age (this is a number that has doubled in the last 25 years). An even more interesting fact is that as the age of retirement is on the rise, several people are planning to reenter corporates for work opportunities even post the age of 55.
Over the last few years, there have been several litigations filed stating that the employers are effectively eliminating candidates just based on the age factor. Tech giant Google also settled a lawsuit on the same grounds worth USD 11 million.
So what is the solution?
Well, AI is a platform that can assist employers with impactful hiring strategies to make more room for age-diverse workforces. While a large number of global corporations, even other entities, are acknowledging ageism, AI is helping them deliver worthy decisions.