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By now, the only people who haven't at least heard of ChatGPT are probably, like Patrick Star in Spongebob Squarepants, living under a rock.

The latest version, ChatGPT-4, nailed the SAT Reading & Writing section with a score of 710 out of 800 and also passed the US medical licensing exam.

Even if you prefer to avoid it, you're likely interacting with texts this tool wrote (or more likely co-wrote) without knowing. And, rest assured, that those texts are not only present in ads and blog posts.

ChatGPT is busy creating job postings, emails, newsletters, reports; you name it. Business leaders and HR departments are using it to brainstorm how to cut costs, write employee handbooks, and reduce manual activities.

Could that mean that ChatGPT is your future high-performing manager or assistant?

As an HR leader, this question encouraged me to dive deeper into how you can use ChatGPT in human resources and how to use it most effectively.

Practical Applications of ChatGPT in HR

Hiring managers, coordinators, and recruiters are using ChatGPT to write emails, review job postings, outline interview questions, calculate ER contributions, and create social media captions and employee handbooks.

Writing Job Specs

Let’s see what ChatGPT (free version) can do!

The goal was to prompt ChatGPT to write a job spec for an Accounting VP role. This means covering the essential information and ensuring the text speaks to the ideal candidate. 

Here's the prompt I used for a real role I recently filled:

Write a job spec for the following job role: Vice President of Accounting

The new VPA will plan, direct, and coordinate all financial analyses to provide leadership with accurate and timely data to evaluate operations. They will also oversee all accounting functions and ensure full compliance with all banking and legal regulatory requirements.

The job qualifications the ideal candidate should have:

- Bachelor's degree in Finance or Accounting; CPA, CMA, or MBA degree preferred;

- 8+ years' experience in finance or accounting (hospitality/restaurant or real estate experience a plus);

- Strong analytical skills, as well as the ability to develop and analyze complex issues and present summaries and recommendations;

- Robust leadership capabilities and experience influencing and challenging business leaders to drive results;

- Demonstrated ability to lead and participate on teams;

- Excellent interpersonal, decision-making, organizational, and management skill;

- Demonstrated ability to perform well in a dynamic work environment;

- Strong knowledge of Information Systems, enabling them to develop, implement and maintain new systems and incorporate production processing changes into existing systems

The company they will work for is dynamic and growing and, although the schedule is flexible, this position requires in-person work at the corporate office.   

Ensure the job specs are concise, informative, professional, and tailored to the ideal candidate.

Here’s ChatGPT’s response:

Job Title: Vice President of Accounting

Job Description: The Vice President of Accounting will play a pivotal role in our dynamic and growing company. As the VPA, you will lead and coordinate financial analyses to provide accurate and timely data for evaluating our operations. You will oversee all accounting functions, ensuring strict compliance with banking and legal regulatory requirements. Your leadership and analytical skills will drive results and contribute to our continued success.


Key Responsibilities:

- Plan, direct, and coordinate financial analyses to provide accurate and timely operational data to leadership.
- Oversee all accounting functions, ensuring adherence to banking and legal regulatory requirements.
- Collaborate with cross-functional teams to influence and challenge business leaders to achieve optimal outcomes.
- Lead and participate in teams, leveraging your strong interpersonal and management skills.
- Develop and analyze complex financial issues, providing insightful summaries and recommendations.
- Drive the development, implementation, and maintenance of information systems, incorporating necessary changes.


Job Qualifications:


- Bachelor's degree in Finance or Accounting; CPA, CMA, or MBA degree preferred.
- 8+ years of progressive experience in finance or accounting, with hospitality/restaurant or real estate experience considered a plus.
- Exceptional analytical skills with the ability to analyze complex issues and present clear recommendations.
- Proven leadership capabilities and a track record of influencing and driving results.
- Excellent interpersonal, decision-making, organizational, and management skills.
- Demonstrated ability to excel in a dynamic work environment.
- Strong knowledge of Information Systems, enabling development, implementation, and maintenance of systems.

Additional Information:

- Flexible schedule with in-person work required at the corporate office.
- Join a dynamic and growing company poised for continued success.
- Opportunity to make a significant impact through your leadership and analytical expertise.
- If you meet these qualifications and are looking to contribute your expertise to a thriving company, we encourage you to apply for this exciting role.

(Company Name) is an equal-opportunity employer. All qualified applicants will receive consideration for employment without regard to race, color, religion, sex, sexual orientation, gender identity, national origin, or protected veteran status and will not be discriminated against on the basis of disability.


Application Deadline: (Insert Deadline)

Application Instructions:

Please submit your resume and a cover letter outlining your relevant experience and explaining why you are the ideal candidate for the Vice President of Accounting role at (Company Name). Email your application to (Email Address).

We look forward to reviewing your application and considering you for this impactful position.

As you can see, ChatGPT followed my instructions and provided a comprehensive job spec that lists all the responsibilities and requirements.

Analyzing job interview transcripts

In the next phase, I used an old interview transcript of a candidate who applied for the above VP of Accounting position.

I asked ChatGPT to analyze the transcript and determine whether this applicant would be the right fit for the company.

Check the screenshots to see how the conversation went. 

My prompt:

Put yourself in the role of a recruiter, interviewing a candidate for the previously discussed position (Vice President of Accounting). Use all the data available and assess the following interview transcript.

How compatible does the candidate seem with the job requirements and responsibilities and with what the company needs? Did you spot any red flags? - Which ones and why? What makes this candidate a good match for this role? Do they have the potential to perform well as a VPA?

If your evaluation shows the opposite, clarify why this job applicant isn't compatible to be this company's VPA.

Put yourself in the role of a recruiter, interviewing a candidate for the previously discussed position (Vice President of Accounting). Use all the data available and assess the following interview transcript. How compatible does the candidate seem with the job requirements and responsibilities and with what the company needs? Did you spot any red flags? - Which ones and why? What makes this candidate a good match for this role? Do they have the potential to perform well as a VPA? If your evaluation shows the opposite, clarify why this job applicant isn't compatible to be this company's VPA.

The interview transcript you should analyze:

"Let's kick off by you talking about your experience as it relates to this role?

Native Texan, lived in Cincinnati for 30 years. Lived all over the country, and early in career was in the hotel business, which had him moving all around to move ahead in the business.

Got out of the business when the kids were young. Was a stay-at-home dad for 1.5 years then transitioned to the Cincinnati Sports Club, which was losing financially. He teamed up with the president there. Able to grow it! Basically, pretty money now, operation is solid, constant improvement, growing membership, still growing!

Had a pandemic protocol prior to COVID. Still could've been open during that time if the governor hadn't mandated it. Took the opportunity to join the Reds after 10 years, as the two companies have mutual owners. He was the VP of Finance.

Accounting and Finance was a bit of a mess from previous ownership, cleaned up, good forecasting system and responsibility, plus budgeting.

In an ideal world what would your ideal work schedule look like?

Usually early into the office, historically done all, be there when things have to get done. M- F job, meets deadlines. Go in on the weekends because it is quieter. Goal is to spend time at his new home in Florida.

If you noticed the annual forecast projects a revenue decrease, how would you solve this problem?

The interesting thing about the business at current company, are the wild swings that happen in the year. Monthly reforecast for the year for sales > concessions > parking = merch . .. do a regular/monthly reforecast of the budget. Promotional giveaway for fireworks (sunk cost) attendance is down, drive operations staff adjusts. Make people aware, be on the lookout for savings, winning streaks will boost sales back up. Learn to go with the plan, not make rash decisions, adjust day by day.

What kinds of finance and accounting tools do you use on the job?

Exports from ERP, Use a lot of excel, unfortunately. Just rolled out Adaptive/WorkDay. Great tool, converted from Microsoft to Net Suite. Have a custom CRM module for invoicing, receivable billing. Paycor for payroll. ADI for time clock system.

What resources will you need from the company to complete objectives effectively?

Looking for partnership, develop relationships, smaller operation, working directly with the president worked well. A lot of give and take. Take goals and collaborate/communicate to the staff. Access and clear communication.

How do you measure ROI when making investments?

I would say, any sort of major purchase or improvement, main thing monetizing dollar on investment increase sales, membership, etc. Look at space and utilization. Changed from company a to company b grab and go and that space paid for itself in weeks. Measure membership surveys and satisfaction of club members.

Describe your leadership style.

Gone through a lot of changes over the years, first started with “my way” mentality. Now tries to find what is motivating the employee. Is it pay? Is it recognition? Have clear goals and communication”

Based on the provided interview transcript, let's assess the candidate's compatibility with the job requirements, their fit with the company's needs, and any potential red flags:

Compatibility with Job Requirements and Responsibilities:

- The candidate has a diverse background with experience in the hotel business, club management, and sports organizations, which aligns well with the hospitality/restaurant and real estate experience preferred for the role.

- The candidate has a diverse background with experience in the hotel business, club management, and sports organizations, which aligns well with the hospitality/restaurant and real estate experience preferred for the role.

- They have experience in financial management and have demonstrated the ability to lead financial turnarounds, as seen in their role at the Cincinnati Sports Club.

- Their mention of cleaning up accounting and finance processes and implementing forecasting and budgeting systems shows relevant experience in ensuring compliance and improving financial operations.

- The candidate also highlights their ability to lead and work in teams, which is important for the leadership and collaboration aspects of the role.

- Their experience with pandemic protocols and crisis management indicates adaptability and strategic thinking.

Red Flags:

- The interview transcript is quite fragmented and lacks structured responses, making it a bit challenging to follow the candidate's thought process.

- It's not entirely clear how the candidate's previous roles directly relate to the specific job requirements and qualifications listed in the job description.

- The transcript doesn't provide detailed examples of the candidate's analytical skills, their ability to handle complex financial issues, or their proficiency in information systems.

Fit with Company Needs:

- The candidate's experience in turning around the Cincinnati Sports Club and contributing to its financial growth demonstrates alignment with the company's need for effective financial leadership.

- Their experience in the hospitality industry, coupled with their tenure at the Reds, indicates familiarity with the company's sector and potential business synergies.

- The candidate's role in pandemic protocol development suggests alignment with the company's need for adaptability and forward-thinking in times of crisis.

Strengths and Potential as a VPA:

-The candidate's track record of successfully turning around financial situations and growing operations showcases their ability to make impactful contributions.

-Their diverse background suggests versatility, which could be valuable in a dynamic and growing company.

- They seem proactive in implementing systems and strategies, as demonstrated by their pandemic protocol and financial clean-up efforts.

- The alignment between their previous roles and the hospitality/real estate sectors is promising.

Potential Concerns:

The fragmented responses and lack of clear articulation may indicate a potential communication challenge, which could be important in a leadership role like the Vice President of Accounting.

While the candidate's experience is diverse, the interview transcript doesn't provide sufficient depth on their technical accounting skills and how they align with the job qualifications.

Overall Assessment:

The candidate shows potential compatibility with the job requirements and responsibilities, given their diverse financial and operational experiences. However, there are some red flags related to communication and the direct alignment of their experiences with the outlined qualifications. While the candidate has demonstrated the ability to lead and improve financial situations, the lack of specific examples related to analytical skills and information systems could be a concern.

Recommendation:

This candidate has potential but requires further clarification on certain aspects of their background and a more structured communication approach. It would be beneficial to probe deeper into their technical accounting skills, decision-making processes, and their ability to work within a complex and regulated environment. Additionally, assessing their communication skills and their capacity to articulate their experiences and strategies in a clear and concise manner would be essential.

ChatGPT did its task without any glitches, confusion, or additional questions. It analyzed different aspects of the candidate's qualifications and background, including leadership style and communication, against the initial job specification and served as an excellent second set of eyes to help analyze this person’s responses.

Writing A Lay-Off Email

To gauge how effective this tool is with human emotions like empathy, I prompted ChatGPT to write a professional and empathetic lay-off email for employees and doesn't dive into details. 

My prompt:

Please write a short, empathetic, and professional email informing Marketing department employees about layoffs. The message should exuberate sympathy, wish the best to theseemployees, and ensure the company will be supportive during the transition process. However, it shouldn't delve into complex details and reasons for this decision.

ChatGPT's response:

Subject: Important Update: Support and Transition Assistance during this Period

Dear Marketing Team,

I hope this email finds you well. Today, I have the difficult task of sharing some challenging
news with you. Due to evolving business circumstances, our company has made the
decision to implement a workforce reduction within the Marketing department.

Unfortunately, your position has been affected by this decision.

Please understand that this decision was not made lightly, and we genuinely recognize the
dedication and contributions each of you has made to our team and the company as a whole.
Your hard work and creativity have been instrumental in driving our marketing efforts

forward, and we are truly grateful for your valuable contributions.

We understand that this news may come as a shock, and it is natural to feel uncertain during this period of transition. However, please know that we are committed to supporting you
throughout this process. Our Human Resources team will be available to provide guidance
and assist you in any way possible. They will provide comprehensive information regarding
severance packages, benefits continuation, and other resources available to help you

navigate this transition successfully.

We will also be offering outplacement services to provide additional support as you explore
new career opportunities. These services will include resume building, interview skills
enhancement, and guidance for job searching in today's market. We are fully dedicated to
ensuring that you have the necessary tools and support to make a smooth and successful

transition.

We understand that you may have questions or concerns about your specific situation. To
address these, we have scheduled a virtual meeting with the HR team on [date] at [time].
During this meeting, they will discuss individual circumstances, provide you with details on

next steps, and address any queries you may have.

Rest assured that we will make all necessary arrangements to facilitate a seamless handover
of responsibilities, including the return of any company property and the completion of
pending tasks. We deeply appreciate your cooperation and professionalism during this

transitional phase.

On behalf of the entire company, | want to express our heartfelt appreciation for your
contributions and express our best wishes for your future endeavors. You have been an
integral part of our team, and we truly value the passion and commitment you have

demonstrated.

If you have any immediate concerns or questions, please reach out to the HR department at

[contact details]. We are here to assist you in any way we can.

Thank you for your understanding, and please accept our sincerest gratitude for your hard

work and dedication.

Warm regards,

[Your Name]
[Your Position]

[Company Name]

The tool stayed on top of the task, showing significant empathy. However, the text still required minor edits to ensure it didn't sound superficial or slightly robotic regarding emotions.

It's also necessary to edit ChatGPT's output before using it to ensure it matches your company's values, tone, and language. Moreover, you may want to personalize it with more details.

Help with a formal investigation

The next step was to test ChatGPT's capabilities in helping solve challenging employee conflicts while exhibiting human attributes such as intuition and empathy.

I prompted the chatbot to put itself in the role of HR personnel and find the best solution for a specific situation.

My prompt:

Put yourself in the role of HR personnel, and imagine you must conduct a formal
investigation and solve employee conflict.

Here's a situation you must address:

This is a "he said, she said" situation. But there's no evidence besides what one says vs another. The issue is another layer of multiple people saying more items against the individual.

The individual is not well-liked at all, and they used a derogatory comment towards anemployee.

Other than that, we don't have absolutely any evidence besides testimonials.

As an HR professional, what would you do in this case? How would you solve this situation?

ChatGPT’s response:

As an HR professional, when faced with a "he said, she said" situation with no concrete
evidence, but multiple people expressing concerns about an individual's behavior, including
a derogatory comment, it is important to handle the situation sensitively and impartially.

Here are the steps | would take to address and resolve the conflict:

1. Gather information: Conduct private and confidential interviews with all parties involved,
including the individuals directly involved in the conflict and those who have made
additional claims against the individual. Encourage them to provide specific details, dates,
and any potential witnesses who may have observed the incidents.

2.Document statements: Thoroughly document the statements made by all parties involved,
ensuring confidentiality and impartiality. Note any inconsistencies, patterns, or recurring

themes that emerge from the interviews.

3. Review policies and guidelines: Assess the company's policies, including the code of

conduct, anti-discrimination, and anti-harassment policies, to determine if any violations
have occurred. Consider whether the alleged derogatory comment aligns with the

company's guidelines on respectful and inclusive behavior.

4. Consider credibility and reputation: While there may not be concrete evidence, take into
account the credibility of the individuals involved and their reputation within the
organization. Evaluate the consistency of their statements, past behavior, and any prior

complaints against the accused individual.

5. Consult with management or legal: Depending on the severity and nature of the allegations,
consult with higher management or seek legal advice to ensure compliance with relevant
laws and regulations. They can provide guidance on how to proceed based on the available

information.

6. Address the behavior: Regardless of concrete evidence, if there are multiple claims against
the individual and a derogatory comment has been reported, it indicates a potential issue
with their behavior. Take appropriate disciplinary or corrective actions, such as counseling,
retraining, or implementing a performance improvement plan, based on the severity of the
allegations and the company's policies.

7. Monitor the situation: Keep a close eye on the situation and encourage employees to report
any further incidents or concerns. Foster an open and inclusive environment where

employees feel safe to raise issues without fear of retaliation.

8. Provide support: Offer support to the affected parties, such as counseling, mediation, or

other resources, to address any emotional or psychological impact caused by the conflict.

9. Follow-up and evaluate: Regularly follow up with all parties involved to ensure that the
conflict has been resolved and monitor for any potential recurrence of issues. Continuously

evaluate the effectiveness of the measures taken to address the conflict.

It's important to emphasize that each situation may vary, and it's crucial to adapt the

approach based on the specific circumstances and guidance from legal and management

teams.

The tool was surprisingly efficient and impartial, showing that it can provide good guidance in conducting a formal investigation.

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Get weekly insights and how-tos on leadership and HR’s biggest and most pressing topics—right to your inbox.

Help with Pay Structuring

Compensation is a hot topic in the HR world, so I was curious to see if it could help me out with my compensation management strategy. First off I asked it to produce a salary structure for a VP of accounting in Ohio:

Chatp GPT's response:

Certainly! Here's a sample pay structure that includes a bonus for a Vice President of Accounting in Ohio.

Title: Vice President of Accounting

Base Salary: The base salary is the fixed component of the VP's compensation and should be competitive based on the candidate's qualifications, experience, and the company's budget. Let's set it at $160,000 per year.

Bonus Structure: The bonus structure can be performance-based and aligned with the company's financial and strategic goals. Here's a potential bonus breakdown:

Annual Performance Bonus: Up to 20% of the base salary, contingent on the VP's achievement of predetermined performance targets. These targets could include financial metrics like revenue growth, cost management, profitability, accuracy of financial reporting, and adherence to compliance standards.

Department Performance Bonus: Up to 10% of the base salary, based on the VP's ability to drive efficiency and excellence within the accounting department. Metrics for this bonus could include improving accounting processes, reducing processing time, and enhancing the department's overall performance.

Individual Performance Bonus: Up to 10% of the base salary, tied to the VP's individual contributions to the company's success. This could be assessed through factors such as leadership, team development, mentoring, strategic initiatives, and other measurable accomplishments.

Benefits:

- Health Insurance: Comprehensive health, dental, and vision insurance coverage.
- Retirement Plan: A 401(k) or similar retirement savings plan with employer matching contributions.
- Paid Time Off: A generous vacation and paid time off policy.
- Professional Development: Funding for professional certifications, conferences, and workshops to ensure the VP stays up-to-date with industry trends.


Stock Options or Equity: Depending on the company's structure, the VP could be offered stock options or equity to align their interests with the company's long-term success.
Relocation Assistance: If applicable, the company could provid

The response surpassed my expectation as the structure provided would be accurate and competitive in the Ohio market. With this please note that this data is from 2021. 

With this, the practical guidance ChatGPT provided in the wrap-up text is a major bonus as these suggestions should be considered when preparing a compensation package.

I also asked ChatGPT if we should adopt a policy of pay transparency. 

My prompt: As a company should we adopt a policy of pay transparency and, if so, how can we effectively communication salary ranges and compensation practices to employees without causing dissatisfaction or conflict?

ChatGPT’s response:

Adopting a policy of pay transparency can have both benefits and challenges for a company. On one hand, it can promote fairness, trust, and accountability among employees. On the other hand, it might lead to potential conflicts and dissatisfaction if not managed properly. Here's a guide on how to effectively communicate salary ranges and compensation practices to employees without causing negative outcomes:

Benefits of Pay Transparency:

- Fairness and Trust: Transparent compensation practices can foster a sense of fairness among employees, as they understand how their pay aligns with their roles and responsibilities.

- Motivation and Productivity: Knowing that there's a clear path for salary growth can motivate employees to work harder and excel in their roles.

- Reduced Wage Gap: Transparency can help in identifying and addressing wage gaps based on gender, ethnicity, or other factors.

- Retention and Recruitment: Publicizing competitive compensation practices can attract new talent and retain existing employees.

Challenges of Pay Transparency:

- Comparison and Jealousy: Employees might compare their compensation to others and feel envious, which can lead to resentment and decreased morale.

- Misinterpretation: Without proper context, employees might misinterpret salary ranges, leading to confusion and potential conflicts.

- Privacy Concerns: Some employees might not be comfortable with their compensation being publicized, leading to privacy concerns.

- Decreased Flexibility: Transparency could limit the company's ability to negotiate compensation on a case-by-case basis.

Effective Communication Strategies:

- Provide Context: Explain the factors that influence compensation, such as experience, education, skills, performance, and market conditions. This helps employees understand why pay varies across roles.

- Use Ranges: Instead of exact figures, communicate salary ranges. This allows for some flexibility while giving employees an idea of what to expect.

- Focus on Growth: Emphasize the potential for growth within the company and how employees can increase their earnings over time through promotions, skill development, and performance improvements.

- Offer Regular Reviews: Conduct periodic performance and compensation reviews to ensure that salaries remain competitive and aligned with an employee's contributions.

- Address Concerns: Create a channel for employees to ask questions or express concerns about compensation. Being open to discussions can help alleviate any potential dissatisfaction.

- Training and Education: Educate employees on how to interpret compensation data and encourage them to focus on their own growth rather than comparing themselves to others.

- Privacy Options: If possible, provide employees with the option to keep their individual compensation private.

- Transparency Gradually: If your company is transitioning to a more transparent approach, consider doing it gradually to allow employees to adjust.

- Manager Training: Train managers on how to handle compensation discussions and provide them with guidelines for discussing salaries with their teams.

- Legal Considerations: Ensure that your approach aligns with local laws and regulations regarding compensation transparency.

In conclusion, adopting a policy of pay transparency can be a positive step for your company, but it requires careful planning and communication to mitigate potential conflicts. By providing context, using ranges, focusing on growth, and addressing concerns openly, you can create an environment where pay transparency fosters trust and fairness among your employees.

Pretty solid advice there!

Assist with Calculating Attrition Rate

As many HR professionals have doubts about calculating attrition rates, I asked ChatGPT to help me decide whether to calculate it for the entire organization or segment it by departments, teams, or job levels.

My prompt:

As a company, should we calculate attrition rates for the entire organization or segment it by departments, teams, or job levels? How can we analyze attrition patterns across different segments to identify areas of concern? Provide a specific and detauled answer in no more than five sentences.

ChatGPT’s response:

As a company, it is beneficial to calculate attrition rates both for the entire organization and
by segments such as departments, teams, or job levels. Analyzing attrition patterns across
different segments helps identify specific areas of concern and potential retention
challenges.

By segmenting attrition data, you can pinpoint high turnover areas, assess the
effectiveness of retention strategies by department or team, and identify any trends or
patterns that may contribute to attrition. This targeted analysis enables you to tailor
retention efforts, allocate resources effectively, and implement interventions that address
the unique needs and circumstances within each segment, ultimately improving overall employee retention and satisfaction.

The tool underperformed in explaining how to analyze attrition patterns across different segments to identify areas of concern. However, it confirmed calculations are necessary on the organizational level and for smaller units. 

I then offered ChatGPT exact information to calculate attrition for my organization: 

chatGPT on calculating attrition rates for my organization screenshot

The tool performed excellently as it provided the exact number and detail of how the attrition rate was calculated. 

Assistance With Working Out Salary Bands

Another common doubt HR professionals have is how to determine the company's salary band.

ChatGPT was quite helpful in providing advice on identifying the appropriate minimum and maximum values and clarifying what factors to consider. 

My prompt:

As a company, how do we determine the appropriat minumum and maximum values for each salary band? What factors should be consideredm such as job responsibilities, market rates, internal equity, and employee experience? Provide a specific and detailed answer in no more than five sentences.

ChatGPT’s response:

Determining the appropriate minimum and maximum values for each salary band requires considering several factors.

Firstly, job responsibilities should be assessed, taking into account the complexity, scope, and level of accountability associated with each role.

Secondly, market rates should be analyzed by conducting salary surveys or benchmarking
studies to understand the prevailing compensation levels for similar positions in the industry
and geographic region.

Internal equity should be maintained by considering the relative worth of jobs within the organization and ensuring consistency and fairness.

Lastly, employee experience, qualifications, and performance should be factored in to differentiate
within each salary band based on individual contributions and skills. By integrating these
factors, companies can establish salary bands that are competitive, internally equitable, and reflective of job requirements and employee value.

To take it a step further, I asked ChatGPT for specific information regarding salary bands for a Software Developer in the SaaS industry in Austin, Texas.

ChatGPT’s response:

While I don't have access to real-time data or specific information about salary bands in the
SaaS industry in Austin, Texas, I can provide you with some general salary ranges based on
historical data up until my knowledge cutoff in September 2021.

It's important to note that salaries can vary depending on factors such as the company size, level of experience,specific role, and the candidate's skills and qualifications.

Here are some approximate salaryranges for software developers in the SaaS industry in Austin:

- Junior Software Developer (0-2 years of experience): $60,000 - $80,000 per year.
- Mid-Level Software Developer (2-5 years of experience): $80,000 - $110,000 per year.
- Senior Software Developer (5+ years of experience): $110,000 - $150,000 per year.
- Lead Software Developer/Technical Lead: $130,000 - $180,000 per year.
- Software Engineering Manager: $140,000 - $200,000+ per year.

Please keep in mind that these figures are estimates based on historical data, and the
current salary landscape in Austin may have changed. It's always advisable to research up-
to-date salary information from reliable sources such as industry reports, job boards, and
salary comparison websites.

Additionally, salaries may vary significantly depending on the

company's financial health, the demand for talent, and other market factors.

The tool provided detailed compensation ranges specific to the experience level of the Software Developers in the SaaS industry in Austin Texas and also provided logic and guidance on limitations. 

Recap: How Did ChatGPT Do?

ChatGPT provided guidance and assistance on common tasks HR professionals encounter.

In general, I was happy with the quality of the work and, as was the case with the salary bands calculation, the tool was even quick to point out its limitations.

Even though I still had to edit it a bit before using it, its job spec helped save time and it was even capable of mimicking sympathy when writing the layoff email.

It really is an excellent tool to kickstart or provide some general guidance on almost any task—my colleagues and I treat it similar to a personal assistant!

To help you get the most out of the tool and avoid its potential pitfalls, here are some considerations and best practices.

Considerations For Using Chatgpt In HR

No Access To Real-Time Data (Yet)

Whether you're using ChatGPT-3.5 or ChatGPT-4, this AI-powered tool has no access to the internet and can't provide information and data in real time. 

Its knowledge cut-off is September 2021, and with the world and trends changing faster than ever, understanding the context and current events is vital.

Although you can download a Chrome plugin called ChatGPT Everywhere and have ChatGPT use the internet, you might find its interface overwhelming. This extension is often just as helpful as Google - it tends to copy-paste text and information from search results and accompany it with many references, so its replies may sound even more robot and impersonal.

Moreover, ChatGPT doesn't memorize details from previous conversations once you start a new topic, forcing you to constantly remind the tool of the context and backstory.

But you won't always have time to explain the background and refine your prompts until getting satisfactory results. 

Sometimes the urgency of a task will force you to do it yourself because it might be faster than clarifying details to ChatGPT.

It's Not Always Accurate

According to WePC, ChatGPT can achieve over 50% accuracy across all exams and even offers insights and explanations for its answers. However, that means it will provide inaccurate answers nearly half the time, making it challenging to rely on without checking.

Hence, you shouldn't take this AI-powered tool as a gospel. Regardless of browser extensions that you might install to support ChatGPT's work, assess whether it's correct, credible, and where its insights come from.

It Requires Personalization

You can use simple prompts, but you will also get simple and generic replies. But it's also not enough to write a precise, informative, and detailed question because ChatGPT still requires additional inquiries and guiding this tool toward providing the needed solution.

It's an intelligent app, but it has no ability to ask its own questions, offer possible solutions without you explicitly asking, or take the initiative in any way or sense. 

Every conversation with ChatGPT requires personalization and paying attention to how you word your sentences and whether they might imply a double meaning or aren't accurately portraying your thoughts and problems.

Even though people use ChatGPT for many tasks, it still lacks the emotional intelligence, context, and possibility of face-to-face interaction to really grasp your question, job, or problem. 

Remember, its understanding is based on patterns in the data rather than true comprehension or consciousness.

That means ChatGPT won't be as helpful in employee-related matters and relationships as you might hope. It can provide generalized advice you would likely find across the web, but it can't empathize with employees' emotions, non-verbal cues, and personal circumstances in a way human HR professionals can.

It May Fall Flat in Terms of Privacy and Data Protection

With its current possibilities and knowledge cut-off, ChatGPT can't provide the most reliable answer to privacy and data privacy questions. Employment laws and regulations can vary across jurisdictions and frequently change.

OpenAI has recently made ''history off'' mode available, enabling the tool to forget conversations, and announced more robust Business subscription models. But you should still be careful with the data and information you share, especially if using ChatGPT-3.5.

If you don't feel comfortable with a third party knowing something about your company, team, or strategy, don't share it with anyone outside the trusted circle, including online. Instead, find ways to structure prompts without revealing sensitive data or revealing confidential matters.

Be Wary of Potential Bias

Although ChatGPT is an AI tool trained on vast chunks of data, including textbooks, statistics, and literature, it was also trained on the opinions and thoughts of people from forums and unvetted sources. If you expect it to be completely free of bias, think twice. 

ChatGPT itself admits it may contain subjective data and information. That's why it's better to avoid using it in sensitive situations or only use it as a starting guidance.

Never Remove Humans from the Process

Human resources are and will always be about business and humans. Without these elements, you can't develop bullet-proof and effective strategies, solutions, and relationships.

You can use ChatGPT for many things, but not to entirely replace people. The human touch, insights, and input are vital for recruiting, delivering value, and reinforcing business objectives.

How To Use ChatGPT In HR Effectively

ChatGPT has various benefits that can make your work easier, faster, and more enjoyable; it's all about how you use it and what you expect from it.

Here are the tips on how to get the best results from using ChatGPT in HR:

1. Use Detailed Prompts

You don't need a prompt engineer or tutorials to write effective and efficient prompts. Since ChatGPT was trained on human-produced data, talking with this tool is not much different than talking with humans i.e. the more details and information you provide, the better answer or advice you will get.

Explain in as much detail as possible how you want its reply to be; for instance, you can instruct it to generate its response using a specific structure or write in a professional but engaging tone.

Don't expect to get everything you need first time. Sometimes, it will take a longer conversation, asking additional inquiries, and continuously guiding the tool toward what you need.

2. Double-check the Accuracy of Its Answers

If you’re using Chat GPT for something like the salary band analysis above, check and verify every reply and suggestion. There have been cases of ChatGPT ‘hallucinating’ or providing inaccurate information about people, events, and news.

Even though that rarely happens, you must be cautious as it may affect the quality of your work and recruiting results. For example, cross-check with reliable and credible sources to check any stats, data, and references ChatGPT provides to ensure you're working with trusted information and can build solid foundations for every strategy.

You can also ask the tool to reveal its sources.

3. Use ChatGPT to Brainstorm and Outline Ideas and Solutions

So far, the best and safest way to use ChatGPT is to brainstorm and outline ideas and potential solutions with the answers and insights it provides. 

Although it can be surprisingly insightful and a good advisor, it may only provide a list of suggestions you'd also find in Google search results.

It also can't browse the internet, has a knowledge cut-off, and you can't upload pictures and documents to the app.

But, if you have advanced coding and programming knowledge, you can use its API to create your own chatbot with personalized capabilities or integrate it with an ATS, CRM, or payroll platform.

For more advice on how to use ChatGPT effectively, there’s a lot of useful tips and information on the platform’s website here.

Time To Start Experimenting!

ChatGPT has quickly become a ubiquitous tool with applications across industries and business functions and human resources management is not immune to this change.

As with anything, the best way to learn is to simply start playing around. The tool is pretty intuitive to use and you can use it for a wise range of applications outside of the HR space as well—everything from cooking to writing songs to cheating in pub quizzes (just kidding!).

If you have any questions feel free to hit me up in the comments or join the conversation over in the People Managing People Community, a supportive community of HR and business professionals passionate about building organizations of the future.

Some further resources:

Jaimie Green
By Jaimie Green

Jaimie is a seasoned, C-Suite experienced, Global Human Resources Executive. She possesses extensive experience in building successful people operations programs that include designing, managing, and facilitating. She has proven success in creating cultures of collaboration and implementing change to achieve workforce excellence. he has a track record of coaching in the areas of transformational leadership, communication, team building, and managing change. Her industry expertise includes technology, manufacturing, engineering, and hospitality. Jaimie is a results-focused leader who delivers solutions that help companies harness the full power of one of their most valuable assets – their people.