HUMAN RESOURCE MANAGEMENT REPORT

USE OF TECHNOLOGY OR AI IN HRM

Submitted to:
Girish Balasubramanian
ASSISTANT PROFESSOR (GRADE-I)
Human Resource Management,
IIM Lucknow

Submitted By:
Group 5
Pai Kaivalya Waman, ABM18026
Srikanth S, PGP36290
Ankit Sharma, PGP37227
Eshaan Kulshreshtha, PGP37235
S R Milan Tudu, PGP37260
Sonawane Chetan, PGP37268
Section E

Submitted On:
16th March, 2022
Content

s
Metric of Evaluation................................................................................................................................................2

Return on Investment...........................................................................................................................................2

Number of Active Users......................................................................................................................................2

Average Time on Platform..................................................................................................................................3

Skill Metric..........................................................................................................................................................3

Benefit and Outcome Metrics..............................................................................................................................3

References................................................................................................................................................................4
Metric of Evaluation

Artificial intelligence in HR has the potential to provide considerable organisational benefits. Clear articulation
of intended outcomes connected to business concerns, careful selection of relevant metrics to assess the
expected outcomes, and regular tracking of results to enable iterative changes were all used to achieve this.
Return on Investment

Return on investment (ROI) tracking in HRM should be a business need. HR managers should be able to see
right through AI applications to the outcomes AI will deliver, as well as the corresponding ROI in the
enterprise. Before the AI application is created, the expected link between AI and its return should be
established. AI-generated results should have a clear link to HR metrics, and HR metrics, in turn, should have a
clear link to financial metrics. It's impossible to demonstrate definitively that the ROI observed is only due to
the application. However, rigorous designs (e.g., comparisons before and after implementation, usage of control
groups) can uncover converging lines of evidence leading to ROI (Guenole & Feinzig, 2018).
Number of Active Users

The number of people dependent on AI technology are rapidly increasing and HRM has fully utilized AI

platform mostly for e-recruitment and selection during CoViD-19 pandemic. HR directors are increasingly

relying on technology to help their firms on right side their talent processes as the world of talent management

continues to move swiftly as a result of the pandemic and the creation of new working environments. More

people reliable on technology platform usage, more effective will be strategy to use AI platform in HR

(Karthikeyan , 2019).

Hiring the appropriate people, offering a flawless candidate experience, and improving technology integration

are just a few of the problems HR managers are dealing with these days, and AI is poised to help. In the next

five years, they expect to employ AI to address turnover and retention as well as improve talent acquisition on

the hiring front, as well as for upskilling and reskilling as well as to increase diversity, equity, and inclusion in

the talent management arena (Colletta, 2021).

Average Time on Platform

Time requirement for HR tasks spent on AI platform are most essential parameter for AI performance. AI-

enabled HR platforms have higher speeds than the traditional method of HR tasks. However, preparation time

for technology installment can push the efficiency on lower side. Consider recruitment process. Organizations
may find the recruitment process to be resource-intensive. Because recruitment is such a time-consuming

procedure, it is an expensive endeavor for the bulk of modern businesses. Organizations are working hard to cut

down on 'time to fill'.  The length of time between the approval of a job application and the employee's

acceptance of the job is known as time to fill. Reduced fill time is beneficial to the business and can be

accomplished through better human resource strategies.

Prospective employees are guided through the process with the use of specialized tools and systems in

automated recruitment processes. These tools and technologies help you limit and control the amount of time

you spend with each candidate during the hiring process. Manual processes, on the other hand, have been shown

to be unsatisfactory for both line and staff managers as 63% of them have bias during the traditional interview

process (63% of Time Spent in the Recruitment Process is Unnecessary, 2019).

Skill Metric

Based on human thinking capacities, AI in HR functions is divided into four categories: thinking humanly,

thinking rationally, acting humanly, and acting rationally. Acting humanely is the most advanced level of AI.

It replaces the basic functions of office-assisting in the HR department.  AI is evolving as a stronger support HR

function with the capabilities of natural language processing, and communicating successfully in English,

representing the level of responding by knowing or hearing apart from automated reasoning, storing the

information, and answering the questions at various levels. It is evolving to perform different human functions

such as brainstorming, analyzing, acting, interfacing interacting, remembering, etc. (Karthikeyan , 2019)

Benefit and Outcome Metrics

AI functions in HR management can perform in all stages of employment cycle i.e. recruitment, onboarding,

development, retaining and offboarding. The benefits and outcomes that come from each stage should have

value addition compared to traditional HR management (Guenole & Feinzig, 2018). Following metrics are

tabulated for AI performance evaluation and decision whether to choose tech platform or not:

Metric Benefit Metric Outcome Metric

Candidate Experience Instructive pre-hire Candidate Conversion Rate

 communication New Hire Productivity

Job Design and role matchmaking

Efficiency v/s Effectiveness Job Prioritization Vacancies

Time to Hire Position Filling

Diverse Candidate Assessment Minority Candidate Selection

Qualified Candidate Identification

Motivation Employee Support Employee Retention

Experience Survey Score

Compensation Planning Pay Transparency Compensation Satisfaction Score

Optimized Compensation Budget Overpaid/Underpaid Work Count

Learning Skill Acquisition Numbers Skill Gap

Learning Experience Employee Productivity

Course Enrollment

Completion Rates

Career Development No. of Opportunities Created Career Satisfaction Score

Internal Job Movements Numbers

Employee Support Accuracy of Information Process violation numbers

Reduction in Support Staff Labor Cost (Karthikeyan , 2019)

References

 63% of Time Spent in the Recruitment Process is Unnecessary. (2019, October 7). Retrieved from Agile

HR Analytics: https://agile-hr-analytics.com/63-of-time-spent-in-the-recruitment-process-is-

unnecessary/

 Colletta, J. (2021, August 19). HR Tech Number of the Day: AI in HR. Retrieved from Human Resource

Executive: https://hrexecutive.com/hr-tech-number-of-the-day-ai-in-hr/
 Guenole, N., & Feinzig, S. (2018). The Business Case for AI in HR, With Insights and Tips on Getting

Started. New York: IBM Corporation.

 Karthikeyan , C. (2019). HR METRICS AND FUNCTIONS WITH STRATEGIC PERMUTATION

COMBINATIONS ON ARTIFICIAL INTELLIGENCE (AI) BASED PLATFORMS. ResearchGate, 6-

10.