Machine Learning and Artificial Intelligence – two of the most trending words in the world today. It seems every other groundbreaking innovation relies on either of the two terms here.
Artificial intelligence is increasingly being adopted across multiple industry verticals. It has transformed the way we conduct everyday tasks by providing platforms that are much faster, smarter and better than ever. AI’s ability to process enormous volumes of information with lightning fast speeds, interpreting them accurately and eliminating human biases has made unprecedented improvements. Although it may still be in its nascent stage but when it comes to analyzing and interpreting data, it can be a powerful tool.
One process that relies (or shall we say, should rely) heavily on data is the employee performance management process. There are various performance management processes and philosophies out there. Companies adopt those which are most closely aligned with their work culture or ideologies. Yet surprisingly, a very low percentage of these companies is satisfied with the way the process is conducted or the outcome it yields. It may not be apparent where or why the process is broken so they continue in the same manner as they always have. Here’s how you spot if your performance management process is broken.
Today, we are going to talk about the impact of artificial intelligence on performance management and how it can make sense of the information collected throughout the year.
Impact of artificial intelligence in performance management
Performance reviews using Artificial Intelligence:
In the past we have talked about why we love data driven performance management. It enables the manager to rely only on factual information to take informed decisions while carrying out employee performance reviews.
While this may seem fairly straightforward, there are certain challenges that are difficult to navigate. For one, employees need to collaborate with multiple teams and/or departments from time to time. Thus, it gets tricky to collect information from all the key stakeholders. Most of the times, when managers rely on only one source of information, they miss out on valuable aspects of the employee’s contributions. If these other achievements are not taken into account, performance reviews may not be accurate leading to employees being demotivated.
There are 3 major benefits of artificial intelligence in the performance review process:
- Collect information seamlessly from multiple sources
- Enable the manager to extract insights from collated information in real-time
- Eliminate all the common psychological biases associated with performance reviews
Consistent real-time assessments:
Modern or agile performance management practice encourages conducting performance reviews at frequent intervals. Unlike traditional performance management where they were conducted annually.
Artificial Intelligence can take it a step further and eliminate the need for fixed intervals entirely. It allows performance assessments to take place in real time on a consistent basis.
During the goal setting process, individuals have fixed targets or quotas they need to achieve within a specific time limit. AI can help to monitor this progress in real time and give feedback instantaneously, based on the status. If the performance is right on track, reward employees with recognition or incentives, as is the practice. On the other hand, if they have diverted from their path, immediately notify and help them get them to the desired stage. This is a huge step in managing the problem in a timely manner before it snowballs into something unmanageable.
AI in learning and development:
Performance reviews also provide a chance to individuals to determine which skills need to be polished or learn new skills to get better at their job. With the help of advanced analytics, it is possible to personalize the employee’s learning experience. Today, skills have a shorter shelf life than ever before. Artificial Intelligence can help the system identify which employees need to reinvent their skills much before they become obsolete or get replaced with better technologies.
Reduce gender parity:
In an era where age old prejudices are being challenged, people are demanding for equality everywhere. More so in the workplace. Historically, very few women have held positions of authority in the organization. And even then faced several more challenges as compared to their male counterparts.
While many companies are taking the efforts to bridge this gap, it is not easy to change societal beliefs overnight. There are bound to be certain biases, even if subconsciously.
Artificial intelligence is not concerned with the gender of humans when it comes to assessing performance, experience or salary. Thus, it will be much easier to reduce this gender gap and offer equal opportunity to everyone in the workplace. Apart from gender, the same can be said for race, ethnicity or nationality.
So are you ready for this phenomenon? And do you think it makes sense to integrate AI within a process that was largely dependent on human intervention?