AI in HR

AI in HR

Artificial intelligence is pushing humans and machines closer together.  It’s exciting!  AI’s influences are being felt across the HR space… being used to automate business processes, enhance efficiency, and reduce bias among other things.  In fact, McKinsey’s latest forecast of AI’s impact on the global economy is that it will generate $13 trillion in economic activity across the globe by 2030.
But, there is room for improvement, and top executives want it yesterday.  A recent survey from PricewaterhouseCooper found 72% of executives believe AI will offer sizable business advantages in the near future.  In another survey from IBM, 66% of CEOs believe AI can drive significant value in HR.  Some are already exploring those opportunities.  Uber, for instance, completed the world’s first cargo shipment using a truck controlled by AI!

State of AI in HR

AI as a Tool

The inclusion of artificial intelligence in the HR professional’s toolbox is not surprising.  When looking for answers, look no further than the iPhone, for instance, or the black, cylindrical Echo tower sitting on the counter.  Whether its Apple’s Siri or Amazon’s Echo, people are using artificial intelligence at home in their day-to-day lives.  It makes sense, then, that AI has made it into the workplace.
In most professional settings, AI is not required to do mundane tasks like answer questions about the weather or turn on the lights.  Instead, AI is asked to do much more.

Reducing Human Bias

Humans are inherently bias.  Even when striving for inclusiveness, HR professionals may subconsciously lean toward a particular candidate… for instance, someone who is more like the recruiter.  Another potential bias, language bias; people’s subconscious word associations could indicate a particular preference.
Now, thanks to AI, algorithms can be designed to help employers identify and remove these biases.  That potentially translates to better hiring communications and attracting a more diverse group of candidates.  Those same algorithms can also find candidates who may have been screened out due to human bias.  To put it in context, AI allows managers to go beyond gut feelings and rely on data-driving assessments.

AI Automation

AI is being used in HR to automate repetitive, low-value tasks thus increasing the focus on more strategic work.  AI tools automate common HR tasks like benefits management or handling common questions or requests.

Recruiting through AI

Custom experiences are expected by applicants.  These are tailored to unique needs as they apply for a new job, choose the right benefits or explore development opportunities.
Companies have implemented “AI recruiters” to automate scheduling interviews, provide ongoing feedback to candidates and answer their questions in real time.  This allows human recruiters to spend more time converting candidates to hires.

Retention

Some companies are using AI platforms to single out employees that may be heading for the exit door.  Those platforms track employee computer activity, emails, keystrokes, internet browsing and so on and store it.  Then AI analyzes the data to determine a baseline of normal activity patterns in the organization. Based on that knowledge, outliers are flagged and reported to the employer.  AI is also being used to detect changes in the overall tone of employees’ communications to predict when employees might be thinking of leaving.

AI Makes HR More Human

At some point in the career of an HR professional the question is asked:  how can human resources become more human?  At least one company believes it has the answer.  Best Buy Canada says it’s to add more machines.  Chris Taylor is the chief human resources officer for Best Buy Canada.  He has gone on record saying the embracing of artificial intelligence and machine learning applications in human capital management is a “mandatory investment in the future.”
So, why add more machines to make HR more human?
The automation of tasks through AI technology allows for the freeing of HR professionals to focus on uniquely human abilities such as critical thinking, creativity, and empathy.  While they are involved with the more human tasks, technology, at the moment, can handle the more mundane tasks.
All of that said, in a lot of ways artificial intelligence is still growing and learning itself.
What does that statement mean? AI is able to search a query based on the words you are using and give you a response, but that response isn’t contextual.
AI is heading in that direction though.
Instead of writing responses specifically to specific inputs… you just have a huge database of language around a specific knowledge domain and the AI can go into that knowledge domain and answer the questions from the user.
HR professionals interested in pursuing AI want it to do much more than answer questions and rummage through applications. They want to use it as a learning platform.
But it’s not there yet.
AI can teach itself to do something, but it’s not at the stage it can replace humans beings as the “drivers of education.” In the future, it may be used that way, but it would require a lot of adaptability.
Taylor says Best Buy Canada is embracing as much technology as they can get their hands on.  For instance, the company has started investing in cloud-based solution that uses artificial intelligence, voice technology and machine learning.  All of these technologies, Best Buy Canada hopes, will better the employee experience.

Conclusion

As much as the HR technology landscape continues to be disrupted by AI, HR teams must find ways to balance these advancements with transparency.  It is essential in making sure the implementation of AI technology is successful.  At the end of the day, artificial intelligence is not the end-all-be-all answer to every quandary HR finds itself in.  It is a tool and nothing more.  A tool that can improperly function based on the data it is given in order to work effectively.  Even so, artificial intelligence can be a valuable resource.  Work to embrace it now because it’s likely you’ll be expected to use it in the future.
By Mason Stevenson
Originally posted on hrexchangenetwork.com

AHCA and the Preexisting Conditions Debate—What Employers Can Do During Uncertainty

Preexisting conditions. While it’s no doubt this term has been a hot topic in recent months—and notably misconstrued—one thing has not changed; insurers cannot deny coverage to anyone with a preexisting condition.  Now that House Resolution 1628 has moved to the Senate floor, what can employers and individuals alike expect? If passed by the Senate as is and signed into law; some provisions will take place as early as 2019—possibly 2018 for special enrollment cases. It’s instrumental for companies to gear up now with a plan on how to tackle open enrollment; regardless of whether your company offers medical coverage or not.
Under the current proposed American Health Care Act (AHCA) insurance companies can:

  • Price premiums based on health care status/age. The AHCA will provide “continuous coverage” protections to guarantee those insured are not charged more than the standard rate as long as they do not have a break in coverage. However, insurers will be allowed to underwrite certain policies for those that do lapse—hence charging up to 30% more for a preexisting condition if coverage lapses for more than 63 days. This is more common than not, especially for those who are on a leave of absence for illness or need extensive treatment. In addition, under current law, insurers are only allowed to charge individuals 50 and older 3 times as much than those under this age threshold. This ratio will increase 5:1 under AHCA.
  • Under the ACA’s current law employers must provide coverage for 10 essential health care benefits. Under AHCA, beginning as early as 2020, insurers will allow states to mandate what they consider essential benefit requirements. This could limit coverage offered to individuals and within group plans by eliminating high cost care like mental health and substance abuse. Not that it’s likely, but large employers could eventually opt out whether they want to provide insurance and/or choose the types of coverage they will provide to their employees.

It’s important to note that states must apply for waivers to increase the ratio on insurance premiums due to age, and determine what they will cover for essential health benefits. In order to have these waivers granted, they would need to provide extensive details on how doing so will help their state and the marketplace.
So what can employers do moving forward? It’s not too soon to think about changing up your benefits package as open enrollment approaches, and educating yourself and your staff on AHCA and what resources are out there if you don’t offer health coverage.

  • Make a variety of supplemental tools available to your employees. Anticipate the coming changes by offering or adding more supplemental insurance and tools to your benefits package come open enrollment. Voluntary worksite benefits, such as Cancer, Critical Illness, and Accident Insurance handle a variety of services at no out-of-pocket cost to the employer. HSA’s FSA’s and HRA’s are also valuable supplemental tools to provide your employees if you’re able to do so. Along with the changes listed above, the AHCA has proposed to also increase the contribution amounts in these plans and will allow these plans to cover Over-the-Counter (OTC) medications.
  • Continue to customize wellness programs. Most companies offer wellness programs for their employees. Employers that provide this option should continue advancing in this area. Addressing the specific needs of your employees and providing wellness through various platforms will result in the greatest return on investment; and healthier employees to boot. Couple this with frequent evaluations from your staff on your current program to determine effectiveness and keep your wellness programs on point.
  • Educate, educate, educate—through technology. Regardless if you employ 10 or 10,000, understanding benefit options is vital for your employees; what you have to offer them and what they may need to know on their own. Digital platforms allow individuals to manage their healthcare benefits and stay in the know with valuable resources at their fingertips. There’s no limit on the mediums available to educate your employees on upcoming changes. Partnering with a strong benefit agency to maximize these resources and keep your employees “in the know” during a constantly changing insurance market is a great way to start.