Skills HR Leaders Need to Capitalise on AI
Figure 1. Source: (McKinsey)
Artificial Intelligence (AI) in HR is the wave of the future. AI-enabled tools and technologies can be used to streamline processes, automate data management, and power people analytics. HR Leaders and professionals are quickly adopting the power of AI and data-driven insights to make more informed decisions when hiring, managing performance data, and developing better employee retention strategies.
In 2019 our Insight222 survey found that of the HR professionals surveyed 46% would be using artificial intelligence in HR by 2023. Fast forward to December 2022, and research by McKinsey found that 50% of the organisations surveyed have adopted AI in their organisation. They found that AI adoption is 2.5 times high today than in 2017.
Clearly, the use of AI is becoming more and more commonplace in the modern business world. However, data-driven insights and AI tools can only be effective if HR professionals have the right skills to leverage them. When David Green asked Tomas Chamorro-Premuzic, Chief Innovation Officer at Manpower Group, on the Digital HR Leaders podcast about what he thinks are the keys skills that HR professionals need to adopt in order to succeed in the digital world of AI, Tomas responded:
''There is the data side, there is the strategy side, the business side, the technology side, and even the psychological or content side of talent management.''
In other words, HR professionals need a combination of technical, analytical, and soft skills to enable the power of AI in HR and people analytics. These skills can include:
Technical Proficiency
HR Leaders and professionals should have a strong understanding of artificial intelligence technology, its applications and limitations to evaluate and implement AI-driven HR solutions. For instance, they can determine which will most effectively meet their HR goals if they are familiar with the different AI technologies available, such as machine learning, natural language processing, and predictive analytics.
HR data often contains sensitive information about employees, and mishandling it can seriously affect the organisation and its employees. Therefore, it's essential that HR Leaders also have a good understanding of data management, data privacy, and security protocols that come with analytics.
HR Data Analysis
HR data is complex and contains a wide range of information, such as employee demographics, job performance metrics, and hiring and training data, which can impact everything from employee wellbeing to career development.
To effectively leverage AI in HR, HR leaders must be able to extract insights from this data and use it to inform their decision-making process. Therefore, they should have a strong understanding of statistical methods and data analysis techniques in order to effectively collect, process, and analyse data to identify patterns and trends for improved decision-making.
They should also have a good understanding of data visualisation techniques such as dashboards and graphs to communicate data-driven insights in a clear and effective way.
Communication Skills
Effective communication is essential for HR professionals to build trust, collaborate with other departments, and influence decision-making. They must present data and insights compellingly to ensure that AI initiatives align with business goals and encourage buy-in and collaboration from multiple stakeholders.
It is also crucial to be able to explain the benefits and limitations of AI and analytics clearly and concisely. With solid communication skills, data-driven initiatives can be easier to implement and have a higher success rate if they are communicated effectively.
Change Management
Change management is essential for employees and other stakeholders adopting new processes and technologies. It is also a crucial tool in reducing resistance to change and ensuring that data-driven initiatives are embraced by the organisation as a whole.
Therefore, having the change management skills to effectively communicate the benefits of artificial intelligence and HR analytics to employees will help them adapt and accept these new processes and technologies.
Strategic Thinking
Finally, in order to truly capitalise on AI, HR Leaders should be able to think strategically about how AI and people analytics can be used to drive business outcomes, such as improving employee retention, hiring bias, increasing productivity, or reducing costs.
They should also be aware of the ethical issues that can arise from AI data-driven initiatives, such as employee privacy concerns. It is also vital to develop adequate strategies to minimise the risk of data breaches or misuse.
Empowering People Analytics with Artificial Intelligence
By leveraging their technical, analytical, communication, change management and strategic thinking skills; HR Leaders can ensure that AI empowers and drives their people analytics initiatives in the workplace. For example,
AI can help HR leaders to identify patterns and trends in data collection that might not be immediately apparent to human analysts
It can also help to automate routine tasks, freeing up HR staff to focus on more strategic work
AI can help to reduce bias in the hiring process by screening resumes and identifying candidates based on their skills and qualifications rather than their demographic characteristics
It can enhance the employee learning experience with its offering of various data-driven tools and platforms.
But in all, having all these skills in your arsenal helps you question the trustworthiness of the results generated from AI tools. These skills help you effectively question what Anshul Sheopuri, Vice-President and Chief Technology Officer at IBM Workforce, explains on the Digital HR Leaders podcast to be the five pillars of trustworthy artificial intelligence:
''The first is transparency. If you think about when you go and buy a beverage at your favourite coffee shop, you see the nutrition label; you see how many calories it has. What is that about AI? What is the help about AI? You should be able to see it; you should be able to delve into it as a user, not just as a data scientist, but as a user of the AI.
Explainability. Why is the AI giving me this recommendation? When you watch a movie it has some sense of the genre of movies that you like, what other viewers are watching, and why the AI is giving you a certain movie recommendation. The AI in HR should also give you that same sense of the why behind the what. The ultimate decision is yours, of course, but you should be able to understand the why behind the what.
The third pillar is fairness. This is all about bias identification and mitigation. So it is something you want to do upfront as part of the design of the AI.
The fourth, robustness. Having the right guidelines and operational principles.
And the fifth, privacy. This is something we have all been practising for a while, but it becomes even more important in the area of increased regulations in the space. People who have the need to know should know it and not others.''
Data-Driven Decision Making
Overall, AI has the potential to transform HR and people analytics, but it requires skilled leadership to realise its potential fully. HR leaders should be equipped with the data management, technical and analytical skills to develop data-driven initiatives that produce measurable results.
They should also have strong communication and change management skills, as well as strategic thinking abilities, to ensure that data-driven initiatives are implemented effectively – minimising risks of data misuse or employee privacy concerns.
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