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INNOVATIONS FOR BUSINESS

HR Teams Use Next-Gen Technologies to Win the Talent War

TECH NOTES

Fast-Food Giant Sees Potential in Decision Logic Technology The recent announcement that McDonald’s is spending more than $300 million to acquire Dynamic Yield Ltd., a tech company that is on the cutting-edge of “decision-logic” technology, has led some folks to wonder why a company like McDonald’s would want to sink such massive funding into a tech company. “Chains like McDonald’s have been acquiring intellectual property and/or technology for years,” says Karl Volkman, tech expert and CTO of SRV Network, Inc. “In doing so, they are able to take this technology and apply it to improving their own bottom line. For example, in 2016, Subway acquired Avanti Commerce, a Canadian e-commerce company, in order to improve their own digital strategy and encourage customers to order Subway from their app. It was a move which proved very fruitful.” In McDonald’s case, Volkman says the Dynamic Yield acquisition could forever change the way we look at menus, at least when it comes to fast-food restaurants. “With decision logic technology, the McDonald’s menu will be able to customize itself based on a number of different factors. For example, if it’s a cold day, the menu will respond by pushing warm offerings, like coffee, or if it’s hot out, it will tempt you with McFlurries. In essence, it is a ‘smart’ menu, a menu that can evolve and expand based on the customer and its environment itself.” Decision logic technology can also circumvent human error and cut down drastically on restaurant waste. “With this technology, McDonald’s is going to know its customers better than ever before,” Volkman says. “Just like Netflix or Amazon starts to suggest you programs, books or products based on your past purchases and watched programs, the fast-food giant will be able to apply this same technology into making sure that restaurants are stocked with what customers really want — and only what they want.” —srvnetwork.com

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Artificial Intelligence is currently revolutionizing human resources. Although seemingly contradictory, AI automates repetitive tasks and allows managers to focus on what really matters — the people. AI’s emergence in HR is bringing the human element back to human resources, as workers can now spend more time on actually dealing with people (instead of tedious tasks that can be automated). Companies that have taken advantage of AI have achieved greater success in sourcing and acquiring candidates. While some recruiters are concerned that AI is replacing them, the recruiters enjoying the most success are working alongside AI. Now, in order to win the war on candidate sourcing and acquisition, it is critical for recruiters to take a new approach to AI or risk losing top candidates to their competitors.

AUTOMATE THE MONOTONOUS ADMINISTRATIVE TASKS

A recent survey found that 72 percent of HR managers would welcome sourcing automation to increase their efficiency, and believe 100 percent of candidate sourcing can be automated. Recruiters need look no further than AI software. By incorporating AI into candidate sourcing, HR professionals have more time to spend on interpersonal tasks. The average recruiter spends 13 hours weekly sourcing candidates for a single role. With AI, managers can source candidates, schedule interviews and review candidates automatically using auto-generated coding. AI eliminates the time-consuming administrative tasks and gives HR managers the freedom to focus on the human elements of the job.

AI FINDS, SCREENS AND COMMUNICATES WITH CANDIDATES

AI-supported chatbots work around the clock to communicate with qualified candidates. Equipped with natural language processing, responses are automatic and easy to understand. Chatbots communicate through email or SMS text, making it easy for candidates to communicate with the HR managers, no matter the time or place. The traditional hiring process is simply not effective or efficient enough to attract candidates. Chatbots can automate the screening process and perform quick background checks, accelerating

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the hiring process. AI-driven candidate sourcing reduces the cost per screen by 75 percent, and also reduces the turnover rate by 35 percent.

AI ELIMINATES BIASES

Fifty-seven percent of recruiters view implicit bias as a significant problem facing the American workforce. Hiring managers are more likely to hire applicants with whom they have more in common, or favor the better-dressed candidates. While these factors are no implication of a candidate’s ability to perform, they do factor into the hiring process. Researchers noticed that even when employers try to be inclusive, these biases still make their way into job descriptions. AI’s algorithms are designed to identify and remove these biases. Using AI to source candidates levels the playing field, and opens the door to qualified candidates who may have been screened out due to any implicit biases. Now, HR managers have access to the largest possible talent pool and, ultimately, acquire the best candidates. With such useful tools within arm’s reach, it is up to HR managers to rethink their approach to AI and tap into its capabilities.

AI IS THE KEY INGREDIENT TO SUCCESS

Today, 56 percent of businesses are working to incorporate AI into their HR programs. HR professionals are asked to do more than ever at an impossibly fast pace. With AI rapidly emerging as a focal point in candidate sourcing, HR managers will increasingly incorporate AI into their sourcing process to keep pace with the companies already doing so. In the future of work, it will become increasingly important to add an AI component into any HR strategy. The war on candidate sourcing and acquisition is well underway, and it’s important to stay up to date on the latest technology that can improve a company’s hiring process from start to finish. —Komal Dangi, CEO of global IT staffing product VeriKlick (www.veriklick.com)

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May 2019 Issues of In Business Magazine  

May 2019 Issues of In Business Magazine