The use of artificial intelligence (AI) and the automation of processes are on the rise in German companies and their HR departments. Currently, only a few companies use AI in HR, but many have plans to implement AI-based tools. In the third quarter of 2023, the ifo Institute for Economic Research conducted a Randstad-ifo personnel manager survey on the use of AI in HR departments. While the results showed that only 5% of the companies surveyed were using AI in HR at that time, a quarter of the companies had plans to do so. AI-based chatbots are among the emerging technologies in this field. As intelligent virtual assistants, these text-based dialogue systems can significantly relieve HR departments by taking over time-consuming HR tasks, such as analyzing and screening incoming applications. Chatbots are integrated into the respective platform—such as Microsoft Teams or the company intranet. They are capable of generating and curating content. In this capacity, chatbots can handle standardized company communication processes, such as written correspondence with applicants.
Chatbots in recruitment
For example, a recruiting chatbot supports the HR department by providing information about job openings and pre-screening applicants. AI-based chatbots can conduct conversations with applicants and use machine learning to continuously refine their responses based on user communication. This enables a dialogue, allowing the chatbot to support the application process. For highly individual questions or specific topics, the chatbot can refer the user to an appropriate HR expert. Furthermore, voice-based bots are capable of automatically detecting the language and communicating in the corresponding language.
However, chatbots do not just conduct conversations in various languages; they also schedule interviews, draft job advertisements, or provide feedback, to name a few examples. In doing so, they take over important HR processes and noticeably relieve HR staff of administrative tasks and routine work. Potential candidates receive real-time answers and quick feedback, which positively influences the applicant experience and strengthens the company's image as an attractive employer. Once new employees have joined the company, an onboarding chatbot is there to answer their questions.
As intelligent software solutions, chatbots are able to recognize user intent and answer questions immediately. They are available to users 24/7 and in many different languages. Whether it is an application, self-service, or FAQ chatbot, there are a wide variety of chatbots for specific applications and different areas of use. They reliably answer all questions and help ensure compliance with company policies through low-threshold, 24/7 access to all relevant information within the company's ecosystem.
They are also increasingly taking on important tasks regarding individual learning and career paths for employees, ensuring that staff only learn what is specifically relevant to their role. Thanks to chatbots, development paths can be made more transparent and more highly individualized.
Potential areas of application for chatbots in HR:
- Recruiting & Onboarding: Chatbots can provide efficient support throughout the entire application process—whether it's selecting suitable applications, scheduling interviews, or answering questions during the onboarding phase.
- HR Services: Vacation requests, travel expense reports, sick leave notifications—all employees can turn to the chatbot at any time with questions about company procedures and processes and receive immediate answers.
- Development Paths: Chatbots can take over individual professional development management, for example by suggesting suitable seminar offerings or acting as a learning assistant themselves. The chatbot can also play an active role in achieving career goals by highlighting potential career paths within the company or suggesting suitable internal job openings. This helps to specifically leverage potential, increase employee satisfaction, and strengthen employee retention within the company.
However, when it comes to personal inquiries, chatbots are less suitable, as people prefer to speak with real human beings regarding personal matters.
Do HR chatbots make sense for your company?
Is a chatbot worth it for your HR department? To answer this question, THE MAK'ED TEAM examines the entire HR process as part of the digitalization strategy: Can the inquiries and processes be standardized? How many inquiries are made daily? What is the current workload, i.e., how long does it take for how many people to answer these inquiries? Are the inquiries made in different languages, and how much does that increase the workload? Or how efficiently can the questions be answered via a chatbot compared to an HR staff member?
If the use of a chatbot makes sense for the company, we start with smaller use cases. To identify a use case, we ask guiding questions that cover various aspects, such as the standardizability of inquiries and processes, the areas of responsibility for chatbot management, or the goals of the chatbot implementation.
THE MAK'ED TEAM supports companies during transformation processes in their HR departments. With our HR and digitalization experts, we provide advice on selecting suitable AI tools that match the company's requirements and goals. This is how medium-sized companies succeed in meeting the challenges of recruitment in the future.
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