01. Artificial Intelligence in talent management

 Introduction to talent management

Talent management includes all the way that organizations bring employees on board, keep them happy and productive, and help them continue to develop their skills over time.

 Why Talent management is important?

Analysis shows there is a significant relationship between effective talent management and an organization’s overall performance. In fact, in a 2018 McKinsey survey, 99 percent of respondents who reported their company’s talent management was very effective said they outperform their competitors, compared with 56 percent of all other respondents. And the effects may be cumulative, given that abilities to attract and retain seem to support outperformance as well. (Survey, 2018)

Five areas of talent management are particularly important to the human recourse management.

1. Finding and hiring the right people.

2. Learning and growing.

3. managing and rewarding performance.

4. Tailoring the employee experience.

5. Optimizing workforce planning and strategy.

 What does artificial intelligence (AI) mean now?

Today, Artificial Intelligence has come to describe a broad range of functionalities that relate to a machine’s ability to mimic human intelligence. This can mean developing computers that think exactly like humans do – a rare capability called “strong Artificial Intelligence”. However, it can also mean simply building algorithms that model aspects of human thought. For example, modeling retroactive learning (the ability to learn from one’s mistakes) or recognizing faces. Finally, AI can be far superior to humans in some tasks, in particular those that require quick processing of large volumes of data.

What are the impacts of AI in talent management?

1. Search: Using AI in talent management can optimize the recruitment process by comparing employers’ hiring profiles and prospective employees’ skills, qualifications, and personality traits. LinkedIn has found that an Artificial Intelligence-assisted job search is at least 50% more efficient. Other studies have shown a similar positive effect.

2. Recruitment: Chatbots streamline job recruitment. According to one study, around 81% of job-seekers would like better communication with employers. Chatbots are empirically proven to do that. These bots harness NLP (Natural Language Processing) and other AI tech to engage with candidates and provide basic services, making your talent management more efficient and effective.

3. Hiring: Humans notoriously carry some degree of bias, whether conscious or unconscious. Black candidates, female candidates, and even older candidates all tend to fare worse on the job market than everyone else. Studies have found that algorithms designed to weed out qualified applicants from unqualified applicants are 1.5 times better at spotting high-performing employees than their human counterparts. Good hiring AI can also clean the process from typical biases in talent management.

4. Promotion: Tracking job performance metrics helps take the subjectivity out of the promotion process, and that always leads to more diversity. AI for talent management uses this data as fuel to suggest promotion candidates and company execs are on board with this new strategy.

Companies successfully using AI in their recruiting strategies in the global context.

1. Electrolux

2. Cigna

3. Kuehne+Nagal

4. Brother International Corporation

5. Stanford Health Care

6. Thermo Fisher Scientific

What are the benefits and challenges of using AI and data analytics in talent management?

Benefit: Faster and smarter hiring

One of the main advantages of using AI and data analytics in talent management is that they can help you streamline and improve your hiring process. AI can automate tasks such as screening resumes, scheduling interviews, and sending feedback, saving you time and resources. Data analytics can help you identify the best candidates based on their skills, personality, and fit, reducing bias and increasing diversity. AI and data analytics can also help you predict future performance and retention, enabling you to make more informed hiring decisions.

Challenge: Ethical and legal issues

However, using AI and data analytics in talent management also poses some ethical and legal challenges. For example, how can you ensure that the data you collect and use is accurate, relevant, and secure? How can you avoid discriminating against certain groups or individuals based on their data? How can you respect the privacy and consent of your candidates and employees? To address these issues, you need to follow the best practices and regulations for data protection, transparency, and accountability, as well as involve human oversight and input in the process.

 

Benefit: Personalized and adaptive learning

Another benefit of using AI and data analytics in talent management is that they can help you create personalized and adaptive learning experiences for your employees. AI can tailor the content, pace, and format of the learning materials to suit the individual needs, preferences, and goals of each learner. Data analytics can help you measure the impact and effectiveness of the learning interventions, as well as provide feedback and recommendations for improvement. AI and data analytics can also help you foster a culture of continuous learning, where employees can access relevant and timely information and resources at their fingertips.

 

Challenge: Skills gap and digital literacy

However, using AI and data analytics in talent management also requires you to address the skills gap and digital literacy of your workforce. For example, how can you ensure that your employees have the necessary skills and competencies to use and benefit from the AI and data analytics tools? How can you train and upskill your employees to adapt to the changing demands and opportunities of the digital era? How can you balance the use of technology with the human and social aspects of learning? To overcome these challenges, you need to invest in the development and empowerment of your employees, as well as foster a culture of collaboration, innovation, and curiosity.

Conclusion

In conclusion, the integration of AI in talent management marks a paradigm shift in how organizations identify, nurture, and retain their most valuable asset—their people. As we navigate the complexities of the modern workforce, AI not only streamlines and automates processes but also provides invaluable insights that empower strategic decision-making. The ability to analyze vast amounts of data, predict trends, and personalize employee experiences positions AI as a powerful ally in optimizing talent management practices.

By leveraging AI technologies, organizations can make informed decisions about recruitment, skill development, and career progression, fostering a culture of continuous improvement and adaptability. The result is a more agile and resilient workforce, capable of meeting the evolving demands of today's dynamic business environment. While AI enhances efficiency, it is crucial to emphasize that the human touch remains irreplaceable in areas such as empathy, creativity, and complex decision-making.

In the realm of talent management, AI serves as a catalyst for innovation, unlocking new possibilities for employee engagement, diversity and inclusion, and overall organizational success. Embracing AI in talent management is not just a technological upgrade; it's a strategic imperative for organizations aspiring to thrive in the future world of work. As we harness the transformative power of AI, the journey towards building a workforce that excels, adapts, and flourishes in the digital era becomes not only conceivable but also achievable.

References

Available at: https://www.phenom.com/blog/examples-companies-using-ai-recruiting-platform
[Accessed 18 11 2023].

Company, M. &., 2023. What is talent management?. [Online]
Available at: https://www.mckinsey.com/featured-insights/mckinsey-explainers/what-is-talent-management
[Accessed 18 11 2023].

Epstein, D. L., 2023. Artificial Intelligence in Talent Management and the Future of Work. [Online]
Available at: https://www.cangrade.com/blog/hr-strategy/artificial-intelligence-talent-management/#:~:text=Using%20AI%20in%20talent%20management%20can%20optimize%20the,Other%20studies%20have%20shown%20a%20similar%20positive%20effect.
[Accessed 18 11 2023].

Survey, 2018. Winning with your talent-management strategy. [Online]
Available at: https://www.mckinsey.com/capabilities/people-and-organizational-performance/our-insights/winning-with-your-talent-management-strategy
[Accessed 18 11 2023].