HR: Embracing tech or Falling behind

By Sevi Perri, Associate, UX Research | PwC Experience Center

Human Resources (HR), the backbone of any business, has historically relied on traditional hiring, training, and engagement strategies. But a big change is being triggered by the digital age. With the rapid growth of technology and evolving demands of the workforce, traditional methods are becoming less effective. The younger generation's shifting objectives are what's causing this change. Corporate practices, from daily interactions, to acquisition techniques, are starting to be reevaluated in light of the emergence of younger talent. Businesses need to adjust to these changing patterns if they aim to keep top talent.

Let’s explore the shift from a traditional HR paradigm to one that is driven by technology and the countless opportunities that it presents.

Traditional HR and today’s challenges
Conventional HR processes face significant challenges in an array of domains. Hiring procedures that are ineffective and biassed, can result from a recruitment process that depends too heavily on subjective judgement and manual screening procedures. At the same time, standardised methods to employee engagement can fall short of individual demands, leading to disengagement and increased turnover rates. Some of those difficulties are: 

Learning and Development

• One-size-fits-all training approaches, such as classroom-based training, overlooking diverse learning preferences among employees.

• Absence of strong data analytics tools makes it difficult to monitor training programs’ efficacy and assess its impact on performance on the long-term.

Performance Evaluation and Retention

• Annual or biannual performance reviews, common in many HR practices, often tend to be untimely, leading to inaccuracies and perceived unfairness that ultimately impacts employee engagement levels and retention.

Talent Attraction 

• Manual processes in the recruitment cycle, like resume screening and scheduling interviews, often contribute to inefficiencies and poor employee experience.

Such difficulties highlight the need for HR to change with the times and embrace a new way of work, where technology is the leading force on HR process optimization. 

Artificial Intelligence (AI) and other emerging technologies are causing a radical change in HR processes, especially in hiring and talent acquisition. AI is driving total improvements by empowering HR professionals to find top people, identify procedures more efficiently, and make data-driven hiring decisions with high precision.

How can AI improve Talent Acquisition? 
AI-driven hiring systems save time and money by automatically analysing job descriptions and resumes using natural language processing (NLP) algorithms. This ensures accurate candidate assessments and automates preliminary screenings.

AI-enabled predictive analytics uses past data and market patterns to forecast future hiring demands. By taking a proactive position, companies can modify their recruitment tactics and guarantee a steady pool of qualified applicants. Furthermore, AI-powered Applicant Tracking Systems (ATS) can automate the entire hiring process, from posting jobs to choosing candidates, and can minimise administrative workloads by processing resumes, screening candidates, and setting up interviews.

Further, AI is transforming HR operations, especially in the form of chatbots powered by AI that speed up administrative duties like processing leave requests and responding to employees’ inquiries. Large-scale employee data is analysed by machine learning algorithms, which reveal patterns and behaviours in the workforce. Through focused actions, this enables companies to promote inclusive workplaces, lower attrition rates, and increase engagement.

To sum up, AI technologies are transforming both the talent acquisition process and the day to day operations of an HR department. They improve the efficiency, accuracy, and applicant experience, allowing HR professionals to find top talent, reduce bias - since it enables a data-driven evaluation of candidates-, and make well-informed recruitment decisions.

Employee Experience and why it matters?
The impact of emerging technologies on the employee experience is a topic that corporations find challenging to understand as it directly affects the way in which employees engage with their respective organisation. Research from prestigious academic journals, such as the Harvard Business Review Research and Gallup's State of the Global Workplace Report, emphasise the link between employee retention, engagement, and organisational expansion. Companies need to take advantage of these new technologies to improve employee performance, experience, and talent retention. Building positive employee experiences from the attraction stage up until the exit stage is a crucial component for the organisation as it can affect employee morale, the brand and reputation of an organisation.  

To conclude, the journey of HR from traditional to tech-powered is not just adopting new tools; it’s about embracing a mindset of innovation and agility.Through this transition, HR experts can establish an innovation-led culture within organisations while unlocking fresh possibilities for growth via emerging technologies; consequently leading to success in the digital era. It is unquestionable that constant actions toward quality and innovation, coupled with exploration of technological advancements, will pave the way for a promising future in Human Resources Management.