Human innovation paired with technological advancement is a powerhouse. With the recent advancements in Artificial Intelligence and Natural Language Processing (NLP), HCM space has evolved from performing basic HR processes, to fundamentally restructuring how employers manage their profile to predicting future outcomes.

Data is everything in 21st century. Automation is one part where consumption of data takes place in excess which is responsible for unparalleled advancements in productivity.

HCM has always been slow in adopting the tech advancements though it is a major consumer and producer of vast amounts of data. While Machine Learning (ML) and Artificial Intelligence (AI) have been growing extensively for the last few years, NLP is relatively a new term in the world of HR. Before we begin to understand how NLP can transform HCM, let’s take a look what it means and how HCM is leveraging it in the coming years.

What is Natural Language Processing (NLP)?

Natural Language Processing is considered as one of the branches of Artificial Intelligence that helps the algorithms to interpret written and spoken languages like Portuguese, Mexican, Spanish and English. NLP uses more than one disciplines like computer science and computational linguistics to cover the gap between computer understanding and human language.

The algorithms by NLP have emerged to analyze more language-based data than humans in a more consistent manner. Human languages are incredibly complicated. Considering the complexity of the languages like – grammar, dialects, slang, terms and syntax rules, NLP is seen as a crucial tool to scale language-related tasks and is indeed performing better than humans.

The Role of Natural Language Processing in HCM

As a key business function that is reliable on human communication, NLP can be used right from resume filtering to final interview that includes – retention, engagement, employee retention, employee performance et al. What used to take hours of human analysis can now be achieved almost instantly.

How can HCM leverage NLP in improving its efficacy?

By incorporating Natural Language Processing in HR software, it has now become easier for businesses to increase the productivity of their employees and maximize the return on Human Capital Management.

Some of the crucial applications of NLP in HCM are:

NLP in Recruitment:

One of the most important part of recruitments is selecting a candidate for a job. It provides a data-driven approach that prompts the recruiters make better hiring decisions. Furthermore, NLP helps the classify the candidates by identifying the personal traits and remove human biases.

NLP in Employee Engagement:

NLP uses frequent analytics in order to provide inputs on employee engagement by identifying the areas of conflict and gives a comprehensive feedback and analysis. These insights help the business HCM team to measure and design employee engagement strategy.

AI-powered engagement solutions like PeopleHCM can analyze hundreds and thousands of employee data in an organization and quickly summarize to provide a gist of employee performance. Moreover, the collaboration and communication tools like Facebook messenger and Alexa can be layered with an NLP solution to provide HR teams a real-time experience.

NLP for HCM space is like a tool that amplifies role of HCM in an organization in a deeper level. It is more impactful and it will emerge as a must-consume technology in the organizations in a foresight.