“Employees will turn to chatbots for answers”

For the past ten years, Peter Ribarič has been running Planet GV, which publishes the HR&M magazine, where he also serves as Editor-in-Chief.  The magazine focuses on people, organization and leadership development, and is the only professional publication in Slovenia dedicated to human resources management.

Planet GV also organizes conferences in the field of human resources (HR) management, with the most prominent being the Love HR Summit and the HR&M Festival. The former is Slovenia’s main HR congress, while the latter was held for the first time last September, attracting 2,000 participants from HR and general management.

Peter Ribarič, an engineer by background, first encountered HR in a managerial role at the Poteza Group, where he served as a board member. At the beginning of his career, he was also active as a coach and worked in adult education.

"As a leader, I was very passionate about HR because organizations can only deliver results with the help of, and together with, their people," says Peter Ribarič.

Are companies in Slovenia fully leveraging data on working time, productivity and employee engagement?

Not even close. Most Slovenian companies still view this data as a necessary evil—used primarily to track employee presence, monitor the physical premises, and, of course, as a basis for payroll.

However, companies do little or nothing with the content of this data. What processes are employees engaged in? Which activities are they allocating time to? Do the results from these activities and processes justify the effort?

This is a great opportunity. Companies should not see time records as a necessary evil, but as valuable insights into where they are investing their time. In any organization, we want to focus our time on activities that will bring the greatest benefits.

If we don’t analyze this data, we simply don’t know.

To what extent is hybrid or remote work present in Slovenia compared to abroad?

Slovenia is in line with trends observed in Western Europe. Last year, at the Love HR Summit, we hosted Emmanuelle Leon, an HR professor at ESCP, a leading French business school. She shared insights on trends in other EU countries, which showed that Slovenia falls somewhere in the middle. The volume of hybrid work is slowly stabilizing, and the same can be said for remote work, particularly regarding administrative tasks.

How common is this type of work in Slovenia?

Based on feedback from our event participants and partners, this type of work typically accounts for up to two days per week, particularly in support functions that are office-based. For at least three days a week, employees are required to be in the office.

What should be considered when using digital HR management tools to make the company's organizational culture as effective and motivating as possible?

With hybrid work models, it’s crucial to explain the reasons behind choosing remote or office work. The key question is determining which types of work require physical presence to be more effective and efficient, and which do not.

This often also depends on the dynamics between team members. In most organizations, work tends to be more effective when people are physically together, rather than each working separately on their own screen. Additionally, the nature of the work must be considered—whether it even allows for remote work in the first place. Another crucial factor is building a strong organizational culture and a sense of belonging.

From this perspective, it’s important that the physical workspace holds symbolic significance for employees. If someone works from home four days a week, it’s important to justify why they should come into the office one day. Ensuring the sense of presence and fostering group dynamics are essential.

Have you ever encountered someone who was eager to leave work as soon as possible before the epidemic, but after a few months, became one of the most frequent in-office employees?

The stories are varied. However, we are now in a phase of an overheated labor market. Unemployment is virtually nonexistent, and there are virtually no active jobseekers. Prospective employees now have the leverage to set conditions on how they want to work.

The younger generation is particularly uncompromising when it comes to hybrid work. At the same time, organizations are still structured around individual processes and organizational units. It's important for younger generations to accept this. However, they won’t do so simply for the sake of control and supervision.

It is the content of the work that must justify the purpose.

What about older employees? Do they accept that younger people expect to work in a hybrid way even more than the older generation? This may also cause conflict...

I wouldn't categorize employees strictly by age. I've noticed that some younger employees prefer to work in an office as well, even though they work independently. This helps them distinguish when they are working and when they are not. At home, many end up working all the time, which can lead to overwork and side effects, including health issues. It's easier to understand the boundaries between work and personal time when work is linked to a specific space.

Older employees are generally less inclined to work from home, perhaps because they are simply accustomed to working in a way that has been effective for 20 or 30 years. It's what they're used to.

What are the key performance indicators in human resources management used by Slovenian companies? What do they measure?

In traditional organizations, human resources management is often seen as more of a support function. Common KPIs in these companies include employee turnover, absence due to sick leave, and similar traditional indicators.

However, more advanced organizations measure factors related to active employee involvement. They assess organizational climate, energy, loyalty, and engagement, measuring the degree of positive attitude towards finding solutions and helping others. This is done through surveys to gauge the overall atmosphere within the company.

Companies also collect numerous suggestions for improvement. However, the focus is shifting away from comparing and boasting about metrics, like the number of suggestions made or the value derived from them. Instead, the emphasis has moved toward measuring organizational engagement, energy, and culture.

What do you think about measuring happiness or making sure employees are happy? Some companies have happiness officers.

I think this concept has faded a bit and is no longer as much of a trend. The real question is whether happiness should be our ultimate goal as individuals, or if there might be something more meaningful to strive for, like doing something purposeful or helping others.

Happiness is a concept that is perhaps somewhat misleading. When we say we’re happy, it often means something good has happened to us, and that’s why we feel happy. The challenge, however, is how to maintain that feeling consistently—through 31 days in a month and 365 days in a year.

Relativity theorists would argue that if you are happy all the time without experiencing unhappiness, you can't truly be happy because you don't know what it's like to be unhappy. There is no benchmark for comparison.😊

Yes, we need a range of emotions: pain, effort, frustration, pleasure, rest... Balance is key. Organizations that focus on developing people in a balanced way encourage leaders and employees to share moments of happiness. But it’s also important to manage feelings of frustration and make sure all emotions are experienced in the right proportions. Such organizations are healthy.

At times, it’s important to offer praise. In Slovenia, we tend to give praise too sparingly— I’m guilty of this myself. I move on too quickly. But we must take time to celebrate. Feelings of happiness are fleeting but important. That’s why they need to be recognized and used to connect the team.

How can new technologies and artificial intelligence support HR management?

New large language models are capable of recognizing patterns from unstructured data, offering many opportunities in HR management. One of the most typical applications is in talent search and selection.

"Many organizations already use AI algorithms to assist in analyzing job applications." 

These algorithms provide initial rankings of candidates, along with brief explanations of why a candidate is suitable, highlighting their strengths and specific qualifications.

Based on this, the recruiter then makes the final decision. The algorithm should not be the one to decide who to hire. That would not be appropriate. Decisions about people need to be made by people. However, algorithms can be extremely helpful in sorting and analyzing the unstructured documents that are often part of the selection process.

How can AI be useful in managing an organization's existing employees?

In HR administration, artificial intelligence in the form of chatbots will play a significant role. Employees will be able to turn to chatbots if they have questions or need clarification. For instance, they can ask about workplace rules and procedures, salary, leave policies, bonuses, and other information that traditionally requires a lot of work from HR administration.

This is already possible today with smart chatbots, which are highly effective in helping employees understand the rules they need to follow, the regulations that govern their work, and even the details of their pay and the reasons behind it.

This can alleviate a lot of pressure on HR, finance, and other departments, allowing them to focus more on strategic human resources management.

That's right. Most organizations in Slovenia have not yet adopted advanced AI solutions for organizational management and development. 

"For example, AI can be used to analyze communication between colleagues, which can help identify early signs of disengagement."

A disengaged employee may begin to question whether there is another environment where they could better utilize their potential.

I haven’t seen this applied in Slovenia yet. In such cases, the manager could receive a weekly report from their HR assistant, highlighting colleagues who may be losing motivation or withdrawing. This would allow the manager to have timely conversations with them on how to help them.

Do you know of any other useful applications of AI?

In organizations, the goal is to help employees develop. They have career development interviews with their supervisors, and now HR agents can track their progress until their next interview, encouraging them to follow through on the development activities they've committed to. Without this conscious effort, these development activities will not take place.

There is much more to come in this area.

How ready are Slovenian companies for digital HR management compared to companies in Europe?

Slovenian companies are somewhere in the middle —average when it comes to implementing modern technologies in HR processes. There are many opportunities. We could make better use of them, but within the European Union we do not stand out as either above or below average.

To what extent do HR departments in Slovenia cooperate with finance, marketing, PR, etc., when it comes to using data from digital tools?

Cooperation between departments is well established, both between PR and HR, as well as between finance and HR.

However, I was surprised at an event in Zagreb at the end of last year. HR professionals from leading Croatian companies demonstrated a high level of understanding of financial performance indicators. They discussed these alongside their plans for human resources initiatives. In Slovenia, there is still room for improvement in this area.

Are employee strategies already personalized in Slovenia?

In the IT industry, every employee already has an individual development strategy. This has also been the case in the financial industry for over 20 years. Advanced organizations are making a strong effort to ensure that all career development plans are truly personalized. It has become the standard for all successful organizations.

What are your expectations for the next five or ten years? What will be the most important development trends in the HR industry?

There will be a strong emphasis on understanding, systematically capturing, organizing, and analyzing data about our business and activities. In manufacturing, we have the concept of the digital twin, which simulates different production scenarios based on real input data in a digital environment. We can expect a similar, more analytical approach in services and in how we manage ourselves.

"We will increasingly focus on understanding the results of our work efforts, the objectives of those efforts, and the impact they have on the organization." 

The realization that in order to improve something, we must first monitor and measure it, will become stronger. Measurement will be seen as positive.

For example, in health informatics, key parameters of how our bodies function are continuously captured through measurement. This data is used to take timely action, regulate health treatments, and provide personalized recommendations.

In the future, this approach will extend to the workplace as well. We will be measured, but with the goal of improving our well-being —naturally, in line with the contract we have with our organization or employer.

You mentioned we are a knowledge society. How do you manage your team to ensure effectiveness and keep activities moving in the right direction? Do you use specific soft skills or methods?

Sometimes, it's true that the cobbler's children are the worst shod. It’s been 30 years since I started my first full-time job, and before that, I worked as a student for five years. I have quite a bit of experience. But I've come to realize that you're never too old to stop learning.

That’s why I am committed to continuously improving myself. Every leader has their strengths and weaknesses. It’s important to identify those weaknesses and determine how to compensate for them. But, of course, it’s equally important to focus on areas of strength and leverage them to help the team achieve results.

There is a technical aspect to leadership, but the more challenging part is motivating and inspiring colleagues during the work process. I need to improve in this area as well.

What I highly recommend, especially for new managers, is job shadowing—following an experienced colleague to understand all the positions they manage. This gives them a better understanding of the processes and activities they oversee, offering insight into the workflows. Once they have a good understanding, they may decide to reconfigure certain processes for better productivity and, at the same time, implement a measurement system.

Spica’s My Hours system is useful for this purpose because it doesn't track attendance, but rather activity. It shows how much time each person spends on each task. For leaders, this overview is invaluable.

Was it perhaps a book or a lecturer that inspired you to start shadowing?

I'm an engineer by background, so I tend to jump straight into the heart of the process. I try to understand it—if I see a team working on something, I make an effort to understand what they’re doing and what each individual's role is.

HR brings a different perspective to an organization's management, especially due to its emphasis on soft skills. This soft aspect of people management is crucial and will never lose its value, particularly for managers. Do you agree?

I couldn't agree more. My approach is shaped by certain qualities and affinities I have, along with my education. At the moment, I am focusing more on technical leadership and understanding the organization. However, I am weaker when it comes to motivating and monitoring my colleagues. From a management perspective, I place more emphasis on shadowing and understanding processes.

In corporate management, HR can make two key contributions. First, it reinforces the message to top leadership that leading is part of their role and requires dedicated time. Second, leadership is a process of developing, monitoring, and motivating colleagues, inspiring them as they journey together toward a common goal. This soft aspect is vital.

If HR is to truly make a difference within organizations, it must be well integrated into strategic processes. Only then can it understand which competencies are needed in the current and future workforce, and how to develop or seek those competencies. Programs must be created, and time allocated accordingly. When HR is involved in management, it can better understand the bigger picture and ensure employees have healthy working conditions and fair compensation.

January 1, 2025, marks the beginning of Generation Beta. How different will the role of HR be in 2050, when they enter the job market?

Already today, young people exhibit significantly lower frustration tolerance, which creates a greater need for frequent positive feedback and encouragement. As a result, leadership methods are changing. Today’s younger generation likes to learn independently and seeks insights.

They expect, and will continue to expect, complete transparency, full access to processes, and all relevant documentation that can help them perform their jobs effectively. This is the norm for them. They live in a world where information is easily accessible.

This is why chatbots will play an essential role.