When HR managers embark on implementing artificial intelligence (AI) into their company's workflow, they'll be grappling with a disruptive technology that changes the way people from HR leaders to recruiters to front-line employees work.
That may be why PwC's latest Human Resource Technology Survey of 599 HR and information technology (IT) leaders worldwide shows that those leaders are cautious about leveraging the technology to drive HR functions.
In fact, 63 percent of those surveyed have not yet implemented artificial intelligence for HR, and many cite various reasons that influenced their decision not to do so, including:
- Cost of implementation.
- Complexity of integration into the existing IT infrastructure.
- Lack of skilled staff.
- Lack of compelling use cases that can be tied to business outcomes.
But while they are hesitant to jump into using AI, 42 percent of respondents said they plan to implement AI for HR over the next one to three years. The technology opens significant possibilities.
"Human resource executives want their teams to focus on meaningful tasks, such as interpreting data, decision-making, storytelling and strategies that enrich the worker experience, which is what AI solutions can offer. Without AI, HR professionals are relegated to collecting, copying, entering, re-entering and checking data," said Mike Brennan, president of Leapgen, a Manhattan Beach, Calif.-based HR consulting firm.
HR leaders will have to find the right tools, team with the right partners, and find the best opportunities to apply AI to HR functions without causing employee anxiety.
Schneider Electric's Story
Andrew Saidy, vice president of talent digitization, talent acquisition and mobility at Schneider Electric, a multinational company based in Paris, oversaw the implementation of an AI-driven platform that revolutionized the talent mobility and career development processes at his company.
Three important factors pushed Schneider Electric, which employs approximately 144,000 employees across 100 countries, to make the change. First, more than half of Schneider's employees are Millennials, a generational group whose members change jobs more frequently than workers in other age groups. According to the U.S. Bureau of Labor Statistics, the average job tenure of Millennials is 2.8 years.
Second, 47 percent of Schneider employees surveyed in exit interviews said they were leaving because they couldn't find their next opportunity within the organization.
Third, the process of matching employees to job opportunities within the company was laborious, cumbersome and lengthy.
"Recruiters were spending weeks waiting for responses, making phone calls, sifting through CVs and selecting which candidates would be chosen for interviews," Saidy said.
With a clearly defined use case for its AI strategy, the company chose to develop a cloud-based, AI-driven talent market. The HR team had to decide whether to build or buy a solution.
"This is an idea we toyed with at the start because we are a technology company, we are a digital company, and we are leaders in digital energy management," Saidy said. "We have a strong team of enterprise IT developers, and we could have had the ability to build a talent platform internally as opposed to buying something outside of the market."
What surprised Schneider's HR team was that there are many vendors offering AI solutions for HR tasks, but having so many AI solution providers to choose from presents other issues.
"You have to be careful when you select a company for your AI project," he said. The vendors "need to be financially stable" and need to have "a clear product road map and customers with proven success. You can't just go for whoever is claiming to provide a solution."
After a three-month search, which included testing vendors' algorithms, Schneider's HR and digital teams decided to buy an internal talent product from Gloat, an Israeli technology company. The platform, called Open Talent Market, leverages AI to match employee resumes with open positions, including long-term jobs and short-term projects.
Part of the software evaluation involved letting employees register on the site and upload their education and experience to get a sense of whether they thought the tool was intuitive, easy to use and engaging. Schneider used a Net Promoter Score to assess employees' experience and enthusiasm for the tool.
The company monitored the number of employee registrations, short-term and long-term jobs that appeared on the site, and successful matches of qualified employees to job posts.
Schneider's HR team also tested the algorithm's ability to adequately address bias and evaluated its security features. Schneider chose software that doesn't require candidates to enter information related to gender or race, or place or date of birth.
Keeping in mind the difficulties Amazon experienced when it built an AI-driven recruiting system that perpetuated gender bias, Schneider is mindful that many of its jobs such as engineer, field technician or electrical engineer have typically been filled by male candidates, Saidy said.
Schneider's technical team also carefully considered the software's security capabilities, measures to protect from data breaches and secure integrations. This was particularly important when considering that Open Talent Market is connected to the company's applicant tracking system, learning management system and human resource information system, as well as LinkedIn.
Since its launch in September 2018, Open Talent Market has put Schneider's managers in the driver's seat and has changed the role of some of the company's 200 recruiters—an adjustment that hasn't always been smooth, Saidy said.
"Initially, some recruiters had reservations on the Open Talent Market because of the way it changed their jobs [by giving more control to hiring managers] and took away from recruiters the tasks of sourcing and shortlisting internal candidates, now done by the platform."
Making sure recruiters continue to be motivated, engaged and enthusiastic about their job as their tasks change was a key consideration, Saidy said.
"To address this, we focused on why we put the Open Talent Market in place, what is in it for the recruiters, and how they reinvest their time consulting and supporting managers as well as employees' internal mobility. Keeping the lines of communication open with the teams is an especially important pillar of a successful change adoption."
Nicole Lewis is a freelance journalist based in Miami. She covers business, technology and public policy.