HR Analytics & AI on Human Decision Making - Blog 03

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HR analytics involves gathering, analyzing, and reporting workforce analytics to achieve business results. These analytics help the organization make decisions and understand its employee base (AIHR, n.d.).

The combination of AI and HR analytics impacts accurate strategic decisions in the organization. The data-driven insights in businesses can improve efficiency, enhance employee engagement,  and optimize talent management.


How AI Enhances HR Analytics

Artificial Intelligence tools critically evaluate company data which provide, real-time data analysis, predictive decisions, and personalized employee development program structures.

As AI keeps updating and tracking data each second the analytical supply of real-time data will be available despite the data sophistication. ability to provide a forecast for each prompt is supportive of HR decision-making where the managers can predict future possibilities. AI implications can track the learning and development needs of each and every employee to cater to them with system-driven customized employee development programs.

Applications in Decision-Making

Business Intelligence is a major tool that combines with AI to help organizations, not only make decisions while analyzing data but also forecast future trends. All these AI implications help companies majorly in the following factors. 

Reshaping decision-making process


AI in Recruitment 

Employee Engagement insights

Workforce planning

Strategic Business Alignment

  1. Recruitment Optimization- The attracting, sourcing, and initial interviewing processes are currently replaced by AI tools that save time and provide the most suitable results. For example, Manus AI, the latest HR analytical tool, is a step ahead. These could reduce mismatched hires so that the company will not spend time and money on the recruitment process.
  2. Employee Engagement Insights- Tools like Peoplelogic, and StayFactor can measure employee engagement like work-life balance. This will enable targeted interventions to increase employee satisfaction.
  3. Workforce Planning- AI's ability to identify each individual's skill gaps based on their performance will be helpful for personalized development plans.
    4. Strategic Business Alignment:-AI tools like Visier can access multiple data sources, and a unified view of workforce analytics.




Best HR Analytic Tools





Examples for Application




1.              1.        AI workshops for HR professionals -

    The Association of Human Resource Professionals (AHRP) in collaboration with the Society for          Human Resource Management (SHRM) introduced a generative AI workshop in 2024. The aim of that was talent acquisition, performance management, and employee engagement.

  1. Use of HR automation to overcome economic crisis

MiHCM addressed Sri Lanka's economic crisis while applying HR automation to payroll, Recruitment, and employee performance tracking.  MiHCM offers solutions that integrate analytics and time and cost factors.

Global Context

  1. Google’s People Analytics
    Google is renowned for its use of people analytics to optimize workforce productivity. For instance, its "Project Oxygen" used data analysis to identify key behaviors of effective managers, leading to tailored training programs that significantly improved team performance.
  2. Unilever’s Predictive Hiring

  3. IBM’s Watson for HR
    IBM employs Watson AI to predict employee attrition and recommend retention strategies. 
  4. Amazon’s Workforce Planning
    Amazon leverages AI for workforce planning making work more easy and accurate.

References 

 

  • AIHR (2024). What is HR Analytics? Available at: https://www.aihr.com/blog/what-is-hr-analytics/ [Accessed 22 March 2025].

  • Gurusinghe, R., et al. (2024). Barriers to HR Analytics Adoption in Sri Lanka. University of Sri Jayewardenepura.

  • MiHCM (2024). HR Automation in Sri Lanka’s Economic Recovery. Available at: https://www.mihcm.com [Accessed 22 March 2025].

  • Peoplelogic (2024). StayFactor™ and Organizational Network Analysis. Available at: https://www.peoplelogic.ai [Accessed 22 March 2025].

  • Visier (2024). Strategic Workforce Analytics. Available at: https://www.visier.com [Accessed 22 March 2025].


Comments

  1. WijayaMarch 22, 2025 at 8:20 PM

    using AI in HR analytics is very important as it keeps updating the date at any time, therefor the AI plays a vital role in HR analytics.

    ReplyDelete
  2. Malsha PereraMarch 22, 2025 at 10:53 PM

    The combination of HR analysts and AI offers great opportunities for organizations to make smarter, data-driven decisions. However, HR professionals must remain vigilant about the ethical implications of AI in decision-making, ensuring that technology is used to enhance fairness, transparency, and the human experience in the workplace.

    ReplyDelete
  3. Shemini DharmaratneMarch 25, 2025 at 12:19 AM

    HR Analytics and AI are revolutionizing human decision-making by providing data-driven insights to optimize talent management, predict trends, and improve employee outcomes. While they enhance decision-making efficiency, it’s important to maintain a human touch to ensure ethical considerations and personalized solutions. Great exploration of this powerful intersection.

    ReplyDelete
  4. Chalani ThilakaratneMarch 25, 2025 at 4:11 PM

    AI is helping organizations optimize recruitment, improve employee engagement, and plan their workforce more effectively. The integration tools, like those used by Google, Unilever, and IBM, showcases the real-world impact on business outcomes. It’s exciting topic for sure!

    ReplyDelete
  5. Shankanee IllangarathnaMarch 26, 2025 at 12:17 PM

    While AI supports decisions, human judgment remains essential for ethical and strategic choices. Together, they create smarter, fairer, and more effective HR practices.

    ReplyDelete
  6. Bharathi BulathsinhalaMarch 26, 2025 at 1:26 PM

    Interesting read! The future of HRM lies in digital transformation,employee-centrist strategies and data-driven decision making to build agile and resilient workplaces.

    ReplyDelete
  7. Athula Weerasinghe March 27, 2025 at 10:54 PM

    AI is very useful tool for reach HR outcomes,it can be apply in various ways to HRM,
    Great article regard great topic.

    ReplyDelete
  8. Udara DananjayaApril 5, 2025 at 6:33 PM

    AI-powered hiring tools make sure that only the best people are chosen, which increases the efficiency of the hiring process. With AI integration, the HRM recruitment process will be more effective.

    ReplyDelete

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