Nonprofits have a number of tools available to support the growing shift to remote or hybrid work. Artificial intelligence (AI) driven technology is increasingly among these tools. They offer big opportunities to change the way organizations recruit and support their teams. However, leveraging the latest trends in HR technology to their full potential will require HR leaders and team managers to recognize and navigate the potential challenges as well.
Weighing the pros and cons of AI in HR
HR is discovering, as other industries have before, that AI technology offers a tremendous range of advantages. In HR, these advantages might include:
- Automation of routine tasks. AI solutions are leading employees through onboarding by presenting information only after certain requirements have been cleared.
- Valuable insight for HR leaders. AI tools can provide insight into candidate quality metrics, such as new-hire turnover and retention rates, to guide adjustments to recruitment and onboarding strategies.
- A more personalized employee experience. Through the use of advanced analytics, AI solutions can help identify which skill gaps employees might have and recommend appropriate training opportunities or modules.
That said, the risks around this new technology are already becoming clear. Perhaps chief among them are ethical considerations around how AI is used to streamline the hiring process. The latest trends in HR technology include AI-driven algorithms that help HR managers screen resumes for key criteria. When there are hundreds of potential applicants to evaluate, this can be a significant timesaver. However, it can also introduce a risk of discriminatory hiring practices. Because resumés are based on criteria entered by the HR manager, AI solutions draw upon any biases input by the hiring manager to rate an individual’s compatibility for a position. Allegations of bias in AI screening are working their way through the legal system.
In addition, AI tools open organizations up to risks around data privacy. AI can collect and process vast amounts of data. For example, AI tools used to conduct background checks are able to process a much broader range of data – such as social media profiles – than traditional tools. HR managers must be diligent about putting processes in place to prevent unreasonable invasions of privacy. They must also remain abreast of regulatory requirements as they emerge to govern this new technology.
In addition, managers must recognize that AI can’t consider values or evaluate how well a candidate will fit in with company culture. Leaving candidate evaluation to AI alone risks gathering a pool of technically proficient candidates that may not necessarily fit in culturally. Some decisions simply require human involvement.
Creating an AI policy
As AI increasingly permeates the workplace, HR managers will find that these tools may not be avoidable – nor should they be avoided. Instead, as with every aspect of the changing workplace environment, it’s important to be clear about what you want to achieve with your AI tools. AI is meant to support teams, not replace them, but a lack of clarity can still create a sense of unease among employees.
A clear AI policy can help put minds at rest. And by aiming for quick wins with your AI investments, HR leaders can further build buy-in among employees. This might include solutions that provide easy productivity gains, demonstrating value and allowing for more strategic applications later on.
In navigating the latest trends in HR technology, it will also be important to tread lightly. AI solutions are expanding, and uses of artificial intelligence haven’t been fully vetted through our legal system. It will be important to watch for updates on AI best practices from trusted associations and partners as new use cases emerge.
Vault Consulting is supporting nonprofits by watching these updates and providing guidance to help you adapt. Sign up for updates on our news and other resources or contact Vault with questions any time.