Unlocking the Potential of AI in Compensation and HR

AI is transforming how much of the work in Human Resources gets done with the emergence of chatbots, machine learning algorithms and predictive analytics in talent management processes. But some companies are expanding the application to improve pay decisions and propel the compensation function. An article from HRD Connect highlights six ways that total rewards teams can begin using AI to increase the efficiency of manually intensive processes, improve accuracy of transactions and enhance decision making around pay.

• Job description generator. Get a jump start on writing engaging job descriptions simply by typing the job title into the template.
  
  
• Job matching during acquisitions. Build an AI model of the organization’s job families, roles and levels to expedite the process of mapping new employees into the existing job architecture.
  
  
• Job evaluation data models. Leverage tools developed by survey data management systems to improve job pricing. These models often generate recommendations using natural language processing based on job attributes and adapt for inputs and adjustments over time.
  
  
• Job analysis bot. Replace job shadowing and questionnaires with a conversation bot to get a better sense of actual job duties by asking employees how their time is spent. Compensation analysts can then spend their time analyzing the data to understand the skills and knowledge required for the role. Professional development programs can be better tailored to help employees build these skills.
  
  
• Compensation analyst bot. Allow managers to access market data and job information when making pay decisions more readily for new hires, promotions and internal transfers as well as pay adjustments through chat.
  
  
• Pay equity analysis. Evolve the annual process to real-time, on-going analytics that can help analysts review current pay data and alert the compensation professionals to trends and pay equity concerns as they develop.

Meanwhile, IBM CHRO Nickle LaMoreaux – representing a company that has helped to pioneer this powerful technology - was recently featured in a People Matters piece on why HR is well positioned to leverage AI. She cited how AI and natural process language have allowed IBM to convert 80,000 annual job transfers, previously taking 15-20 minutes per transaction and resulting in a 14% error rate, to a chatbot experience resulting in zero errors and significant time savings.

Ms. LaMoreaux discussed the three principles that should remain at the forefront when implementing AI:

• AI is never the decision maker.
• The AI data is owned by the data’s creator.
• AI must be transparent and explainable.

She also provided tips for how a CHRO can prepare their organizations for the change that AI will present for HR roles as well as the entire organization. Hear more about this at our Annual Meeting on November 16^th here in DC!