We are excited to welcome Vanesa Zlatanova to the HR Innovator event in Sofia, Bulgaria on October 29th. Vanesa will be taking part in a thought-provoking panel discussion on "The Future of HR: AI in HR and the Role of HR as a Strategic Partner in Organizations." This topic explores the evolving landscape of HR, the integration of AI technologies, and how HR can position itself as a strategic partner in driving organizational success.
Interviewer: Thank you for joining us today, Vanesa. To start, could you give us a brief overview of your background and experience in HR?
Vanesa: Well, my passion for HR began during my university years while studying for a Bachelor's degree in Business Administration General (English program) and later a Master's degree in Human Resources Management at Sofia University St. Kliment Ohridski. My professors inspired me to pursue a career in HR and explore various growth opportunities.
My first job in the field wasn't exactly what I had envisioned, but as a Payroll Specialist, I gained valuable insights that paved the way for my development as an HR Consultant. Eventually, I became an IT Recruitment Consultant, choosing agency work to gain a broad perspective and manage multiple positions and projects simultaneously. This experience allowed me to understand the market deeply and observe its evolution.
Subsequently, I took on the role of Multinational Recruiter for the European Union and managed a groundbreaking project for the Bulgarian market – B2B contracting. This was a novel concept at the time, and I had the privilege of being part of the founding team that established and expanded it. Working with multinational companies in various locations provided me with diverse perspectives.
My career journey then progressed to leading a team, where I could support my colleagues with the knowledge I had acquired along the way.
Interviewer: What inspired you to focus on the integration of AI in HR?
Vanesa: From the moment I entered the IT recruitment field, I have closely monitored trends in the sector, including emerging technologies, market gaps, and the latest tools being introduced. As an external observer, I witnessed the gradual influence of AI on the market, particularly from around 2022, as it began to automate some repetitive tasks in various professions. I am optimistic about AI's potential to enhance productivity and improve work-life balance across sectors. The key challenges lie in selecting the right tools for each business and utilizing them effectively to maximize benefits.
In the HR sector, both my colleagues and I regularly use AI tools, ranging from open-source platforms like ChatGPT to customized AI solutions that save valuable time. This allows HR professionals to focus on the most crucial aspect of their work: the people. My primary motivation for exploring and integrating AI tools is to answer a central question for HR professionals: how can we leverage modern technology to better understand and meet the needs of our people?
Interviewer: How do you see the role of HR evolving in the next 5-10 years?
Vanesa: Historically, the HR role was primarily administrative and not highly significant. However, every book on HRM emphasizes that employees are a company's main asset, with HR professionals supporting employees and maintaining organizational culture. I believe HR will become increasingly vital in business strategy and planning.
In recent years, driven by technological advancements, changing workforce demographics, and shifting organizational priorities, HR has evolved into a strategic partner in organizational structures. This includes integrating AI and data analytics, adapting to new work models (remote, hybrid, or onsite), enhancing employee and candidate experiences, and developing retention and employment strategies. HR has become an integral part of upper management, and I see no signs of this changing.
As conditions evolve and the environment rapidly changes, HR professionals will remain essential in various departments and in the decision-making process for an organization's future development.
Interviewer: What are some of the key benefits of incorporating AI into HR processes?
Vanesa: Based on my experience with AI tools, I can highlight several key benefits. Firstly, there is an improvement in the recruitment and hiring process, particularly in candidate screening, with AI helping to reduce bias and provide additional evaluations of candidates. Secondly, there is increased efficiency in HR operations, as automated administrative tasks can be completed more quickly, allowing HR professionals to focus on more critical tasks if they are adept at using AI tools. Additionally, AI provides valuable data and analysis that can enhance decision-making for those who can effectively interpret the data.
I am confident that even more benefits can be discovered across different HR divisions if AI tools are utilized correctly. I would love to hear other opinions on this matter!
Interviewer: Can you share some examples of how AI is currently being used in HR?
Vanesa: There are several examples of using AI in various aspects of HR. For instance, some Applicant Tracking Systems (ATS) have integrated AI tools to review CVs, providing HR experts with basic information on how well a candidate's profile matches the job requirements. This helps in crafting more insightful interview questions. However, it's crucial to consider how the job advertisement is written and the information the candidate includes in their application, as the human factor remains essential on both sides. While AI can provide a solid starting point, it cannot entirely replace human judgment.
Another area where AI is making an impact is LinkedIn, which uses AI tools to offer personalized message suggestions and track down the most suitable candidates for a position. Yet again, the human element remains vital in this process.
Open-source AI tools, such as ChatGPT, are also valuable for HR experts seeking ideas and information. AI platforms can assist in scripting online meetings, ensuring all significant topics are covered, and visualizing concepts based on descriptions. These tools enhance efficiency but always require a human touch to maximize their effectiveness.
Interviewer: What challenges do organizations face when implementing AI in HR, and how can they overcome them?
Vanesa: The most challenging part will always be the beginning: analyzing the organization's business model and selecting the right AI tools that will genuinely optimize operations and be beneficial for daily use by employees. If a company invests in AI simply because it is trendy, without thorough research and planning, it risks wasting financial and time resources without achieving the desired outcomes.
Another challenge is the generational diversity within the workforce. Younger employees are typically more open to and comfortable with rapid changes, while more experienced workers may require additional time and practical training to effectively use AI and achieve better results.
Interviewer: How can HR professionals ensure that AI tools are used ethically and responsibly?
Vanesa: This topic raises many questions. Currently, there are no strict regulations on when and how AI should be used. In my opinion, when integrating any AI tool or platform, it is essential to educate every employee who will use it about its capabilities. This ensures that people understand when and how to use AI practically.
Some leading companies implement internal restrictions on AI usage, specifying the scenarios in which AI is permitted. A comprehensive approach should include clear policies on the ethical use of AI, compliance with local and international regulations, transparency about AI usage and its impact, techniques to identify biases in AI algorithms, monitoring data privacy and security, and involving employees in decision-making. This approach helps ensure the ethical and responsible use of AI in business.
Interviewer: What skills do HR professionals need to develop to stay relevant in the age of AI?
Vanesa: AI aims to take over many repetitive tasks across various professions, including HR. This shift is transforming the required skill sets for many positions. In the HR sector, there is a high demand for skills such as digital literacy to navigate and upgrade HR systems and tools, and data literacy to make informed decisions based on trends.
HR professionals must also be adaptable and open to new technologies and trends, develop strategic thinking, planning, and creativity skills, and prioritize continuous learning and development. Most importantly, HRs must maintain a human-centered approach, leveraging emotional intelligence to understand and meet the needs of people, despite the growing reliance on technology and tools.
Interviewer: How can HR position itself as a strategic partner within an organization?
Vanesa: I'd like to take a step back and clarify the difference between Human Resources Management (HRM) and Personnel Management. Personnel Management focuses on the administrative aspects, where HR specialists handle documentation and related tasks. In contrast, HRM positions HR specialists as strategic partners, responsible for nurturing and developing the human capital within an organization to add value.
Despite technological advancements, human influence remains irreplaceable, and human resources are still an organization's most valuable asset. The HR department's role as a strategic partner has become even more crucial, ensuring that the human resources development strategy aligns with the business strategy. By understanding business goals and integrating appropriate talent and development strategies, HR can ensure employees have positive experiences and receive the attention they deserve. This strategic partnership fosters loyalty, retention, growth, and meaningful contributions to the business's goals.
Interviewer: What advice would you give to HR leaders who are hesitant about adopting AI technologies?
Vanesa: Change is the only constant, and AI has been a part of everyday life for the past couple of years, with its influence on various businesses increasing steadily. The adoption of AI technologies is already transforming the HR function and many other roles. It's natural to have hesitations due to concerns about implementation, ethics, and regulations.
Instead of being hesitant, I advise adopting a proactive strategy: explore AI, experiment with its capabilities, and understand both its benefits and limitations. Learn and explore with your team to gain a clearer perspective on the current landscape. This approach will help HR leaders make informed decisions about which AI tools to select, how to manage AI effectively, and how to implement it with minimal risk. Additionally, as previously mentioned, providing proper training and education to the team is crucial.
Interviewer: Can you share any success stories of organizations that have effectively integrated AI into their HR practices?
Vanesa: Certainly! BPO and IT companies were among the pioneers in adopting AI tools for various aspects of their operations, including recruitment, talent management, and employee engagement.
In recruitment, AI tools assist in CV screening by evaluating and identifying the best-fit candidates. However, it's important to remember that these evaluations should be complemented by human judgment.
For talent management, AI is utilized for predictive analytics to identify high-potential employees and aid in career development planning. In learning and development, AI algorithms personalize learning experiences by recommending courses and training tailored to individual career goals and skill gaps.
Interviewer: How do you see the relationship between HR and AI evolving in the future?
Vanesa: In our rapidly evolving world, making clear predictions is challenging. However, I firmly believe that human resources will remain the most valuable asset for organizations, regardless of how advanced AI becomes. It is likely that decision-making will increasingly rely on advanced data analytics, with AI tools offering greater customization across various domains. Tasks that can be automated accurately will be fully automated, allowing people to concentrate on more critical work. With responsible and ethical use, AI will become an integral part of everyday life. At some point, we may depend on AI for certain tasks so seamlessly that we might not even notice its presence.
Interviewer: Thank you, Vanesa, for sharing your insights. We look forward to your presentation at the HR Innovator event in Sofia.
Vanesa: Thank you very much, George, and the entire HR Innovator team, for the warm welcome and invitation to participate in the conference.
Don’t miss out on this exciting opportunity to hear more from Vanessa and other industry leaders. Book your ticket now to join us in Sofia, Bulgaria on October 29th for the HR Innovator event. Click here to book your ticket. Get ready to be inspired and equipped with the latest insights in HR innovation!
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