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4 use cases for AI in performance management

Using AI in performance management can help save time but can also result in feedback that's not the right fit for the employee, among other drawbacks. Learn more.

AI is finding its way into every aspect of the workplace, including performance management. The technology can help employees with performance reviews in several different ways, though HR leaders should be aware of some of the problems that can arise from using AI for performance management.

Using AI to help write a review can improve the manager's feedback and reduce the time required to complete a review. However, text written by AI can also lead to impersonal feedback because the text is too generic. Employees using AI for performance management reviews should review AI-generated text to confirm it is applicable and appropriate.

Learn more about some use cases for AI in performance management.

4 benefits of using AI in performance management

Using AI for performance management can lead to advantages for companies, such as improved feedback and employee performance. Here's more about the benefits.

1. Faster employee feedback creation

A manager can use AI to create a starting point for feedback for an employee, which can save the manager time. The manager can specify certain parameters, such as the employee's years in the role, to help ensure the feedback is as factually correct as possible.

Once AI generates feedback, the manager should evaluate and edit the wording to make sure it's usable.

2. Improved feedback

AI can evaluate draft performance review text written by a manager or employee and share recommendations for how to improve it. For example, AI may flag repetitive words, bias in word choice and improper tone.

Using AI to edit original text can help managers make their performance review language stronger overall.

3. Improved reporting and dashboards

AI analysis of performance review data can give a manager, senior leaders or HR a quick snapshot of an employee's performance. This capability could be especially helpful for large companies that produce a lot of data.

AI can also recommend the creation of certain performance review dashboards or reports.

4. Improved employee performance

AI's simplification of the process may motivate managers to give their direct reports feedback more frequently.

Providing regular feedback to employees helps them develop as workers and stay focused, which benefits their employer. Employees receiving more feedback also improves the employee experience, since workers know how they are performing and how they can improve.

4 use cases for AI in performance management

AI is particularly beneficial for performance management in a few specific situations. Learn how to apply AI to the performance management process.

1. Employee data analysis

AI can analyze various sources of employee information, such as data from internal communication tools and an employee's past performance reviews, and provide a summary for their manager. This analysis can save time for the manager, as they don't have to search through multiple sources of information to gather information on the employee.

The manager should make sure to confirm the employee data and may still have to spend time deciding which information is most relevant.

2. Manager question generation

A manager can ask AI to create a list of topics to discuss when meeting with an employee, which can save the manager time. For example, AI may suggest that the manager ask about the employee's goals for several years in the future, which the manager may not have previously planned on asking.

However, the manager should always review the AI recommendations and make changes if needed based on the specific employee. For example, AI may supply conversation prompts that are not a good fit for an employee who is early in their career.

3. Career path generation

A manager can use AI to develop generic career paths based on an employee's current role. AI can help point out required training for the employee and experience they need to gain to move on to the next step in their career.

Internally built career paths are likely more specific to certain job titles at the company, so managers should use internal career paths instead of AI-generated ones if they have the option.

4. Feedback reminders

AI can automatically provide reminders to managers to send feedback to their direct reports. This capability can avoid delays in the performance review process and ensure that managers are sending feedback to their employees in between performance reviews as well.

A manager can configure a set schedule for these reminders in the system, and AI can also look for anomalies in performance review timing or share the average frequency of feedback to ensure managers are providing as much feedback as they should.

Eric St-Jean is an independent consultant with a particular focus on HR technology, project management, and Microsoft Excel training and automation. He writes about numerous business and technology areas.

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