‘A workplace is what its employees make it.’ A business prospers when the efforts of its employees are in the right direction. To track this, companies often use manual performance and skill analysis. This traditional setting doesn’t completely and accurately highlight skill gaps, but may give biased results. Naturally, such results end up impacting the employee training as well. 

But, not anymore! AI is here to give the skill and performance evaluation system a makeover. The evaluation that once relied on perception is now derived from data. Unlike the manual system, it does not follow a one-size-fits-all approach; instead, every employee is trained based on their shortcomings and evaluated without bias.

Curious about what’s coming next? Read this blog, and discover everything about AI in employee performance analysis and skill development. From business benefits to challenges and considerations.

Employee performance analysis is the process by which management compares the performance of employees to see if they meet the planned standards. It highlights the achievements, shortcomings, and improvements of the employees. Performance analysis gives an overview of every aspect of the performance, like quality, meeting deadlines, and overall contribution.

Skill development refers to the stage of post-performance analysis. The results given by the performance analysis contribute to the skill development part. It highlights weak points that are then used to provide training accordingly. Skill development fills the gaps encountered during performance evaluation.

• AI in the employee development market is expected to reach $10.4B by 2033.
• Traditional performance evaluation involves bias, favoritism, and data silos.
• AI in performance evaluation enables real-time, unbiased, data-driven results.
• AI integration in performance analysis enables the creation of personalized training programs tailored to skill gaps.
• This helps in enhancing productivity, engagement, retention, and cost savings

When it comes to skill development, one common blunder that the majority of organizations make is choosing generic training programs for all employees.

Businesses and companies should acknowledge the fact that each employee is a different person and has different skills and shortcomings. The one-size-fits-all approach does not work for employees of different domains, calibre, and skill sets.

Another red flag here is the lack of follow-up programs. After providing training and skill development programs, follow-up actions are not taken. This not only wastes the time, effort, and resources spent on it, but also makes it useless because nobody is actually checking if the employees learned anything.

AI uses different technologies to make the time-consuming process of employee performance analysis effective. Here are some points that explain its role:

• AI is capable of collecting all the information that is needed for evaluating employee performance. Unlike traditional systems, data silos do not limit their capabilities.
• It utilizes machine learning to identify performance patterns. These include task submissions, meeting deadlines, etc.
• AI in employee performance evaluation does not rely on subjectivity. It establishes certain parameters and evaluates objectively.
• One significant role that AI plays is that it maintains records in real-time. It does not wait for the year-end to collect all the data for performance evaluation. AI follows a proactive approach.
• AI does not stop at record management; it provides insights as well. It can predict performance improvements and downfalls by analyzing the data.

AI in employee skill development goes way ahead of the traditional employee training system. It does not offer generic solutions for every individual. Here are some points that give a better view of the role of AI in employee skill development:

• AI in employee skill development is capable of analyzing the skill sets of the employees and comparing them to the requirements. This helps in identifying skill gaps.
• From the result of this analysis, AI creates personalized training programs.
• AI offers platforms that adapt to the needs, skill level, and learning habits of the employees.
• It does not give generic one-size-fits-all kind of training content. It analyzes the skill gaps and recommended programs, and gives content based on that.
• Unlike traditional training, AI in employee skill development does not stop after giving a training plan. It takes follow-up actions. AI highlights improvements and identifies weak points as well.
• AI in employee skill development goes above and beyond basic training. It gives a bird’s-eye view of the workforce and their skills to the management.