How AI is Essential to the HR Function

by Jesper Diget, Group Chief People Officer at emagine

Over the last few years, HR has evolved from a traditional support function to a strategic partner, thanks to the integration of AI. By harnessing the power of AI-driven data and analytics, HR teams can drive business outcomes, enhance decision-making, and elevate their role within organisations. This shift not only strengthens HR’s credibility but also positions it as a critical player in achieving long-term success.

When most people think of HR, they often associate it with recruiting talent and fostering a positive workplace culture. However, HR holds the key to unlocking broader aspects of business performance. The rise of AI has played a pivotal role in reshaping HR’s reputation, offering new opportunities to drive strategic outcomes and optimise processes that were previously out of reach.

AI is a growing phenomenon, and organisations are beginning to see its value in HR. Our AI-driven recommendation system at emagine transforms unstructured candidate data into high quality shortlists in minutes, which has significantly streamlined our recruitment process for the hundreds of projects we recruit for. Although AI’s ability to boost efficiency is appreciated, it can’t be the only focus for businesses. The most valuable benefit is that the time saved by using AI can be dedicated to interacting with shortlisted candidates as this human element is vital. HR teams must not fall into relying solely on AI for recruitment as it would be extremely detrimental to talent pipelines. If you only use AI solutions, you only get to see a candidate on paper and you lose the personal touch and the skills that may shine through during interaction.  To ensure recruiters are finding people with unique qualities and soft skills, in addition to their professional credentials, a combination of methods must be used.

Whilst we should be focussing on the improvements AI can make to the candidate journey, the human element of recruitment is more important than ever as we navigate an increasingly digital world. The businesses that focus on meaningful interactions, even for those who do not get the job, will also contribute to improving the organisation’s reputation as an employer of choice.

It’s crucial to remember that data is more than just numbers; it is a strategic asset that can reshape how HR contributes to business goals. By linking engagement data to sales performance, for example, HR can demonstrate a direct impact on the intended outcomes. For instance, teams with higher engagement levels often outperform others in sales, suggesting that fostering engagement is not just an HR priority but a business imperative. This approach allows HR to transition from a function that tracks employee satisfaction to one that drives revenue growth by identifying the strategies that work and the ones that need adjustment.

It is one thing implementing AI processes into the HR function but it is critical for businesses of all sizes to collect data in a consistent way. Companies often feel overwhelmed by the idea of implementing complex analytics but making a start with the data you have available and consistently measuring it is key. HR leaders at small organisations may not have software in place to make the data collection seamless but even tracking specific metrics manually will help the team identify trends. By committing to this, HR teams can make informed decisions and gradually build a robust data infrastructure that supports broader business objectives.

Once AI-powered tools are in place to gather key performance data on a regular basis, it is crucial for HR professionals to communicate this data in a way that resonates with business leaders. By presenting AI-driven insights in terms of business outcomes, HR can effectively engage senior leadership in discussions around employee performance and engagement. This approach underscores the belief that HR leaders should always have a seat at the senior leadership table. By leveraging AI to deliver insights that might not have been previously considered, HR can solidify its strategic role within the organisation and earn its place in high-level decision-making.

We must also integrate business metrics into HR’s key performance indicators. For example, if enhancing diversity is a goal for the organisation, setting tangible targets such as ensuring at least 50% of shortlisted candidates are female, can lead to significant changes in hiring practices. This is an example of driving HR to focus on data and metrics that support the company’s strategic goals.

The integration of AI and data into HR practices is not just a trend but a critical necessity in today’s data-driven landscape. By leveraging existing data, aligning HR metrics with business goals, and progressively adopting advanced AI tools, HR can revolutionise its functions to achieve greater impact. This data-focused approach not only improves decision-making but also solidifies HR’s role as a key contributor to the organisation’s overall success and growth.