Tight Job Market? Analytics for Human Resources, Part 4

The other articles in this series focused on how Artificial Intelligence (AI) applied to different departments in the company reduces the need for staff.  We have tried to emphasize we are not seeing companies get rid of people because of AI – the expanded use of AI is letting existing employees be more effective with less effort.  Ultimately, this will lead to fewer positions but the transition time will not be disruptively short.

AI is already part of many companies’ applicant tracking systems, job search services, and other focused services which HR department use.  These are typically outside services or cloud applications.  They use AI but in a very broad manner useful to many while not being focused on the specific needs and eccentricities of any individual company.

Inside companies, HR departments use of AI can be much more effective than using a generalized cloud service.  There are a lot of potentials areas like predicting vacation patterns, sick leave, clock in and clock out times, among many.  These and other help planning and let HR show off their domain knowledge and data prowess to other departments.

Our company works with a partner, Right Fit Profiles, that does applicant testing and personality evaluations.  Great stuff to know when looking to fill different positions.  We can work our partner to track and evaluate what the employee is expected to do based on the testing results as predicted by the AI model and compare that to their actual performance over time.

Another area in HR we can work on with HR departments is reducing employee turnover.  Hiring is one of the least favorite parts of any manager’s job.  If HR can use the history of hires and departures to reduce turnover using an AI model, HR looks to be the prescient and professional department other department managers and executives need to pay attention to.

A high level over view of how a churn model might work is to look at the employee’s activities over time.  Deviations from the predicted pattern of start times, call or email volume, lunchtime length, departure times, use of vacation and sick leave among other potential factors can be predictive for when an employee is contemplating leaving.

We can combine that with Right Fit Profiles personality testing to get another predictive factor for the AI model.

Alerting managers to the potential individual employees might quit, lets that manager get ahead of the process.  Executives can spot problems in entire departments months before the critical staffing shortages might hit.

Keep in mind that AI for HR is not a crystal ball.  It is going to give a percent or relative odds an employee is looking.  AI in HR is not magic but it gives a lot of insight if you are willing to listen.

 

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