Your HR has a Competition Now: AI Algorithm can Hire and Fire Workers


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Heard of “Hired and Fired by AI?”

It’s happening!

Recently, the news is making rounds in the UK that The Trades Union Congress (TUC) has expressed concerns regarding the loopholes that exist in the Britain employment law over the usage of artificial intelligence at work. TUC noted that an algorithm was recruiting and firing employees and that a new legal framework was required to tackle this issue.

One of the most important changes that need to be made is the reviewal of a risky decision by a human. Frances O’Grady, General Secretary at TUC talked about this was a defining moment and said that “AI at work could be used to improve productivity and working lives. But it is already being used to make life-changing decisions about people at work – like who gets hired and fired. Without fair rules, the use of AI at work could lead to widespread discrimination and unfair treatment – especially for those in insecure work and the gig economy,” she added.

Automatic decision-making is already in place at several workplaces. Take Uber, for instance,  the ride-hailing service automatically directs drivers through a computer. On the other hand, to keep an eye on the staff in the warehouses, Amazon uses a monitoring system powered by AI. Interestingly, a common practice in most firms today is that they use an automatic system with no human involvement during the initial phase of hiring to shortlist the candidates.

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The AI system is also known as the cyber brain is quite sophisticated so much so that it can play something as important and instrumental as promotion of an employee or firing a worker. The AI takes this decision based on the analysis of the performance of the workers.

Recruitment is Getting Smart with AI

Research studies have demonstrated that humans are quite inept at selecting a suitable candidate for a job. Surprisingly, a meta-analysis has shown that in terms of hiring, algorithms can perform much better as compared to humans. This eliminates the business on part of the interviewer as well as provides companies with a better resource.

Finding the Best Match is Everything!

Good data is the real gold when it comes to hiring people. So if you fed poor data to your AI, then don’t complain as to why your employee is not doing a good job!

Yup, it’s that easy! Train and design your AI using industrial psychology data which matches talent with the job to find the right match. A candidate matching the job description and having the required expertise means greater productivity and low turnover cost for the companies. AI also has the ability to ignore demographics of race and age.


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