Gartner predicts that we're going to have more discussions with chatbots than our spouse by 2020, just two short years away. Chatbots are punctually being incorporated by organizations to fulfil time-consuming or repetitive administrative tasks.
One main reason is because chatbots have the potential to decrease business expenses by more than $8 billion by 2022 according to Juniper Research. The other advantage of chatbots is their flexibility as they can be used over text and messaging apps, email, and through your company's website.
Chatbots are already making a splash in HR, particularly in recruiting. Organizations such as the U.S. Army, Georgia State University, and Sutherland are already using their own homegrown chatbots for their recruiting function.
Here are 4 functions in HR where chatbots are already making an impact.
1. To answer candidate FAQs
Juniper predicts that between 75-90% of queries in healthcare and banking will be answered by chatbots within the next five years. Chatbots are predicted to save an average of over 4 minutes and $0.50-$0.70 per interaction.
In recruiting, chatbots are similarly being used to interact with candidates to ask qualifying questions, answer FAQs, and even schedule an interview with a human recruiter. The huge advantage of using a chatbot in recruiting is its ability to answer thousands of candidates' questions simultaneously in real time.
Randstad found 82% of job seekers believe the ideal recruiting interaction is a mix between innovative technology and personal, human connection. With 66% of candidates comfortable interacting with a chatbot according to Allegis, the market seems ready for mainstream adoption.
2. To collect candidate experience feedback
Smashfly reports 74% of candidates drop off the application process. That's huge!
For candidates who drop off, a chatbot can ask why they've chosen not to continue with their application. This is one function that Tasha, the chatbot that Sutherland uses, performs.
This feedback from candidates is then communicated back to their recruiters to provide quick and accurate insight on the areas where they can improve the candidate experience.
In today's tight labour market, organizations are recognizing that candidate experience is becoming a big differentiator. Chatbots are becoming an important tool to collect feedback on what candidates didn't like about the job application process and their suggestions for improving it.
3. As an employer branding tool
LinkedIn reports organizations who differentiate themselves with a strong employer brand enjoy a 50% lower cost-per-hire and 1-2x faster time to hire.
Using a chatbot to engage with candidates can differentiate you as more innovative and responsive than your competitors. Some companies are taking this branding even further by programming their HR chatbot to have a personality aligned with their values and mission.
The nice benefit of using a chatbot to promote your employer brand is that you can ensure consistency in its messaging as well as consistency in how candidates are being treated during the recruiting process.
4. To help with employee scheduling
Chatbots are also being used in HR for employees. Instead of having to log into their HR software or going back-and-forth through email, employees can save time by scheduling time off and vacation days using a chatbot.
For example, at Overstock, employees who are too sick to come into work can let Mila the HR chatbot know who then relays that information to their managers.