Temper Artificial Intelligence Adoption With ‘Human’ Element in Human Resources
While AI is transforming the human resources (HR) function, there are concerns about trust, privacy, and the human element in HR. So, how do HR pros and employees view AI’s role in HR? Check out a few findings from Paychex’s recent study.
- Artificial intelligence is transforming several business functions, including HR. However, there are concerns about privacy, trust, and the human element in HR.
- So, how do HR professionals and employees view AI’s role in HR? Here are a few findings from Paychex’s recent study.
Technology, analytics, and automation are transforming every aspect of HR, from recruitment to performance management and employee engagement. That being said, while they promise enhanced efficiency, they also raise questions and concerns about trust, privacy, and the role of human judgment in a digital workplace.
So, how do employees and HR professionals view technology’s effectiveness and burgeoning role and its challenges? What are the sentiments around artificial intelligence (AI), the tasks it is reshaping, and the delicate balance between machines and humans in managing people? Paychex recently conducted a study to get some answers. The following are a few insights and steps HR pros can take to leverage technology to improve processes and the overall employee experience.
AI Is Significantly Impacting HR Processes
Incorporating AI across various business functions has become a focus for many organizations this year. In fact, the study found that 56% of HR professionals already use AI in various operations. Among them, 85% said the technology provides useful HR data and analytics.
So, what are some of the most AI-driven HR solutions? About 59% use automated candidate screening and recruitment analytics, while 46% use chatbots to handle employee queries. About 38% use automated employee onboarding and training modules, and 37% conduct performance analysis and management through AI algorithms.
Most Used AI-Drive HR Solutions (Among HR Pros Using AI)
Source: Balancing Tech and Touch in Human Resources
About 56% believe AI speeds up candidate recruitment and screening, while 41% believe it speeds up employee onboarding and training. About 27% think it speeds up payroll processing and administration, and an equal percentage think it speeds up performance evaluation and management. Overall, on average, AI saves HR pros 7.5 hours per week.
Despite all this, when it comes to trusting AI for fair decision-making, only 40% of HR professionals trust it. About 28% distrust it, and 32% are neutral. Further, 79% also believe AI reduces bias, 14% believe it increases bias, and 7% think it makes no difference. These sentiments indicate that AI can pave the way for more balanced and fairer business practices.
See more: How Back-office Employees Can Thrive with AI
HR Pros Believe AI Will Become an Integral Part of Operations
The world is facing a tight labor market, and organizations are increasingly incorporating technology to streamline talent acquisition and onboarding. The ability to identify and hire qualified talent quickly is particularly helpful for companies competing for top talent.
Similarly, almost 25% of HR professionals anticipate AI will become integral to HR in the next five years. About 58% feel AI will transform HR analytics and data management, 46% feel it will transform talent acquisition, and 43% feel it will transform onboarding and offboarding.
HR pros believe recruitment stands to benefit the most, pointing to a future where recruitment is more tech-driven. That said, they predict employee engagement is least likely to gain from tech advancements. HR professionals can address this by strategizing and investing more time and resources in employee engagement and development programs.
HR pros also see a few challenges related to adopting AI. For example, 53% have technical challenges adopting AI, while 44% face resistance from staff. Above 27% cite high implementation costs. HR professionals also see a few ROI-related challenges. For example, 49% find finding the right AI tools challenging, while 47% face challenges with employee acceptance. About 42% also cite a lack of proper training, and 42% cite challenges with the learning curve.
Non-HR Employees Want an Appropriate Level of AI Involvement
What do non-HR employees think about AI? Their perspectives help HR pros determine the level of human intervention and intuition in certain tasks.
For starters, about 41% of employees prefer less AI involvement, while 39% prefer the current level of involvement. Only 20% prefer more AI involvement in HR decisions. Many employees also believe there isn’t much transparency as HR departments incorporate AI in their operations. Only about 32% feel their HR departments are transparent in communications regarding AI in HR, while 38% cite poor communication. About 30% are neutral about the transparency of HR departments. HR departments can enhance communication by clearly explaining AI’s role, its benefits, and how it can affect employees’ daily work.
Regarding the HR aspects employees think should be human-led instead of AI-led, conflict resolution and employee relations come on top, with 78% agreeing. About 76% believe sensitive issues like layoffs and disciplinary actions should be human-led, and 72% believe personalized employee counseling and support should be human-led. Further, 52% believe the development and management of organizational culture should be human-led, and 46% believe DEI initiatives should be human-led.
Considering the potential challenges of an AI-driven HR department, about 71% are uncomfortable with the prospect. Data privacy is a significant concern, with 68% wary of the data risks of AI to HR processes. Moreover, replacing HR with AI will lead 46% of employees to consider quitting their jobs.
See more: How to Employ HR Modernization for Improved Employee Engagement
Actionable steps for HR pros
HR professionals should take the following steps to use AI to improve processes and the overall employee experience.
- They should assist in implementing policies to safeguard AI practices and ensure the right measures are taken to ensure data safety.
- They should ensure that the tools are validated. This helps ensure compliance with new laws related to AI in HR and reduces potential bias in HR practices.
- They should understand how tools may change. They should work with legal teams and trusted vendors to conduct AI audits.
- HR professionals should learn about the tools available to better support consultation with their organization and clients.
- Most importantly, they should ensure a human element is present in all AI decisions.
HR professionals are cautious and simultaneously optimistic that AI can work in HR. Benefits, such as time saved and reduction in bias, point to an AI-driven future. Yet, the journey has its challenges. Going forward, balancing tech-fueled efficiency improvements with a human touch is critical. HR pros should ensure AI augments and does not replace the human touch, which is crucial to “human” resources.
What steps have you taken to maintain a healthy balance between AI and the human element in HR operations? Let us know on Facebook, X, or LinkedIn. We’d love to hear from you!
Image source: Shutterstock
MORE ON AI IN HR
Women for Leadership: AI’s Role in Advancing Gender Equality
Meet Your New Intern: The Rise of AI-Powered Digital Workers
Unlocking Growth Through Strategic Upskilling Initiatives and AI
