The advent of AI and advanced automation in HRM not only unlocks several opportunities for organizations but can challenge them in different ways. According to Charles Spinelli, implementation of these technologies can help simplify the multifaceted HR processes, offer valued insights into workforce data, and boost employee productivity.
On the contrary, the use of algorithms exposes them to risks in terms of discrimination or bias in various employment decisions, job loss, employee turnover, employee data security, as well as possible lack of human emotional intelligence. For organizations grappling to deal with these challenges, Spinelli offers some great solutions to overcome them
AI and automation in HRM: Challenges and Solutions
Potential discrimination and bias
The foremost risk related to adopting AI and automation in HRM is the likelihood of partiality and discrimination due to manipulation in algorithms. Spinelli considers this could happen wherein the algorithms are created on biased data, or more precisely the variables employed in the algorithms are innately discriminatory. For example, programming the algorithm to prefer candidates belonging to a certain color/religion or give priority to candidates below 40 years.
Solution
To lessen the chance of discrimination in algorithms, it’s crucial for HR professionals to adopt transparent and ethical AI practices. For doing this, having regular auditing of algorithms can be a great way to ascertain that the outcomes produced by them are not biased. Bringing transparency in using variables or data sources in the algorithms is also important.
Risk of job loss and employee turnover
The next possible challenge of adopting AI and mechanisms in HR is that it can lead to job loss and displacement of staff. Increased automation of HR tasks may result in the redundancy of certain jobs resulting in the dismissal of employees. This could impact severely and negatively on employee morale and can be risky for employee retention.
Solution
To efficiently deal with the risk of job loss and employee turnover, the HR department needs to prioritize upskilling programs to stop employee turnover while enabling them to transition to a new job role. By investing in professional development programs, employers can boost employee morale and support by equipping them with more advanced knowledge and skills to thrive in the fast-developing digital workspace.
Threat to employee data security
As more HR-related tasks are automated or digitized, the potentiality of violating employee privacy and data security increases. For example. As sensitive employee data are stored in a digital database, they become susceptible to cyberattacks or theft of valuable personal information.
Solution
Automation of HR tasks is inevitable in the digital age to boost HR efficiency. Therefore, considering the underlying risks of data breaches, HR professionals need to implement best practices like using strong passwords while collecting, storing, and using them. Also, the HR team should adopt advanced security tools like anti-virus software or firewall to prevent attacks says Charles Spinelli. It is equally vital to work in conjunction with internet security professionals to implement these measures appropriately.
Lack of human interaction/ emotional intelligence
Although automation can aid in streamlining HR processes and escalate its efficiency, it simply cannot supplant the human emotion which is often sought-after in HR tasks like conflict resolution or performance management.
Solution
The HR team should be careful enough to adopt automation with human interaction in balance. While automation can bring efficiency, the need of human empathy is a must to ensure employees feel valued, supported, and taken care of.
To conclude, understanding these common challenges and undertaking protective measures is essential to lessen potential risks, and leverage the opportunities of using AI and more automation in HR.