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How Digital Technological Tools Such as HR Chatbots Can Improve Human Capital Management

In the next few years, human capital management won’t be the same as we know it. Technological development, such as artificial intelligence is disrupting the tech industry.


These advancements are changing the way we work, live, and communicate. The changes have a profound effect on business activities. Your business can gain from these changes if you can see the trends and align to fit in them. You can earn a competitive advantage by staying abreast with technological advancements in human capital management. In this blog post, we discuss how tools such as Chatbots can improve human capital management.


HR Chatbots

Traditional HR practices are paper-intensive with little space for innovation. A typical employee considers the HR function to be a place where recruitment and team-building sessions take place. However, behind all these activities, the industry is shifting rapidly. A report established key HR components that will be significant human capital challenges. They include employee engagement, competitive compensation, and talent retention.


The current employees that organizations are absorbing are digital natives. HR practices that worked with the older generation may not be suitable for the newbies. HR Chatbots can help bridge this gap. Central to setting up HR Chatbots is the user experience. A useful application should allow users easy access to information and transactions within the organization. This is achievable through using Chatbots with multiple conversational interfaces. For instance, Chatbots use a mix of clickable dialogues, words, and speech.


How HR Chatbots Improve Human Capital Management

HR chatbots improve human capital management in the following ways:

  • Handling FAQ’s: The virtual assistant handles all queries from the employees. It can provide additional information on the subject or kick start a process linked to the question. This is more beneficial than in the case where the employee opts for static research. The solutions are more accurate and they reflect the true organizational ideals.


  • Time off requests: HR Chatbots alert employees for time off that are due to expire. They also inform other co-workers of an employee who’s taken leave. This streamlines the coordination of activities among the employees. There is little chance that someone will assign a task to another person who is enjoying their time off.


  • Updating personal information: Chatbots use a simple interface. The interface integrates with multiple downstream systems. An employee can therefore update their personal information through Chatbots. The integration eliminates redundancies such as repeating information that employees already provided.


HR Chatbots simplify many HR processes. The convenience created is healthy for the workforce. Employees can access essential HR services at the click of a button. The response is instantaneous as there are no hindrances of bureaucracies to the process. The employee satisfaction when working in this setting is high. Retaining such an employee becomes easier in an increasingly competitive environment.


Optimizing Chatbots

A lot of Chatbots are available publicly. If you are in doubt, check the number of enterprise websites that are using them — unfortunately, many of these enterprises badly set up their Chatbots. But we can’t blame them. Configuring Chatbots might prove tricky, especially if it’s a new application you are dealing with. HR Chatbots are not any different. However, when you prioritize employee experience at every step, it becomes manageable. All you have to do when optimizing HR Chatbots is to consider the employee in every deliberation from the beginning to the end. People are often used to the notion that humans should adapt to IT. In the case of Chatbots, the reverse is true. HR Chatbots should adapt to the employees’ requests. Some of the tips that can assist you to come up optimize HR Chatbots include:


Intent identification

Decide on the language or speech dialogue that fits the workplace. It would help if you considered adding phrases that employees use in the workplace. They don’t have to be an official language. So long as employees can understand what communication is all about. People respond well to familiarity with the language being one of them.


Training the Chatbot

Intent identification will give you the lingo for the HR Chatbot. It is now up to you to train the bot to understand these expressions. You can do this by fine-tuning the language model.


Deciding on the Channels

Integrate the HR Chatbot to platforms where employees have easy access. Choose platforms that are popular and widely acceptable in the organization. There will be little resistance from employees when you finally roll-out the program.