The days of sifting through stacks of resumes and relying on gut instinct to make hiring decisions are behind us. AI in talent management is transforming how companies approach hiring and employee development. With AI chatbots, new solutions make it easier to streamline recruitment, enhance employee performance, and improve retention.
For over a year, companies have struggled to hold onto talent. According to the US Bureau of Labor Statistics, 4.2 million people voluntarily quit their jobs in August 2022. At the same time, there were 10.1 million job openings. Finding the best talent in a fiercely competitive market is challenging.
But with the help and support of AI in talent management, the landscape is shifting. And fast. Let’s dive in to discover the role of AI in talent management and see how AI bots can drive better talent your way.
The role of AI in talent management
AI has been a game-changer in the world of talent management. It’s transforming how HR teams hire, develop, and retain talent. AI can analyze vast amounts of data and identify patterns. So with it, AI can help companies make more informed and efficient decisions.
To summarize, here are some of the main benefits of adding AI to talent management:
- Enhance your decision-making.
- Improve participant experiences.
- Automate time-consuming tasks and processes.
- Discover data patterns and insights.
- Detect and reduce unconscious biases.
Just consider what goes into the recruitment of new high-quality talent. By automating tedious HR tasks, AI chatbots can free up time for recruiters to focus on what matters most: finding qualified candidates and building relationships with them. With AI-driven recruiting tools, employers are better equipped to source high-quality candidates quickly and efficiently.
And for existing employees, AI can be a powerful tool for engagement and development. Managers use AI bots to optimize employee performance. Bots can provide real-time feedback and personalized coaching tips tailored to each individual’s goals. Let’s look at how AI transforms talent management in three primary areas: recruitment, performance management, and employee retention.
AI for recruitment
Finding the people who are the right fit for a role can be incredibly labor intensive. Often, inefficiencies and bias cause further complications. Recruiters have to create and manage job postings, screen resumes, schedule interviews, and send follow-up emails. And each of these steps is time-consuming. Sometimes, bottlenecks along the way prolong recruitment and hiring. In the end – it’s pretty likely you will lose some promising candidates along the way.
Moreover, companies typically lack processes to match applicants to other job openings outside of the one they first applied for. This mess results in the loss of potential for candidates who want a job and for organizations that want their roles filled.
AI-powered talent management can help. Rely on AI bots to write more accurate job postings to reach the best prospective candidates. That way, you narrow the field from the beginning of the recruitment process. For HR leaders, you must invest in applicant-screening processes that limit human bias. AI-enabled assessment tools help to measure actual skill sets. And they reduce discriminatory behavior during the screening phase. Some AI platforms also redirect “silver medalist” candidates to other fitting job postings. Save recruiters time by automatically re-engaging potential applicants who may be more suitable elsewhere within your organization.
AI for performance management
Attracting talent is one thing. But cultivating talent is a whole different ballgame. In order to ensure that you’re getting the best from your employees, you must offer ongoing learning and development. A pain point in performance management lies in keeping employees motivated and connected to growth opportunities. Sometimes employees need a little push to get started. Or, managers may need their own training on how to coach employees. And organizations can struggle to know how to find or produce quality content for growth.
AI can offer real solutions to these pain points. AI talent management tools provide employees with recommendations based on their performance and engagement metrics. Managers or HR leaders can use reporting tools to create micro-learning content. Or, bots make it easier to give real-time coaching to struggling employees. Let AI bots take on some of the hands-on work. With AI tools, suggest possible learning material from within your internal knowledge base or intranet. So if an employee needs to brush up on a particular skill, a bot can route helpful tips or an article for them to read.
AI for employee retention
Hiring new employees is hard — keeping quality employees is harder. Once an employee gets past that “honeymoon phase,” where they’re grateful for a job, how do you ensure they’ll stay? Turnover is expensive. And, it’s much less costly to invest in retaining employees than to deal with acquiring new ones.
Employee engagement is central to retention. Employee engagement measures an employee’s commitment to and connection with your organization. One recent Gallup survey reports that only 32% of US workers feel engaged at work. But the more engaged your workforce, the better. In fact, companies with a highly engaged workforce are 21% more profitable. And 17% of those companies are more productive than those with disengaged staff. Engaged employees also outperform their peers because they tend to be more innovative, efficient, and have higher customer retention rates.
But tracking engagement with employees is challenging. Employers often struggle to capture accurate engagement metrics or to know when employees are burnt out and about to bail. AI tools can help by capturing employee engagement metrics accurately in real time. And AI in talent management can create employee-focused solutions for promoting well-being. By combining sentiment analysis, employee KPIs, and collaboration data, AI tools can present a pretty accurate picture of an employee’s engagement and well-being.
Drive more efficiency in your HR processes with AI. Try Capacity for free today to see how AI can benefit your employees!
