Job evaluation and salary determination are complicated problems and getting them right is critical for good pay decisions. Artificial Intelligence (AI) has the ability to access and analyze massive employee data and make intelligent recommendations based on statistical probabilities that can potentially transform the compensation and benefits practices.
Organizational reward programs in the future will depend highly on predictive analytics to understand who is drawn to which type of rewards. The resulting insights from analysis will drive changes and enable improvements to incentives and appraisals.
In order to understand the penetration of AI at the organizational level, Bruhat Insights Global, the AI-powered talent acquisition arm of Avtar Group, had launched a nation-wide survey to get deeper in understanding the level of AI penetration by the organizational levels. Conducted among 250 organizations across a range of various industries, the survey dwelled deeper on different stages of the adoption levels of AI. Interestingly, the performance appraisal, which was considered as the most biased HR function is being replaced by AI-powered applications to remove those biases. 60% of the organizations that we reached out to, across industries have implemented Compensation and Benefits applications for analytics to manage employees’ salaries, track leaves and also anticipate appropriate employee-centric benefit programs.
The organizations that have implemented Compensation and Benefits applications for analytics also found a lack of sufficient data for decision making and feared that there will be an imprecise interpretation of data leading to un-beneficial results. Though analytical and predictive capabilities are game-changers, combining data with human experience is inevitable.