HR Archives - The Reticulum

Employers Have Fallen Behind Employees in AI Adoption

When it came to previous versions of AI, organizations had to worry about falling behind the business competition. The same is true for generative AI, of course. but this time there’s an added complication. Employers have fallen behind employees in AI adoption as well. This needs to be on the radar of HR, the IT department and executive leadership teams.

Execs: Important, Though It’s Going to Take Time

Most executives are familiar with the technology hype cycle, and they’ve seen AI hype before. So, is the generative AI movement different?

Well, probably. One survey from KPMG found that two-thirds of executives think generative AI will have a high or very high impact on their organizations over the next 3 to 5 years. But, being familiar with how long it can take to change anything, especially when it comes to new technologies, most also think it’s going to take a year or two to implement new generative AI technologies.

KPMG reports, “Fewer than half of respondents say they have the right technology, talent, and governance in place to successfully implement generative AI. Respondents anticipate spending the next 6-12 months focused on increasing their understanding of how generative AI works, evaluating internal capabilities, and investing in generative AI tools.”

All of which sounds fine, but only 6% say they have a dedicated team in place for evaluating and implementing risk mitigation strategies. Another 25% say they’re putting risk management strategies in place but that it’s a work-in-progress.

Employees: Already On It, But Don’t Tell the Boss

Meanwhile, a survey conducted by Fishbowl, a social network for professionals, reports that 43% of professionals use AI tools such as ChatGPT for work-related tasks. Of the 5,067 respondents who report using ChatGPT at work, 68% don’t tell their bosses.

This makes me wonder if A) there’s an intentional “don’t ask, don’t tell” policy in some companies that are simply afraid of establishing policies or guidelines that could get them in legal trouble down the line, or B) there’s an unintentional bureaucratic lag as companies take months or longer to establish guidelines or policies around these new technologies.

But Some Employers Aren’t Waiting

This doesn’t mean that all organizations are lagging in this area, however. Some have already set up guardrails.

The consulting firm McKinsey, for example, has reportedly knocked together some guardrails that include “guidelines and principles” about what information employees can input into the AI systems. About half of McKinsey workers are using the tech.

“We do not upload confidential information,” emphasized Ben Ellencweig, senior partner and leader of alliances and acquisitions at QuantumBlack, the firm’s artificial intelligence consulting arm.

McKinsey specifically uses the AI for four purposes:

Computer coding and development
Providing more personalized customer engagement
Generating of personalized marketing content
Synthesizing content by combining different data points and services

Ten Suggested Do’s and Don’ts

There are now various articles on developing ethics and other guidelines for generative AI. Keeping in mind I’m no attorney, here’s what I think organizations should consider in the area of generative AI:

DO spend time getting to understand these AIs before using them for work	DON’T leap directly into using these tools for critical work purposes
DO be careful about what you put into a prompt	DON’T share anything you wouldn’t want shared publicly
DO always read over and fact-check any text that an AI generates if it is being used for work purposes	DON’T assume you’re getting an accurate answer, even if you’re getting a link to a source
DO use your own expertise (or that of others) when evaluating any suggestions from an AI	DON’T assume these AIs are unbiased. They are trained on human data, which tends to have bias baked in.
DO develop guardrails, guidelines and ethical principles	DON’T go full laissez faire
DO continue to use calculators, spreadsheets and other trusted calculation tools	DON’T rely generative AI for calculation for now unless you have guarantees from a vendor; even then, test the system
DO continue to use legal counsel and trusted resources for understanding legislation, regulation, etc.	DON’T take any legal advice from an AI at face value
DO careful analysis of any tasks and jobs being considered for automation	DON’T assume these AIs can replace any tasks or positions until you and others have done your due diligence
DO train employees on both the ethical and practical uses of generative AIs once these are well understood	DON’T make everyone learn all on their own with no discussion or advice
DO start looking for or developing AI expertise, considering the possibility (for example) of a Chief AI Officer position	DON’T assume that today’s situation won’t change; things are going to continue to evolve quickly

Which AI Should HR Professionals Use?

The other day, I spoke in front of a considerable crowd of HR professionals in LA. I asked how many had used ChatGPT and a couple of dozen or so raised their hands. Then I asked how many had used the Bing chatbot, and hardly any hands went up. I imagine this is typical across the profession, which is why I wanted to share a few thoughts about which AIs HR professionals should use.

Of course, there’s no one answer to this question. People should use the bot they like most. But, as a person who does a lot of HR-related research, I’ve formed some opinions.

There Are Two General Type of HR Questions

Generally speaking, there are two types of HR queries. The first type is about ideas and practices. The second is about factual information that often requires specific data as part of the response.

Type One Questions

When it comes to the first type of questions, all three of the most accessible AIs – that is, ChatGPT, Bing and Bard – are similar in performance. Here’s on such question I asked: “”I want to reduce the turnover the voluntary turnover rates of our developers. How do I accomplish that?”

All three of them offers tips such as offer competitive compensation, developmental opportunities, positive work environments, etc. All of the advice seemed fine if a bit bland. All three are, I think, a good place to start for an HR professional just beginning to think though some particular issue.

Type Two Questions

When it comes to the second type of question, however, there are some sizeable differences. Here’s what I asked as a demonstration: “I have a fast-food chain of restaurants in Tampa. What is the expected turnover rate for my employees?”

ChatGPT’s Response

The expected turnover rate for employees in the fast-food industry can vary depending on various factors such as location, industry norms, employee demographics, and specific organizational practices. While I don’t have access to real-time data or specific information about your fast-food chain, I can provide you with a general idea of turnover rates in the industry.

In the fast-food industry, turnover rates tend to be relatively high compared to other sectors due to factors like low wages, demanding work conditions, and limited career advancement opportunities. According to data from the Bureau of Labor Statistics (BLS) in the United States, the accommodation and food services industry, which includes fast-food establishments, had a voluntary turnover rate of around 81.9% in 2020.

However, it’s important to note that turnover rates can vary significantly based on factors like geographic location, employee engagement practices, and company-specific efforts to improve retention. Some fast-food chains have implemented effective strategies to reduce turnover rates, such as offering competitive wages, providing employee benefits, implementing career development programs, and fostering a positive work environment.

To determine the expected turnover rate for your specific fast-food chain in Tampa, it would be best to analyze your historical turnover data and compare it with industry benchmarks. Additionally, conducting employee surveys and exit interviews can provide valuable insights into the reasons for turnover within your organization, allowing you to identify areas for improvement and develop targeted retention strategies.

Bard’s Response

The expected turnover rate for fast food employees in Tampa is high. According to a study by HourWork, only 54% of QSR employees (quick-service restaurants) reached 90 days of working before quitting in 2022. Prior to the pandemic, the segment’s 90-day retention rate hovered at 58%.

There are a number of factors that contribute to the high turnover rate in the fast food industry, including:

Low wages: Fast food workers are often paid minimum wage or close to it, which can make it difficult to make ends meet.
Unpredictable schedules: Fast food workers often have to work unpredictable schedules, which can make it difficult to balance work and personal life.
High-pressure work environment: Fast food workers are often under a lot of pressure to meet customer demands, which can lead to stress and burnout.
Lack of opportunities for advancement: Fast food workers often have few opportunities for advancement, which can make them feel like they are not being rewarded for their hard work.

If you want to reduce the turnover rate at your fast food chain, you can consider:

Offering higher wages: This is one of the most effective ways to attract and retain employees.
Offering flexible schedules: This can help employees balance work and personal life.
Creating a positive work environment: This can help reduce stress and burnout.
Providing opportunities for advancement: This can help employees feel valued and motivated.

By taking steps to address the factors that contribute to high turnover, you can create a more attractive workplace for your employees and reduce the turnover rate at your fast food chain.

As a follow up question, I asked, “What is the source of this information?” It responded as follows:

The information I provided about the expected turnover rate for fast food employees in Tampa is from a study by HourWork. The study was conducted in 2022 and surveyed employees at over 8,000 quick-service restaurants (QSRs) in the United States. The study found that the average turnover rate for QSR employees was 61%, but the turnover rate for employees in Tampa was slightly higher at 63%.

The study also found that the turnover rate for QSR employees was higher for younger workers, with employees under the age of 25 having a turnover rate of 70%. The turnover rate was also higher for part-time employees, with part-time employees having a turnover rate of 65%.

The study’s findings suggest that the fast food industry in Tampa is facing a high turnover rate. This is likely due to a number of factors, including low wages, unpredictable schedules, and a high-pressure work environment. If you are a fast food employer in Tampa, you may want to consider taking steps to address these factors in order to reduce your turnover rate.

Here is the link to the study: https://www.restaurantdive.com/news/most-qsr-employees-worked-90-days-before-quitting-2022/640826/

Bing’s Response

The employee turnover rate for fast-food restaurants is notoriously high. According to various sources, the fast-food industry sees a 150% employee turnover rate¹ ², meaning that the entire staff is replaced annually and half of the new staff needs to be replaced again. Some sources report even higher rates, such as 144%³ or 130%⁴. This is a huge challenge for fast-food operators, as it affects customer service, food quality, and operational efficiency.

There are some exceptions, however. One fast-food chain, Pal’s Sudden Service, has managed to keep its turnover rate absurdly low, at less than 100%⁵. How does it do that? According to the CEO, Thomas Crosby, it’s all about hiring, training, and linking the identity in the marketplace to the approach in the workplace. Pal’s invests heavily in employee development, rewards performance, and creates a culture of excellence and loyalty.

So, depending on how you run your fast-food chain of restaurants in Tampa, you can expect a different turnover rate for your employees. If you follow the industry average, you might lose more than 100% of your workers every year. But if you follow the example of Pal’s Sudden Service, you might be able to retain more of your staff and reduce your turnover costs. I hope this information helps you. 😊

Which Performed Best?

ChatGPT did about as well as it could given that it has no access to data after September 2021. At least it cited the BLS, which is pretty much the gold standard for workforce-related data.

Bard arguably did better, citing a specific study from an article as recent as January 2023. Of course, I had to specifically ask for the source and there was only the one article.

Bing did the best. It cited multiple sources and provided links to those sources. It also cited an appropriate best practice article from a good, if somewhat dated, source: the Harvard Business Review.

It’s not that Bing is perfect. Sometimes the links it provides to articles don’t actually contain the information that has supposedly been cited. But it remains the best of the three for now and so, based on my informal poll, seems underutilized among HR professionals.

Why? Probably because Google’s Chrome still has a virtual monopoly on the browser market and search space. Using the Bing chatbot on a desktop requires the use of the Microsoft Edge browser, for now, and it probably just seems like a hassle for most HR professionals to download and use it, especially if much of their computing lives are spent in the Google browser/email/applications ecosystem.

I get that. I work for a “Google shop” and much of my work and personal life exists on Google.

On the other hand, I don’t find it too complicated to keep two different browsers open on my laptop, and using the Bing chatbot on my phone is easy.

So, if you’re an HR professional who conducts online research and wants to use a chatbot to locate verified sources, then I recommend bringing Bing into your rotation of AI tools. Bard may well catch up. It’s shown a lot of improvement over time. But Bing wins for now.

Blog as a Sandbox

Since I’ve begun blogging again, I’ve been using The Reticulum blog as a sandbox more than anything else. I’ve messed around to entertain myself and try new things: illustrated poems, coding tips, nostalgic memories, riffs on nonfiction books, the occasional fiction, and various other random acts of writing. Sometimes to me if feels sadly self indulgent, other times like healthy experimentation and expression.

Sand Mandala

Whatever it is, though, I’m going to try to impose a bit more structure on it over the rest of the year. The idea is to focus on just two topics that are, while broad in their own right, more in keeping with the original intent of the blog.

The first topic will be what I’m thinking of as AI@Work, which leverages my interest in both neural networks and work-related issues.

As broad as that topic is, however, the second is even broader and can be summed up in the phrase “network science.” I have a couple of books by network scientist Albert-László Barabási I want to explore here before I move on to other thinkers in the area.

So, it’ll remain a sandbox but a slightly more structured one through the rest of 2023. More of a sand mandala, perhaps.

Featured image: Участник:GgvlaD, "Разрезание" мандалы Зеленой Тары на мероприятии "Дни Тибета в Москве", June 2011.

100 Ways ChatGPT Could Help HR

How Can You Help, Chatbot?

I’ve been reading a variety of articles on the topic of how ChatGPT and similar AIs can help HR professionals do their jobs better. But I wanted to see what the AI thinks it can do. So, I asked about the ways ChatGPT could help HR professionals carry out their tasks in 20 different functions. It came up with the 100-item list you’ll see below.

To be clear, I asked the chatbot what it can do for HR, but I think what I ended up with is what it someday might be able to do.

Are You Sure You Can Do That?

When I read through the list the chatbot produced, I was skeptical that could actually do these things. So, to get a second opinion, I asked ChatGPT-3’s smarter younger brother Bing (based on ChatGPT-4) about it. Specifically, I asked Bing if ChatGPT could truly do the things it said it could do.

Here’s what it had to say:

Generative pre-trained models … have limitations, such as a lack of logical understanding, which limits their commercial functionality. According to some sources, generative pre-trained models can potentially assist HR professionals in some of the actions you listed…However, these applications are still experimental and not widely adopted in the industry. They also require careful supervision and evaluation to ensure the quality, accuracy, and reliability of the generated content. Moreover, they pose ethical and legal challenges such as privacy, security, bias, accountability, and transparency that need to be addressed before they can be deployed in real-world scenarios. Therefore, generative pre-trained models are not yet ready to fully replace human experts in HR compliance tasks, but they can potentially augment their capabilities and efficiency by providing assistance or support in some aspects of their work.

Let’s Put Some Numbers to That!

I thought that was a good if cautious summary, so I asked Bing if it could assign probabilities to the five compliance-related actions that ChatGPT said it could take on behalf of HR pros. Still sounding a note of caution, Bing stated, I cannot assign exact probabilities to those five actions, as they depend on various factors such as the quality and quantity of the data, the specific model and parameters used, the level of human supervision and feedback, and the evaluation criteria and metrics. However, based on my understanding of the current state-of-the-art in generative pre-trained models and their applications in HR compliance, I can provide some rough estimates of how likely they are to perform well on those actions today. These estimates are subjective and not based on empirical evidence, so please take them with a grain of salt.

Then, with those sober caveats properly laid out, Bing gave these estimates of how likely ChatGPT could really do these five things:

Researching and staying up-to-date with labor laws and regulations: High (80-90%)

Helping HR professionals ensure that company policies and procedures are compliant with relevant laws and regulations: Medium (50-60%)

Assisting in drafting compliance reports and audits, ensuring accuracy and completeness of data and information: Medium (50-60%)

Aiding in identifying potential areas of non-compliance by analyzing employee data and HR practices: Low (20-30%)

Providing guidance on best practices for compliance training and development programs: Low (20-30%)

These estimates are based on the assumption that generative pre-trained models are fine-tuned on relevant data and tasks, and that they have access to reliable sources of information. They also assume that the generated content is verified and validated by human experts before being used or shared. The estimates may change over time as generative pre-trained models improve or new challenges arise.

Being a nerd, I was tempted ask about the probabilities for all 100 actions, but since Bing correctly noted that the numbers were “subjective and not based on empirical evidence,” I thought that might be overkill. (Sidenote: I’m fascinated by the idea of subjectivity in an artificial intelligence).

100 Ways ChatGPT Might Help HR Pros

So, without further ado, here are the 100 things ChatGPT might, under the right circumstances, be able to do for Human Resources. I’ve listed them alphabetically by name of the HR function.

1) Compliance

Assist HR professionals in researching and staying up-to-date with labor laws and regulations.
Help HR professionals ensure that company policies and procedures are compliant with relevant laws and regulations.
Assist in drafting compliance reports and audits, ensuring accuracy and completeness of data and information.
Aid in identifying potential areas of non-compliance by analyzing employee data and HR practices.
Provide guidance on best practices for compliance training and development programs.

2) Compensation

Assist in analyzing market data to determine appropriate salary levels and benefits packages for employees.
Help in conducting salary surveys and researching industry compensation trends.
Aid in answering employees’ questions about their compensation and benefits packages.
Provide guidance on the design and implementation of employee benefits programs, such as health insurance, retirement plans, and paid time off.
Help HR professionals to create fair and equitable compensation policies and programs.

3) Diversity, Equity, and Inclusion

Assist in the creation of diversity, equity, and inclusion policies and programs.
Help HR professionals identify and eliminate bias in recruitment and selection processes.
Provide guidance on diversity and inclusion training and development programs for employees.
Assist in analyzing employee feedback and sentiment regarding diversity, equity, and inclusion.
Aid in identifying potential areas of bias or inequality within the organization.

4) Employee Benefits Administration

Assist in managing employee benefits enrollment, including answering questions and providing guidance to employees.
Help HR professionals analyze data to determine the effectiveness of employee benefits programs.
Aid in identifying potential areas for improvement in employee benefits programs.
Assist in managing employee benefits-related data, such as enrollment forms and plan documents.
Provide guidance on compliance with regulations related to employee benefits programs.

5) Employee Communications

Assist in developing and delivering internal communication strategies to employees.
Help HR professionals to quickly respond to employee inquiries and feedback.
Aid in analyzing employee feedback and sentiment regarding company news, policies, and initiatives.
Assist in managing employee communications-related data, such as email campaigns and messaging platforms.
Provide guidance on best practices for employee communications, such as creating clear and concise messaging.

6) Employee Engagement

Offering personalized recognition and rewards to employees
Providing guidance on employee wellness and work-life balance
Conducting virtual team building and social events
Providing information on opportunities for career growth and development
Generating reports on employee engagement metrics and trends

7) Employee Relations

Develop chatbots to help employees navigate the organization’s HR policies and procedures and answer common questions.
Use natural language processing to analyze employee feedback and sentiment to identify potential areas of concern and address them proactively.
Provide mediation services for employees involved in workplace conflicts through a virtual assistant.
Develop chatbots to handle employee complaints and grievances and ensure they are resolved fairly and consistently.
Use chatbots to provide employees with 24/7 access to HR support and guidance.

8) Employee Wellness

Use chatbots to provide employees with personalized recommendations on wellness resources and activities.
Develop wellness trackers that use natural language processing to track employee progress and make recommendations for improvement.
Use chatbots to provide employees with 24/7 access to mental health resources and support.
Provide personalized coaching and advice for employees on health and wellness topics based on their individual needs and preferences.
Develop personalized wellness plans for employees using natural language processing to analyze health data and identify areas for improvement.

9) Health and Safety

Use chatbots to provide employees with safety training and information on safety procedures and protocols.
Develop virtual safety simulations using natural language processing to simulate emergency situations and help employees prepare for potential safety hazards.
Use predictive analytics to identify safety risks and proactively address them before incidents occur.
Use chatbots to collect and analyze safety data and identify areas for improvement.
Develop chatbots to provide employees with real-time safety alerts and updates.

10) HR Analytics

Use natural language processing to analyze employee feedback and sentiment to identify potential areas of concern and address them proactively.
Create predictive models that use HR data to forecast employee turnover and identify potential areas for improvement.
Use chatbots to collect and analyze HR data and identify trends and patterns in employee behavior.
Develop chatbots to provide HR analytics dashboards that display key HR metrics and data in real-time.
Use chatbots to perform ad-hoc data analysis and answer HR-related questions quickly and efficiently.

11) HR Information Systems (HRIS)

Provide real-time assistance to HR professionals in managing HR data, such as helping them locate specific employee information or assisting with data entry.
Help automate certain HR processes, such as scheduling interviews or generating reports.
Assist with employee self-service by providing instant answers to common questions, such as how to update personal information or check pay stubs.
Analyze HR data to identify patterns or trends, such as turnover rates or attendance patterns.
Help HR professionals stay up-to-date with the latest HR technology and trends.

12) Labor Relations

Provide legal guidance and assistance to HR professionals in managing employee relations and ensuring compliance with labor laws and regulations.
Assist with collective bargaining negotiations by providing data and analytics on industry standards and trends.
Help HR professionals navigate complex labor issues, such as union grievances or strikes.
Provide training and development resources to help HR professionals build their labor relations knowledge and skills.
Help HR professionals stay up-to-date with the latest labor laws and regulations.

13) Onboarding

Provide new employees with a virtual onboarding experience that includes interactive tutorials and videos on company culture, policies, and procedures.
Assist HR professionals in preparing and delivering onboarding materials to new hires.
Provide new employees with personalized assistance, such as answering questions about benefits or guiding them through the onboarding process.
Collect feedback from new employees on the onboarding experience to help improve the process.
Assist HR professionals in tracking and managing onboarding tasks, such as verifying employee documents or setting up equipment.

14) Organizational Development

Assist in facilitating the strategic planning process by generating ideas, identifying potential risks, and providing insights into industry trends and best practices.
Analyze employee data and HR practices to identify areas for process improvement.
Recommend process mapping tools and suggest process improvement initiatives that align with the company’s strategic objectives.
Provide recommendations for leadership development programs that align with the company’s strategic objectives.
Suggest leadership assessment tools, training materials, and coaching resources.

15) Performance Management

Assist HR professionals in setting and monitoring employee goals and objectives.
Provide real-time feedback to employees on their performance, such as alerting them to areas where they need improvement or recognizing their accomplishments.
Provide HR professionals with analytics on employee performance, such as identifying top performers or areas where the organization needs improvement.
Help HR professionals create and manage performance improvement plans for employees who need additional support.
Assist HR professionals in conducting performance evaluations and delivering feedback to employees.

16) Records Management

Assist HR professionals in managing and organizing employee records, such as resumes, job applications, and performance evaluations.
Help HR professionals comply with data privacy regulations by ensuring that employee records are stored securely and confidentially.
Assist HR professionals in locating specific employee records or information quickly and easily.
Provide analytics on employee records, such as identifying patterns in hiring or turnover rates.
Help HR professionals stay up-to-date with the latest record-keeping regulations and best practices.

17) Recruitment and Selection

Assist in creating job descriptions and job postings that are more engaging and attractive to potential candidates.
Help screen resumes and applications more efficiently, allowing HR professionals to focus on the most promising candidates.
Assist with scheduling interviews, sending reminders, and providing basic information to candidates.
Provide information to candidates about the company, its culture, and its values.
Assist in creating and administering pre-employment assessments, such as personality tests or skills tests.

18) Succession Planning

Help identify high-potential employees for key leadership positions based on performance data and other factors.
Assist in creating development plans and programs for high-potential employees.
Help identify skills gaps and training needs within the organization, and recommend training programs to fill those gaps.
Assist in identifying potential external candidates for key leadership positions.
Help HR professionals monitor and track the progress of high-potential employees in their development plans.

19) Talent Management

Help identify and source top talent from external sources, such as job boards or social media.
Assist in creating and administering pre-employment assessments, such as personality tests or skills tests.
Help HR professionals track employee performance and identify top performers.
Assist in creating career development plans for employees to help them grow within the organization.
Assist in creating and implementing employee retention strategies, such as recognition programs or career development opportunities.

20) Training and Development

Assist in creating and administering training programs, including creating training materials and quizzes.
Help identify skills gaps and training needs within the organization, and recommend training programs to fill those gaps.
Assist in creating and administering online learning courses and modules.
Provide personalized training recommendations based on employee performance and development goals.
Help HR professionals track employee progress and completion rates for training programs.

Final Thoughts

ChatGPT-3.5 is, let’s say, a very confident bot. But it’s not always an accurate one. Still, these robust large language models continue to dazzle and are doing things I never thought I’d live to see. So, while Bing and I are skeptical about 3.5’s current abilities, who knows where we’ll be in a year as HR technology vendors adapt these technologies to their own purposes?

My guess is that the AIs will continue to surprise us. Mostly in good ways, I hope.