According to the KPMG report in 2020, CEOs find the “talent risk” as the main problem for their business. This is particularly true in the case of losing key talents and spending much time and expenses searching for new employees. 

Talent management software powered by Artificial Intelligence suggests predictive analytics tools that can help the L&D leaders and business owners to identify problems before they influence company performance. As CEO of IBM Ginni Rometty recognized, IBM AI forecasts with 95% of accuracy that particular workers are going to leave their current job. This data has managed to save for the company about $300 million of retention budget.

38% of enterprises have already implemented Artificial Intelligence in their workplaces, and 62% of respondents are planning to start using AI as early as this year, according to Personnel Today. 

As Gartner’s Artificial Intelligence Survey from March 2020 found out, 17% of companies used AI-powered talent management systems (TMS) in 2019. The COVID-19 pandemic has likely sped up the process of change for a lot of these organizations.

According to McKinsey research, over two thirds of businesses (69%) believe that ArtificiaI Intelligence brings value to their Human Resources function.

These statistics and cases show that using AI in the Talent Management strategy can become a strong competitive advantage.

So, how is AI able to address the talent risk in the organization?

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Way 1. AI Boosts Internal Mobility 

According to Forbes, replacing a good employee could cost the company up to 150% of that worker’s annual salary and benefits package. So, for many organizations, losing capable people could become one of the most expensive issues.

Today the most profitable and famous companies like IBM, Hilton, Unilever are using the potential of Artificial Intelligence to develop internal talent mobility. They leverage it not only to save money for recruiting purposes, but also to reveal the internal expertise that is often hidden in the company. High-performing people are likely open to new challenging tasks, discovering the adjacent areas and trying the work with different teams and managers.

This approach is not only about the “career”, but much more about “skills”. The organizations need the modern system which will continuously:

• monitor and identify employees’ skills; 
• arrange them to relevant positions;
• give the internal candidates the instructions on how to improve their skills set and apply for this job.

Way 2. Artificial Intelligence Improves Skills Assessment process

Over 70% of employees have recognized that corrective feedback from managers helps them to improve their performance. As the research shows, 96% of respondents would like to get feedback about their work regularly.

Despite this, almost 70% of companies still schedule only 1 or 2 performance reviews per year. According to the statistics, the employees would prefer addressing mistakes and hearing the recommendations / suggestions in real-time.

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An accurate understanding of the skills set and competencies helps effective management. Thanks to an AI-powered assessment system department executives know exactly what workforce resources they can rely on in the organization – these days and in the future.

Just imagine that you already have a talent pool, and according to the AI-generated grids could assess all candidates, choose the best one, and set up the training program for the rest of the employees. Besides, you can provide personalized feedback for each worker using this insightful data.

Way 3. AI Fosters Better Skills Matching

According to the Jobvite’s Recruiter Nation Survey results, 67% of recruiters confessed that they faced a lack of high-quality and experienced candidates for their organizations.

AI-based skills matching tools can decrease turnover. Instead of looking for new interesting tasks outside the organization, the employees can just upload in the portal their CV and see the list of open positions inside the company. 

The algorithm analyzes each applicant’s profile and compares it with the skills set needed for each position. Then it forms the ranged list which a recruiter or manager could utilize for talent transition between teams, departments or even corporation representatives.

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As an alternative, a candidate is also able to place the resume on the portal and see the list of relevant vacances inside the company. The AI-powered system will show him or her appropriate jobs and estimate the level of matching for each of them. An employee doesn’t spend time on thorough research and can apply with one click.

Way 4. AI Assists Reskilling and Upskilling 

9 out of 10 C-level managers are recognizing or expecting workforce skill gaps for the next 5 years. More than a half of them don’t know how to overcome this challenge, according to McKinsey Global, 2020.

Workers often prefer to change an employer because they lack a clear vision of their career path at the current company. Using an AI-powered platform can help employees upskill or reskill to grow in their organization.

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Now workers are able to see what roles match them according to their up-to-date skills and knowledge. Additionally, they can monitor the desired positions and discover a road map of upskilling or reskilling to get a promotion or change a specialization. 

Using AI-algorithms, HR executives get the insights that help them realize:

• how the workeforce’s skills match the current business strategy;
• what gaps should be addressed immediately;
• which gaps should be filled in the short-long or long-term perspective in the fast-paced areas.

How does it work?

Every employee has a personal profile on a portal that is leveraged to provide a career growth process. He or she can see their current position and level, for example, Business Analyst. This professional decides to change the position to Project Manager. The system provides her or him the skills set needed for this role with a certain timeline. 

So, employees get a personalized training program to prepare them for the future job. The L&D department can set up automatic actions for each level. For instance, if a learner would show the 80-90% of the progress, the system unlocks the next assessment set. In case of 30% progress and a long pause in the training process, the system will send the employee an alert with recommendations on what materials should be learned or revised.

Belitsoft has been working in the eLearning software market for over 17 years and has consolidated our knowledge in a Talent Management System easily tailored to your company’s needs.