The proportion of human resources (HR) staff to employees is falling dramatically as artificial intelligence (AI) is incorporated into HR across a range of industries. According to analysts, the adoption of advanced AI technologies has resulted in a shift towards leaner HR teams, which in turn has highlighted a broader trend towards increased operational efficiency in HR practices.
According to Munira Loliwala, VP of strategy and growth at staffing firm TeamLease Digital, a recent study of 10,000 companies revealed that large organizations with 1,000–9,000 employees now maintain an HR team ratio as low as 1.34, compared to smaller companies with approximately 250 employees, which have a ratio of about 4.43.
Not only is generative AI simplifying operations, but it’s also propelling HR into a domain where strategic knowledge is essential. AI must now be used by experts in this field to improve worker engagement and overall productivity, according to Loliwala.
According to the report, about 1.8 million people are working in HR positions in industries including IT services, manufacturing, BFSI, healthcare, logistics, and media.
