How AI is changing the way organizations nurture talent [Q&A]
Recruiting, training and retaining staff is very much a human issue rather than a technology one, right? Not necessarily, using data and insights from AI organizations can measure and improve employee performance as well as creating a more welcoming and inclusive work environment.
We spoke with Dr. Serena Huang, founder of Data with Serena and author of The Inclusion Equation: Leveraging Data & AI for Organizational Diversity and Well-Being, to learn more about how data can be used to drive meaningful progress in DEI and employee well being.
BN: What role does AI have in measuring and improving employee performance?
SH: AI is poised to revolutionize employee performance measurement and improvement by providing insights unattainable through traditional methods. AI-powered analytics can move beyond lagging indicators like annual reviews and attrition to offer more real-time assessments across several key areas:
- Early Burnout Detection: AI can analyze communication patterns (email, chat) and work patterns (hours worked, meetings with colleagues in different time zones) to identify employees at risk of burnout, enabling proactive intervention.
- Top Performer Identification: AI can identify high-potential employees by analyzing project contributions, skill sets, and collaboration patterns, facilitating targeted development and leadership opportunities.
- Micromanagement Detection: AI can analyze communication patterns to identify managers who may be hindering employee autonomy with extremely frequent meetings and check-ins, enabling targeted coaching and leadership development.
- Turnover Prediction: Machine learning models can predict which employees are likely to leave the company based on factors like career progression, manager changes, burnout signals, etc. allowing HR to address concerns and improve retention with appropriate strategies.
- Personalized Development: AI can analyze individual skill gaps and career aspirations to recommend tailored training programs, mentorship opportunities, and project assignments.
However, ethical considerations for AI applications in the workplace are paramount. Transparency and privacy are crucial to ensure AI is used to empower employees, not to create a surveillance state. Organizations must prioritize employee well-being and fairness when implementing any AI systems.
BN: Does this mean that interpersonal skills will become less valuable?
SH: The opposite, actually. While AI can automate certain tasks and provide data-informed insights quickly, interpersonal skills remain essential for human connection, collaboration, and creativity. AI can actually augment human skills by freeing up time for more strategic and high-touch human work. For example, AI can help with tasks like data analysis, reporting, and even some aspects of talent management, allowing HR professionals to focus on more complex and nuanced issues like employee engagement and leadership development.
Relationship-building is one of the seven human skills I highlight in my research. Think about it, any sales professional can now use AI to contact thousands of prospects each week. We have all been on the receiving end of these emails, texts, and DMs. What will differentiate a top sales person in this era of AI is not who can send more cold emails per day, but who can successfully build relationships with prospects quickly and convert them into customers.
BN: Your book talks about how important it is to ask the ‘right questions’ to stakeholders. Can you give us some examples?
SH: One of the 3Cs in my data storytelling framework is 'Care' -- your audience must care about the story you are telling. The only way to ensure this is to first make sure you are solving problems your stakeholders care about.
To understand their short- and long-term priorities, engage them in meaningful conversations. Here are some questions I recommend you ask your stakeholders during the annual strategy discussion and follow-up check-ins:
- What are your organization’s priorities in the next 12, 24, and 60 months?
- What’s a pain point that if solved could accelerate your growth by 2x to 5x?
- What has your organization been needing to do but hasn’t had the resources or time to execute?
How often you touch base with your stakeholders will vary depending on the project complexity and organization culture. I’d recommend at minimum a monthly rhythm. If that sounds like a lot, it’s only 12 times per year on the calendar, and likely you’ll end up with 10 because of some vacation-heavy seasons. Ask yourself: Is that sufficient time for the change you wish to drive?
During a monthly check-in, your focus needs to be tracking progress on short-term goals, identifying any roadblocks, and ensuring alignment with long-term priorities. My suggested agenda for discussion is below:
- Progress Update: “What progress have we made on the top two or three priorities we discussed last month? Are there any roadblocks we need to remove?”
- Immediate Needs: “Are there any new immediate challenges that have emerged this month that we should prioritize?”
- Alignment Check: “How does the work we’re doing this month contribute to the overall goals we discussed in the annual planning session?”
Notice none of the ‘right questions’ I mentioned was about “data”. Asking the right questions means starting with a clear understanding of the business priorities, not what data we have.
BN: How worried should people be about competing with AI for jobs?
SH: In general, people should be worried but not overly concerned. The mindset I’d recommend is to focus on how to collaborate with AI rather than competing with AI. While AI can process vast amounts of data and recognize patterns, it lacks the ability to adapt to unexpected situations or think on its feet. Based on my research, human skills including emotional intelligence, empathy, communication, adaptability, creativity, critical thinking, and relationship-building are uniquely valuable and difficult to replicate with AI.
Rather than being overly concerned about direct competition, we must learn how to leverage AI to enhance and augment our capabilities. For example, AI can help us analyze data, identify patterns, and make predictions, freeing up time for more strategic and high-touch work.
Ultimately, the key to success in a world with AI is to stay curious, keep learning, and invest in oneself. The past two years have taught us that job security is no longer a guarantee, and we need to take proactive steps to stay ahead of the curve.
By being proactive and investing in ourselves, we can develop the skills and expertise needed to thrive in a world with AI. This will involve learning how to use AI in our day to day and developing the 7 human skills mentioned above in parallel. While AI is certainly changing the job market, it's not a reason to be overly worried. Instead, it's an opportunity to take control of our own careers and future-proof ourselves today.
BN: How can prioritizing employee well being help businesses stay ahead of their competitors?
SH: Prioritizing employee well-being is essential for businesses to stay ahead of their competitors. By focusing on employee well-being, businesses can create a positive and supportive work environment that fosters engagement, productivity, and creativity. This, in turn, can lead to improved business outcomes, such as increased profitability, productivity, and employee retention.
One of the key benefits of prioritizing employee well-being is that it can help to reduce turnover and absenteeism. According to the American Psychiatric Association Foundation Center for Workplace Mental Health, employees with depression miss an average of 31.4 workdays each year and lose another 27.9 workdays to unproductivity, which costs employers an estimated $44 billion annually. By prioritizing employee well-being, businesses can reduce the risk of burnout and turnover, which can lead to significant cost savings.
Another benefit of prioritizing employee well-being is that it can help to improve employee engagement and productivity. Gallup researchers found that businesses with high levels of employee engagement experience significant improvements in profitability, productivity, and employee retention. In fact, the median percentage differences between top-quartile and bottom-quartile employee engagement were:
- Profitability: 23 percent
- Productivity (sales): 17 percent
- Turnover: 21 percent to 51 percent
- Safety incidents (accidents): 63 percent
- Absenteeism: 78 percent
- Patient safety incidents (mortality and falls): 58 percent
Additionally, prioritizing wellbeing can improve the attraction and retention of Gen Z and younger millennials in the workplace. The Young Adults and Workplace Wellness Survey conducted by Georgetown University in partnership with Bank of America showed that to attract and retain Gen Z and young millennials, companies need to create a culture that celebrates wellness and fosters inclusion, professional advancement and success, as well as an overall sense of caring.
The Gen Z and millennial struggle with work stress is well-documented. Almost one-half (46 percent) of young adults indicate that they find it difficult to manage the stress of work and other things going on in their life (15 percent strongly agree). Those who are managing work stress well are more likely to say they feel cared about by their managers, have opportunities to grow, and the company has structures and policies in place to support work-life balance.
Have you experienced the use of AI in HR? What do you think? Let us know below.
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