Did you know that any organization, irrespective of the industry, have to spend an average of 6 to 9 months of an employee’s salary to replace them? This is a finding by the Society for Human Resource Management (SHRM), the world’s premier HR membership association. Here’s another fact that’ll shake you up; according to Deloitte, 66% of Millennials are expected to leave their organization by 2020.
This is not a problem that only a few companies face. So why do employees leave organizations?
Employees leave the organization when they are not happy. There are several factors that influence the happiness quotient of employees such as salary, learning and development opportunities, roles and responsibilities, incentives, intra-organizational relationships (peers, managers and subordinates) etc.
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Happiness and skill-set of their employees are the two crucial factors which drive any company to pursue their goals. Thanks to AI and its increasing penetration into the HR sector, companies are now enabled with intelligent tools to help them hire the right candidates and track the happiness level of their employees.
Today, almost all organizations, big or small have an internal employee management system in a place accessible through the intranet. All aspects of an employee – from their ratings, pay-slips, feedbacks, project allocations, daily office time logs, performance appraisals, leave management, etc are managed by such systems or a combination of two or more such systems. These systems generate tons of data which are mostly not utilized properly. The data from this management system, when fed to an AI system, can generate intelligent insights which can help to improve the operational efficiency of the organization. The possibilities are endless, ranging from sentimental analysis of employee’s feedback to real-time video analytics to learn the employee behavior.
Gathering data on the level of employee engagement, performance information and a clear understanding of the reasons for employee turnover, AI will be able to come up with indicators of employees who will succeed in the organisation and of those who tend to leave a job position thereby helps the department to take necessary steps based on that.
Let’s take a look at the key areas where AI can make the HR department of an organization more efficient.
Recognition, work culture and leadership are certain attributes that employees hold dear to be happy in their jobs. Studies have shown that a happy employee is 12% more productive. When a valuable employee feels that there is no room for growth for them, they are more likely to quit their job to find something that’s more fulfilling. An immediate response and preemptive intervention by the management is important to retain the employee.
Our API, using the Random Forest algorithm, can predict the probability of an employee quitting their job. Using the hard data from the human resource management systems in the organization, AI can predict the actions of employees, thereby giving leverage to the management to take action before they start moving towards a different direction.
AI tools can integrate with your employee portals and performance management systems to study vital information about your employees. Some of the information includes:
Once this data is gathered by the AI system, the next step is to match them with their corresponding ideal values prevalent in the market.
With advanced deep learning, the AI system is able to arrive at patterns in employee behavior that could suggest that they are likely to put in for resignation. Lesser hours spent at the office or more frequent external email communication, browsing through job portals and so on, would indicate that the employee could be looking for a new job. The system could also engage in anonymous conversational interactions with employees to understand their grievances and difficulties.
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AI-based sentiment analysis can understand the emotions of the employee by analyzing their activities within the employee management software. An AI algorithm can analyze the information provided by the employee to match it with the trained data and understand the employee’s emotions or feelings at the time. This way a proper model can be built which will give a clear feedback to the organization about the employee’s level of satisfaction.
After studying all responses, data from intranet portals and employee management systems, the AI system informs Human Resource Management about employees who have higher chances of leaving their company within a short time due to an unhappy environment. It would also suggest remedial measures such as incentives that could be given to the employee or reduction in workload, promotions and designation changes, training and reskilling initiatives, better conversations with managerial or peer level folks etc. Recently many companies like Accenture, Intel, IBM, and Twitter has started using this analysis to understand the sentiments of their own employees.
Talent acquisition is one of the major responsibility of the HR department. But how can we be sure that the person that we have acquired is the right fit? Like all the other departments it is populated by fallible humans, who are not immune to human bias in these proceedings. There will be situations where the wrong person will be hired because of their attitude and smooth talking.
AI makes this process more trustworthy as it relies more on the analytical processing of large amounts of data rather than individual observations. AI is not affected by the applicants’ race, gender or ethnicity and will select the candidate purely based on their talent. It can even prepare interview questions focused on their professional competency for a particular job. The questions will be prepared based on the applicant’s previous work records and requirement of the job they apply for. This way, best candidates can be filtered out quickly.
From now onwards the candidates will not be able to lie during an interview as artificial intelligence will be reading their face and every move and gesture made by the candidate, assessing the honesty of the answers and emotions. It will also check whether your personality fits the given job. A multinational company like Unilever has already started using this process for entry-level jobs.
Candidates have to go through a video interview with preset questions which they can even do on a smartphone. AI measures the candidate’s facial expressions to capture their moods and further assess their personality traits. It also evaluates the truthfulness of the answers given by them. The AI then selects the best candidates from the interview and sends them to a human recruiter along with the reasons why the candidates were selected.
Besides the availability of skilled labor is on the decline across industries. The leading job site Jobvite recently published a survey of recruiters in which more than 65% claimed a shortage of talented resources as the number one problem to fill key positions. It would be suicidal to let go of your talented resources in such a volatile market scenario and with AI enabled systems, you can identify their thoughts about leaving way before they actually make the decision to do so.
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In the corporate world, one of the best fields to put AI to maximum use is human resource management. AI can assist them in every stage of their professional work, from early shortlisting of candidates to performance assessment. AI not only takes away the burden of the HR personnel, but it can also gain insights into the performance potential of each candidate and employee. All this can be done without making any kind of error and human bias thus making AI an HR management tool for the future.