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How will AI impact the Human Resources function?

Image of AI representing the impact on HR

The rise of artificial intelligence (AI) has sparked debate about its effect on a wide variety of industries and job roles—and the Human Resources function is one of them! Many have wondered if AI’s impact on HR will lead to a significant reduction or complete elimination of HR professionals. Surely, it’s not possible to take the “human” element out of “human resources.”

At Strategic HR, it’s our belief that while AI has the potential to streamline HR processes and provide more information to enhance decision-making, organizations will continue to need HR professionals who have a nuanced understanding of people to lead and manage their HR function. In fact, AI’s continued evolution actually provides HR leaders with a unique position to make a significant organizational impact in a few ways: by understanding, utilizing, and providing guidance within their organization.

How AI can impact HR and recruiting functions

In a world of labor shortages and an increased need for efficiency, many organizations are consistently looking for ways to do more with less. One way that AI can impact the HR function (or better yet, streamline the HR function) would be in the recruiting process. For example, advanced algorithms can swiftly analyze vast amounts of data and eliminate human bias in the initial stages of reviewing resumes. We’ve seen advances in areas such as writing job descriptions, suggesting interview questions, screening resumes, and analyzing hiring criteria. Some AI bots are even conducting initial screening interviews with candidates.

Because of AI’s ability to process and analyze large volumes of data rapidly, HR professionals can leverage AI-powered analytics tools to gain valuable insights into other HR areas such as employee engagement, performance, and overall organizational culture. By identifying patterns and trends, AI can assist HR professionals in making data-driven decisions that optimize recruitment strategies, training programs, and performance evaluations.

Whether AI is handling simple or complex tasks, the key in any HR situation is to empower HR professionals to utilize AI in ways that allow them to focus on more complex or nuanced issues, rather than taking the “human” element away.

Chatbots and ChatGPT have changed the game

AI chatbots are the latest game-changer to impact HR in the evolution of AI technology innovation. For example, some companies use AI chatbots to provide 24/7 support to employees, answering frequently asked questions and freeing HR professionals to focus on more strategic and interpersonal aspects of their roles.

While there are several versions of Chatbots available, the most recent emergence of ChatGPT, an open AI platform that interacts with users in a conversational way, has been highly notable. In addition to synthesizing content like a search engine, this technology also learns relationships between data elements and can reassemble responses in a meaningful way based on the prompt question.  The output is as fast as doing an online search, yet the resulting data far exceeds the robustness and usefulness compared to many internet queries. This tool has the potential to significantly increase the efficiency of HR professionals and employees alike by gathering and synthesizing meaningful data.

According to the Microsoft Work Trend Index Annual Report, far more employees (70%) would choose to maximize the use of AI to lighten their workloads compared to 49% of people who are concerned about losing their jobs to AI. As the world of work moves forward with an increased focus on workplace efficiencies, some use of AI may be inevitable. Perhaps one thing that HR professionals can do to allay employees’ concerns is to identify the skills needed to manage and augment the AI and provide the training, development, and growth opportunities to help employees succeed in the technology transition.

Ethical, legal, and security concerns

While it has great potential, there are still limitations, risks, and lingering questions about the use of AI. It’s important to recognize that many times AI lacks a nuanced ability in analyzing data. A human being who can consider various contextual factors, use intuition, and integrate empathy is needed before making final decisions. There are also ethical implications, legal considerations, and security concerns that must all be addressed before companies can fully take advantage of the technology. We’re not quite ready to let AI replace human judgment.

Geoffrey Hinton, a pioneer of artificial intelligence, quit his position at Google so he could talk more openly about the risks and dangers of AI technology. According to Reuters, Hinton states his primary concern is that the technology could become too smart sooner than experts expected and create convincing false images and texts which would result in not being able to discern what is true. While this may sound like a risk far into the future, there are additional immediate concerns that need to be considered including:

  • ChatGPT is currently based on internet information through 2021, so some recent happenings and facts are not reflected.
  • The answers are based on internet information, so they are only as accurate as the data on the internet. The AI-technology does not have the ability to know what is true.
  • AI systems use historical data, which raises concerns about potential biases. If AI were to take over HR departments entirely, the risk of perpetuating systemic biases could increase.
  • There is the possibility of giving proprietary or personal information that the system may “learn” and repeat in another answer which could cause security and liability risks.

How HR leaders can guide AI adoption

Proactive HR leaders can provide guidance to their organization that can add clarity and peace of mind during a tumultuous time of change. Consider the following actions leaders can take to help frame the discussions and drive decisions in organizations:

  • Understand where the organization is considering and/or could benefit from AI technology.
  • Create a roadmap to define business uses and outcomes for AI technology with guardrails to limit risk.
  • Identify the technology skills and resource gaps that need to be filled to effectively harness the AI options.
  • Develop strategic principles and policies (considering security and accuracy) to aid in the evaluation of how/when to utilize different AI options.

HR Leaders can support and perform these types of activities rather than allow the technology to be introduced without intentional consideration. Helping organizational leaders to consider both the impact and risk of utilizing a framework and strategic actions will lead to more informed decisions.

It is clear that AI technology has the potential to revolutionize HR practices by automating and streamlining processes; however, it is our firm belief that it is highly unlikely for AI to entirely take over the HR department. The human element in HR—empathy, emotional intelligence, and nuanced judgment—remains indispensable for managing a diverse workforce. HR leaders who can maintain a balance between AI and human expertise will make the most significant impact. And, those organizations with leaders that prepare, provide guidance, and make sound decisions will gain a competitive edge and thrive in the AI-enabled future.

Special thank you to Becky Foster, Senior HR Business Strategist, for contributing to this Emerging Issues in HR. 

Do you need help with developing your HR strategy and identifying the tools you need to get there? The experts at Clark Schaefer Strategic HR are here for you! To learn more, visit our HR Strategy Services page or contact us.

Three Ways HR Can Serve as Cybersecurity Defenders

Image of computer circuit boards symbolizing cybersecurity

HR Question:

Why should cybersecurity be a priority for HR professionals? Isn’t that IT’s job?

HR Answer:

Hackers look for more than just passwords and bank information. They can hold personal information hostage like social security numbers, share private health information, or share the results of someone’s less-than-satisfactory performance review with the public.

Human error is often one of the key weaknesses that hackers and cybersecurity criminals will try to exploit in their assaults. As HR professionals and business leaders, it’s up to you to build in defenses amongst your team members to protect the business and the sensitive information it has on your employees.

Implement a Clear Cybersecurity Policy

One of the first lines of defense that HR professionals can put in place is a strong cybersecurity policy. Policies that cover topics such as information sharing and the appropriate use of social media, remote devices, wi-fi, and VPNs can help educate your team members on safe technology practices and put definable consequences (beyond the potential danger of information exposure and distribution) around the misuse of company technology and information.

By partnering with your organization’s IT department, HR can include policies that support employee privacy and the company’s security, such as regularly updating passwords, guidelines to follow in the case of suspected security breaches, reporting procedures, and more.

Foster a Cybersecurity Savvy Culture

You know the phrase, “you have to walk the walk to talk the talk”? Or better yet – “leading by example.” The same concepts apply to how your HR department approaches cybersecurity when fostering your company culture. Without HR putting the same emphasis and care behind IT policies and priorities, these goals may fall flat before reaching the finish line.

As such, there are four ways to help encourage your employees to be aware of potential security risks:

  • Check phishing reports quarterly to see what’s trending and what’s changing with how the common scams operate.
  • Always be sure to double- and triple-check who’s asking you for information. Attackers are becoming more and more intuitive in how they reach out to you. It doesn’t matter whether it’s your mother, your boss, or your best friend who emailed you, check where the email came from and be certain before you respond.
  • Ensure that common behaviors, such as reusing passwords or using unprotected wi-fi networks, aren’t encouraged, practiced, or overlooked.
  • Never let your guard down. This is probably one of the most important things to remember. It’s not easy to do, but phishing is only a problem if it succeeds. And phishing will succeed. We’re all human and we will make mistakes. It’s these mistakes that attackers capitalize on.

Remember these four rules, and you’ll be much safer and prepared to deal with any phishing scams that come your way.

Include Cybersecurity in Regular HR Audits

As a part of your HR audits, which should be conducted on a regular basis, it’s important to include cybersecurity features in your regular process. Double-checking things such as password security, ensuring all software is updated, and making sure that policies are up-to-date based on popular apps and technology trends can help to keep your company’s and your employees’ information safe and secure.

Special thanks to Samantha Kelly for contributing to this edition of our HR Question of the Week. 

Visit our colleagues at Clark Schaefer Hackett to learn how they can support your cybersecurity needs, or check out our Health, Safety, and Security page to see how we can help develop processes, procedures, and programs to protect your team. 

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How to Handle Unemployment Fraud?

HR Question:

Our company is getting unemployment notices for people that have never worked here, or in some cases, people who are still employed.  How should I handle this unemployment fraud?

HR Answer:

The increasing level of unemployment fraud has been a source of frustration for states, employers, and individual employees.  Various US congressional packages providing supplement unemployment relief have provided not only relief for the unemployed, but also an opportunity for criminals to seek ways to attempt to benefit. The US Department of Labor has reported “a surge in fraudulent unemployment claims filed by organized crime rings using stolen identities that were accessed or purchased from past data breaches.”

States that were already overwhelmed by the unexpectedly high levels of unemployment insurance (UI) claims are now having to pursue fraudulent claims to recover benefits that should not have been paid.  Employers’ unemployment rates may increase as a result, and employees find themselves dealing with identity theft concerns.

In this article, we’ll share information and resources that employers and employees can use to understand who are the most likely victims and what to do should they suspect or fall victim to unemployment fraud.

What Can Employers Do?

There are some measures that employers can take to address unemployment fraud. HR professionals should be on alert to scrutinize any notices that they receive from state unemployment administrators to ensure their accuracy. If fraud is suspected, be sure to follow your state’s reporting instructions. Note that some states require both the employee and employer to file reports.

In addition, it’s important to inform your employees about the prevalence of identity theft and unemployment fraud scams that are occurring across the United States. As a proactive measure, consider sharing the information below regarding what employees can do to understand if they might be at risk for unemployment fraud and what to do if they become a victim.

What Can Employees Do?

Employees who have had a fraudulent unemployment claim filed in their name are recommended to refer to the Unemployment Insurance Fraud Consumer Protection Guide from the U.S. Department of Justice’s National Unemployment Insurance Fraud Task Force. This guide explains:

  • Who might be more at risk of becoming a victim
  • Signs that you might have been a victim of a crime
  • Steps to take if you believe you’re an unemployment fraud victim
  • How to protect yourself from becoming a victim
  • Unemployment insurance fraud resources and links for each state

According to the UI Fraud Consumer Protection Guide, if a UI claim has been filed in your name that you did not file, you should:

  1. Report it to your state workforce agency immediately.
  2. If you’re currently working, notify your employer of the fraudulent claim as they may also need to file documentation.
  3. File a complaint using the National Center for Disaster Fraud form or by calling the Disaster Fraud Hotline at (866) 720-5721.

Additionally, employees are encouraged to go to annualcreditreport.com to ensure they have not been a victim of identity theft.  Employees may also want to place a free one-year freeze on their credit by contacting any one of the three nationwide credit reporting bureaus listed below.  When one bureau is notified, they must notify the other two.

Review Cybersecurity Practices

With the rise of unemployment fraud cases using information that was obtained from previous data breaches, it’s important that employers and employees implement good cybersecurity practices. This presents an opportune moment to review how your organization protects personally identifiable information (PII), such as name, address, birth date, social security number, etc. Do you encourage employees to create unique and strong passwords? Do you require two-factor authentication or alternate solutions to increase your cybersecurity? Whatever safety measures you have in place, we recommend that you continue to review them to ensure that you are covering all of the necessary areas and that your employees are following cybersecurity practices consistently.

Special thanks to Cathleen Snyder, SPHR, SHRM-SCP, and Melinda Canino for contributing to this edition of our HR Question of the Week.

Still have questions? Contact our HR experts! Give us a call at 513.697.9855 or email us at Info@strategicHRinc.com

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How to Help Employees Manage Stress During COVID-19

As the coronavirus continues to dominate much of our news and impact every facet of our day to day lives, it can be difficult for employees to manage their stress and anxiety amid COVID-19. Managers and HR professionals can play an important role in helping employees cope with the added stress and uncertainties of the pandemic. In this article, we’ll help you to understand the stress that employees may be experiencing and provide stress management strategies and tools that can help all of us to get through this challenging time.

The difference between “good” and “bad” stress

Before we dive into suggestions on how to manage stress, let’s first clarify the type of stress we want to alleviate. The American Institute of Stress (AIS) points out the difference between “good stress” and “bad stress.” Good stress, or eustress, has a positive effect because it can feel exciting or fun, or it can help to drive our motivation to get something done. On the other hand, AIS notes that “bad stress” is commonly defined as “physical, mental, or emotional strain or tension” that leads to a feeling of distress.

It is the latter that we want to help employees alleviate amid the COVID-19 pandemic. This type of stress can lead to physical and mental health problems which can impact all aspects of one’s life – both personal and professional.

Stressors during COVID-19

You would be hard-pressed to find anyone not coping with some amount of stress directly related to the pandemic. Just a few of these stressors that employees could be dealing with include:

  • Uncertainty about the stability of their job and personal finances
  • Trying to adapt to new work arrangements through working remotely
  • Worry and fear about the safety of their work environment for those who are required to work on-site
  • Having to care for or homeschool children while balancing work demands
  • Adjusting to “shelter in place” routines that eliminate former options for fun and stress relief including entertainment, sports, travel, and simply gathering with friends or family.

All of these stressors are taking a toll on people, and it carries over into the workplace. Add to this list the growing health concerns for employees and their loved ones, and the worry they or someone they know will contract the virus and become ill. It’s more important than ever that people are able to acknowledge their feelings and reach out to one another to help alleviate concerns and provide support where possible.

How managers & HR professionals can help

Managers and human resources professionals can play an important role in both reducing the stress that employees feel and helping them to manage their stress levels during this time. A great place to start is with effective and frequent communication. Being transparent about what you do and don’t know, in addition to actions your company is taking to respond to the pandemic can help to lessen the scope of uncertainly and concern that your employees feel. For example, you could:

  • Express care and concern for their safety first and foremost, and encourage an open-door policy so that employees feel comfortable coming to you with questions and concerns.
  • Proactively communicate with employees and inform them of what you are doing to maintain a safe workplace.
  • Consider setting a regular schedule to send updates to staff on important issues such as impacts to the business, strategies and solutions being considered, workload, safety measures being taken, leave options, and other pertinent information.
  • Lean in! Touch base with your employees more than you might usually do whether they are physically at your workplace or working remotely. Make a point to speak to each person on your team a few times each week to see how they are doing and whether there is anything you can do to assist them.
  • If your company offers an Employee Assistance Program (EAP) or corporate wellness program, be sure to promote those resources as much as possible.
  • If your workplace is reducing hours or laying off staff, provide employees with information up-front on applying for unemployment benefits, discount services, or other programs being offered in your area.

While none of these activities is a “magic solution” to alleviating stress – your employees will see you taking action and your genuine concern will show through. They will appreciate you being a proactive resource, particularly during a time that is difficult for all of us.

How to approach someone who may be struggling

Managers are sometimes hesitant to approach an employee they feel may be struggling with depression or anxiety for fear of singling them out or infringing on their privacy.  But if an employee is expressing feelings of fear, stress, or anxiety which is negatively impacting their performance or they’re behaving in a way that shows a decline in their health or mental well-being, it’s important that it be addressed. Working closely with an HR professional can ensure your inquiries don’t violate employee rights.  The Americans with Disabilities Act (ADA) makes it illegal to discriminate on the basis of an employee’s disability. In addition, HIPAA prevents employers from directly obtaining health information on employees from a healthcare provider, unless the employee gives direct authorization. For more guidance, see our recent article on how to protect employee privacy during COVID-19.

Here’s a formula you can apply when addressing an employee showing signs of stress or anxiety:

  • Be Specific – Describe the incident or behavior which is problematic using objective, work-related terminology.  Avoid assumptions or making accusations.  Rather than saying, “You seem awfully tired lately and unfocused,” be more specific with something like, “You’ve been late three times this week and missed two important deadlines.”
  • Describe the Impact – Let the employee know how their actions or behavior is having a negative impact on the work, team, client, etc.
  • Problem-Solve Together – Ask for their input in addressing the situation and how to correct it. Use the opportunity to problem-solve with them and explore solutions.  If through the course of the discussion they disclose they are suffering from a medical condition or feeling the need for professional help, engage your human resources department so they can manage the issue and explore options with the employee.
  • Clarify Expectations – Remind the employee of your expectations, both in performance and conduct, and allow them the opportunity to improve.  If a pattern develops and you continue to see a decline, it may be necessary to take stronger actions.

Resources to manage stress during COVID-19

Sometimes when stress feels all-consuming, it can be hard to figure out how to move forward. Managers and HR professionals can also support employees by providing resources to help them manage and cope with stress. Recognizing that different methods work for different people, we will share several stress reduction options that you can share with employees – all of which can be woven into our professional and/or personal lives.

Three Methods for Coping with Stress

Our Coping and Stress e-book outlines three methods of coping with stress and provides several specific ways to apply them. These three methods for coping with stress are:

  1. Eliminate stressors or change your response to them. Identify the stressors, and then try to reduce or eliminate them.  If that is not possible, try to change how you respond to them. Particularly in times when the source of your stress feels out of your control, it can be empowering to leverage what you always have – your ability to control your response.
  1. Use the coping resources available to you – both personal and relationship coping resources. If you can’t control the accumulation of stressors in your life, use your coping resources to help manage the stress. Your personal coping resources include your attitude, values, spiritual beliefs, nutrition, exercise, and sleep/rest.
  1. Develop new coping resources. Identify and create additional coping resources, which will give you greater means to more effectively prevent and cope with stress. During this unprecedented time, it’s possible that you may experience much higher levels of stress than you typically do. It can help to be open to new ways of dealing with stress these days as you’re likely carrying a much heavier load.

 

Stress-Reducing Breathing Technique

We all were born with the appropriate breathing technique but quickly lose it due to day to day stress. Watch a baby – they breathe long deep breaths in through the nose and out the nose. Studies show that slowing down your breathing calms the nervous system, which in turn lowers blood pressure and heart rate, reduces stress hormone levels and increases energy levels. Therefore, the deep breathing we did when we were born is a highly effective tool against asthma, poor digestion, weight gain, sleeplessness, high blood pressure, heart disease, AND STRESS.

We suggest you try this as a way to calm your mind:

  • Sit in a chair with both feet on the floor with your shoulders back and your chin up.
  • Place your hands on your diaphragm so that you can feel the movement of your breathing.
  • Breathe in deeply through your nose filling your abdomen and chest with air from bottom to top like you are filling a balloon.
  • Exhale all the air out of your nose from top to bottom.
  • Repeat 20 times, even just 5 – 10 will help.

This is just one breathing technique of many. If this one doesn’t work for you, research other techniques until you find one that is comfortable and refreshing for you.

 

Low Impact Exercise

The main way to reduce physical stress is to release endorphins into the bloodstream which is done through exercise. Getting a 20-30 minute workout three to four days a week is critical to keep endorphins flowing and the heart pumping. The key is finding something you like to do. Many turn to Yoga and Pilates for a blend of stress relief and strength development. To optimize the effectiveness of exercise, it can be beneficial to start with deep breathing exercises (like the one provided above) first.

Some low impact exercises we like are:

Yoga Tree Pose (Benefits: focus, concentration, balance, strength, and stretching)

  • Stand straight with your hands at your sides balancing your weight evenly on both feet.
  • Begin to shift the weight over to the right foot, lifting the left foot off the floor.
  • Bend the left knee bringing the sole of the left foot high onto the inner right thigh.
  • Keep both hips squared towards the front.
  • Place your hands on your hips for balance. To advance, raise your hands up in front of you over your head.
  • Focus on something that doesn’t move to help you keep balance.
  • Hold for 30 – 60 seconds.
  • Repeat standing on the left foot.
  • For more challenge, try closing your eyes.

Yoga Plank (Benefits: endurance, core strengthening)

  • Lie on your stomach supporting yourself on your forearms
  • Lift your body parallel to the floor keeping your head/neck in line with your spine looking straight down at the floor
  • Hold this position for 30 – 60 seconds
  • For more challenge, lift yourself up on your arms so your shoulders are directly over your wrists.

Pilates Hundred (Benefits: strengthens the core)

  • Lie flat on the floor on your back.
  • Keeping your back flat on the floor, raise both your legs to a 90-degree angle and then lower back toward the floor to a challenging level without lifting your back off the floor.
  • Keeping your back flat on the floor, raise your head and shoulders off the floor.
  • Keeping arms extended, lift and lower them about two inches from the floor, breathing in on the lift and out on the lower.
  • Do this for 5 up-and-down beats. Repeat 10 times until you have done a “hundred.”

These are just a few of our favorites that can be done almost anywhere but are especially a great way to start your day or to take mental breaks throughout the day. Here are a few resources if you’d like to build your own routine:

 

At the end of the day, the health and well-being of your employees is critical to the future of your business. According to the American Institute of Stress, stress-related healthcare and missed work cost employers $300 billion. It’s easy to see that employers will benefit from supporting their employees’ good physical and mental health. We hope that the suggestions and resources provided here will help you to strengthen your organization and reduce employee stress.

 

Could you use help in meeting your employees’ needs and optimizing their work satisfaction and productivity? Contact us to see how we can help you with your employee relations.

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How To Organize Employee Records And Remain Compliant