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  • Writer's pictureHuman Resource Development Cell, SRCC

Gust of AI: Revolutionizing HR & Payroll

Artificial intelligence is a technological tool aimed at assisting humanity in the resolution of cognitive challenges and allowing robots to “think like humans”. It is revolutionizing how we live and work, whether you like it or not- it’s already having an influence on HR. It is laying the groundwork for new business paradigms. Big firms like IBM have implemented AI in HR, making things easier for their managers.

“AI can help us better inform people’s judgment and take bias out of the system. We must do that. We’re dealing with people and their data and their lives. We have a responsibility to use AI for good.” - Tanya Moore, Director, Career & Skills, IBM stated in The Business Case for AI in HR

AI is a solution that automates and completes the majority of low-value HR operations, allowing for a greater focus on the strategic scope of work. AI has the potential to change the employee experience in a variety of ways, from recruitment to talent management, by processing massive amounts of data quickly and accurately. AI capabilities are reaching new heights and driving the way we operate in the modern-day. AI transforms HR & payroll in business in the following ways:

1. Automate HR Tasks

HR automation can be highly valuable, allowing your organization to lead the HR department into the future, whether it’s boosting the efficiency of your administrative duties, enabling tighter protection of sensitive information, or decreasing human error.

For instance, automated features can help speed up the usually tedious payroll process. When compared to manual payroll processing, a good payroll system can reduce human error margins. Your employees will always be paid on time and within the parameters you choose if you use an automated feature.

2. Make onboarding count - Increase Employee Retention

The Human Resource Department plays a critical role in employee retention. HR serves as a link between employees and management. The difference between devoted long-term employees and quick deserters can be determined by the onboarding process. The company and HR alone can’t identify those top talents. Here AI comes to play.

Ai enables HR departments to analyze their employees' performance and predict what they require. Even though some firms have attempted to do so with traditional surveys, they do not receive the individualized reports that AI solutions generate.

AI solutions can provide reports on the performance and achievements of various personnel, which aids in the knowledge of their (employees') skill set.

3. Fulfilling Employees Needs

Imagine an HR asking every single employee of all levels about their needs. HR can’t identify the needs of their employees. Employees today demand to have a say in every area of their jobs. It implies individuals must be able to pick and choose the benefits that are most appropriate for them from the prerequisites provided. If employees' needs aren’t getting fulfilled, it becomes 100x difficult to retain the employee. Hence, to fill this gap AI system is important.

For example, AI-based digital rewards will network with individual sign-on for employees can recommend appropriate perks based on characteristics such as life stage, precious behaviors, lifestyle choices and so on.

Moreover, AI systems can assess their capabilities and propose areas where they could improve. This

enhances the ability to give valuable feedback to the employees and also ensure their career growth.

4. Discover and Analyze Attrition Rate Patterns

A company's attrition rate can be defined as the rate at which employees leave the company.

As earlier stated, every company wants to keep its best staff for as long as possible. However, as challenging as it may be, HR professionals may use AI technologies to uncover patterns in company attrition rates.

“The AI pilot to identify employees who are at high risk of leaving the company is a great example of the way AI algorithms can combine predictive models with observed human behavior to significantly reduce turnover for critical employees,” Peter Bendor-Samuel, founder and CEO of research firm Everest Group said.

Any company having high rates of attrition needs to be cautious, as the reason could be like toxic culture, which could end up causing greater harm to the company as a whole.

If HR can detect these patterns, it becomes easy to investigate what might be wrong and take the appropriate steps to correct it.


It’s time to recognize the value of Artificial Intelligence and put it to work improving the effectiveness and efficiency of HR departments all across the companies.

“As we design the employee experience, it's so important to decide when an activity should be done by a lovely warm human being, or when it is better to automate it. Get this wrong and the impact on retention and productivity is massive,”- Andrew Spence, HR transformation director, Glass Bead Consulting

by Dipali Nishad

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