the impact of ai in hr

In the context of HR, agility is the ability to adapt and develop individuals and processes in response to rapid and unpredictable changes to support people, key strategies, and organizational adaptability.

Organizations must encourage and empower HR to be more attentive and responsive to changing technologies and business needs in order to remain competitive and attract top talent. In an agile organization, HR continues to provide recruitment, development, performance management, and other HR functions, by using agile methodologies.

There are three aspects of HR agility:

1. The ability to quickly and efficiently identify issues that need to be addressed.
2. The ability to reduce the time it takes to develop and implement a response.
3. The integration of analysis and design thinking to anticipate, plan, and target programs with the highest likelihood of success.

## AI Applications in HR Departments

### Recruitment and Hiring

The introduction of AI in human resources is set to revolutionize the recruitment side by significantly reducing the amount of time and effort needed for various tasks. By leveraging AI technology, many initial steps of the recruitment process can be automated.

AI’s impact on recruitment is excessive. Some of the ways in which it can impact the recruitment process is as follows:

__1. Resume Screening:__ [AI-powered systems can automate the initial screening of resumes, saving time for recruiters](https://www.linkedin.com/pulse/how-ai-powered-recruitment-software-can-streamline-hiring-processes/). These systems can analyze resumes, identify relevant skills and qualifications, and shortlist candidates based on specific criteria, such as education, work experience, and keywords. This helps streamline the initial candidate selection process.

__2.Candidate Sourcing:__ AI can assist in sourcing candidates by automatically scanning various online platforms, social media, and professional networks to identify potential candidates who match specific job requirements. By analyzing profiles, skills, and work history, AI algorithms can provide recruiters with a list of potential candidates, expanding the talent pool and improving efficiency.

__3.Video Interviewing and Assessment:__ AI-enabled video interviewing platforms can assess candidates remotely, analyzing facial expressions, tone of voice, and body language to provide insights on a candidate's suitability for a role. Natural language processing algorithms can also evaluate verbal responses, assessing content, sentiment, and communication skills. This helps recruiters screen candidates more objectively and efficiently.

__4.Skill and Personality Assessments:__ AI-driven assessment tools can evaluate candidates' skills and personalities through online tests and quizzes. These tools leverage machine learning algorithms to analyze responses, comparing them against predetermined benchmarks and success profiles. Recruiters can gain valuable insights into a candidate's aptitude, cognitive abilities, behavioral traits, and cultural fit, aiding in making informed hiring decisions.

__5.Employee Onboarding and Retention:__ AI can contribute to the onboarding process by providing personalized training modules, resources, and support to new hires. AI-powered chatbots and virtual assistants can answer frequently asked questions, provide real-time guidance, and offer continuous learning opportunities. By leveraging AI in employee onboarding, organizations can enhance the overall experience, improve engagement, and increase retention rates.

## Onboarding

Artificial Intelligence can help the HR team design and automate their onboarding process to be more organized, efficient, and personalized. There are a lot of steps in onboarding that can be automated and handled by an AI system.

__1.Personalized Onboarding Experience:__ AI can analyze data about new hires, such as their skills, preferences, and learning styles, to create personalized onboarding plans. By tailoring the onboarding experience to individual needs, AI can help new employees feel more engaged and supported from the start, leading to faster integration into the company culture and improved performance.

__2.Chatbots for Onboarding Assistance:__ AI-powered chatbots can provide on-demand support and guidance during the onboarding process. They can answer frequently asked questions, provide information about company policies and procedures, and assist with administrative tasks like setting up email accounts and accessing internal systems. Chatbots offer immediate assistance, freeing up HR staff's time and ensuring consistent and efficient onboarding support.

__3.Virtual Reality (VR) Simulations:__ VR technology, combined with AI, can create immersive onboarding simulations. New employees can virtually experience different scenarios and workplace environments, enabling them to familiarize themselves with their roles, learn procedures, and practice skills in a safe and controlled environment. VR simulations can enhance engagement, accelerate learning, and boost confidence during the onboarding phase.

__4.Learning Content Recommendations:__ AI algorithms can analyze employee profiles, job roles, and learning progress to recommend relevant training content. By understanding employees' skill gaps and learning preferences, AI can suggest courses, videos, articles, and other resources that align with their development needs. This personalized approach to learning can enhance the onboarding process and support continuous learning throughout an employee's tenure.

__5.Performance Monitoring and Feedback:__ AI can assist in monitoring employee performance and providing feedback during the onboarding period. By analyzing key performance indicators and comparing new hires' progress against predefined benchmarks, AI algorithms can identify areas for improvement and provide timely feedback. This helps new employees understand expectations, track their development, and make necessary adjustments to succeed in their roles.

## Training and Development

Training and development initiatives serve as a valuable means to upgrade the capabilities of employees. AI tools present an exceptional opportunity to create personalized training and development programs tailored to each individual employee.

Imagine the ability to offer customized training modules at varying levels, taking into account factors such as an employee's existing skill set, level of employment, and specific requirements. Additionally, envision an intelligent tool that recommends the most up-to-date courses based on an employee's current competencies and identifies areas in need of improvement.

__1.Adaptive Learning:__ AI can personalize learning experiences by adapting content and delivery based on individual learners' needs. AI algorithms can analyze learner data, such as performance, preferences, and learning styles, to provide customized learning paths. This ensures that learners receive targeted training materials and activities that align with their unique requirements, optimizing the learning process.

__2.Intelligent Tutoring Systems:__ AI-powered tutoring systems can provide real-time guidance and feedback to learners. These systems use natural language processing and machine learning techniques to analyze learner responses and provide personalized recommendations and explanations. Intelligent tutoring systems can simulate one-on-one interactions, helping learners master complex concepts, improving knowledge retention, and accelerating skill development.

__3.Skills Gap Analysis:__ AI can analyze employee skills and competencies and compare them against desired job requirements and organizational goals. By identifying skills gaps, AI algorithms can recommend specific training programs and learning resources to bridge those gaps. This helps organizations develop targeted training initiatives that address skill deficiencies and improve overall performance.

__4.Gamification and Simulation:__ [AI can enhance training experiences through gamification and simulation.](https://www.linkedin.com/advice/0/how-can-gamification-simulations-integrated) AI algorithms can create realistic simulations and interactive scenarios that allow learners to practice skills, make decisions, and receive immediate feedback. Gamification elements, such as points, badges, and leaderboards, can also be incorporated to increase engagement, motivation, and knowledge retention.

__5.Content Curation and Recommendation:__ AI algorithms can analyze vast amounts of learning content, including articles, videos, courses, and resources, to curate personalized recommendations for learners. By understanding learners' profiles, interests, and progress, AI can suggest relevant and high-quality learning materials, enabling learners to access the most valuable resources quickly. This promotes self-directed learning and supports continuous development.

By leveraging AI in this context, organizations can effectively align employees with new projects by matching them with individuals who have completed the requisite courses and upgraded their skills. This streamlined approach facilitates the internal allocation of resources.

## Rewards and Recognition

Enhancing employee engagement levels in the workplace relies on effective rewards and recognition strategies. Engaged employees demonstrate increased autonomy and productivity.

In leveraging AI, organizations can create exceptional rewards and recognition tools and systems.

__1.Data-Driven Rewards Programs:__ AI can analyze employee performance data, such as productivity, sales numbers, or customer satisfaction scores, to identify high-performing individuals or teams. Based on this analysis, AI algorithms can recommend appropriate rewards, such as bonuses, incentives, or recognition programs. AI-driven rewards programs ensure fairness, objectivity, and alignment with business goals.

__2.Real-Time Recognition:__ AI can enable real-time recognition of employee achievements. For example, AI-powered systems can monitor employee activities and performance metrics, such as completing a project ahead of schedule or receiving positive customer feedback. When these achievements are detected, the AI system can automatically send personalized recognition messages or notifications to relevant stakeholders, boosting employee morale and engagement.

__3.Sentiment Analysis:__ AI can analyze employee sentiment by monitoring communication channels such as emails, chat logs, or surveys. By leveraging natural language processing techniques, AI algorithms can identify positive or negative sentiment expressed by employees. This information can be used to identify potential recognition opportunities, address concerns, or take proactive measures to enhance the overall employee experience.

__4.Social Recognition Platforms:__ AI can power social recognition platforms that enable employees to recognize and appreciate each other's contributions. AI algorithms can help identify and surface notable recognition moments or stories within the organization. By encouraging peer-to-peer recognition and providing AI-supported platforms, organizations can foster a culture of appreciation and collaboration.

__5.Predictive Analytics for Rewards:__ AI can utilize predictive analytics to forecast which rewards or recognition initiatives are most likely to motivate and engage employees. By analyzing historical data on reward effectiveness, employee preferences, and motivational factors, AI can provide insights on the most effective types of rewards for different individuals or teams. This enables HR professionals to design targeted and impactful rewards programs.

## Performance Management

__1.Performance Analytics:__ AI can analyze vast amounts of performance data, including employee goals, key performance indicators (KPIs), and feedback. By leveraging machine learning algorithms, AI can identify patterns, trends, and correlations in performance data, providing valuable insights to HR professionals. These insights can inform performance evaluations, goal-setting, and development plans, enabling data-driven decision-making.

__2.Continuous Feedback and Coaching:__ AI-powered systems can facilitate continuous feedback and coaching by analyzing real-time performance data and providing timely feedback to employees. For example, AI chatbots can give suggestions for improvement based on performance metrics, offer resources for skill development, or provide tips for achieving goals. This helps employees receive ongoing support and guidance to enhance their performance.

__3.Performance Prediction:__ [AI can use predictive analytics to forecast future performance outcomes based on historical data and patterns](https://www.cio.com/article/228901/what-is-predictive-analytics-transforming-data-into-future-insights.html). By analyzing factors such as past performance, skill development, and engagement levels, AI algorithms can estimate the likelihood of meeting performance targets or identify potential performance risks. This enables HR professionals to proactively address performance gaps or provide targeted interventions to optimize performance.

__4.Bias Detection and Mitigation:__ AI can help detect and mitigate bias in performance management processes. By analyzing performance data, AI algorithms can identify potential biases in performance evaluations, such as gender bias or racial bias. This can help HR professionals ensure fair and objective evaluations, promote diversity and inclusion, and minimize the impact of unconscious biases on performance management decisions.

__5.Performance Gamification:__ AI-powered gamification techniques can be employed to enhance employee engagement and motivation in performance management. AI algorithms can track performance metrics, such as meeting targets, completing tasks, or acquiring new skills, and provide real-time feedback and rewards through gamified elements like points, badges, or leaderboards. This fosters a sense of competition, achievement, and continuous improvement among employees.

## Benefits of AI in HR Departments

Embracing AI tools in HR departments can be an intimidating prospect; however, they bring forth numerous advantageous outcomes that enhance workflow efficiency and facilitate informed decision-making. Some of these benefits encompass:

### Improved Efficiency

AI can automate repetitive and time-consuming tasks so HR professionals can focus on creating strategies. Moreover, AI also improves decision-making with valuable insights via HR and predictive analytics.

#### Reduced Costs

AI-driven software has the capability to analyze extensive volumes of data, enabling the identification of patterns and trends, and providing cost-effective solutions. For example, AI can furnish insights regarding the sources of hire that yield the highest quality applicants, enabling organizations to allocate their hiring budget more efficiently by focusing resources on effective recruitment channels while phasing out ineffective ones.

According to the [Global AI Survey](https://www.mckinsey.com/featured-insights/artificial-intelligence/global-ai-survey-ai-proves-its-worth-but-few-scale-impact) conducted by McKinsey, HR professionals indicated that 27 percent of them experienced a cost reduction of less than 10 percent as a result of adopting AI. Additionally, 23 percent reported an average revenue increase ranging from 6 percent to 10 percent. The survey focused on HR areas such as performance management and organization design, workforce deployment, and talent management optimization.

#### Improved decision-making

[AI empowers HR processes by enabling the collection and analysis of data, eliminating biases and guesswork](https://www.linkedin.com/pulse/unlocking-power-data-hr-harnessing-ai-driven-analytics-smarter/), and ensuring optimal decision-making in candidate selection and compensation and benefits planning. Through data mining in recruitment, AI assists in uncovering challenges, allowing for objective problem-solving. By leveraging recruitment analytics, you can:

1. Emphasize cost-associated metrics such as job advertising performance and cost per hire, resulting in reduced hiring expenses.
2. Focus on speed-related key performance indicators (KPIs) like time to fill and time to hire, enabling faster and more efficient recruiting processes.
3. Pay close attention to quality-related KPIs such as new-hire turnover and new-hire retention rate, enhancing the overall quality of hires.

By utilizing AI-powered tools, HR professionals can leverage data-driven insights to optimize their recruitment strategies and improve the effectiveness and efficiency of their hiring processes.

#### AI is being Embraced by HR teams

In Eightfold AI’s report [The Future of Work: Intelligent by Design](https://eightfold.ai/wp-content/uploads/2022_Talent_Survey.pdf),  the majority of the 250 HR leaders who were surveyed stated that they are currently utilizing artificial intelligence (AI) in various HR functions. These functions include managing employee records (78 percent), processing payroll and administering benefits (77 percent), recruiting and hiring (73 percent), managing performance (72 percent), and onboarding new employees (69 percent).

Regarding future usage, [92 percent of HR leaders expressed their intention to increase the implementation of AI in at least one area of HR.](https://www.prnewswire.com/news-releases/92-of-hr-leaders-will-increase-use-of-artificial-intelligence-as-solution-for-rising-talent-challenges-301553781.html) The top five areas identified for increased AI usage are performance management (43 percent), payroll processing and benefits administration (42 percent), recruiting and hiring (41 percent), onboarding new employees (40 percent), and employee records management (39 percent). The majority of HR leaders plan to enhance their AI utilization within the next 12 to 18 months.

These findings align with other research indicating that AI adoption in HR is projected to grow in the coming years. According to IDC's "Future of Work 2022" research, it is anticipated that this year, 60 percent of global 2000 businesses will implement AI and machine learning (ML) tools to support the entire employee life cycle. By 2024, the authors of the research predict that 80 percent of global 2000 organizations will utilize AI/ML-enabled "managers" to handle tasks such as hiring, firing, and training employees. Notably, there have been reports of Amazon employing algorithms or bots for employee terminations two years ago.

[Amy Loomis](https://www.linkedin.com/in/awloomis/), the research director at IDC, has stated that this practice is already prevalent in HR through a method called stack ranking. Stack ranking involves comparing employees' performance against one another using statistical analysis. After evaluating employee performance, stack ranking software suggests that underperforming individuals receive additional training, advises managers to intervene, or, in extreme cases, recommends layoffs for those who fall below the acceptable performance threshold. In some instances, employees in the bottom 10 percent of performers may be terminated. To address this trend, New York City has passed a law mandating companies to audit their AI-powered recruitment software for biases. Companies found in violation of this law will face fines.

Technology and AI brings agility to the HR process. Read on to find the impact of AI in HR.

In the context of HR, agility is the ability to adapt and develop individuals and processes in response to rapid and unpredictable changes to support people, key strategies, and organizational adaptability.

AI in HR Whitepaper: A 2023 Perspective

AI Impact on Human Resources Processes

HR and Remote Work Guide

[Working remotely](https://www.peoplegoal.com/guides/remote-work) has become a normalized and routine practice for many organizations. Whilst [working from home](https://www.peoplegoal.com/blog/remote-workers-support) was pushed upon us by the forces of COVID-19, there has been a realization that the office is no longer the epicenter of all work activities. 

This shift in how we interact with work has driven the need for better guidance on managing HR from a remote setting. In the following chapters, we will break down the full process, empowering any HR department to establish [a robust and effective system](https://peoplegoal.com/blog/change-management) for handling the various aspects of people management.

HR and Remote Work is an e-book that will be extremely useful for not only HR professionals but also any leaders trying to establish how to maintain a high-performance culture without the intimacy of in-person social interactions. Throughout this e-book, the reader will be instructed on a range of processes that can be introduced or improved to ensure that all employees are well-engaged and motivated by their work.

## Summary of HR and Remote Work

### Performance

A continuous performance management system will not only allow HR leaders to keep track of contributions from their employees, but it will also facilitate employees in better understanding where their efforts should be focussed. A regular and predictable routine for the various aspects of performance management will give employees the best opportunity to [perform to a high standard](https://peoplegoal.com/blog/objectives-and-key-results) and fulfill the expectations put upon them by managers or leaders.

> Companies that provide ongoing feedback see performance improve by as much as 12%

Recognizing that the approach to [performance management](https://www.peoplegoal.com/blog/feedback-remote-work) has had to adapt to the remote environment, there has been a need to alter the processes it involves. In this chapter, our focus is on the maintenance of [an effective approach to performance management](https://peoplegoal.com/blog/tips-for-effective-performance-planning-in-2020) that can withstand the additional challenges of working remotely.

![Check-ins are Important - Performance](//images.ctfassets.net/6g4s9n00xmsl/6tpKWUmgtjgkQ14QUioOxs/0b9a4b936abc4686cc75b73c95ec2fb7/Check-ins_are_Important_-_Performance.png)

### Engagement

Employee [engagement surveys](https://www.peoplegoal.com/blog/employee-engagement-survey-questions) are crucial for improving any organization. [Making the most of feedback](https://peoplegoal.com/blog/feedback-remote-work) is dependent on how responses are collected and evaluated. In any organization, employees form the foundation blocks, and so much more, for the realization of its interests. As a result, employee engagement surveys must be used to understand how the organization is perceived by its employees and how much they are engaged by their work. Implementing an [engagement survey](https://www.peoplegoal.com/blog/engagement-surveys-how-to-track-improvements-in-employee-engagement) that brings employees into the discussion, whilst also gathering informative data, will [enable any organization to monitor variations in motivation and increase productivity](https://peoplegoal.com/blog/feedback-survey).

In this chapter, we discuss the various survey types that can be used to promote [employee engagement](https://peoplegoal.com/blog/employee-engagement-for-remote-workers). Tracking and reacting to the responses to these surveys will enable HR to maintain a company culture that can motivate employees. Regardless of the location of employees, engagement can be promoted through demonstrating a commitment to and support for the whole team.

![Engagement Survey Types](//images.ctfassets.net/6g4s9n00xmsl/4Hvg3i8oAh4ZR9qAte4Clj/f6214cd898a7d6eab55f2912a66f673f/Engagement_Survey_Types.png)

### Development

When it comes to making a successful team, the steps taken in preparing and executing a development plan are crucial for ensuring that all involved are prosperous and grow as result. By taking the time to properly assess and enact a plan that has can fulfill desired outcomes, HR will have the best chance of producing more engaged employees, and therefore, a more productive workforce.

> In a recent study, it was found that 91% of companies and 81% of employees stated that upskilling your workforce boosts productivity at work

In this chapter, we highlight the significance of [planning ahead and establishing a clear route for employee development](https://peoplegoal.com/blog/check-ins). In the face of the additional pressures caused by COVID-19, having an [employee development plan](https://www.peoplegoal.com/blog/effective-employee-development-plans) will provide employees with the vision that is essential to their personal growth. Working from home has prevented many team members from being able to look beyond their immediate situation, as a result, [many have lost the drive for self-improvement](https://peoplegoal.com/blog/work-life-balance-in-2020). As long as remote working sustains, this hurdle will present difficulties for many individuals. Through creating a robust and achievable [employee development](https://www.peoplegoal.com/resources/webcasts/employee-development) plan, employees can once again realize their aspirations and improve their professional skills further through learning and training programs.

![Reskilling for Future Tasks](//images.ctfassets.net/6g4s9n00xmsl/7kmnQjIdT2dHnvEOCWfu1L/b4730921306a326027b4174b66b8c746/Reskilling_for_Future_Tasks.png)

### Onboarding

The move to remote-work led HR to rapidly adapt their onboarding strategies. [Virtual onboarding programs](https://peoplegoal.com/blog/interview-questions) require additional planning but they can be very impactful. The process is a new one, yet, this does not necessarily mean that it can’t be as successful. Employee retention is significantly affected by the experience of onboarding, therefore remote teams must take further steps to [ensure a positive remote employee onboarding process](https://peoplegoal.com/blog/employee-onboarding).

In this chapter, we break down the process of ensuring [an effective onboarding process](https://peoplegoal.com/blog/remote-employee-onboarding-tips). With a focus on the significance of managing remote onboarding as a long-term solution, the reader will become far more adept at developing and running the onboarding process remotely.

> Companies with a strong [onboarding process](https://www.peoplegoal.com/blog/5-key-employee-onboarding-process-steps-to-master) improve employee retention by 82% and productivity by over 70% - Glassdoor

For new joiners, the prospect of starting a new job can be a daunting prospect - having to do so whilst working from home presents even further challenges. We demonstrate how HR and leaders can facilitate [a less stressful onboarding experience](https://peoplegoal.com/blog/remote-employee-onboarding) for employees through a number of practices.

![Great Onboarding Process](//images.ctfassets.net/6g4s9n00xmsl/2Np7dgW00H6q264lnjDXly/aa72eaf0db30326d61be42606b08d51b/Great_Onboarding_Process.png)

### Culture

Culture is the working environment at a company. It’s the stories told about what it means to work for an organization. It’s how employees relate to each other, and the long-term intentions of the brand. Sustaining these concepts and ideals about a company has become difficult with remote work. Nevertheless, the change needn't be considered a hindrance to company culture. Reflecting on the move to remote work as [a new opportunity to redefine culture](https://peoplegoal.com/blog/create-a-winning-work-from-home-company-culture) is a far more constructive and productive mindset.

> Employees that are engaged and have a high well-being are 27% more likely to report 'excellent' performance at work - Gallup

It is precisely this mindset that we promote in this chapter, focussing on how to use remote work as a leaping point to prosper and [establish an even stronger company culture](https://peoplegoal.com/blog/great-employee-relations-in-the-remote-workplace). With a reduction in the opportunities for individuals to get out and socialize amidst a pandemic, work becomes a significant place for employees to communicate with others. Ensuring that your company culture encourages employees to share a sense of camaraderie and togetherness is crucial to the [mental and social well-being](https://peoplegoal.com/blog/employee-wellbeing-surveys) of your team.

![Company Culture for Committed Employees](//images.ctfassets.net/6g4s9n00xmsl/6ov3rA3cwfZeFwK9cyRnPc/c201ba4e2911b7634e31bac763d7af5e/Company_Culture_for_Committed_Employees.png)

### Wellbeing, Diversity and the Future of Work

In these remaining chapters, we explore the importance of [improving the experience of remote wor](https://peoplegoal.com/blog/improve-internal-communications-for-engaged-remote-employees)k through a variety of approaches. The key message that carries throughout is the tenable link between communication, [supporting remote employees](https://peoplegoal.com/blog/working-parents) and resultantly, their productive output. As you will see in the e-book, there is much more to be said for each of these principals of HR.

![Employee Wellbeing Survey](//images.ctfassets.net/6g4s9n00xmsl/5Z7LrSj2XCAvtfCYqewy4K/5bae2ad639e8ec9c17f5cf14498760a5/Employee_Wellbeing_Survey.png)

The challenges of remote work have created the potential for some great success stories in response to this seismic shift in how we approach work. For HR, the focus for the future of working remotely must be centered on ensuring that all team members are prepared for any occasion. This e-book will provide HR and leaders alike with essential guidance on how to successfully manage HR and remote work. With insights on handling all core aspects of HR, readers will develop a greater appreciation for how to maintain great performance and engagement whilst working in a remote team.

PG Remote Work Guide 

Our Remote Work guide is an e-book that is extremely useful for not only HR professionals and leaders trying to maintain a high-performance culture in the remote work environment

Remote work: How People Operations can adjust to the new ways of working

Diving deep into the 4 core pillars of HR, PeopleGoal has set out to provide HR departments, all over the world, with the guidance and tools necessary to implement an effective HR strategy that will enable teams to thrive in a remote working environment.

modernising performance management

In today's fast paced business enviroment every organisation needs an employee performance management system to engage and manage employees. We have created a guide on how to find and implement a new performance management system.

PeopleGoal - Modernizing Performance Management

Modernizing Employee Performance Management in Medium and Large Organizations

In modern business it is no longer sufficient to just “manage” employee performance. You must strive to improve employee engagement and give employees the right tools to develop and perform.

Competency-based feedback whitepaper

## Competency-based feedback

Many are moving towards a system that provides feedback more frequently and supports peer-to-peer input. This is beneficial because employees are more likely to remember feedback, feel more engaged with the company, and improve their performance more quickly.

Competency-based feedback focus on developing the behaviors — the competencies — that are essential for developing employees. Competency-based feedback look at how an employee’s actions over a defined time led to meeting or missing defined objectives, so you gain an understanding of where an employee stands at present and what additional behaviors they should develop for future success.

Most competencies can be developed through training or mentoring, and many can be improved with the right guidance and ongoing feedback. When competency-based feedback is shared, you can address your employees with how the business wishes to function; what core values they should be focused on, what they can improve, and how they can meet the standards set by the company. This way you can improve performance as you and your employees have a firm understanding of one another’s goals and how you plan to achieve those goals.

## Defining competencies and roles

To implement competency-based feedback, you need to understand two concepts. The first is competencies, and the second is specific job roles.

Competencies reflect behaviors that are important to companies. These can be company values, attitudes, or the way in which you and your employees approach your work as a holistic organization. Job-specific competencies are more focused on how each employee will excel at their individual jobs. Competencies, in turn, help define roles. The behaviors you expect in a specific job become part of that job’s definition.

1. **Core Competencies** are unique the set of skills that form the foundation of success for companies. Many companies outline a set of core company competencies for the entire in the form of a value statement. These skills are expected to be observed by all employees and form the DNA of the company.
2. **Functional Competencies** describe ‘how’ a specific job or role is expected to be performed and what behaviors or skills are expected from employees in their positions. Many companies work with their management team and leadership groups to carefully define job-specific competencies for every role plus additional for leadership or unique roles.

Competency-based feedback is one solution that many organizations are turning to in order to measure and evaluate on-the-job behaviors. Competencies allow you to quantify success for behavioral requirements, skills, knowledge, and abilities. By adding competencies into conversations about performance, you will be able to better position the conversation and articulate where there are gaps in an employee’s skills.

Every company should have a competency framework, which consists of a set of core and functional competencies. This serves to strengthen and highlight the core culture while setting out expectations.

## How can competencies be used for Employee Feedback?

This section addresses the connection between job competencies and the feedback process itself.

1. **Creating the Feedback**

The focus of the competency-based feedback is on the behaviors, and how the behaviors tie back to the successful execution of company goals. This type of feedback aims to link the overarching objectives and the competencies in a very clear, transparent way.

2. **Conducting the Feedback**

The manager must begin the actual feedback process by setting the competencies associated with the job role. Once the employee has expressed an understanding of the expectations, the manager can go into providing feedback. The feedback should lead to a dialogue between manager and employee. The ultimate goal is to move to the next stage, development, where the manager and employee agree on a course of action, next steps, and a commitment around specific competencies that will increase overall performance on defined competencies.

3. **Interpreting competency-based feedback**

As you collect more information from your competency-based feedback, you need to interpret the data you’re getting. Nothing in the performance management life cycle is static. All of it needs to be adjusted according to the real data you’re getting back. Based on the data you collect from competency-based reviews, there are a number of different scenarios that could present themselves for interpreting and acting on what you learn.

The manager will play a critical role during this process as he needs to play the role of the coach in helping the employee “proactively” interpret the results. The manager would need to utilize coaching techniques to minimize defensiveness and increase the likelihood for positive change that can result from the competency-based feedback process.

## Examples of Competencies

Competencies can vary between different industries and levels of seniority, though the majority are found across many industries. We outline the most popular competencies that are used by many organizations. 

**Execution Skills**

- Making timely decisions
- Gathering relevant information if necessary
- Prioritizing well to meet objectives
- Keeping things simple
- Learning from past experiences
- Getting things done
- Delivering high-quality output

**Communication** **skills**

- Communicating clearly
- Writing clearly and concisely
- Speaking fluently and effectively
- Using the right channels and form of communication for each situation
- Adjusting message to the audience
- Listening carefully
- Presenting ideas and opinions clearly

**Teamwork skills**

- Supporting peers when needed
- Sharing success
- Acknowledging the contribution of others
- Providing useful feedback
- Taking ownership
- Building team spirit
- Being easy to get along with

**Leadership skills**

- Inspiring others
- Listening actively
- Empowering others
- Communicating vision clearly
- Working with integrity
- Involving the right people in the decision-making process

**People Management skills**

- Providing actionable feedback
- Taking care of the team's well-being
- Communicating expectations clearly
- Demonstrating expertise
- Keeping team focused on priorities
- Sharing relevant information
- Helping me understand how I am performing

**Project Management skills**

- Delivering excellent customer service
- Finding the right balance between customer needs and own goals
- Earning customers' trust
- Keeping things simple for the customer
- Identifying well how to influence decisions within the customer's organization
- Pitching solutions effectively
- Keeping up with trends to foster domain expertise

**Collaboration skills**

- Effectively informing colleagues
- Involving relevant people
- Clarifying the desired outcome of the meeting
- Keeping discussion relevant
- Communicating decisions and actions after meeting
- Contributing with valuable input

## Competency-based feedback with PeopleGoal

With PeopleGoal you can easily set a competency-based feedback model. You can build your model from or scratch or install the app available in our App Store and then you are ready to go. With the competency-based app, employees and managers can create and share competency feedback forms easily and fast. The feedback is kept under each employee’s inbox and can be easily accessed at any time by the employee and the manager as well. 

Setting a competency-based feedback process starts with defining the competencies you would like to examine – taking under consideration company and role-specific goals. Once your feedback template has been created it can be used directly for collecting feedback and finally give you a 360 view of the employees’ performance on the specific qualities the company has set. Finally, you can create a range of competencies expressed and aligned with the scope and context of your business needs. 

PeopleGoal also offers the ability to create libraries of core and functional competencies with full descriptions, observable behaviors, increasing the relevance across the entire organization. HR admins can assign competencies into groups, and designate competency groups for each department or team, ensuring that all the skills or attributes that employees in certain areas of the company need to be evaluated on.

With PeopleGoal, you can create custom reports and analyze the data from the feedback process to draw the insights most needed for employee development. You can break down feedback and benchmark employees on a variety of dimensions to detect opportunities for growth.

PeopleGoal fully embraces customization and allows you to define the parameters of your feedback process. For example, you can define different competencies per job level, add additional fields for open-ended feedback questions, collect feedback from many different stakeholders and finally create a feedback culture.

#### Benefits

- Desired objectives and results of competence-based feedback
- Identify abilities and skills of employees
- Self-reflection of those being evaluated regarding their competences
- Open a channel of communication between employers and employees
- Lean about strengths and areas for improvement
- Identify training and development needs
- Employees who are better prepared for the company’s future challenges
- Strategic vision. Align professional development with the objectives of the company

With competency feedback you can help employees increase their self-awareness, understand their strengths and blind spots. On top of this, you will remove bias and drive a well-rounded review process that counts on opinions that matter the most.

Whether you are starting with core competencies, or would like to assign competencies at the position-level, PeopleGoal makes it easy for you create, assign, share and evaluate feedback on your employees competencies.

This whitepaper is focused on utilizing competency-based feedback and explaining how your team can get the most from their experience of working. Keeping your workforce well-aligned with company values and competencies is a surefire way to ensure the organizational culture is maintained and develops positively.

Competency-based Feedback Whitepaper

This Competency-based Feedback whitepaper provides HR professionals and teams with a comprehensive guide to getting the most out of their workforce. Learn how to set up the process, understand areas to consider in setting up and how PeopleGoal can assist in making this the most effective solution to developing a sustainable and positive company culture.

Competency-based Feedback: Here’s all that you need to know

Competency-based Feedback presents a terrific approach to supporting individual and organizational growth. With clearly defined competencies and continuous focussed feedback, all teams can make significant improvements and developments as a result.

PeopleGoal - HRIS in 2019

In a rapidly evolving work environment it’s very difficult for companies to have the right Human Resources Information Systems (HRIS) in place, in order to adapt to these changes. Last year alone __$11 Billion__ was lost due to employee turnover, despite large companies using on average __11 systems__ to manage people processes ([Bersin 2019]([https://joshbersin.com/2019/02/the-employee-experience-platform-a-new-category-arrives/)). 

## But why it’s so difficult to engage, retain and develop your employees?
To answer this question we have to take a step back and try to understand the work environment dynamics from the different perspectives: 

![Human Resources Information Systems in 2019](//images.ctfassets.net/6g4s9n00xmsl/7M39j3wPQbInwDllIcwXU0/c5c4e0d889b48154bf371fe371698830/Human_Resources_Information_Systems_in_2019.png)

### Organizational dynamics
Many organizations are looking to introduce a data driven people process when it comes to talent needs, however the number of companies that is actually doing it is low. [Deloitte](https://www2.deloitte.com/insights/us/en/focus/human-capital-trends/2015/people-and-hr-analytics-human-capital-trends-2015.html) reports that people analytics are the second biggest overall capability gap for organizations. CEO’s recognize the need for a data driven strategy but are slow in implementing such processes and that is primarily because organizations are new to this discipline and often enough HR professionals do not have the required skill set to analyze the data. Enter Human Resources Information Systems, the majority of the HRIS vendors offer an analytics package that can fill the gap. However, introducing a new system it does not mean it will immediately fill the people capabilities gap.

Another interesting observation about today’s business landscape is the increasing tendency for companies to look to reinvent their business model. Digital technologies are penetrating all sectors, resulting in revenues and profit shifts, and therefore a lot of businesses are looking to re-invent their business model and introduce digitization.

Finally there is a clear preference to Software-As-A-Service (SaaS) applications. In fact, according to [BetterCloud](https://www.bettercloud.com/monitor/wp-content/uploads/sites/3/2017/05/2017stateofthesaaspoweredworkplace-report-1.pdf) 73% of their apps will be SaaS by 2020.

### Workforce trends
The millennials are taking over, 75% of the global workforce will be millennials. They are tech savvy and choose their place of work carefully. Millennials tend to change jobs every two to three years and they put a lot of emphasis on learning and development. They expect mobility and workplace benefits and many traditional organizations are struggling to adapt.

Millennials grew up during an economic boom, hence the lack of fear of changing roles frequently. They are seeking experiences and they tend to choose brands that share their values.

On the contrary, Gen Z (born between 1997 and 2010) tend to be more pragmatic and are focused on saving money as they grew up during a recession. Gen Z is also entering the workforce slowly and we will start hearing more about them really soon.

The current workforce is not silent they are expressing their needs. They want to know and understand their company’s goals, strategies and values. They want their feedback on the company to be heard and acted up on.

Organizations try to respond the best they can on their workforce needs with flexible work schedules, employee benefits, mobility and [engagement survey](https://www.peoplegoal.com/blog/engagement-surveys-how-to-track-improvements-in-employee-engagement).

### Management and HR Leaders
CEOs are more open to adopt a flexible, open career model with meaningful assignments, projects and experiences over a set career path. With an open career model it’s easier to keep the workforce engaged as they are having a say on what assignment to do. Also, it allows for organizational agility and building a talent pool that has a variety of skills.

HR leaders are feeling the pressure with their current workforce. One quarter of HR leaders are not confident in their ability to transform their workforce according to KPMG and only 36% of HR executives feel capable keeping up with current talent issues ([Deloitte](https://www2.deloitte.com/insights/us/en/focus/human-capital-trends.html)).

Furthermore,  both HR Leaders and CEOs anticipate a war for talent when it comes to specific skill sets such data science, digital marketing, Web design, network engineering.

### Human Resources Information Systems
Traditionally Human Resources Information Systems are focused on HR processes only: time management, holidays, and absence tracking and performance management. This changed to include [engagement surveys](https://www.peoplegoal.com/blog/employee-engagement-survey-questions), succession planning, internal communications and employee on-boarding. In addition most vendors offer enhanced reporting and analytics.

Most Human Resources Information Systems vendors are moving towards an employee experience platform where they integrate all human resources processes that cover the employee lifecycle into one robust package with the option to switch on and off modules. Moreover, Organizations are starting to  recognize the need for an employee experience platform and the [HR system](https://www.peoplegoal.com/resources/webcasts/implement-hr-system) vendors trying to adapt their products to the demand. Their solutions focus on employee engagement, employee retention and performance management.

## So, how a Human Resources Information Systems can help organizations to engage, retain and manage employees?
Enter employee experience platform, the HR system architecture going forward will be focused on the entire employee lifecycle in an organization, from on-boarding to off-boarding. CEO’s and HR leaders recognize the need to treat their employees as customers as its very easy for them to find another job. Millenials are seeking experiences in their workplace and they are advocates of a 2-way communication between them and their leaders. A connected platform that covers the entire employee lifecycle will capture all the data required to understand behaviors and needs of the employees.

It’s very difficult for all these to come from a single HR systems vendor. To tackle this, big players such as SAP and Oracle are investing heavily on its own start-ups to maintain the position as the core HR system ([Bersin 2019]([https://joshbersin.com/2019/02/the-employee-experience-platform-a-new-category-arrives/)) and smaller vendors and HR start-ups are building integrated solutions and overarching frameworks that can be easily adapted to future innovations.

## Who is going to win the Human Resources Information Systems race? It's too early to say.

If you would like to find out more out more about the changes in Human Resources Information Systems in 2019 download our Human Resources Information Systems PDF. Also, we would love to hear your feedback too so feel free to reach out.

In an increasingly digital work environment, large companies use on average 11 Human Resources Information Systems to manage people processes.

Although it doesn't have a physical presence, it is quickly becoming the face of the HR department with it's own name, associated log-ins with varying password requirements and it’s own set of annoying habits.

PeopleGoal - Human Resource Information Systems in 2019

Human Resources Information Systems in 2019

Large companies are using on average 11 different systems to handle, process and disseminate Human Resources Information Systems. A quick search of vendors reveals thousands of companies touting the best solution for your needs.

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AI Impact on Human Resources Processes

Technology and AI brings agility to the HR process. Read on to find the impact of AI in HR.

Remote work: How People Operations can adjust to the new ways of working

Diving deep into the 4 core pillars of HR, PeopleGoal has set out to provide HR departments, all over the world, with the guidance and tools necessary to implement an effective HR strategy that will enable teams to thrive in a remote working environment.

Modernizing Employee Performance Management in Medium and Large Organizations

In modern business it is no longer sufficient to just “manage” employee performance. You must strive to improve employee engagement and give employees the right tools to develop and perform.

Competency-based Feedback: Here’s all that you need to know

Competency-based Feedback presents a terrific approach to supporting individual and organizational growth. With clearly defined competencies and continuous focussed feedback, all teams can make significant improvements and developments as a result.

Human Resources Information Systems in 2019

Large companies are using on average 11 different systems to handle, process and disseminate Human Resources Information Systems. A quick search of vendors reveals thousands of companies touting the best solution for your needs.

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