More companies are turning to AI algorithms to decide who to lay off, according to The Washington Post.
A Capterra poll of 300 HR leaders suggests that nearly all plan to use software and algorithms to lower labor costs during a recession, including making decisions involving layoffs.
- Of the 98% of HR leaders who planned to rely on software and algorithms to lower labor costs, only half were completely confident that the technology would deliver unbiased recommendations.
- Only 46% said they were completely comfortable making layoff decisions based on the software's recommendations.
- Nearly three-quarters of the leaders said their employers had started making preparations for a potential upcoming recession.
- Companies are expected to utilize employee data to decide who to lay off and more. The survey respondents said they expect firms to most likely use "skills" and "performance" data in that decision-making.
- HR departments have become increasingly data-driven since the 2007-era recession, Capterra senior HR analyst Brian Westfall told The Washington Post.
- This data can be fed into algorithms to make suggestions that assist in both the hiring and firing process. In layoff decisions, this AI use can be "particularly comforting" to some HR leaders, Westfall said.
