How HR Analytics catapults businesses with GenAI
By Krishna Muniramaiah, APAC Head, Human Resources, Altimetrik
In recent times, there has been an exponential surge in the demand for HR analytics, and GenAI is poised to offer valuable assistance to HR organizations in effectively managing the vast amounts of data at their disposal. Let’s explore the reasons behind this burgeoning trend, the untapped potential it offers, and the methods for effectively harnessing this technological advancement to catalyze positive growth as we adapt to this evolving Digital Business landscape.
Consider this – from a mere personnel management department with people typically drowning in files and papers, doing taxes and managing labor laws – the HR function has come a long way in the role we play in a business. If not directly a revenue-making centre, HR is undoubtedly the primary revenue-influencer for any business today. Why? Because highly engaged employees make a company 21% more profitable.
Employee Engagement is Crucial
The Great Resignation Wave is most likely over, but it has been an eye-opener in how we perceive a work environment, what drives people to love their jobs and stay loyal to a company. And there is no scope for a one-size-fits-all. It is an age of diversity and inclusion. The more diverse the workplace gets, the more complex employee engagement becomes. It is all in the mandate of the HR organization to understand the sentiment of their workforce and create and nurture a culture that lets people thrive. Here comes the complex challenge of garnering and understanding employee feedback.
Employee Feedback is Mission Critical
HR departments contend with a multitude of data sources, spanning third-party tools like Glassdoor, Ambitionbox, social media platforms, in-house applications, employee forums and so on. While all these sources provide insights, the unstructured nature of the data often makes it hard to derive meaningful intelligence. There is also another consideration that people in the HR department are not techies, and they don’t necessarily come from a tech background. Managing all this big-data can get really difficult – a problem that Gen AI aims to salvage.
But GenAI has limitations and can be tricky to use in its present state. There are reasons why we cannot entirely trust a GenAI tool and can be easily led into misinterpretations.
Here are some real-life illustrations of what happens like Hallucination, Duplication and more. We have to be cognizant of these problems before we jump into the bandwagon. This is not a mere fad that we pick up and run with.
Yet, this doesn’t mean that HR leaders should shy away from tapping into this brilliant technology which offers a really smart way to deal with this fundamental requirement. To deal with the problem and effectively leverage GenAI, we need a solution that is aware of the loopholes, paves a work-around and delivers results that are more accurate and reliable.
Developing a strategic framework to revolutionize HR Analytics
The acceleration of the hybrid work models, and the increased adoption of remote work presents a unique set of challenges in the HR landscape. HR leaders need more than just data; they need insights to drive engagement and retention strategies. There is an avalanche of unstructured data from sources like internal platforms, applications, and social networks. While GenAI offers a glimpse of hope, it’s important to navigate its limitations and harness its true potential. This dire situation calls for a smart and secure solution that aids not only in organizing data but also shaping HR analytics holistically.
A simple but strategic framework powered by Gen-AI and crafted by experienced practitioners can be utilized to address the complexities of the modern workforce. Such frameworks must harness the potency of Large Language Models (LLMs) like GPT in tandem with an intelligent pre- and post-processing engine to transform unstructured data into structured insights, encompassing sentiments, topics, intent, and emotions. Such solutions can aid in deciphering insights from deep data, providing a contextual and precise analysis of information collected from diverse sources.
To elevate our decision-making process and prioritize employee-centricity, leaders must be able to utilize solutions that can help them derive actionable insights into the organizational employee sentiment and positively impact retention and attrition. Hence, solutions that take the notch a level up and delve into multiple layers of data to accurately analyze contextual information are becoming imperative for the HR fraternity.
Harnessing the Power of Analytics
As leaders, we recognize the paramount importance of analytics in shaping the future of our organizations. HR organization in a company will become even more strategic and critical in the coming years as talent is the greatest asset. Having a strong data analytics capability is a powerful tool in our arsenal that will enable us to help the business stay sharp and ahead of the curve.
As hiring continues to remain a challenge globally, retention and employee engagement are important goals that we cannot afford to run short on in the fast-changing digital world. The secret lies in the optimal synthesis of technology and the human factor striking a harmonious balance.
I eagerly anticipate the future where the synergy between GenAI and human ingenuity illuminates a brighter tomorrow. How about you?