HUB International

Carrie B. Cherveny

Carrie B. Cherveny, Esq., is the National Professional Employment Organization (PEO) Practice Leader, at global insurance brokerage Hub International.

Cherveny has practiced in the employment law field for more than 20 years and has spent 15 years working in the PEO space. She has experience in all facets of employment law, including as an HR professional, an employment law defense attorney and in-house counsel for a national PEO. Cherveny works closely with clients to transition into and away from PEO arrangements. She also provides employee benefits consulting and guidance in relation to employment law, PEO service models, employee relations, HR, employment law litigation and legal guidance

A number of evolving resources are providing more horsepower to the Human Resources function, allowing it to shift significantly from HR administration to human capital strategies.

The shift to HR strategies is a critical transformation to drive organizational success, and is partially attributed to the expansion of resources available to HR today. The advancement of AI technology frees HR resources from administrative burdens, enables automated tasks and streamlines processes.

The AI surge sweeps across businesses

Despite concerns regarding job displacement, data privacy and security, AI continues to become an increasing part of the HR conversation and is more readily available through HR vendors.

A McKinsey study finds that 80 percent of companies surveyed use AI to rewire how they run. While the survey found HR adoption is slower than other functions at just 15 percent – there’s a rising interest in AI assistance for applicant tracking and recruiting. Another survey shows 57percent of U.S. organizations plan to integrate AI into their recruiting by the end of 2025.

AI helps ease many HR administrative burdens

• It can swiftly access and recap state laws and federal regulations, identify compliance issues and offer sample policies and materials.

“Through AI-powered data analytics, HR can facilitate a previously untapped depth of workforce insights.”

• AI-enhanced applicant tracking systems efficiently automate candidate screening and ranking, while through predictive analytics it can assess candidate success, reducing hiring biases.

• AI-powered tools can improve workforce planning, from forecasting future needs and turnover rates to identifying skill gaps to optimizing scheduling.

• Through AI-powered data analytics, HR can facilitate a previously untapped depth of workforce insights. Take the communications challenges of a multi-generational workplace. AI tools can analyze employee demographics to inform HR on the most responsive communication tools and resources for a diverse population.

Outsourcing HR administrative functions

Today’s Professional Employer Organizations (PEOs) offer a robust range of services that go far beyond their initial payroll and basic HR tasks. PEOs leverage tech advancements like automation, data analytics and AI tools. Many PEOs offer specialized services and platforms to respond to the changing workforce and workplace dynamics. Compliance management is another area of growing sophistication. The deep expertise PEOs bring clients creates substantial strategic value.

For example, a client, expanding through mergers and acquisitions, depended on a PEO to smooth the HR-related administrative growing pains. The PEO took on all employee documentation, open enrollments, handbook distribution and training and onboarding activities for successful integration. As the company grew, the PEO scaled with it in a partnership that allowed its HR department to more strategically manage the company’s human capital, culture and M&A activity.

Employer of Record (EOR) firms have somewhat similar services for companies expanding their international footprints. Companies can remain employers of record, outsourcing HR functions to local specialty services like payroll vendors and HR consultants. With the EOR alternative instead “owns” in-country employees’ tax identification numbers, provides benefits, handbooks and takes on compliance responsibilities.

Implementing new HR resources

The landscape has become crowded with HR resources. The challenge is sorting through all of the options to find the partners that will meet your organization’s needs.

The process begins with a cross-functional committee that reflects the diverse needs and concerns of different departments. Legal counsel is crucial for reviewing contracts for issues like appropriate liability protections and reasonable termination provisions. Insurance policies like Employment Practices Liability Insurance and Cyber, should reflect new vendor relationships – especially for AI implementation. A trusted advisor to guide the process from start to finish will be invaluable.

Understanding the options and making informed decisions will be integral to successful solutions and partnerships and a more strategic and impactful HR function.