‘Savvy HR talent management leaders and C-suite leaders need to really embrace and leverage AI for everything it can bring to the organization’
As artificial intelligence (AI) continues to penetrate every facet of business, its transformative role in hiring and retaining talent is no longer a theoretical promise—it’s a strategic necessity.
But organisations are far from aligned in how they’re leveraging AI, says leadership expert Denis Cauvier, who argues that most employers remain “all over the place” when it comes to implementation.
“Typically, with any innovation, you have your early adopters. Those are the ones that are getting messy with it and trying to figure it out and then, invariably, leading the curve,” he says.
However, there are still “laggards.”
“There's a number of organisations that are just not looking at AI… like the proverbial ostrich with their head in the sand.”
These companies may be in trouble.
In his book titled The 80/20 AI Advantage, Cauvier notes: “Failing to integrate AI into HR processes presents a major competitive risk. A recent PwC report found that companies not using AI-based hiring solutions experience 25 per cent longer hiring cycles and higher employee turnover rates compared to AI-enabled organisations. Furthermore, Gartner predicts that by 2026, organisations failing to implement AI in HR will see a 50 per cent decrease in hiring efficiency, further widening the gap between AI-powered businesses and those struggling to adapt.”
Overall, 77% of Canadian companies report significant challenges in finding qualified workers, according to the ManpowerGroup.
Why are companies not using AI?
Fear is the number one hindrance to AI adoption among employers, says Cauvier.
"A lot of these people are HR practitioners. In other words, they're very humanistic-focused. They don't want to lose jobs. They want to protect jobs, and they feel that, perhaps, by resisting… then it might protect the jobs,” he says.
That’s a false assumption, he argues.
“Jobs are changing very, very quickly. Is AI going to be the death of all jobs? No. However, a lot of jobs will become very redundant—and have already become redundant—as new ones will emerge. My thinking is savvy HR talent management leaders and C-suite executives need to really embrace and leverage AI for everything it can bring to the organisation.”
AI assistants will soon be available to many workers, and employers must urgently establish ethical guidelines around their use, according to one Canadian academic.
How is AI used in talent hiring, retention and management?
To fully capitalise on AI’s capabilities, Cauvier recommends the following best practices for HR professionals:
- Start with clarity: Develop a high-quality, accurate job description to serve as the foundation for recruiting and performance management.
- Use AI for personalisation: Leverage AI tools to tailor training, onboarding, and coaching plans to individual employees’ learning styles and strengths.
- Train your AI: Invest time in training your AI tools with the right prompts and data to reflect your organisation’s unique needs and culture.
- Measure with intent: Use AI to track key performance indicators, but ensure the data inputs are specific and meaningful.
- Build with a long-term view: The first attempt at integrating AI might take longer, but it becomes a scalable, repeatable asset once set up correctly.
He notes that employers must “look beyond the obvious” when it comes to AI use. “The obvious is automation.”
Instead, they must focus on augmentation, he says.
“Augmentation is really about how you can not only automate, but bring additional value… AI, when used effectively, augments business results, and actually drives the bottom line.”
In his book, Cauvier notes that employers can determine the success of AI implementation in HR, by tracking the following key performance indicators (KPIs):
- Time-to-Hire Reduction: Measure the decrease in the time required to fill a position. AI-powered hiring can reduce hiring cycles by up to 50%.
- Quality of Hire: Evaluate performance ratings and retention rates of new hires brought in through AI-driven recruitment.
- Cost-Per-Hire: Track reductions in recruitment costs due to AI automation. Companies using AI reduce hiring expenses by 40%.
- Turnover Rate: Measure changes in employee retention rates before and after AI integration.
- Candidate Experience Scores: AI-enhanced application and interview processes improve candidate satisfaction, increasing acceptance rates.
- Recruiter Efficiency: Assess the number of candidates screened, interviewed, and selected per recruiter per month.
- Employee Engagement Levels: AI-powered feedback tools can increase engagement by 40%, resulting in lower attrition rates.
- Diversity & Inclusion Metrics: AI can remove bias from hiring decisions, increasing workplace diversity by up to 30%.
While technology often enhances workplace productivity, it can also hinder efficiency if not managed properly, warns one expert.
