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82% of organizations use AI to assess employee retention

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AI revolutionizes HR decision-making

The utilization of artificial intelligence (AI) for managing employees in organizations is on the rise, as per a survey conducted by the Society for Human Resource Management (SHRM). The survey revealed that 82% of HR professionals reported their organizations employing AI-driven people analytics to evaluate employee retention and turnover, while 71% utilized it for recruitment, interviewing, and hiring processes.

Alex Alonso, the Chief Knowledge Officer at SHRM, highlighted the growing reliance on people analytics among HR leaders. “HR leaders are increasingly looking to people analytics as a tool to answer key business questions,” said Alonso. He further emphasized that 74% of HR executives whose organizations employed people analytics considered it crucial for their HR strategies. When used appropriately, people analytics and AI enable HR professionals and leaders to make informed decisions, enhance the employee experience, and positively impact the organization’s bottom line.

Nevertheless, the report unveiled certain challenges faced by HR executives using people analytics. Over half of these executives (58%) expressed the need for more resources to enhance the data literacy of HR professionals, while 56% required support for their data infrastructure.

The report also indicated a disparity in data quality perception, as only 29% of HR professionals utilizing people analytics believed their organizations’ overall data quality to be high or very high. Furthermore, 95% of HR professionals whose organizations adopted people analytics emphasized the importance of understanding the reasoning behind AI algorithmic decisions. Additionally, 88% stated that they would not trust recommendations generated by AI without this knowledge.

SHRM’s survey involved 2,149 HR professionals from organizations utilizing people analytics as part of their operations.


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