Reimagining HR: How AI is Leading to Workplace Prosperity It's proven that the HRTech landscape has traditionally been characterized by tedious and manual processes prone to mistakes, fatigue, and biases. Recruitment, in particular, is a high-stakes area where errors can be extremely costly. These startups are working towards making it efficient

Do you feel artificial intelligence is just a mere tool for creativity and passing time? If you fall under this category, you might need to start taking the technology a bit seriously and redirect it to a more purposeful use. On LinkedIn, Red Cap software engineer Saumya Singh took to the platform to share a hiring experience, "So I interviewed a candidate with a very badly formatted resume last month…The software score for his resume was poor… I called the candidate for the interview… Before anything, I explained to him why he would not be getting any replies from the companies. This is a very common mistake…I gave him the opportunity but others might not."

This anecdote gives a new perspective into the field- Human Resource professionals and departments are using AI tools actively, and one needs to start making their decisions keeping the shift in mind. Contrary to popular belief, AI does not pose a threat to the human workforce but instead helps streamline the entire HR departments across companies. HR departments are experiencing a revolution courtesy of AI. According to Verified Market Research, a market intelligence firm, the Indian HR tech market size is projected to touch USD 38.36 billion by 2030.

THE GROWING NEED

A Gartner report suggests that 76 per cent of HR leaders believe that if their organization does not adopt and implement AI solutions in the next 12 to 24 months, they will be lagging in organizational success compared to those that do. The technology is being used to automate tasks like payroll and benefits administration. Additionally, it is being used for rapid creation of new policies, contracts, job descriptions, and interview questions. The Society for Human Resource Management (SHRM) reports that about one in four organizations are currently using AI to support HR-related activities.

AI OFFERINGS FOR HR

1. RECRUITMENT DRIVE

Reportedly, the recruitment process was the first to adopt AI. With several concerns including attracting the right candidates; engaging qualified candidates, hiring fast, using data-driven recruitment, building a strong employer brand, ensuring a good candidate experience, recruiting fairly, and creating an efficient recruiting process, the first mover choice made sense. edForce, a Workforce Upskilling Accelerator, is a 2021-founded startup that leverages its AI technology primarily within its Hire Train Deploy (HTD) vertical to enhance the recruitment process. "Our AI-driven tools streamline candidate screening and matching, ensuring a faster and more accurate hiring process. By analyzing resumes and job descriptions, our AI algorithms help identify the best-fit candidates efficiently, reducing biases and improving diversity," said Ravi Kaklasaria, founder, edForce.

Instahyre's AI-enabled features aim to solve challenges such as outdated resumes, irrelevant applications, complex user interface, no way to communicate with the candidate, and unavailability of immediate joiners.

The job openings posted by businesses on the platform do not attract irrelevant candidates due to the pre-screening tool. "Recruiters can add knock-out questions and the candidates that are unable to answer correctly are automatically disqualified. Not only this, Instahyre's AI-powered InstaMatch algorithm finds the most suitable candidates for the job using various criteria such as the job's requirements and the hiring company's preferences. In simple words, Instahyre's AI shows a curated list of only perfect-fit candidates, which makes the recruiter's job easier," shared Sarbojit Mallick, co-founder, Instahyre.

India is a diverse country with 22 recognised languages and has a blue collar manpower comprising over 85 per cent of the country's total workforce. Notably, being vital for India's economy, McKinsey & Company forecasts that 70 per cent of the 90 million new jobs by 2030 will be blue-collar. Empowering this section, Vahan is building an AI recruiter that talks to candidates in their language. "Our technology allows the AI to be personable and relatable, not just to urban audiences, but also to people from semi-urban/rural India. It's not just about the language but also the dialects, tones, and cultural nuances. This allows us to connect with a wider range of talent and ensure qualified candidates aren't overlooked simply because of their dialects or backgrounds," said Madhav Krishna, founder and CEO, Vahan.co.

2. TRAINING AND UPSKILLING:

New joinees and onboarders are often trained to familiarize them with the system and settings. On the other hand, upskilling involves learning new skills or teaching workers new capabilities to enhance their existing roles. According to a report by Great Learning, 85 per cent of professionals with less than three years of experience consider upskilling to be important for their career prospects. This indicates a strong demand from employees for continuous learning.

Along with driving recruitment processes, edForce offers personalized learning experiences for training. "This targeted approach ensures that employees acquire relevant skills more effectively, enhancing overall productivity," adds Kaklasaria. Nuvepro Technologies offers learning paths tailored for Generative AI. "Our offerings include interactive simulations through hands-on learning, enabling learners to gain deep insights into Generative AI. This approach boosts onboarding, improves training efficiency, and enhances employee engagement, helping organizations stay competitive in an AI-centric world," said Giridhar L V, co-founder and CEO, Nuvepro Technologies.

3. EMPLOYEE ENGAGEMENT AND RETENTION:

High employee turnover often leads to considerable costs for any organization. Concerns such as compensation dissatisfaction; better opportunities; lack of appreciation and recognition; toxic work environment; unrealistic expectations from the employee; and bad hiring practices tend to be leading concerns.

SHRM reports that it can cost a company up to six to nine months of an employee's salary to replace them. So, what should organizations do? Opt for solutions and products which engage with employees and improve the communication rapport. Vikas Kakkar co-founded Amara.ai in 2016 for employee engagement and retention by companies of all sizes, from startups to the Fortune 500. "We assist companies in gauging the pulse of their employees, detecting disengagement early to aid HR business partners in retaining employees through timely interventions," said Kakkar. The startup's chatbot engages with employees in a human avatar, reaching out to employees at critical touch points in their employee lifecycle. It evaluates employees' emotional investment, helping identify individuals at risk of disengagement, which enables HR to intervene and provide necessary support. The platform allows for anonymous feedback, empowering employees to express their concerns without hesitation.

THE WAY AHEAD

Global startup investment in 2023 dropped 38 per cent year over year, down to USD 285 billion from the USD 462 billion invested in 2022. Hence, almost all sectors saw capital being withdrawn, and HRtech is not privy to it.

It's proven that the HRTech landscape has traditionally been characterized by tedious and manual processes prone to mistakes, fatigue, and biases. Recruitment, in particular, is a high-stakes area where errors can be extremely costly. Kaklasaria believes that GenAI-powered virtual assistants will support HR professionals big time, while Mallick feels that HR practices will also be affected by AI's increasing adoption in business. Kakkar finds natural language processing and sentiment analysis optimistic.

"We've invested in this space due to the rapid evolution of the industry and the growing demand for streamlined, data-driven processes. The scope for smarter tools that drive collaboration, productivity with real-time feedback, and insight is tremendous. Every year millions of new businesses and workers are going online. HRTech will play a pivotal role in driving greater efficiency across operations," shares Karun Arya, chief growth officer, GetVantage. The financing facilitator has backed players such as Incruiter and teamnest.

"The inherent challenges and high costs associated with traditional HR processes, combined with the transformative potential of AI, have made AI-driven HR solutions a compelling investment opportunity. The move towards more scientific and technologically advanced methods in HR is not just a trend but a necessary evolution to meet the demands of modern business," shares Anirudh A Damani, managing partner, Artha Venture Fund, an investor in Talview and GetWork. The VC aims to invest in more HRTech companies this year.