Artificial Intelligence, and ChatGPT in particular, could become the right-hand “man” Human Resources (HR) has always dreamed of. Yet many HR teams don’t know how (and when) to use these tools…
It’s difficult to ignore the increasing influence Artificial Intelligence (AI) is having on our daily lives in this fast-paced environment. AI can be compared to your tech-savvy buddy who is always willing to help. We are not merely users of AI; rather, we are its producers, striving to improve its capabilities and incorporate it into various facets of our existence. It’s similar to working with a tech-savvy colleague that streamlines our processes and assists us in completing a variety of duties. Our way of life is changing as a result of this partnership, and it’s showing us what the future holds for AI—a true travel companion rather than merely a tool.
Transformation in progress
AI has emerged as a transformative force that has the ability to change industries and civilizations all around the world in a time of fast technological growth. AI is making tremendous progress in the field of human resources. “The function, organization, and involvement of HR will be redefined over the course of the next ten years”, according to Sandeep Chaudhary, CEO of PeopleStrong, a Human Resource Management System (HRMS) emphasizing on employee experience and data driven decisions for businesses.
However, in the realm of Human Resources, there exists a prevalent lack of awareness regarding the profound potential of AI to revolutionize various aspects of the field. Even among those who possess a rudimentary understanding of AI’s capabilities, a considerable number of HR Professionals interviewed have hesitated to embrace its integration into their practices, despite acknowledging its capacity to optimize and elevate core business operations.
Many many tools
There are many AI tools created for Human Resources especially in the area of recruiting talent in an efficient and fast manner. Tools like ClickUp, Attract.ai, Zoho Recruit provide phenomenal services to the organizations to automate HR tasks and enhance HR processes by leveraging predictive analytics and machine learning, ultimately making HR operations more efficient and effective. These tools can automate tasks like analyzing resumes and matching suitable job seekers’ profiles as well as arranging meetings through video-interviews, and so on. Companies use AI-powered chatbots to contact candidates, answer their questions, and give them required company information. We can also find that in certain company websites, AI can match our resumes and give us the probable job positions to which we can apply.
Numerous AI tools, particularly in recruitment, offer efficient talent acquisition. Tools like ClickUp, Attract.ai, and Zoho Recruit automate HR tasks, utilize predictive analytics and machine learning, enhancing efficiency. They automate tasks like resume analysis, candidate matching, video interviews, and even utilize chatbots to engage candidates. Some websites employ AI to match resumes with suitable job positions for applicants. Companies like L’Oreal and Airbus use HireVue for the initial interviews of the candidates.
The introduction of ChatGPT has led to mixed reactions among HR professionals. While some have eagerly started to incorporate ChatGPT into their workflow, others remain hesitant and concerned about becoming overly dependent on it. ChatGPT, when used correctly, can prove to be a valuable asset.
What do HR Professionals think about ChatGPT in the realm of Human Resources?
Hiring and Recruitment
Recruiters using LinkedIn Recruiter can take help of ChatGPT when they want to post a particular job role having a clear and precise job description and indicating the level of experience required. First drafts of job offer letters and job descriptions are two areas where ChatGPT could save recruiters and hiring managers time. ChatGPT can generate questions for an interview grid for a specific job, create Boolean search parameters for candidate’s sourcing, and create job descriptions or job ads. Furthermore, this lifehack can be valuable for the recruitment component of HR’s work. From our interviews, we found some HR professionals use it to create more appealing emails and messages to candidates and their clients as part of business development.
One of the HR Professionals we interviewed working in Talent Acquisition in an IT company says, “ChatGPT can be utilized to prepare for interviews with candidates and to develop cases for their interviews. In some organizations, ChatGPT is mainly used in the writing stage such as writing about a specific job description, but the talent acquisition specialists are not fully comfortable in taking help of ChatGPT for job descriptions. However, ChatGPT can be used for developing competencies for candidates, so we can say that ChatGPT can help in creating generic job descriptions, but we feel that other sources should also be referred to”.
According to author Edward F Barry in his article “Explore ChatGPT for Recruiting; But proceed with caution”, recruiters can use ChatGPT to unlock its full potential but at the same time, they should be very attentive with the possible risks and social biases that the technology cannot recognise.
We tested ChatGPT for a hypothetical company and asked how it can assist us in employer branding both from the perspective of an employer and a candidate. We discovered that it can provide on-demand support for HR-related queries and difficulties during the newcomer onboarding process and after successfully completing the probationary time. Although candidates can use ChatGPT to learn about a company’s benefits and working environment, they can also use it to create cover letters, motivation letters, or application emails, find suitable job opportunities by analyzing their skills, experience, and job preferences, or even ask ChatGPT to act as the interviewer during a meeting by providing advice on how to respond to typical interview questions. This means they can prepare for job interviews better now.
Companies can take one step further by incorporating ChatGPT-4 version to get new ideas for Employer Branding. It can help tremendously in Content Creation where ChatGPT can help in creating interesting blog entries and social media posts highlighting the opportunities and making it eye-catching. Candidates can ask ChatGPT for personalized stories about the company’s culture, values and missions to get to know what it would be like working there. According to Moumita Rao and Rohan Sawant, companies using ChatGPT with the right prompts can develop a strong employer brand and have high chances of more competitive advantage in the job market.
HR Controlling and HR Communications
As for HR Controlling, we believe ChatGPT may also help to increase employee engagement by making personalized recommendations for learning and development prospects and according to some academic authors, it may provide training programs or sessions with coaching to help employees improve their skills and efficiency by assessing their behavior and performance.
During our research, we did face-to-face and video-interviews with HR and non-HR professionals around the world. All our interviewees thought ChatGPT is currently ready for use in HR communication, both internal and external. Without a doubt, they believe that it is merely a tool that helps the organization save time and money, and that it also can sometimes help to reduce the costs associated with hiring new employees for these purposes.
Providing efficient communication between the employees and the HR professionals has become a vital factor regarding employee experience. To have improved engagement, productivity, retention and trust, the HR professionals have to invest in continuous communication. ChatGPT can help in creating an effective communication strategy. For start-ups, ChatGPT can provide guidance for the initial stages in HR development such as determining the company’s goals, priorities and values, establishing recruitment and onboarding processes, how to streamline the payroll, Building a strategy for DEI in the company.
According to some HR professionals, ChatGPT has now gained popularity for HR communications, both internal and external. It is used to create attractive messages, emails, social media posts, and it is very time efficient. To ensure that communication is pertinent to each audience, ChatGPT may assess the audience and offer advice on how to customize messages for various groups or individuals inside the organization.
Compensation & Benefits and Total Rewards
In relation to HR Analytics, we distinguish that ChatGPT’s analysis of employee feedback and sentiment data may assist HR managers in better comprehending their staff members: knowing employees’ attitudes and behaviors enables HR managers to see areas where the workplace may be improved and take action to encourage employee engagement and retention.
According to Compensation and Benefits (C&B) experts ChatGPT does not appear to be very useful for their part because of the data limitation and confidential issues. They think that C&B could be a good future option. ChatGPT can be used in analyzing the correct job grade, such as the hay grade level and the accountability level of a particular job profile. It is believed that when it comes to salary benchmarking, ChatGPT can give a wide array of information, but other sources should be consulted. From our interviews HR professionals say that ChatGPT should be avoided for compensation and benefits because it is a sensitive topic, and we do not know for sure where the information is being used.
Onboarding and Offboarding of the employees
ChatGPT can automate processes like scheduling orientation meetings and distributing new recruit documents. ChatGPT can make a significant contribution to new employee onboarding by providing content and a list of onboarding materials to be addressed with the new employee. ChatGPT may be utilized to give on-demand help for HR-related queries and difficulties during new hire onboarding and after successfully completing the probationary time.
According to some non-HR professionals who were interviewed, they believe that there is no need for someone to regularly present the new employee with different training modules or documents that he or she would need to know at work. So, they believe that if they get some sort of educational onboarding ChatGPT-based bot, it would be quite exciting for newcomers as well since they could understand the organization where they started working. People working in HR Consulting, believe it does not currently but opine that it would be fantastic and could help in the onboarding of new staff. However, they also feel that there is no need for ChatGPT for onboarding as during this phase, the meeting is between the candidate and the HR professional, and it focuses on the human touch. During the onboarding phase, it’s more about the candidate’s experience, and it should be made very simple without using any AI.
As for offboarding, some HR professionals do not believe that this HR component can be implemented with ChatGPT. When an employee leaves the company, they assume it is a particularly sensitive case. Furthermore, this circumstance requires more human interaction rather than machine interaction. However, one HR professional claims that it can be advantageous in the case of an exit interview, where non-personal communication can be more effective and transparent in obtaining the genuine reasons for leaving.
Can CHATGPT help with Objectives and Key Results (OKRs) and Key Performance Indicators (KPIs)?
OKRs and KPIs serve as tools for managing performance, and they offer different approaches to achieving objectives. KPIs monitor goal progress, whereas OKRs function as a goal-setting framework.
ChatGPT can help companies that use OKRs by providing them with the objective followed by the key results to achieve that particular objective. It can help in structuring the OKRs according to the specific goals. For example, if a company wants to launch a product but is struggling to set definite OKRs, ChatGPT can help in defining the objectives and assist in developing key results to achieve the objective. ChatGPT can also give guidance on the strategy alignment of OKRs with the overall business strategy. Same as for KPIs, ChatGPT can help companies by providing them with relevant KPIs for a specific objective, analyzing data by identifying trends and patterns and can generate reports for KPI performance by comparing the old data and the new data.
ChatGPT has the potential to serve as an asset across a range of HR functions, providing support in domains such as talent acquisition, communication, and content creation. Although it can optimize and improve numerous HR procedures, it is important to find a harmonious equilibrium between the efficiency brought by AI and the essential human element in HR. Ultimately, the adoption of ChatGPT in HR depends upon the distinct requirements and the comfort level of HR professionals and their respective organizations.