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82% of organizations use AI to assess employee retention and turnover

May 18, 2023

Human resource professionals are increasingly using artificial intelligence to manage employees in their organizations, according to a survey by the Society for Human Resource Management. Among HR professionals, 82% said their organization uses people analytics AI to assess employee retention and turnover and 71% use it to assess recruitment, interviewing and hiring.

“HR leaders are increasingly looking to people analytics as a tool to answer key business questions, as 74% of HR executives whose organizations use people analytics say that people analytics is essential to their organization’s HR strategy,” said Alex Alonso, chief knowledge officer at SHRM. “If HR professionals and leaders use people analytics and AI appropriately, they can make more effective decisions, improve the employee experience and impact the bottom line.”

However, the report found that more than half of HR executives who use people analytics said their organization needs more resources to upskill HR professionals on data literacy (58%) and to support their data infrastructure (56%).

According to the report, only 29% of HR professionals who use people analytics believe their organization’s overall data quality is high or very high. In addition, 95% of HR professionals whose organizations use people analytics agree that it is important to understand the rationale behind an AI algorithm’s decisions and 88% would not trust the recommendations without this knowledge.

SHRM surveyed 2,149 HR professionals who work for organizations using people analytics for the report.