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Blog By Retain

Continuous improvement using AI in human resource management


By Rahat Ahmed
Resource Management Growth Leader

  • 7 min

More than 60%* of organisations use manual tools like Excel for resource management. So it’s understandable that some feel uneasy about making the leap to AI for human resource management. But what if AI turned human resource management from a static task into a continuous loop, getting smarter and more intuitive each day? 

To improve resource management, organisations need to do more than simply allocate resources. They need to continually learn and refine strategies to adapt to the changing landscape. 

Specialist tools like Retain, allow you to do just that. But how do you know if you really need AI in human resource management? What is the continuous learning advantage? And what impact does it have on organisations? 

AI in human resource management evolution

AI in human resource management evolution

Traditionally, resource management has been about the basics: allocating resources, balancing workloads, and trying to foresee future needs. But this approach doesn’t cut it in today’s fast-paced, ever-changing business environment.

In a world where over 60% of organisations still rely on manual tools like Excel for human resource management, the thought of integrating AI can seem daunting. Yet, the potential transformation it offers is too significant to overlook. 

And it doesn’t need to be complex, as McKinsey Talent Leader, Lareina Yee, pointed out in a recent McKinsey article; “A super-interesting thing is you don’t need to be a computer scientist to leverage the technology—it can be used in all types of jobs.”

That’s not to say managers don’t need to check the outputs. Resource management needs that human in the loop to validate and sense-check decisions. But AI can dramatically improve speed and quality. 

So, perhaps it’s time to view resource management not as a static chore but as a dynamic, evolving process, one that grows smarter and more intuitive with each passing day.

Think about it. Imagine a system that not only understands your current resource allocation needs but also learns over time and adapts as your business does. (More on this next.)

The continuous learning advantage in AI-powered human resource management

AI in human resource management continuous learning

In today’s business environment, if you’re still using a one-size-fits-all approach to resource management, you’re missing out on key insight.

With an AI-powered resource planning tool, like Retain, as more data is fed into the system, AI’s ability to learn helps you to continually make better decisions. This fine-tunes resource allocation and skills matching—and precisely optimises utilisation and billable hours. 

Let's illustrate this with an example. 

Imagine a large financial services firm with a global presence. Initially, the AI features in their resource management system might start by learning the basics: employee skill sets, project requirements, and availability. 

But as it processes data over time, the AI begins to identify more complex patterns. 

It might discern that certain skill combinations lead to more successful project outcomes, or that specific teams work more effectively under particular management styles.

This depth of understanding allows the AI to not only make smarter matches between projects and employees but also to offer insights for strategic planning. For instance, it might predict a surge in demand for certain skills based on market trends, enabling the firm to proactively train or recruit in those areas.

Similarly, the continuous learning aspect of AI means that it can adapt to changes within the organisation and the broader industry. Whether it's a shift in company strategy, a new regulatory environment, or emerging market trends, AI features can recalibrate recommendations and strategies accordingly. This flexibility is particularly valuable in industries where change is the only constant.

Moreover, with carefully constructed and documented algorithms, AI actually increases the transparency and consistency of the decision-making process for all parties, leaving less scope for mistakes. Rather than making decisions, AI augments the intelligence of the human decision makers and takes some of the pressure off them.

In essence, the continuous learning advantage of AI turns resource management into a dynamic and strategic function. It's no longer about filling gaps; it's about building an adaptable, forward-thinking approach to managing one of the most valuable assets of any organisation – its people.

The impact of AI’s continuous learning on organisations

The adoption of AI in human resource management, particularly its continuous learning aspect, has a huge impact on organisations—it can reshape the entire organisational landscape.

Take, for instance, a large tech company that decides to implement a continuous learning AI system for its resource management. The immediate benefit is evident in more efficient matching of skills to project needs. But the long-term impacts are far more significant. The AI system starts to identify patterns in team performance, employee development needs, and project success factors.

Over time, this allows the company to not only improve its project outcomes but also to create a more dynamic and engaged workforce. The AI's insights can lead to better career development paths for employees, tailored to their skills and aspirations. It can also help identify potential leaders and help you to put together more effective teams.

The predictive capabilities of a continuous learning AI system can also be a game-changer for strategic planning. For a business in a fast-evolving industry, the ability to anticipate future skill requirements and adapt resource allocation strategies accordingly is invaluable. It means staying ahead of the curve, rather than constantly trying to catch up.

However, it's crucial to approach the integration of AI with a balanced perspective. While AI can provide powerful insights and recommendations, the final decisions should always consider the human element. The goal is to create a synergy between AI-driven efficiency and human judgement, ensuring decisions are not only smart but also aligned with the company's culture and values.

In essence, it's about moving from a static, reactive approach to resource management to a dynamic, proactive strategy. 

Optimise your resource with AI in human resource management

Maximising the benefits of AI in human resource management

AI brings to resource management what organisations genuinely want and need to improve resource planning. Below are some tangible ways to maximise its benefits. 

⚖️Balance AI insights with human judgement

AI excels at processing vast amounts of data and identifying patterns that might elude human analysis. However, it lacks the human ability to understand nuanced, contextual factors. Successful AI implementation in resource management involves using AI insights as a powerful tool in the decision-making process, not as the sole decision-maker.

🔁Harness continuous learning for long-term benefits

Feedback loops where the AI learns from outcomes and adjusts its algorithms are crucial. This ongoing engagement ensures that the AI system evolves in line with the organisation’s changing needs and goals.

🔋Enhance strategic decision-making with AI insights

Use your chosen tool to analyse project outcomes, resource utilisation, and team performance, to surface deep insights into which types of projects are most successful, what skill combinations yield the best results, and where resource bottlenecks typically occur. This will help you make informed decisions about future projects, investments in skill development, and even strategic hires, aligning resource management with long-term business goals.

💼Optimise employee development and career paths

By analysing performance data, skill sets, and employee feedback, AI in human resource management can identify potential areas for each employee's development. This leads to more tailored training programs, helping employees to build on their strengths and address areas for improvement. AI-driven career pathing also suggests potential future roles for employees based on their evolving skill sets, aspirations, and performance history, contributing to a more engaged and future-ready workforce.

🚀Create a dynamic and responsive workforce

By continuously analysing data like customer feedback and staff performance, the AI-powered tech can help you with recommending reallocations of staff across different departments or locations, ensuring that the right people are in the right place at the right time. This agility is key to responding effectively to market trends and maintaining a competitive edge.

🤩Enhance employee satisfaction and retention

AI can ensure fair and equitable distribution of shifts and workload, taking into account individual preferences and constraints. This fairness in resource allocation leads to higher job satisfaction, as employees feel valued and respected. Additionally, by identifying and utilising the unique skills of each staff member, AI helps create a sense of accomplishment and engagement, further contributing to employee retention.

To sum up, by striking a delicate balance between AI insights and human intuition, organisations are achieving a synergy that drives more informed and effective decision-making. AI's continuous learning ability not only enhances strategic planning but also supports employee development and career pathing, contributing to a workforce that is both dynamic and attuned to evolving business needs. 

Continuously improve resource management with Retain

Using AI in human resource management can be a great way to improve the quality and speed of resource planning, while continuously learning every day. It’s about ensuring that every aspect of resource management is proactive, efficient, and responsive to the changing tides of business.

Retain empowers you to seamlessly transition from tools like Excel to resource management software, ensuring every element of resource planning is easy and accurate. 

Our AI features guarantee that essential insight is always at your fingertips while you maintain control of guiding the planning process. 

To see how you can optimise your human resource management strategy and create feedback loops that learn and adapt, schedule a demo today.

*Wellington State of Project Management Report 2022

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