How Human Resources (HR) departments are changing now
Change is a constant in the business world, and with the advent of artificial intelligence (AI), the landscape of Human Resources (HR) departments is undergoing a remarkable transformation. This change should not be viewed with concern as it marks a new era of efficiency, cost effectiveness and improved decision making for HR professionals.
AI-based tools now offer advantages that revolutionize the way HR departments operate, simplify workflows, and propel the HR department into the future. Let’s explore the ways in which AI is reshaping HR departments and analyze the main advantages it brings.
Improved efficiency: facilitating strategic thinking
One of the most important advantages that AI brings to HR departments is improved efficiency. By automating repetitive and time-consuming tasks, AI frees HR professionals from tedious administrative work, allowing them to channel their energy and expertise into much-needed strategic thinking. This shift in focus improves the overall productivity of the HR team and contributes to the success of the organization.
In addition, HR data analysis and AI-powered predictive analytics provide valuable insight that supports decision-making processes. For example, artificial intelligence can transform the recruitment process by simplifying the candidate selection stage. Algorithms analyze CVs, assess qualifications and provide information to recruiters, allowing them to make more informed and accurate recruitment decisions. This saves time and improves the quality of hires.
Low costs: strategic approach to resource allocation
AI’s ability to analyze large volumes of data to identify patterns and trends is a game changer in cost reduction strategies. HR departments can use artificial intelligence to examine data and recommend cost-effective solutions. An eloquent example of this is the optimization of the recruitment budget. AI can identify recruiting sources that generate the most qualified candidates, allowing HR to intelligently allocate resources to them and eliminate inefficient recruiting channels. This data-driven approach ensures that every dollar spent on recruiting generates maximum return.
McKinsey’s Global AI Survey highlights AI’s impact on cost reduction. Participants in HR departments reported tangible benefits, with 27% citing a cost reduction of just over 10%. Also, 23% reported an average increase in income between 6% and 10%. These benefits have been seen in various areas of HR, including performance management, organizational design and optimizing talent management.
Decision making: The power of data-based objectivity
AI’s ability to gather, analyze and interpret data is a boon for HR decision makers. By eliminating bias and assumptions, AI ensures that decisions are based on objective information. From candidate selection to compensation planning, AI gives HR professionals the tools to make well-informed decisions that align with company goals.
For example, analyzing recruitment data reveals challenges that can be objectively addressed. By examining recruiting analytics, the HR department can focus on important metrics.
- Cost-related KPIs, such as job posting performance and cost per hire, help reduce recruitment costs.
- Speed-related KPIs, such as time to fill and time to hire, speed up the recruiting process.
- Quality-related KPIs, such as new hire turnover rate and new hire retention rate, improve the quality of hires, contributing to long-term organizational success.
In conclusion
Artificial intelligence is ushering in a new era for HR departments, offering a multitude of advantages that are transforming the way HR professionals operate. Increased efficiency through task automation, cost reduction through deep data-driven insights, and improved decision-making through objective analysis are just a few of the benefits that AI brings to the table.
As HR departments understand how to use artificial intelligence, they are positioning themselves at the forefront of innovation, poised to create lasting positive change in their organizations. The journey can be transformative and lead to a future where HR is not just a support function, but a strategic force driving organizational success.
Alina Făniță este CEO și Partener al PKF Finconta. A lucrat cu companii multinaționale sau firme antreprenoriale din domenii diverse de activitate, pentru a le oferi servicii de audit financiar, due diligence, restructurări de grupuri, audit intern și alte servicii conexe activității de control intern. Este membră a celor mai prestigioase asociații profesionale din domeniu: ACCA (Association of Chartered Certified Accountants), CECCAR (Corpul Experților Contabili și Contabililior Autorizați din România), CAFR (Camera Auditorilor Financiari) și IIA (Institute of Internal Auditors). A absolvit EMBA Asebuss la Kennesaw State University, a fost trainer pentru cursuri IFRS și este invitată ca expert la numeroase conferințe de business. alina.fanita@pkffinconta.ro
