HR practitioners: Using 'algorithmic layoffs” can soothe guilt

It was reported on February 21 that in ​​Google​​​large-scale layoffs​​​12,000 people were laid off in just a few days Later, hundreds of former employees flocked to an online chat room to express their dissatisfaction with the callous manner in which they were suddenly laid off, and to compare notes on how management decided to lay off employees. Someone posted a question: Is there a well-designed "brainless algorithm" that does not violate any laws and chooses who should be fired? Google said in response that their layoff decision “did not involve any algorithm.” But as more and more ​AI​

​ tools are used in the workplace, the suspicions of these laid-off Google employees seem to be unfounded. Today, many HR managers use machine learning software to analyze millions of employment-related data points to figure out who should interview, receive an offer, be promoted, or should be retained. Stay recommended.

But as Silicon Valley’s fortunes shift, these AI tools may help with the more difficult task of helping decide who gets laid off, according to HR analysts and workforce experts. In January this year, a survey of 300 human resources directors of American companies showed that 98% believed that software and algorithms would help them make layoff decisions this year. With companies laying off workers on a massive scale, it will be difficult for humans alone to complete such a complex task. Layoffs at major U.S. companies have quietly reached five figures since the start of the year.

Harvard Business School professor Joseph Fuller said that large companies, from technology giants to home goods companies, often use AI software to find "the right people" for the "right projects." These products help build a "skills inventory," a powerful database of employees that helps managers determine what kind of experience, certifications and skills a candidate has for different roles. In the same way, these tools can also help with layoffs.

Brian Westfall, senior human resources analyst at software review website Capterra, said that since the 2008 recession, HR departments have become "increasingly data-dependent." He added that turning to algorithms might help managers soothe their guilt when making tough decisions like layoffs.

Many companies use software that analyzes employee performance data. In Capterra's survey, 70% of human resources managers said that performance is the most important evaluation factor when evaluating layoffs. Westfall also said other metrics used for job cuts may be less clear-cut. For example, HR algorithms can calculate what factors make someone a "job-hopping risk" and more likely to leave the company.

Westfall claims that the intervention of AI has also caused many problems. For example, if a company has discrimination issues, employees of color may leave at a higher rate. But if the algorithm isn’t similarly trained and doesn’t understand the situation, it might decide that non-white employees are a higher “flight risk” and recommend that more employees of color be laid off. "To some extent, you can see a snowball effect occur. You don't know how the data was created or how the data was affected, and all of a sudden those factors lead to poor decisions," Westfall said.

Jeff Schwartz, a vice president at Gloat, a human resources software company that uses AI tools, said Gloat’s clients are not using the company’s software to create layoff lists. But he acknowledged that HR leaders must be transparent about how such decisions are made, including how widely algorithms are used. He said: "This is a learning moment for us, we need to unlock the secrets of the black box. We need to understand which algorithms are working in which ways, and we need to figure out how people and algorithms work together."

Labor experts say the reliance on software has fueled a debate over what role algorithms should play in layoffs and the extent to which employers should disclose the reasons behind layoffs. "The risk is using the wrong data and making decisions based on what the algorithm says and then blindly following it," Westfall said. But Disrupt, a labor and employment lawyer and an organization that tracks progress in the human resources field, HR member Zack Bombatch said HR organizations have been overwhelmed since the outbreak began and they will continue to use software to help reduce their workload.

In light of this, when companies make layoff decisions, they should not let algorithms come up with individual lists, but rather need humans to review their recommendations to ensure there is no bias against people of color, women, or older employees. These actions can lead to lawsuits. Bombage warned: "Don't try to put all the blame on the software." (Xiao Xiao)

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