Exploring Artificial Intelligence’s Role in HR to Transform Performance Management using Skills-Based Hiring Strategy

Author(s): Sree Lekshmi Sreekumaran Nair, Jonathan Liu & Ozlem Ozdemir

Abstract: With the advancement of technology, organisations must consider how such advancements could be adopted to maintain competitive. This paper explores the role of using Artificial Intelligence (AI) in HR to transform performance management using skills-based hiring. Many organisations have used AI in HR to make suitable hiring decisions through human interventions. AI uncovers the skills and competencies needed for the job and makes appropriate decisions on how the hired employee can perform better. This study uses available literature to analyse different studies on AI’s role in HR using a skills-based hiring strategy. The study concluded that AI will transform how performance management is monitored, which will help the organisation adapt to the technology. Moreover, through AI, managers can make decisions quickly and provide immediate feedback to the employees. However, the organisation needs to consider the challenges associated with AI. This paper provides a comprehensive overview of various aspects of skills-based hiring and offers practical insights into its long-term adoption for supporting performance management. Theoretical frameworks related to skills-based hiring and examples of real-world challenges HR professionals face are explored.

Keywords: Artificial Intelligence, HR, Performance Management, Skill-Based Hiring Strategy & Systematic Literature Review

Date Published: December 12 2024

Depositing User: Basiratu Kolawole

Pages: 1-19

Subject(s): Human Resource Management & Business

Type of publication: Journal Paper