Employee turnover is the scariest nightmare for employers and it is irrespective of the company, its position in the market, and state of the economy. Employee hunt is the most irritating, time-consuming, and expensive thing to deal with. According to a study, losing an employee could cost a company around tens of thousand and in order to replace the position, the company may have to pay about 2X of the previous employee’s salary.
Managers have to develop a few tricks to pinpoint those employees that may resign the job in the upcoming months. If someone is not committing himself to long-term projects, more active on LinkedIn, or wants to attend conferences and workshops usually mean that the person is looking for another job. However, not every manager can foresee or observe such sudden changes in an employee’s behavior. Call it a boon or curse, but artificial intelligence (AI) is here to help. IBM, one of the world’s largest employer, has developed an AI that could predict which employees will leave a job with about 95% accuracy.
According to IBM CEO Ginni Rometty, the company receives more than 8,000 resumes every day and it is the most searched site on Glassdoor. IBM’s AI technology has evolved with time and now has reached to the accuracy of 95% to recognize the workforce searching for a new position and planning to leave the job. According to Rometty, during her seven-years of leadership as CEO, IBM has been developing its AI work to the retentions of its workers. She said, “The best time to hire an employee is before they quit”.
IBM HR team has a patent for this AI program, which has developed with the help of Watson, IBM’s question-answering computer system, to predict whether a particular employee is a flight risk and what kind of actions managers should take to keep employees. Rometty confirmed that it took a considerable time to make the program this accurate, but the AI program has saved about $300 million in retention costs till now.
IBM’s AI tool is a part of IBM products and is developed to overturn the conventional approach of human resources management (HRM). In fact, she stated the conventional methods of HRM have been failing American workers and it needs the assistance of AI to enhance the work. Moreover, since IBM has implemented AI technology, it has decreased the size of the global HR department by about 30%.
It has observed that the corporate managers and HR departments are not always effective at their jobs and AI is expected to play a huge role in the future in identifying an employee’s skills. Most of the managers fail to be transparent with employees about their career path. Being open with workers means being truthful about their skills, what are the areas that they need to work on. IBM’s AI is expected to change this picture in the next five to 10 years, as per Rometty.
The AI technology not only observes tasks of employees but keeps track of things such as if they are taking educational courses and whether they have earned any ranking in their career. With the help of such data points, AI can help HR managers to gain a smarter understanding of employee’s, more effective than the conventional method of taking employee surveys.
This tells us whether we like it not, there is another eye, in fact, a robotic eye will be watching over us and is reporting our every move to HRM. However, how much it helps employees than employers is still uncertain.