The HR sector can benefit enormously from AI technologies. In human resource management, tools based on artificial intelligence offer the greatest opportunities for development and, above all, for taking care of employees. What solutions does artificial intelligence offer to HR in the face of today’s challenges? Find out in this article!
What does modern HR need?
In a dynamically changing reality, both employees and the managers who oversee their work need a degree of stability. This is especially true in the area of human capital management. Such stability can be provided by appropriate software that offers a secure workspace, a range of unique functionalities, efficient engines, compliance with applicable standards, security of stored data and documentation, as well as innovation.
Modern companies train their managers and look for those who are particularly goal-oriented to lead their teams wisely. This is what potential employees expect. One of the dominant trends among employees today is the search for meaning, a higher purpose in their work. Excellent financial conditions and employer-provided health care are often the norm. Right next to them, and often on par, job seekers point to CSR. An organization’s commitment to environmental issues, concern for employees’ mental well-being, and financial support for charitable activities are highly valued by prospective employees. They also want to know where the data stored and processed by the company comes from and whether it was obtained ethically. Employees are also interested in whether their workplace is reducing its carbon footprint and moving toward carbon neutrality. The above are just a few examples of what makes a company attractive on the job market. They represent a range of the most important challenges facing HR today, but also issues that are particularly relevant to this area of business.
What are the challenges of modern HR?
Employee well-being
Employment standards in most organizations continue to rise. If you want your company to be successful, continuously evolve, and maintain optimal processes, you need to have the right people. However, it is important to remember that qualified employees require the best care from their employers. The well-being of the people who work for a company should be a priority. Ensuring it will lead the company to dynamic development. This is proven by research conducted by the Top Employers Institute[1], which shows that organizations that focus on the positive impact of their activities on the world are among the most frequently chosen and highly rated employers. Additionally, providing employees with the time and space to find their purpose in the work they do, and then connect it to the goals of the organization, has a positive impact on revenue growth and profitability, and increases employee engagement in their work. Achieving this goal, however, is only possible with the support of the right leaders, whose actions create a link between the aspirations and motivations of their teams and the goals of the top management. The key is empathy, which is one of the most important leadership traits cited by the growing number of Generation Z members in the workforce.
Artificial intelligence and ethics
Another topic that is causing a lot of excitement in HR is the development of artificial intelligence. Its widespread availability has significantly improved the work of many people in a wide range of organizations. This also applies to human resource management. Thanks to this technology, many tasks can be performed much faster. In addition, employees can handle more tasks with the help of AI than without its support. Moreover, its use reduces the volume of administrative activities. They are simplified and sometimes even performed entirely by AI-enabled tools. As a result, employees can spend more time on important strategic or creative activities. All this has a very positive effect on businesses. This technology makes the work environment more accessible, supports HR processes, and allows employees to benefit from a personalized learning path.
However, it is important to remember that artificial intelligence is an advanced and complex technology that is developing at a rapid pace, creating many challenges for organizations. In the case of HR, they are related to the ethical aspect of using AI. It is key in the context of people management and can be divided into three areas:
- responsible approach to the use of data to study employee behavior or sentiment,
- methods of using and implementing the technology in relation to the employee experience,
- developing ways to support employee interactions using artificial intelligence.
Diversity, Equality, and Inclusion
Originally referred to as DEI (Diversity, Equality, and Inclusion), this area is very important to many companies. Research shows[2] that engaging in activities aimed at increasing team diversity, ensuring equal rights and full inclusion has a positive impact not only on employee well-being, but also on the organization’s image and attractiveness on the labor market. It is also becoming more and more important to increase the number of talents in a company, i.e. people with unique skills that are highly sought after by employers. The staff responsible for hiring new people in an organization are much more likely to look for such talent among “non-traditional” candidates, including representatives of older generations, people returning to the labor market after a long period of unemployment, neurodiverse individuals, and those with non-linear careers. In their case, formal qualifications are often not as important as their unique skills acquired through extensive experience. It is important to be aware of existing technological complexities. The number of new technologies appearing on the market every day has its great advantages, because it creates a lot of helpful tools and solutions for every business. But there is a downside to this abundance – it can be overwhelming and cause confusion in organizations.
For these reasons, team managers should engage new talent as soon as possible to fully realize their potential and integrate them into the organization early. Their onboarding should occur concurrently with the onboarding of more experienced talent and digital talent into appropriate activities within the organization. Integration in such teams can help an organization achieve its business goals and avoid complications related to the challenges of modern technology.
Work on implementing business strategies should take place in an employee-friendly environment, under managers who are guided by empathy and constantly strive to improve the skills of their teams. The responsibility for the implementation of these plans naturally rests on the shoulders of the managers, who require special attention from the leaders of the organization, and should be taken into account when it comes to the technology itself, which should provide them with the highest level of support.
AI in SAP SuccessFactors
In addition to responsible, goal-oriented, and specialized leaders, modern organizations need additional support in the area of HR activities. The challenges facing HR departments require the right technology to meet them.
The previously mentioned artificial intelligence is developing at a rapid pace and revolutionizing all areas of business. This expansion may lead to a loss of confidence in this technology. However, research conducted by SAP shows that 80% of employees surveyed[3] have a positive view of AI-based tools. Their voice is extremely important because it is the voice of the people. The conclusion is simple: properly designed tools using artificial intelligence can have a positive impact not only on individual teams, but also on entire organizations. The wise use of such technologies does not take work away from people, but rather streamlines it, reduces employee frustration, and motivates them to take action.
So which systems support modern HR departments in their daily work? As the provider of one of the world’s best and most comprehensive ERP systems, SAP offers its users the SAP SuccessFactors HXM Suite solution package. It is cutting-edge software designed for HR departments that are growing and pursuing digital transformation. All the tools that make up this system already use artificial intelligence and are constantly being developed. The entire employee lifecycle can be co-created using AI – from the design of the job description in the job posting, the questions asked during the interview, to the training offer and career path prepared for the employee.
In addition, SAP SuccessFactors includes Joule, a generative AI co-pilot, an original SAP product that uses natural language to help teams complete business tasks faster and more efficiently. Its use is always secure and compliant with applicable regulations. In addition, Joule improves the employee experience by streamlining their service, making it easier to find the information they need, helping users get answers to their questions, and performing HR tasks such as managing leave or updating personal data.
SAP SuccessFactors, which uses AI, also provides users with access to the Talent Intelligence Hub, an AI-powered tool that stores the skill portfolios of all employees in the organization. It helps manage recruitment, development, performance, and succession based on a single skills model. Employees can record their aspirations and preferences, and managers can update team skills data. The center allows organizations to better analyze resources and skills gaps, and helps plan for future workforce needs.
These are just a few of the capabilities offered by SAP SuccessFactors. If you want to know them all, take a look at our guide, created in cooperation with SAP experts from Hicron and the vendor!
The support offered by SAP solutions for HR, supplemented by artificial intelligence, allows companies to effectively face all challenges. An investment in AI is also an investment in satisfied employees, managers who take care of them, and building a constantly developing, modern, and valued organization.
Why Hicron?
The SAP SuccessFactors system is used for all HR processes in our organization. We have been a trusted partner of SAP for many years, delivering implementations according to their methodology. Our teams of experts are trusted by dozens of companies of all sizes around the world. We have been delivering local and international projects for almost two decades, so we perfectly understand the business needs of our Clients. Our experience includes small, medium, and large SAP HR system implementation projects. Looking for a trusted and professional implementation partner? Contact us!
[1] Top Employers Institute, World of Work Trends 2024, https://www.top-employers.com/blog/people-summit-2024-insights/, access: 09/10/2024
[2] Top Employers Institute, World of Work Trends 2024, p. 13, https://www.top-employers.com/blog/people-summit-2024-insights/, access: 09/10/2024
[3] Future of Work powered by SAP. Trend Raport 2024, p. 15, https://www.sap.com/documents/2024/01/d419eb00-a77e-0010-bca6-c68f7e60039b.html , access: 09/10/2024
Sources:
SAP, Future of Work powered by SAP. Trend Raport 2024, https://www.sap.com/documents/2024/01/d419eb00-a77e-0010-bca6-c68f7e60039b.html, access: 09/10/2024
Top Employers Institute, World of Work Trends 2024, https://www.top-employers.com/blog/people-summit-2024-insights/, access: 09/10/2024
