Canadian Employers Missing Out on AI’s Potential to Boost Talent Retention and Engagement

AI in HR Software: Untapped Potential Among Canadian Employers

Retaining talent tops the list of operational challenges for HR teams over the next year, narrowly edging out employee upskilling. Other priorities include attracting talent, protecting worker well-being, and increasing employee engagement, according to a recent survey by Capterra. The study gathered insights from over 3,200 HR professionals worldwide, including 289 from Canada.

How AI Could Support Employee Retention

Organizations using AI-enabled HR software report higher productivity, better data insights, and improved employee experience. Specifically, 33% of those leveraging AI features see an increase in employee satisfaction or engagement, compared to 22% of companies that don't use AI. When it comes to retention, 39% of AI users notice improvements, while only 26% of non-users report the same.

AI also contributes positively to recruitment efforts. Despite 67% of Canadian companies having AI features in their HR software, less than half (41%) actually use them. This gap suggests missed opportunities to address key HR challenges.

Primary Challenges in Adopting AI for HR

Training new users tops the list of HR software challenges for the coming year. Other notable challenges include:

• Boosting employee adoption of HR self-service tools (40%)
• Choosing the right HR software (40%)
• Evaluating AI’s value and risks (40%)
• Effective implementation of HR software (39%)

Despite these challenges, only 34% of Canadian HR leaders consider training resources a key factor when selecting software. This is concerning as many anticipate rising costs and recognize the importance of upskilling their teams.

Training employees and using AI to make self-service tools more intuitive can close skills gaps and boost productivity. Upskilling existing talent often proves faster and more efficient than hiring for specialized roles, especially in uncertain times.

Bridging the AI Skills Gap in Canada

Canada trails behind in AI literacy, confidence, and trust, according to a previous KPMG report. To address this, Capterra recommends:

• Developing comprehensive training programs: Collaborate with leaders and managers to create ongoing upskilling initiatives.
• Investing in training technology: Prioritize software with strong integration and AI features; upgrade existing platforms as needed.
• Monitoring performance: Regularly assess how software impacts employee skills and ensure compatibility with current HR systems.
• Leveraging talent management and analytics: Support seamless AI adoption and maximize return on investment.

Supporting these efforts, Google Canada recently committed $13 million to upskill Canadians in AI, emphasizing the growing importance of AI literacy.

For HR professionals looking to strengthen AI skills and explore practical AI applications, resources like Complete AI Training’s courses for HR roles offer targeted learning paths that can help teams adapt efficiently.