The Shift from Transactional to Strategic HR
Human Resources (HR) has evolved from a transactional, administrative role to a strategic partner. The question now is how this transformation manifests in practice.
The answers are varied: from influencing business decisions or enabling the achievement of expected outcomes to adopting technology. Today, we focus on how AI enhances decision-making in HR, emphasizing the human touch that connects professional intuition with AI-driven insights.
From Intuition to Data-Driven Decisions
In the past, much reliance was placed on perception or intuition to anticipate situations. For instance, a manager might predict a potential resignation by observing a team member’s behavior or certain patterns in their interactions. However, the accuracy of these predictions was uncertain, with a high error rate.
Now, AI enables predictive turnover models based on data. This not only helps retain specific individuals but allows HR to focus on improving employee engagement and satisfaction levels.
People Analytics and AI: Making Better Decisions
The current topic revolves around how “people analytics + AI” facilitate more informed, strategic decisions. Dashboards with analytical data are crucial; however, connecting them with AI’s pattern identification capabilities and organizational context understanding makes strategies more specific.
Practical Applications of AI in HR
- Talent Turnover: Traditional HR focuses on reducing turnover through work plans. A more strategic approach uses historical data and AI to anticipate potential exits, analyzing engagement, productivity, benefit usage, and other factors for more accurate predictions.
- Enterprise Benefits: Companies often discuss flexible benefits as a competitive advantage. However, many are underutilized and costly. AI-driven data, incorporating recent feedback, can help design more competitive and valuable packages for employees.
- Workforce Planning: Finding top talent depends not only on current training plans but also anticipating market demands and future needs. AI-enhanced data can help design training and development programs that cultivate future skills.
While more examples could be added, the key takeaway is how data and AI empower HR to assume a more proactive role. Inherent skills like building personal connections, providing effective feedback, or understanding the impact of initiatives remain vital. However, adopting technology enhances efficiency and effectiveness in decision-making.
AI, like other technologies, does not replace us but strengthens our current capabilities and the value we bring to become more strategic within organizations. Although some jobs may diminish, many will evolve into new tasks and activities. The decision is clear: either embrace a proactive role or remain in the shadows, complaining about events around us.
