How AI and automation is set to Revolutionize HR Departments

The uses of AI are still being discovered across every industry and department. One department
that can find plenty of use for AI and Automation is Human Resources. In fact, 81% of HR
leaders have already explored or implemented AI into their processes.

“AI and automation technologies are becoming a part of everyday functioning in the workplace,”
says Caroline Gleeson, CEO at a hiring software specialist.

“While HR is deeply rooted in the people of your business, having these systems can actually
help your HR department find more time to work with the staff and provide better support, with
the right systems lightening the workload of administrative tasks and paperwork.”

In such a human-centric role, what can AI and automation technology do for your HR
department?

Applicant Screening
AI and automation technology can be useful in recruitment and talent acquisition processes.
Using hiring software, your HR department can sort through high volumes of resumes in a
shorter time, helping you fill crucial skill gaps quicker and assisting in finding the right people
for your company.

This automated software can be used to find the right applicants for your job role by screening
resumes to filter out candidates who don’t have the experience or essential skills you’re looking
for. This can help ensure you’re not spending excess time interviewing people with the wrong
abilities or inexperience for the role – especially in higher-skill or crucial company roles.

Onboarding
Onboarding can involve a lot of paperwork, filling, and administration. By implementing AI and
automated systems into this portion of your HR tasks, you’ll be able to spend more time
integrating your new hires into the company culture and their roles rather than filling in the
information.
 This can help streamline this process. An automated AI approach can also ensure your new
starter gets everything needed for their new role, like training resources, videos, and guides,
which AI can distribute to your new learner, depending on their job role and department head.

Performance analysis

Another way AI and automation can start revolutionising the workplace is by ensuring you’re
getting the right metrics for performance analysis. AI and automated processes can use your
company data to find the best performers within the company and those who might need
additional support. This can also aid your finance team and heads of department when it comes
to handing out bonuses.
Automated processes can also aid in continuous feedback, analysing your company’s
performance without bias, and understanding which areas need the most improvement. This real-
time feedback means you can spend time working closely with the teams needing the most
support.

Self-service for employees

Finally, AI can be useful for employees who need to ask questions, contact HR, and more.
Implementing a self-service system can ensure that HR isn’t spending too much time answering
the same questions, as you can set up a chatbot to assist with that. If your staff need answers to a
more complex situation or question, then this system can also flag the need for human
intervention from the HR team.

It might also make your staff feel more comfortable alerting HR to personal and professional
problems as they input the information without the need for human interaction, only prompting
one-to-ones when you deem it necessary. In this way, staff can easily provide medical
information, update personal information, or leave requests which can be picked up at the
appropriate times.

While HR is a human-centric role, focusing on giving the employees the protection they need,
having the resources of AI and automated processes can be a large benefit. It can help you
improve onboarding, recruitment, and performance analysis and ensure you’ve got more time to
do the work that truly matters – attending to your staff.

HR Technology: A Game Changer in Human Resource Management

Although some staff may see HR as a means of punitive measures against undesirable behaviors,
responding to HR tech trends enables HR professionals to work alongside employees to support their
needs, promote diversity and become game changers for success.
However, Gartner reports that less than half (43%) of HR leaders feel that their employees are
satisfied with the HR technology used by their organization. As the beating heart of the employee
lifecycle, from recruitment and onboarding to learning and offboarding, HR must be aware of the
technologies available to help their organization excel.

these reasons, we will guide you on the path to HR technology success via the following topics:

Why are the different types of HR technology?

Like any area of professional life, it’s helpful to know the types of technology in a category to
optimize your use and help you choose the best HR tech solutions for your organization.

This can get confusing with HR technology as all the acronyms for different types sound very similar.
Let’s start with the differences between a few of these acronyms to make things more transparent.

HCM vs. HRIS and HRMS

HCM, HRIS, and HRMS are so similar that anyone, whether HR professionals or otherwise, is likely
to get them mixed up. Let’s first look at HCM.

HCM

HCM is a method of converting the usual administrative tasks of HR into a digital form.

Examples of where an organization uses an HCM are:

● Recruitment
● Managing employee data
● Training
● Payroll
● Compensation
● performance management
● Increasing engagement, productivity, and business value
Using a DAP as an HCM adoption solution for high adoption rates and reduced waste is always
helpful.

HRIS

The acronym HRIS stands for Human Resources Information System. This system gathers and retains
information regarding an organization’s workforce.

An HRIS generally includes all the necessary features for complete HRM, such as:

● Recruitment
● Performance management
● Learning & development

HRMS

A suite of software applications called HRMS is used to manage human resources and processes
throughout an employee’s lifecycle.

This system helps companies understand their workforce, comply with tax and labor regulations, and
benefit employee experience management.

What are the benefits of HR technology?

Being aware of the potential benefits of human resources technology trends allows you to ensure you
are constantly optimizing the use of HR tech. One of the first benefits of HR technology involves
streamlined recruiting.

Streamlined recruiting

Are you struggling to find suitable candidates when it’s time to hire? HR technology can assist you
and your managers make quicker and better hiring decisions.
The software might have an applicant tracking system that helps with hiring. You can create a
database of qualified resumes to search and use when a position becomes available. The software can
also help your managers organize interviews, keep track of feedback, and rank candidates.

Your company can effectively monitor the outcomes by incorporating personality or skills
assessments. This will assist in streamlining the hiring process and ensure that suitable individuals are
hired for the appropriate roles.

Real-time workforce analytics

If your business is not growing as expected despite repeatedly hiring new personnel, you can seek
assistance from your HR specialist to analyze the available data. They can help you identify potential
issues, such as frequent turnovers in a particular department and associated expenses.

Storing your HR information in a single database allows you to monitor both expenses and traits of
prosperous, lasting workers. When necessary, this easy access to workforce analytics will simplify
your planning.

HR compliance support

An HR platform can assist you in assessing whether your company will qualify as a different
employer category due to an upcoming growth spurt.

For instance, hiring many employees may trigger FMLA or COBRA government-mandated
regulations. With the help of HR software, you can fulfill the appropriate compliance obligations
once you surpass the relevant employee threshold.

Reduced data-entry and duplication errors

Is your company still using paper-based or multiple separate systems for managing payroll, benefits,
vacation, HR-related government reporting, and performance reviews? If this is the case, a staff
member may manually enter data at some stage.

Investing in solid HR technology can automate repetitive tasks and integrate information across all
systems, resulting in more efficient and accurate HR processes. This is important because manual
data entry is time-consuming and prone to errors.
More resources to focus on HR strategy

Manual processes involving paper and transferring information between different systems are time-
consuming, and this can result in significant costs. HR teams spend hours entering data and fixing
errors caused by these processes.

How much are you spending on this? Could your team’s time and skills be better utilized on more
strategic initiatives?

By implementing appropriate HR technology, your HR team can free themselves from performing
routine tasks like data entry and administration.

Doing so enables them to utilize their time more effectively on generating revenue-centric activities
like planning to expand the workforce and assisting managers in identifying and retaining top talent.

How does the HR department use technology?

Every HR department is different, but some standard functions run through them. Knowing HR
technology’s capabilities will ensure you find the best-fit tech for your needs.

Payroll

Although some HR technology vendors focus solely on payroll, most HCM systems include payment
and monitoring of employee wages and salaries, tax withholding, and other deductions.

HR technology payroll providers face a significant obstacle in managing wages, salaries, and taxes in
various locations across the United States, including states and counties, as well as in different
countries with unique government regulations.

Travel and expense management

HR departments use travel and expense software to offer travel services to employees, keep track of
incurred expenses, make payments to providers, and reimburse employees through a link to the
payroll service.
Expense report software is used by organizations to get automated analytics and reporting about their
spending. Doing so helps managers have a clear view of the organization’s expenses.

Talent management

Talent management is a process that involves various tasks, such as recruiting, developing,
evaluating, and compensating employees.

This process can be managed using separate applications or through a comprehensive talent
management software suite that includes modules for recruitment and onboarding, learning and
development, performance management, compensation management, and succession planning.

Several commonly used talent management and acquisition tools, such as the ATS (applicant tracking
system), are available.

Talent management and acquisition tools

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Talent Acquisition Tools to Build a Better Team Faster

The ATS is one of the leading talent management and acquisition tools, but there are several that HR
departments use, as listed below.

● The Applicant Tracking System performs multiple tasks, such as advertising job vacancies
on corporate websites and job boards, screening resumes, and sending interview
invitations. Its functions include the following:
● Automatic resume ranking, pre-screening questions and response tracking, and support for
different languages.
● Alongside ATS, a candidate relationship management tool helps recruiters keep a database
of potential candidates who are not actively applying for jobs but can be contacted later if a
suitable position opens up.
● Employee referral software enables HR to gather suggestions from current employees
regarding potential and existing candidates.

Performance management
Employers are now automating HR tasks that were once done manually and are also adopting the
practice of continuously monitoring employees’ job performance instead of relying on the traditional
annual job review.

Whether integrated within HCM systems or standalone platforms, performance management systems
may have interactive features that allow employees to provide feedback. This is known as continuous
performance management.

By using employee performance management and skills data, workforce analytics aims to improve
the allocation and development of human resources. It also helps to identify if new departments or
positions are required.

Employee engagement

HR technology for employee engagement is becoming more popular in performance management.

These platforms and apps use various methods to maintain employees’ interest and motivation toward
their work.

Some apps have features like social media, such as commenting and posting. Additionally, there are
communication platforms that employers can use to share information and allow employees to
respond. Some apps use gamification to make the experience more fun and motivate employees.

Benefits administration

Benefits administration technology has been digitized more recently compared to core HCM tasks.
This involves putting benefits information online, enabling employees to interact with their benefits
choices conveniently.

In recent years, the meaning of benefits has expanded beyond health and disability insurance,
vacation, and sick days, as digital transformation has accelerated.

HR technology vendors sell specialized software systems to encourage workers to participate in

health-oriented wellness programs, some use wearable tracking devices to measure activity.

The terms wellness and well-being are being differentiated, and corporate well-being now
encompasses engagement, health-oriented wellness, financial well-being for employees, and overall
corporate morale.
Training

HR technology vendors are creating interactive online platforms to which corporate training and
education programs are shifting.

Employers utilize learning management (LMS) software to create personalized training programs and
monitor employee progress through real-time or asynchronous video or text-based communication.

The LMS may offer interactive features such as video conferencing, threaded discussions, and
discussion forums and assess student performance. This applies to all users regardless of the format
of communication.

What is the future of HR technology?

Every HR strategy should include future hr technology trends to utilize the best technologies
available to meet organizational and staff needs. One of the biggest trends in HR today is generative
AI, which can be of particular use to HR in recruitment.

Generative AI for recruitment

Generative AI, such as ChatGPT, is becoming a more significant part of HR operational processes as
it reduces the time to recruit and retain new talent.
Generative AI can write a job advertisement in minutes and generate keywords for job descriptions to
attract the most skilled and best-fitting candidates.

AI to increase HCM diversity

By using AI for sentiment analysis in company communications, we can recognize and correct
language or behavior that excludes certain groups of people. This will lead to more inclusive
communication that considers the requirements and worries of a varied workforce.

In addition to promoting workplace accessibility, AI can be used for speech recognition, text-to-
speech, real-time transcription, and name pronunciation. To avoid awkwardness and quickly establish
rapport, tools like Namecoach can help eliminate difficulties with name pronunciation.

AR for learning opportunities

Augmented Reality (AR) can be beneficial during presentations to engage learners and aid in
retaining knowledge.

AR technology allows learners to interact actively with the content by moving around the room,
enhancing the educational experience.

By integrating AR into presentations, learners can fully immerse themselves in the material and better
understand complex concepts.

Tailor HR technologies to the needs of your staff

Leveraging HR technologies can make managing human resources managers’ most challenging tasks
easier.

Whether optimizing employee experience, managing benefits and payroll information or providing
training programs for existing and new staff members, HR technology is a practical solution for every
process step.
With this strategy in mind, human resources managers can make their life easier while advancing
their organization into an ever-competitive future of digital transformation. So keep this in mind:
when leveraging HR technologies, tailor them to the needs of your staff to retain your talent and
ensure organizational success.