39% of Employees Believe Current Level of AI Involvement in HR Processes is Appropriate; 20% Prefer More

Rhea-AI Summary

Paychex, Inc. study unveils differing opinions between HR professionals and employees on AI in HR processes. 41% of employees prefer less AI involvement, while 85% of HR professionals find AI beneficial. HR professionals save 7.5 hours weekly with AI, transforming functions like analytics, talent acquisition, and onboarding processes.

Insights

Market Research Analyst

The integration of artificial intelligence (AI) into human resources (HR) practices presents an evolving landscape in the realm of operational efficiency and employee satisfaction. The study by Paychex, Inc. highlights a significant divide in perception between HR professionals and employees regarding AI's role in HR processes. This divergence in views could influence corporate decisions on technology investments, as well as the adoption and implementation strategies of AI within companies.

From a market research perspective, the findings suggest a need for businesses to closely monitor the impact of AI on HR efficiency, such as the reduction of nearly a full workday every week in tasks related to recruitment and screening. The data underscores the potential for AI to reshape functions like analytics, talent acquisition and onboarding/offboarding processes. Companies investing in these technologies could see a competitive advantage in talent management and operational costs.

However, the discomfort expressed by a majority of employees regarding AI-led HR departments and the potential for increased turnover should AI replace human-led teams is noteworthy. This sentiment could impact employee retention rates and, ultimately, the employer brand. It is essential for businesses to navigate these concerns carefully to maintain a balance between technological efficiency and human interaction that aligns with employee expectations.

Human Resources Expert

From an HR standpoint, the study's insights into the perceived benefits of AI, such as providing useful data and reducing bias, are critical. These advantages can lead to more informed decision-making and potentially more equitable workplace practices. However, the report also surfaces a clear need for transparency in the AI processes involved in HR decisions, as only 11% of employees feel the process is transparent.

Furthermore, the strong preference for human-led interactions in areas such as conflict resolution and sensitive issues like layoffs or disciplinary actions indicates that while AI may enhance certain HR functions, it cannot fully replace the nuanced understanding and empathy required in these areas. HR departments must therefore ensure that AI tools are used to complement human judgment rather than substitute it, especially in areas requiring a high degree of emotional intelligence.

Technology Implementation Consultant

Considering the technological implications, the study provides insight into how AI is perceived to transform HR functions. The role of a Technology Implementation Consultant becomes crucial in bridging the gap between HR professionals' and employees' perspectives. The consultant would advise on the implementation of AI in a manner that optimizes efficiency without compromising the human elements valued by employees.

Strategic implementation must focus on areas where AI can provide clear benefits, such as data management and analytics, while maintaining a human presence in sensitive areas. Additionally, the consultant can guide companies in creating a transparent AI strategy that includes employee education about AI's role and benefits, addressing fears and misconceptions and involving employees in the transition process. This approach can help mitigate resistance and foster an environment where AI is viewed as a supportive tool rather than a replacement for human interaction.

Research reveals different perspectives between HR professionals and employees related to AI

ROCHESTER, N.Y.--(BUSINESS WIRE)-- A new study from Paychex, Inc. reveals the benefits and challenges of artificial intelligence (AI) in the human resources (HR) industry, and how opinions on its use and effectiveness differ between HR professionals and employees. The first in a new series of 2024 Pulse of HR Reports entitled “Balancing Tech and Touch in Human Resources,” found that 41% of employees surveyed prefer less AI involvement in their company’s HR processes, while more than half are content with the current (39%) or an increased (20%) level of AI. Of the HR professionals who responded to the survey, 85% say AI provides useful data and analytics, and 79% believe it’s helping to reduce bias.

Increasing Efficiency
The survey of 325 HR professionals in organizations with 20 or more employees, and 1,017 employees found HR professionals using Al are saving nearly a full workday every week (7.5 hours) with more than half (56%) saying it speeds up employee recruitment and screening.

Additionally, HR professionals surveyed say the top three functions that AI could transform the most are:

• Analytics and data management (58%)
• Talent acquisition (46%)
• Onboarding/offboarding processes (43%)

“Our survey found that over half (56%) of HR professionals are already using AI in their role today and I expect that number to increase over time. Knowing these important trends and leveraging the right tools and technologies is critical to our national team of more than 600 HR business partners at Paychex. We work with our customers every day to find a balance between realizing operational efficiency and the human aspect of HR that employees clearly desire,” says Alison Stevens, senior director of HR Services at Paychex.

“It’s clear there’s work to do before achieving an effective balance between HR departments and employees when it comes to artificial intelligence,” adds Stevens. “Transparency will be key, as well as maintaining balance with human interactions. At Paychex, our HR business partners serve as advisors to customers, helping them to better understand and interpret data-driven insights, creating personalized responses to individual company and employee situations, and providing information on regulations that may impact their organization.”

HR vs. Employee Perspectives
The majority of HR professionals surveyed have adopted AI in some aspect, yet only 11% of employees say the process is transparent. Almost half (41%) of employees surveyed prefer less AI involvement in HR decisions, with 39% stating the current level of involvement is appropriate, and 20% preferring more AI involvement. The top HR function that employees surveyed think should stay human-led is conflict resolution and employee relations (78%), followed closely by sensitive issues like layoffs or disciplinary actions (76%).

Additionally, nearly one in four HR professionals expect AI to become integral to their functions in the next five years. A majority (71%) of employees surveyed are not comfortable with AI-led HR departments, and 46% would consider leaving their company if AI were to replace human-led HR teams.

For more insights from the first 2024 Pulse of HR survey, Balancing Tech and Touch in Human Resources, view the full report.

About the Research
These findings are based on a survey Paychex conducted across the U.S. with 325 HR professionals and 1,017 employees sharing their perspectives on AI usage in HR departments. Of HR professionals, company size was between 20 and 99 employees for 26%, between 100 and 499 employees for 24%, and 500 or more employees for the remaining 50%. The survey of HR professionals collected data from January 8-16, 2024, and the employee survey collected data on January 11, 2024. This survey is the first in a new ongoing series of 2024 Pulse of HR research reports.

About Paychex
Paychex, Inc. (Nasdaq: PAYX) is an industry-leading HCM company delivering a full suite of technology and advisory services in human resources, employee benefit solutions, insurance, and payroll. The company serves approximately 740,000 customers in the U.S. and Europe and pays one out of every 12 American private sector employees. The more than 16,000 people at Paychex are committed to helping businesses succeed and building thriving communities where they work and live. To learn more, visit paychex.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240229992996/en/

Media

Samantha Jean

Public Relations Program Manager II

(585) 218-6086

skjean@paychex.com

@Paychex

Source: Paychex, Inc.

FAQ

What are the key findings of the Paychex, Inc. study on AI in HR processes?

The study reveals that 41% of employees prefer less AI involvement, while 85% of HR professionals find AI beneficial. HR professionals save 7.5 hours weekly with AI, transforming functions like analytics, talent acquisition, and onboarding processes.

How many HR professionals were surveyed in the Paychex study?

The study surveyed 325 HR professionals in organizations with 20 or more employees.

What percentage of employees prefer less AI involvement in HR decisions according to the study?

41% of employees prefer less AI involvement, with 39% finding the current level appropriate and 20% wanting more AI involvement.

What HR functions do employees think should remain human-led according to the study?

Employees believe conflict resolution and employee relations (78%) should remain human-led, followed by sensitive issues like layoffs or disciplinary actions (76%).

How many hours per week are HR professionals saving with AI according to the study?

HR professionals are saving nearly a full workday every week (7.5 hours) with AI.