The impact of artificial intelligence on hr business processes in russian companies

Analysis of the impact of artificial intelligence on the modern life of people. Correlation between the views of HR professionals and employees on the automation of the hiring process based on in-depth interviews with HR experts and management.

Рубрика Менеджмент и трудовые отношения
Вид дипломная работа
Язык английский
Дата добавления 20.08.2020
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The survey consisted of two components:

1) Open-ended question

2) Questions with answers according to the 7-step Likert scale

The Open-ended question was necessary to compare the perception of employees and experts of artificial intelligence. The question was: "what emotions do you feel about artificial intelligence? (Write 3 emotions)". After that, based on all the received words, two clouds of words were compiled: one from experts, the other from employees. Thus, there was a clear division between the attitude of experts and employees to this technology.

The survey for employees and HR experts looked like this:

1) How ready are you for the implementation of artificial intelligence at the stage of creating a resume database? (AI technologies allow you to evaluate the quality of your resume and select it according to the criteria)

2) How ready are you for the implementation of artificial intelligence at the resume selection stage? (From the created database, the AI will select the most suitable candidates in accordance with the stated criteria)

3) How ready are you for the implementation of artificial intelligence at the interview invitation stage? (In this case, the technology makes it easier for the expert to automatically send invitations to an interview)

4) How ready are you for the implementation of artificial intelligence at the interview stage? (Here we are talking about controlling a person's emotions, speech recognition, and analyzing the behavior and posture of the interviewee)

5) How ready are you for the implementation of artificial intelligence at the digital footprint assessment stage? (For example, AI can evaluate a person's personality based on their social media subscriptions and likes)

6) How ready are you for the implementation of artificial intelligence at the final decision-making stage? (The AI can make recommendations about which candidate is most ideally suited for an open position)

In addition, employees were asked this question: “What emotions do you feel about artificial intelligence? (Write three emotions)”. This was needed to find out if there are common elements of mistrust between employees.

During the survey, it was found that most often among the responses of employees repeated words such as misunderstandings, distrust, and fear. In second place were the words interest and curiosity. Least of all employees responded that they were happy and excited about this technology. In most cases, employees responded that they feel positive emotions, but they consider the resume, interview, and selection a very personal factor and are sure that the use of AI in this case is not acceptable.

The relation to the potential introduction of artificial intelligence at each stage of the recruitment process is described in detail below.

1. Study of a labour market / creating database (Figure 2). The majority of people (72%) are positive about the implementation: they are ready for the fact that artificial intelligence will evaluate the quality of their resume and meet certain criteria. 82% of experts are also positive about this: it will make their work much easier.

Figure 2

2. CV selection (Figure 3). Employees ' opinions on this stage were strongly divided: the percentages of those who voted for each stage varied from 6% to 21%. The experts were more unambiguous in their opinion: their opinion was mostly in the area of 4-5 rating. Most likely, experts do not want to exclude the human factor and have a negative attitude to the fact that artificial intelligence does all the work for them. These thoughts were also confirmed in an in-depth interview. Experts have a positive attitude to artificial intelligence when it is of a recommendatory nature. However, they do not want to give their work completely to technology.

Figure 3

Sending invitations (Figure 4). At this stage, there was a strong positive correlation: 75% of employees and 74% of HR managers scored 6-7, thus showing their positive attitude to the help of artificial intelligence.

Figure 4

4. Conducting an interview (Figure 5). This is one of the last three stages that caused the most dissonance among the opinions of experts and employees. Employees clearly voted against using technologies such as speech recognition and face analysis of the candidate; determining a person's emotions by face and gestures. This will significantly increase the level of stress that employees often experience during the interview, and can significantly constrain their behavior, which will further worsen the results of the interview itself. Experts (56%), in turn, voted for this technology, as it will increase their chances to make a better choice and form a balanced team of professionals.

Figure 5

Checking digital footprint (Figure 6). The survey results for this stage showed a strong inverse correlation, which shows a clear disagreement between the opinions of HR managers and employees. Most people would not want technology to evaluate their personality based on likes and subscriptions on social networks, or evaluate their actions on third-party sites and sources. Many people believe that artificial intelligence can incorrectly interpret their activities and make incorrect conclusions, from which the HR Manager will start in the future. At the same time, HR managers are more open to using this system, as they will have access to a wider range of information.

Figure 6

6. Making a final decision (Figure 7). This stage was also met negatively by employees and positively by HR managers, and showed a strong inverse correlation. Despite the fact that the presence of artificial intelligence at this stage is only a recommendation, people are afraid that eventually HR managers will trust its recommendations too much, and after that artificial intelligence will be the only one who makes decisions. Experts are positive, since this is only a help in making a decision and does not mean losing control of the situation.

Figure 7

Thus, the potential introduction of artificial intelligence in the first 3 stages of the employee selection process for a job was met more positively by employees than the last 3. the Impact of technology in the last three stages is too high, and this can frighten employees. HR managers are more open to this technology and are more ready to implement it at all stages.

Correlation analysis

The authors perform a correlation analysis to show the presence and direction of the relationship between the variables from the questions for experts and for potential employees. The previous section describes the survey in detail and provides graphs of the distribution of responses from experts and candidates. This section contains Pearson correlation tables for variables where Q is the question, x is the question number, E is the experts, and C is the candidates. The Pearson correlation coefficient is used to investigate the relationship between two variables measured in metric scales on the same sample. It allows you to determine how proportional the variability of two variables is. In other words, it characterizes the existence of a linear relationship between two quantities. The Spearman coefficient is used as the correlation coefficient between variables belonging to the ordinal scale, and the Pearson correlation coefficient is used for variables belonging to the interval scale. The authors use a seven-step Likert scale. In practice, it is often mistaken for interval data, since there are more and simpler methods for processing interval data. The summative Likert scale -- because It sums up points -- treats the rating scale of points as an interval scale (ordinal data cannot be summed). Therefore, the authors find the Pearson correlation coefficient, since it is used for interval scales.

This test requires an equal number of responses from experts and potential employees. The authors were able to interview 156 employees of 156 people working in HR and conduct a correlation analysis between two variables 6 times (for 6 questions). The following 6 tables are Pearson correlation tables.

Table 2

Q1E

Q1C

Q1E

Pearson Correlation

1

,826**

Sig. (2-tailed)

,000

N

156

156

Q1C

Pearson Correlation

,826**

1

Sig. (2-tailed)

,000

N

156

156

The first question was: “How ready are you for the implementation of artificial intelligence at the stage of creating a resume database? (AI technologies allow you to evaluate the quality of your resume and select it according to the criteria)”. For the first question, the authors found a strong direct correlation (Table 2). Both potential employees and HR managers actively support the introduction of artificial intelligence. This will undoubtedly make it easier for managers to work. People do not worry that some of their personal data will go unnoticed. At the stage of creating a resume database, artificial intelligence eliminates the routine work of HR managers, and they may be more attentive at other stages, where the skills of employees will not be ignored.

Table 3

Q2E

Q2C

Q2E

Pearson Correlation

1

,598**

Sig. (2-tailed)

,000

N

156

156

Q2C

Pearson Correlation

,598**

1

Sig. (2-tailed)

,000

N

156

156

The second question was: “How ready are you for the implementation of artificial intelligence at the resume selection stage? (From the created database, the AI will select the most suitable candidates in accordance with the stated criteria)”. In the second question, there is also a direct correlation (Table 3), but not as strong as in the first question. This means that people and experts may have some differences on this issue. Experts understand that at this stage there is a mechanical selection of resumes. Candidates would rather have their resumes selected by a person. However, both experts and people are inclined to implement AI at the CV selection stage.

Table 4

Q3E

Q3C

Q3E

Pearson Correlation

1

,673**

Sig. (2-tailed)

,000

N

156

156

Q3C

Pearson Correlation

,673**

1

Sig. (2-tailed)

,000

N

156

156

The third question was: “How ready are you for the implementation of artificial intelligence at the interview invitation stage? (In this case, the technology makes it easier for the expert to automatically send invitations to an interview)”. There is also a moderate direct correlation in this issue (Table 4), but stronger than in the second question. That is, both managers and employees are not against the introduction of AI at the stage of sending interview invitations, however, experts are more for it, and employees are treated differently. Most likely, this is due to a lack of understanding that both artificial intelligence and humans send these invitations automatically. Despite this, it is more convenient for people to arrange an interview time with a live person than with artificial intelligence technology.

Table 5

Q4E

Q4C

Q4E

Pearson Correlation

1

- 0,742**

Sig. (2-tailed)

,000

N

156

156

Q4C

Pearson Correlation

- 0,742**

1

Sig. (2-tailed)

,000

N

156

156

The question number four was: “How ready are you for the implementation of artificial intelligence at the interview stage? (Here we are talking about controlling a person's emotions, speech recognition, and analyzing the behavior and posture of the interviewee)”. There is a strong inverse correlation on this issue (Table 5). Experts more knowledgeable about artificial intelligence technologies would be willing to implement emotion monitoring or a lie detector during the interview to get more information about the candidate. Candidates who do not always tell the truth in interviews, perhaps embellish their merits, are against it. On the other hand, it may also be because people are afraid that artificial intelligence will not notice some of their personal qualities that a live interviewer will notice, so people are against fully automating the interview.

Table 6

Q5E

Q5C

Q5E

Pearson Correlation

1

- 0,628**

Sig. (2-tailed)

,000

N

156

156

Q5C

Pearson Correlation

- 0,628**

1

Sig. (2-tailed)

,000

N

156

156

The fifth question was: “How ready are you for the implementation of artificial intelligence at the digital footprint assessment stage? (For example, AI can evaluate a person's personality based on their social media subscriptions and likes)”. A moderate inverse correlation was found on this question (Table 6). People's ambiguous opinions may be based on a lack of understanding of the process of implementing artificial intelligence in the analysis of their social networks. Moreover, people do not like machine analysis of their personal data. Experts who have a better understanding of how it works see it as a practical benefit.

Table 7

Q6E

Q6C

Q6E

Pearson Correlation

1

- 0,811**

Sig. (2-tailed)

,000

N

156

156

Q6C

Pearson Correlation

- 0,811**

1

Sig. (2-tailed)

,000

N

156

156

The last question was: “How ready are you for the implementation of artificial intelligence at the final decision-making stage? (The AI can make recommendations about which candidate is ideal for an open position)”. A strong inverse correlation was found on this question (Table 7). Experts believe that they need tips from artificial intelligence, since it does not make a decision for them and does not deprive them of their work, but conducts a qualitative analysis of the candidate and gives them recommendations, not an unambiguous decision. Candidates do not think artificial intelligence is competent enough to participate in making the final decision about accepting them back to work.

Hypotheses

The authors investigate two questions.

RQ1: To what extent do the opinions of experts and employees on the issue of fully automating HR business processes coincide?

RQ2: From which stages of HR processes the implementation of AI can be started with the smallest resistance?

The relevant hypotheses for the research are:

1) (For RQ1) HR managers are more likely to accept the automatization of the HR business processes than usual employees are.

2) (For RQ1) There are common elements of mistrust to artificial intelligence between employees.

3) (For RQ2) The stage of inviting people to the interviews is the optimal choice for the start of AI implementation.

As can be seen from the correlation analysis, hypothesis number one is proven with the help of correlation analysis. A clear illustration is seen in paragraph 4.4: the charts also give us trend lines, which all have an uptrend. People's responses are prone to a downward trend, which is also evident from the graphs and the inverse correlation for questions 4, 5, 6. This means that experts who are with no doubts are more aware of the use of artificial intelligence are ready to shift part of their routine work to it, as well as use technology in tracking people's emotions even during face-to-face communication.

The following diagram (Figure 7. Word Map for employees) illustrates the second hypothesis. The authors can conclude that there are common emotions that candidates experience, are

Figure 8. Word Map for employees

The authors refute the third hypothesis. The initial assumption that sending interview invitations will have the strongest correlation and approval from both managers and candidates is not confirmed. The strongest direct correlation is seen in question 1 (i.e. in the Study of a labor market / creating database stage). Therefore, in the ranking of recruitment stages in paragraph 5, the sending interview invitations stage is put in second place. There, the stages are distributed according to the least resistance from managers and employees that occurs when artificial intelligence is introduced at this stage.

The findings

Detailed conclusions and a field for future research are described in the "Conclusion" section. To summarize the results, the authors would like to draw a conclusion about how the information they received can be useful to companies.

First of all, companies can take into account the results of the analysis and consider that the safest and most acceptable stage to start implementing artificial intelligence in the recruitment process is to analyze the market and compile a database of candidates. At this stage, artificial intelligence does not affect candidates in any way, but only facilitates the routine task of HR managers. Employees often may not even know that this stage is fully or partially automated. The authors also provide a consistent list of recruitment stages for the implementation of artificial intelligence technologies. It is undoubtedly necessary to implement it gradually, so that resistance from managers and potential employees is minimal. Moreover, so that managers have time to get acquainted with the new technology. If you implement these technologies too quickly, it can cause a negative reaction and misunderstanding on the part of employees, as well as too fast implementation without competent and detailed instructions and explanations can negatively set up HR experts.

Second, this research is useful for potential employees. After reading it, people will understand that artificial intelligence is not a scary robot, but a program, and its implementation is more of a recommendation. These technologies are also useful for people and make their work easier. Therefore, more and more companies are starting to implement it, and people in search of work should be prepared for the upcoming changes. Moreover, people can understand at what stages the introduction of artificial intelligence is likely to begin, and that the impact on them will be minimal at first.

Conclusion

In this study, work was done to identify the impact of artificial intelligence on HR business processes in Russian companies. In-depth interviews with experts were conducted, based on which content analysis was conducted and a survey was compiled for further research. During the survey, the opinions of experts and employees about the potential introduction of artificial intelligence in the company were found out. This was followed by a correlation analysis that revealed three different types of correlation. A strong positive correlation was observed with respect to such stages as study of a labor market / creating database and sending invitations. At these stages, artificial intelligence has the least influence on employees, so they are willing to entrust these stages to artificial intelligence. Experts, in turn, are also ready for implementation, as this will greatly facilitate their work. A weak positive correlation appeared at the CV selection stage. In this case, we can not say that the respondents were definitely "for" or "against" the introduction of AI at these stages, since opinions are very much divided. Finally, a strong negative correlation was observed at the stages of interviewing, checking digital footprint, and making the final decision. In this case, the employees responded unequivocally against these changes, since there is a distrust of this technology and a fear of being rejected because of the algorithm. People are used to trust people. At the same time, experts mostly voted for the implementation, since such changes are of a recommendatory nature and help to get to know the Respondent better, which means making the right choice in the future. In General, the following trend was identified: most employees are more negative towards artificial intelligence, especially at those stages where it has the strongest influence on them. At the same time, HR managers are much more open to implementing this technology.

Thus, two stages were identified, from which the introduction of artificial intelligence in the company will be met with the least resistance from society. Further implementation should also be gradual. Thus, this is the order of stages from which artificial intelligence can be implemented:

1) Study of a labor market / creating database

2) Sending invitation

3) CV selection

4) Checking digital footprint

5) Making a final decision

6) Conducting an interview

Thus, the implementation process will be gradual, people will get used to this technology, and each new stage will be easier to accept. As mentioned in various interviews with experts, very often the problem is too abrupt changes that people do not have time to get used to, which is why they begin to experience stress and rejection. However, if the process is slow, the introduction of artificial intelligence will not cause a strong public response. As mentioned earlier, the more people are aware of the principles of artificial intelligence, the less fear they feel.

The main conclusions that were obtained by the authors in the course of this study are be listed below.

a) Employees are more negative about the introduction of artificial intelligence, as they are afraid of its impact on their future employment.

b) HR managers have a positive attitude to the introduction of artificial intelligence at all stages, when it is of a recommendatory nature. However, they do not want to give up their work completely and lose control of the situation.

c) The more people are aware of the principles of artificial intelligence, the less they are afraid to accept its implementation. Most often, people experience fear, anxiety, and distrust due to a lack of understanding of what they will have to face.

d) And HR managers, and employees converge in one thing: they are ready to start implementing artificial intelligence from the stages of sending out invitations to interviews and study of a labor market.

In addition, based on the results obtained, assumptions are made about what consequences this may have for the HR market. The authors believe that the introduction of artificial intelligence can lead to the standardization of CV employees, if they understand what criteria increase the probability of selecting a resume for a particular job. The second consequence may be the control of behavior in social networks. If people know that their behavior will be evaluated, they usually try to limit or exclude actions that can compromise them, and can also be interpreted in a negative way. Another possible consequence will be the fact that if employees know that their speech and emotions will be evaluated, it is likely that they will apply at a place of work where they sincerely want to work. HR managers may be affected by these changes in the following ways: first, the recruitment process will be accelerated, since recruiters will not have to spend extra time on mechanical work. Secondly, there may be a reduction in the staff of HR departments, since the functions of some people may actually be replaced by the work of artificial intelligence.

As for the future research, the authors are ready to expand it and consider the impact of artificial intelligence on other business processes in Russian companies. For example, this technology can be used for calculating risks, conducting marketing research, creating a brand promotion strategy, accounting, evaluating the company's value, establishing internal communications and other important business processes for the company.

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Appendix

Interview protocol

“The influence of implementation of artificial intelligence in HR business processes in Russian companies”

Research question

RQ1: To what extent do the opinions of experts and employees on the issue of fully automating HR business processes coincide?

RQ2: From which stages of HR processes the implementation of AI can be started with the smallest resistance?

Brief description of the project

The main objective of the project is to explore the coherence of relation of HR experts and employees towards the implementation of artificial intelligence and to identify the main stages of HR business processes from which the implementation of artificial intelligence will be met with the smallest resistance from the society.

Starting the interview

Good afternoon, Mr. X, so glad to see you! My name is Mr. Y and today we will talk about the use of artificial intelligence in HR business processes in your company. The purpose of our project is firstly to explore the coherence of relation of HR experts and employees towards the implementation of artificial intelligence. The second objective is to identify the main stages of HR business processes from which the implementation of artificial intelligence will be met with the smallest resistance from the society. All that you mention will be used only in research aims and is not available for the third parties. Do you allow us to record the interview, please? Thank you!

Questions

1. What skills are mostly demanded among the employees of your company?

2. Please describe the HR business process, according to which You work, highlighting the main stage.

3. Do you know what is artificial intelligence? Please describe how you perceive it.

4. Are you familiar with such AI types as hard and weak artificial intelligence? (If the answer is negative, a brief explanation is given)

5. Please describe the degree of implementation of artificial intelligence in HR business processes using a scale from 1 to 10.

6. Are you ready to implement artificial intelligence in your HR business processes? Why?

Ending the interview

Thank you for your responses! We appreciate your participation.

Creative skills

Technical skills

Communication skills

Akimov's Theater

Navsegda Agency

Aurora Festival

Yandex

Procter&Gamble

Sinyavinskaya Poultry Farm

PGSC Nevskoe PKB

PGSC Severstal

Ecotermix

VKontakte

McKinsey

Casall

Hotel «Nash Hotel»

LLCRolf

SeReNi

ty

What skills are mostly demanded among the employees of your company?

creativity

1

1

1

1

1

0

1

0

0

1

1

0

0

0

1

communication skills

1

0

1

0

0

0

0

0

1

1

1

1

1

1

1

stress tolerance

0

1

1

1

1

1

1

1

1

0

0

0

1

0

0

adaptivity

1

1

1

1

1

0

0

0

0

1

1

0

0

0

1

flexibility

1

1

1

1

1

0

1

1

0

1

0

1

0

1

1

experience in PhotoShop and Adobe Illustrator, Figma etc.

1

1

1

1

1

0

0

0

0

0

0

0

0

1

1

literacy

1

1

1

0

1

1

1

0

0

0

1

1

1

0

0

MS Office

1

0

0

1

1

1

1

1

1

1

1

0

0

1

1

well delivered speech

1

1

1

1

1

0

1

0

1

1

0

1

1

1

0

technical mindset

0

0

0

0

0

1

1

1

1

1

1

0

0

0

0

experience in IT industry

0

0

0

0

0

0

0

0

0

1

1

0

0

0

0

ability to do monotonous work for a long time

0

0

0

0

0

1

1

1

1

0

0

1

0

0

0

engineering skills

0

0

0

1

0

1

1

1

1

1

0

0

0

0

0

skills of work with large Photocopying services

0

0

0

0

0

0

1

1

1

0

0

0

0

0

0

working in the oil and gas industry

0

0

0

0

0

0

0

1

0

0

0

0

0

0

0

ability to solve complex technical problems

0

0

0

1

0

1

1

1

0

1

0

0

0

0

0

ability to quickly understand technical problems

0

0

0

1

0

1

1

1

1

1

0

0

0

0

0

ability to advise clients on technical issues

0

0

0

1

0

0

1

1

1

1

1

0

0

0

0

knowledge of organic and inorganic chemistry

0

0

0

0

0

0

0

0

1

0

0

0

0

0

0

knowledge of physics

0

0

0

0

0

1

0

1

1

0

0

0

0

0

0

technical education

0

0

0

0

0

1

1

1

1

1

0

0

0

0

0

ability to convince the client

0

0

0

0

1

0

0

0

1

0

1

1

1

1

1

active life position

0

1

1

1

1

0

0

0

0

0

1

1

1

1

1

ability to speak correctly

1

0

0

0

0

0

0

0

0

0

0

1

1

1

1

Please describe the HR business process, according to which You work, highlighting the main stage

make a list of requirements for the job

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

analyze people who applied for the vacancy

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

analyze portfolio

1

1

1

1

1

0

0

0

0

0

1

0

0

0

1

looking for the perfect CVs

0

1

0

0

0

1

1

1

1

1

1

0

0

0

1

looking for candidates

1

0

1

1

1

0

0

0

0

0

0

1

1

1

1

analyze what skills are suitable for jobs

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

create a table of candidates

1

1

1

1

1

1

0

1

0

0

1

0

0

1

1

analyze the table with the candidates

1

1

1

1

1

1

0

1

0

0

1

0

0

1

mark the most suitable candidates

1

1

1

1

1

1

0

0

1

0

0

0

0

1

1

call candidates

0

0

1

0

0

1

1

1

1

1

1

1

1

0

0

invite candidates for interviews

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

send letters to candidates

1

1

0

1

1

0

0

0

0

0

0

0

0

1

1

check the social network candidates

1

0

0

1

0

0

1

0

0

1

0

interviewing

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

give a test task

1

1

1

1

1

0

0

0

0

1

1

0

0

0

sends the data passed to the security service

0

0

0

1

1

1

1

1

1

1

1

0

0

1

1

decide

1

1

1

1

1

1

1

1

1

1

1

1

1

1

1

The survey for experts and employees is the same:

1. How ready are you to implement artificial intelligence at the stage of creating a resume database? (AI technologies allow you to evaluate the quality of your resume and select it according to the criteria)

2. How ready are you to implement artificial intelligence at the resume selection stage? (From the created database, the AI will select the most suitable candidates in accordance with the stated criteria)

3. How ready are you to implement artificial intelligence at the interview invitation stage? (In this case, the technology makes it easier for the expert to automatically send invitations to an interview)

4. How ready are you to implement artificial intelligence at the interview stage? (Here we are talking about controlling a person's emotions, speech recognition, and analyzing the behavior and posture of the interviewee)

5. How ready are you to implement artificial intelligence at the digital footprint assessment stage? (For example, AI can evaluate a person's personality based on their social media subscriptions and likes)

6. How ready are you to implement artificial intelligence at the final decision-making stage? (The AI can make recommendations about which candidate is ideal for an open position)

7. What emotions do you feel about artificial intelligence? (Write 3 emotions)

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