Advancements in technology are driving continued evolution throughout the insurance industry. From insurtech and telematics to artificial intelligence (AI) and digitalization, the industry continues to face increased disruption across all areas and functions.
Within the human resources segment, AI and predictive analytics are beginning to play an important role throughout the recruitment and staffing process — from sourcing through retention. Organizations are utilizing new technologies to pull increasingly in-depth data and information that can establish trends and develop insights throughout the employee lifecycle. In addition, automation is providing a number of advantages that can be leveraged for recruitment and retention.
Within the insurance industry, the war for talent continues to rage. As a result, organizations are looking for new ways to successfully fill their critical open roles. More and more, they are harnessing evolving AI capabilities to better source and match candidates.
According to a recent LinkedIn survey, 46 percent of talent acquisition leaders report that their recruiting teams struggle to source and attract qualified candidates. Incorporating AI into the sourcing phase allows teams to streamline the process and increase recruitment success. This technology searches the multitude of available data provided online — including resumes, professional portfolios and social media profiles — to find passive candidates who match job requirements. It can also be used to narrow down and identify key sources that have historically produced the highest success in terms of hires and placements for an organization.
In addition to talent sourcing, 52 percent of talent acquisition leaders from the LinkedIn survey report that identifying the right candidate is the hardest part of their jobs. By using automated candidate matching systems, organizations are able to utilize an algorithm to identify the strongest matches for open roles. Multiple algorithms pull from multiple sources to gather data on skills, salary preferences, personality traits, qualifications and experiences. AI is then able to compare that information against the job requirements and organizational culture. The systems are also able to identify candidates who have opted in and are either actively job seeking or are considered open to new opportunities.
With modern talent acquisition supported by AI, the time used for the recruitment process is cut nearly in half. In addition, the candidate search is efficiently narrowed down to only the best matches.
Turnover is a constant concern for organizations. In today’s tightened labor market, ensuring employees are engaged is critical to increasing retention and cutting down on turnover. Fortunately, predictive analytics is providing organizations with unique insights into employee retention.
Human resources continues to collect enormous amounts of information. In addition, the rise of employee engagement surveys and other metric-gathering systems are garnering additional data that can provide an inside look at turnover and retention. Depending on the metrics collected, some analytic systems are able to predict pending turnover. These insights are helping organizations be more proactive in addressing the top reasons employees are leaving.
Companies are also utilizing analytics to gain a deeper understanding of the true cost of turnover. By determining the cost-per-hire and the cost-per-turnover, organizations are able to gauge whether it is costlier to retain current employees than to replace them.
AI and analytics are predicted to transform the recruitment area in the coming years. These technological advancements are being used to streamline and automate many of the time-consuming tasks historically undertaken by recruiters. As a result, these professionals are able to be more strategic and focus on the critical piece of recruitment — relationship building. The true role of emerging HR tech is to enable today’s recruiters to develop real connections at a more efficient speed. While AI and analytics can help, it is still important for recruiters to grow connections and have real conversations with candidates.
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