A pillar of progress: AI for HR depends on good data

Cornerstone Editors

In the ever-evolving landscape of Human Resources (HR) technology, Artificial Intelligence (AI) has emerged as a game-changer. AI-driven tools promise to streamline HR processes, enhance decision-making and revolutionize the employee experience. However, the efficacy of these AI solutions is only partially dependent on the sophistication of algorithms or the power of computational hardware. In fact, a large part of the equation hinges on a fundamental foundation — good data.

Machine learning algorithms learn patterns from data, shaping their ability to perform tasks. For HR applications, AI models must be trained on a diverse, comprehensive and high-quality dataset that typically includes information about employees, such as job roles, performance reviews and compensation, among other factors. So, it's not an exaggeration to say that AI is only as good as the facts and figures it's trained on.

With good data, AI models can predict employee behavior, optimize workforce planning and even identify skills gaps. But to rely on these recommendations, HR leaders need assurance that the underlying data is accurate and up-to-date. Poor data can lead to misguided decisions, negatively impacting employee satisfaction, retention rates and organizational performance.

Let’s take a deep dive into the areas in which good data has the greatest impact and how that mark materializes.

Candidate selection

  • Resume parsingAI tools can parse resumes for relevant information, such as skills, experience and qualifications. Accurate data extraction ensures that candidates are evaluated based on their true qualifications, leading to better hiring decisions.
  • Historical hiring data — Analyzing historical hiring data helps HR professionals identify the sources that have yielded the most successful hires. This information guides recruitment strategies, allowing organizations to invest resources wisely in the most effective channels.

Career pathing

  • Skills and performance data — HR can use employee skills and performance data to recommend career paths. For example, if an employee consistently excels in certain areas, data-driven insights can suggest a tailored career progression plan, including training and development opportunities.
  • Market trends — Tracking industry trends and job market data can help HR anticipate future skill demands. This ensures that career pathing recommendations align with both the organization's needs and individual aspirations.

Gig programs

  • Skills matchingHR can use data to match gig workers with the most suitable tasks or projects based on their skills, experience and availability. This increases efficiency in gig program management.
  • Performance metrics — Data on gig workers' performance can inform decisions about extending contracts, offering more responsibilities, or identifying areas for improvement.

Workforce planning

  • Demographic data — Accurate demographic data about the workforce, including age, gender and ethnicity, is essential for ensuring diversity and inclusion. It guides HR in setting goals and implementing initiatives to foster a diverse workplace.
  • Turnover and attrition data — By analyzing historical turnover and attrition data, HR can proactively address retention issues and develop strategies to retain top talent, reducing workforce disruptions.

Talent management

  • Performance analytics — HR can use data on employee performance, including KPIs and project outcomes, to identify high-potential employees and allocate resources for their development and growth within the organization.
  • Succession planning — Accurate data on employee skills, experience and career goals is critical for succession planning. It ensures that the right employees are groomed for leadership roles when needed.

Constant refinement for continuous improvement

HR tech is not a one-time implementation — it's a journey of continuous improvement. AI models need constant refinement and adaptation to changing workforce dynamics. Good data practices involve regularly feeding relevant and reliable details into AI systems. This ensures that the models stay effective and methodical in addressing evolving HR challenges.

AI has the potential to modernize HR by automating routine tasks, enhancing decision-making and optimizing workforce management. However, to harness the full potential of AI in HR tech, organizations must recognize that the foundation of this transformation is good data. Without high-quality, unbiased and secure data, AI will falter and may even lead to detrimental outcomes.

HR leaders and organizations must invest in data governance, quality assurance and ethical data practices to support AI-driven initiatives. Only by nurturing a data-centric culture and prioritizing data integrity can HR tech genuinely deliver on its promise of making HR processes more efficient, fair and human-centric. In this journey, remember that AI is not the end but the means to achieve HR excellence, and good data is the compass that guides us toward that destination.

Explore Cornerstone AI innovation to discover how cutting-edge AI can propel your talent programs, drive innovation and elevate your organization to new heights. Don't miss out on this opportunity to stay ahead of the HR curve and experience the capabilities of intentional AI today.

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