Smarthveer Sidana, Founder & CEO of HireQuotient.
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According to AIHR, there has never been a more important time for corporations to manage their talent. Indeed, personnel management is ranked highly on the corporate agenda by 78% of business executives surveyed. Moreover, businesses with excellent talent management can generate about 50% more income per worker than those with subpar talent management. The talk around AI is not without substance, and generative AI, for that matter, is currently one of the most dependable forms of AI, which can help across multiple fronts in talent management.
1. Sourcing Talents
There is a wonderful article on the different types of biases that recruiters hold that could impede them from picking the best candidate out there. The best part of having generative AI as your sourcing ally is that AI can scan through a plethora of résumés or profiles in a flash and present the best one. But what makes AI different from its earlier counterpart? Automated screening tools usually scanned through the keywords which the recruiter initially placed and the search was majorly based on the keyword. This is where AI stands strides ahead as it scans the profile completely and makes a judgment based on the tasks the candidate has done rather than the keywords placed on their profile or résumé.
Moreover, generative AI also has the ability to scan through the digital footprints left behind by the candidate and create compelling personalized invites for the candidates.
2. Onboarding And Knowledge Sharing
A McKinsey study discovered that businesses that are really good at personalization can make 40% percent more money from those endeavors than mediocre ones. Moreover, here’s an excerpt from one of their articles: "Players who are leaders in personalization achieve outcomes by tailoring offerings and outreach to the right individual at the right moment with the right experiences."
In the age where tech as advanced as AI is available to everyone, and information is also a few clicks away, the only way to stand out is by personalizing and directing information specifically to individuals.
For example, if the organization is onboarding a content writer and he needs to know more about the CMS where a majority of his work is fed into, this can come as the top suggestion as a part of the onboarding app, as opposed to a sales representative who might need to be more familiar with the workflow of booking a call with the customer and where the data needs to be entered.
3. Learning And Development
The global corporate e-learning market is expected to reach nearly $50 billion by 2026. Assuming that knowledge and material are constants, the only variable that can set any e-learning initiatives aside is the aspect of personalization. Moreover, this means the only way any e-learning initiative can stand out is by hyper-personalization of the learning material. Assigning dedicated personnel to guide multitudes of employees is a step in the wrong direction as these individuals will have to learn the learning patterns, understand all the types of material available and also pace themselves according to each employee. All of these can easily be done with AI. AI can alter the style of presentation according to the learner’s timetable, behavioral patterns and learning styles. The closest example can be how YouTube or Netflix uses its AI-based algorithm to suggest content and materials according to the user.
Furthermore, the employee can share the details of their career path and AI can repurpose the content based on the input provided by the learner and their performance.
4. Predictive Analytics For Employee Retention And Employee Engagement Surveys
An organization may suffer from employee attrition, and as a result, it may lead to experiencing higher expenses, reduced productivity and lower morale. Thanks to the use of predictive analytics in the field of HR, it is easier to monitor employees' satisfaction, well-being and financial success. However, despite the fact that 90% of C-suite executives surveyed think HR technology has been essential, 62% of HR executives acknowledge they need help to use people analytics to make informed business decisions.
Challenges And Considerations
While the potential benefits of using generative AI in talent functions are substantial, there are challenges to overcome.
Change Management: Employees need to be educated and prepared for the introduction of AI in their workplace. With Epic’s allegations of AI giving biased results, many recruiters are still doubtful about placing their trust in AI completely. They are not wrong to do so, but half-baked knowledge is always dangerous. Recruiters who are not familiar with the technological know-how of AI need to be informed of the workings of AI. AI's sourcing and vetting criteria are purely based on the database it is fed with. Moreover, they also need to be made aware of the shortcomings of depending purely on human personnel alone and how it is disadvantageous, especially in a highly competitive age where quality output can be derived by relying on AI at a fraction of the price invested in a workforce.
Buying Versus Building: Deciding whether to buy or build AI solutions for talent functions requires careful consideration. Buying offers speed, cost predictability and access to expertise. In contrast, building provides customization, data control and potential long-term cost benefits. Key factors include the complexity of needs, available resources and expertise, timeline, total cost of ownership, data security and vendor reputation. Organizations should evaluate their specific requirements and long-term goals to make the right choice. In some cases, a hybrid approach combining purchased foundational tools with in-house customization can provide a balance between speed, cost-effectiveness and customization for talent function AI solutions.
Generative AI is poised to transform talent functions by making them more efficient, personalized and data-driven. While there are challenges to address, the benefits in terms of employee development are substantial. Organizations that embrace generative AI in their talent functions can gain a competitive advantage in attracting, retaining and developing top talent in today's dynamic business landscape.
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