Nearly half of employers using AI in HR deploy it for recruitment: SNEF survey

Nearly half of Singapore's employers utilize AI for candidate recruitment and selection, according to a recent survey conducted by the Singapore National Employers Federation (SNEF). The poll, which included 1,000 employers, revealed that AI is predominantly used in the initial stages of human resources (HR) processes, including recruitment (49%) and managing employee performance (45%). However, its use is less common in determining compensation (26%) and managing employee exits (15%).

The survey indicated that larger firms, with more than 200 employees, are more inclined to adopt AI-powered HR tools such as Workday and SAP Success Factors. These solutions often include a "recruiting agent" and a "performance agent," while smaller and medium-sized enterprises typically rely on all-purpose tools like ChatGPT and Microsoft Copilot.

During the inaugural SNEF Employers' Summit, Acting Minister for Manpower Jasmin Lau introduced an HR playbook featuring "AI starter kits" for selected HR uses and training to foster AI fluency among HR professionals. The aim is to assist SMEs in accessing HR expertise more flexibly. Lau urged employers to involve their unions and employees in redesigning jobs, emphasizing that people are more likely to contribute to change when they have contributed to its shaping.

Despite the growing use of AI in HR processes, SNEF noted that human judgment remains essential. According to a press statement, 85% of the nearly 3,000 HR use cases reported by the surveyed employers still require human confirmation or sign-off for AI-automated processes. However, in cases where AI executes decisions without human intervention, the majority of these involve high-volume or routine tasks like resume-screening and skills assessment.

Employers expressed three primary concerns regarding AI use: over-reliance that could erode HR capabilities, difficulty in trusting AI over professional judgment, and accountability when AI makes errors. SNEF president Kuah Boon Wee emphasized that the level of oversight should correspond to the stakes, being lighter for routine tasks and closer for decisions affecting people's livelihoods.

He advocated for responsible AI use that enables employees to contribute at a higher level rather than weakening business capabilities.

The survey also revealed that employers' support for AI adoption varies depending on their stage of AI implementation. Those exploring AI are keen on guidance to identify tools assessed for fairness, while those already using AI seek clarity on responsible use, governance, and liability considerations. SNEF offered an "AI-HR pre-scoped solution" package for employers, which includes workplace planning advisory support, workforce diagnostics, skills analytics, and AI solutions.

Eligible employers can access funding of up to $150,000 for job redesign projects through the Workforce Development Grant (Job Redesign+), which supports consultancy fees and worker reskilling costs.