We are currently at the beginning of the Artificial Intelligence Revolution, in a rush to implement computer software and hardware (including robots) to augment or replace what were previously human-based tasks. Think of it as the Industrial Revolution on steroids. This revolution will be more impactful than the replacement of horse drawn carriages by automobiles. Even though early forms of AI have been around for decades, the revolutionary part splashed onto the scene in late 2022 with the open-source and free to use Chat-GBT, a Generative AI (GenAI) utility that performs complex tasks which previously might have taken weeks to complete by professionals using traditional means.
Suddenly, the opportunity to take quantum leaps to improve the efficiency and effectiveness of white-collar operations seemed to be at hand. And since then, more open-source GenAI sites have come on line. Enterprise and customized versions of these products have been created to drive improved productivity for functional and intellectual tasks in large organizations. Customized GenAI software has been introduced for virtually every organizational function. Some of the offerings are highly experimental and unproven, but they all point to a new way of working now and into the future. The best use cases for GenAI today apply to large complex organizations with data dispersed over numerous systems, both externally and internally.
In the future these applications will move downstream to smaller companies. Leaders in Small Closely Held Companies (SCHCs), (owner-managed companies with less than 250 employees), have been scratching their heads over how the AI Revolution will impact their world – a combination of awe and fear. There will certainly be huge trickle-down effects from larger companies they deal with regarding supply chain, distribution, marketing and finance, to name a few. Here we will focus on the impact on Human Resources – HR — and what changes to expect in the core functions of Staffing, Career Paths and Learning/Development, Employee Experience, Performance Management and Compliance. We will take a look at the current state and what to watch out for.
Staffing
One of the most expensive and time-consuming tasks for HR in an SCHC is creating job descriptions, posting jobs, matching with candidates and interviewing. Out-scouring to an employment agency is a direct and measurable cost, while conducting these tasks in-house consumes substantial staff time.
Open-source GenAI utilities such as Chat-GBT can be used by HR professionals to generate skill and experience lists, job description drafts and checklists for job interviews. Enhanced uses include “smart” queries regarding the kinds of skills and experience that are well suited for a new job that you wish to recruit for, or for the progression of skills that are appropriate in a job family. These uses of AI can really reduce the time it takes to prepare ad copy for job openings and guidelines for conducting job interviews. It’s really important to underscore that the results of your query with a GenAI utility are only as good as the quality, breadth and depth of information that comprises the database. And documents created with Gen AI utilities should be subject to verification and validation.
Plug-and-play options are also available. For example, on-line job posting services are using Gen AI to improve the quality of matching with candidates and also in communicating with candidates. And these services will become even more focused on your staffing needs as the utilities improve Gen-AI capabilities over time.
Career Paths and Learning and Development
For a number of years commercial training companies have been offering AI assisted training platforms. These platforms include offering a variety of options in training content. In addition, there are options in the way training is delivered, through traditional means with stand-up instruction, Zoom classes, and self-paced individualized computer-based instruction. Companies are able to directly sponsor training or provide reimbursement to employees.
Gen-AI has opened new horizons to SCHC’s by linking these Plug-and-play external resources to the content of jobs inside of the company. Company management can use Open source GenAI tools to explore career paths beyond the current state at the company by a simple query, such as: “What is the progression of jobs for machinists in a metal fabrication production facility?” The results will provide job progressions with job titles, education and experience requirements. The next query might be: “What training is required for the career progression?” It’s then possible to continue to drill down to more specifics. All of this research will take no more than a few minutes for placing carefully crafted queries. The result of this research will be a framework for job progression and training options for the selected jobs.
Employee Experience
Employee Experience includes dealing with employee morale and engagement, and all forms of communication with employees. Because SCHCs do not typically have a rich database on employee engagement and attitudes, some of the opportunities to use GenAI tools are limited for managing employee engagement at the present time. However, they can be used now to compose a variety of communications to employees, including onboarding messaging. In addition, planned communications can be composed with GenAI assistance. In the future GenAI tools can be used to analyze and interpret employee engagement and attitude surveys and prepare responses to findings.
Performance Management
Performance Management is one of the most straight forward uses of GenAI. Commercially available GenAI tools can be used as an aid in composing narratives for performance reviews by superiors and peers. They can also be used to generate questions to be used for prompting discussion for periodic performance reviews. Employees can use Gen AI tools themselves to prepare for performance reviews as well. Finally, GenAI tools can be used as an aid in composing Performance Improvement Plans. As with other uses of these tools, it’s important to underscore that their use is not a replacement for genuine and thoughtful analysis of employee behavior in preparation for performance reviews.
Compliance
GenAI tools can be used as an aid in understanding numerous local, state and federal regulations and laws. They can also be used to understand how to comply with these regulations and laws and how to implement them. The whole field of compliance is a moving target; therefore, this is a place where there is no substitute for competent legal counsel.
A Peek into the Future
In the 1970s when electronic hand calculators were introduced there was a fear that literally handing over personal computational powers to a small box was risky. We managed to get over that and AI has come a long way since then. We are now on the threshold of “computational” aids that will supercharge our ability to handle immense amounts of HR data and provide solutions to HR problems. SCHCs should be on the lookout for software that will provide productivity, efficiency and effectiveness to HR operations. In the meantime, experiment with available GenAI tools for yourself!
References:
McKinsey People and Organization Blog, Four Ways to Start Using Generative AI in HR, March, 2024
Trevor Schachner, SHRM Labs, shrm.org, Generative AI for HR, March 24, 2024
Boston Consulting Group, How Generative HR will Transform HR, August, 2023
JoshBersin.com, The Role of Generative AI in HR is Now Becoming Clear, September 8, 2023
Dave Zielinski, shrm.org, Triumphs, Lessons Learned in Using Generative AI for Performance Reviews, March 4, 2024