Optimizing the Impact of AI on Employee Experience

Artificial intelligence (AI) stands poised to transform the employee experience. In fact, it’s already happening! Based on Gartner's findings, four out of five HR leaders (81%) have already "explored or implemented" GenAI solutions. But what implications does this hold for the employee experience, the relationship between employers and their workforce, and the future of work?

To start, employees have decidedly mixed feelings about generative AI. A survey by professional services network EY found that three-quarters of employees are concerned about it: 75% fear AI will make certain jobs “obsolete,” for example, and 72% fear it will negatively impact their pay or affect their professional growth in some way. Although, a survey from Workday found that nearly an equal number of employees are excited about AI, with 73% hoping their companies explores more AI solutions.

How can similar numbers of people say opposite things? The difference here seems to be all about how the AI tools are used and implemented. As EY writes in its report: “Employees are open to the AI opportunity despite their concerns: 4-in-5 see its value at work and believe it will make them more efficient (82%), more productive (81%) and able to focus on higher-value work (81%).”

Similarly, a report from IBM describes a situation where employees clearly and unambiguously benefit from AI, which would naturally elicit greater enthusiasm from workers. “AI has the potential to transform the employee experience. It can automate repetitive tasks, letting people focus on what they are passionate about, freeing up their time for skills development or work-life balance, and potentially create exciting new job roles and career paths.”

6 Ways AI Will Affect Employee Experience

At this point, it might be helpful to articulate some of the ways AI is likely to impact employee experience. There are really two dimensions to this question. First, HR itself can use AI to enhance the employee’s working experience. Below we cover six key dimensions through which AI is reshaping the employee experience:

1. Self-Service HR Tools.

AI tools bring a whole new level of convenience to employees when it comes to managing various aspects of their job. These self-service tools can help with things like managing compensation, benefits, and other important employment details. For instance, this can include having a conversation with a virtual assistant, like a chatbot, to find answers to questions. According to Workday, more than half of organizations (60%) are already using some form of AI in this way.

The use of AI is a game-changer, saving employees time and effort. Instead of having to search through piles of paperwork or wait for HR to respond to an email, employees can get the information they need right away. It's similar to having a colleague available 24/7 to assist with any HR-related questions.

These tools are designed to be user-friendly and intuitive. They understand natural language, so employees can ask question in their own words without needing to learn complex systems or procedures. This makes the experience more accessible and less intimidating for everyone.

2. Recruitment and Onboarding.

When it comes to finding and welcoming new employees, AI technology can streamline the process. These powerful tools make the hiring process faster and smoother. They allow HR teams to spend more time focusing on the human aspect of hiring, like getting to know candidates and assessing if they'll fit with the company culture.

Instead of spending hours shifting through stacks of resumes, AI can quickly analyze job applications and identify top talent. It can predict which candidates are best based on their skills, experience, and personality.

But the impact of AI doesn't stop there. Once a new employee is hired, AI-driven tools can assist with the onboarding process. From setting up email accounts to scheduling orientation sessions, AI can take care of the administrative task so HR teams can focus on making sure new hires feel supported.

3. Personalized Learning and Development.

AI is changing how employees learn and grow within a company. Many companies are leveraging AI to create personalized learning tailored to each employee's unique needs and goals. According to Workday, 30% of companies are using AI to develop tailored skills and career development plans. While 28% are using AI to generate recommendations for employee's career progression.

In this approach, AI analyzes each employee's skills, interests, and performance data to design custom learning paths. This could include online courses, workshops, or mentorship opportunities tailored to help employees enhance their skills and progress in their careers.

Furthermore, AI can generate recommendations for employee career advancement based on their performance and goals. By analyzing historical data and trends, AI can identify potential career paths and suggest opportunities for growth and development.

4. Performance Management.

AI tools can play a vital role in enhancing performance management within an organization. By using AI technology, business can track performance metrics in real-time, providing employees with prompt and unbiased feedback. This feedback loop supports employee growth and ensures personal goals align with company goals.

These AI-driven systems constantly monitor key performance indicators (KPIs) such as productivity and goal achievement. By analyzing data, AI can identify patterns, allowing managers to gain insights into individual and team performance.

One significant advantage of AI-driven performance management is its ability to provide fair evaluations. Unlike traditional reviews, AI evaluates performance based on objective data, ensuring accuracy Moreover, these systems facilitate ongoing coaching and development for employees. Managers can see where they need to improve and provide targeted training.

5. Employee Engagement and Well-being.

AI-driven wellness programs are becoming more popular in the workplace, aiming to support employee's well-being. These programs use AI to provide personalized health and wellness recommendations for each employee's unique needs. For example, AI might recommend personalized exercise routines, mindfulness techniques, or ways to improve sleep based.

Moreover, these wellness programs can proactively identify signs of burnout or mental health concerns by monitoring behavioral patterns and sentiment analysis. This early detection enables companies to provide timely support and interventions to prevent potential issues from worsening.

6. Automation of Transactional Tasks like Payroll.

Automating manual tasks using AI has gained popularity across various work environments, with a goal to streamline operations and increase productivity. Payroll management is one area benefiting from AI advancements. By leveraging AI tech, companies can transform traditional payroll processes, ensuring faster, more accurate, and reliable operations.

With AI, repetitive payroll tasks such as data entry, calculation of wages, and tax deductions can be performed swiftly and accurately. This automation not only speeds up the payroll process but also reduces the likelihood of errors, ensuring that employees are paid correctly and on time.

Furthermore, these types of systems can adapt to changing regulations and policies, reducing compliance risks and making sure adherence to legal requirements. This capability provides peace of mind to stakeholders, including employees, HR professionals, and finance.

The second dimension of AI implementation include ways that workers use AI in the execution of their job duties. For example, imagine an AI-powered CRM tool working in tandem with a human salesperson. The tool can use machine learning and natural language processing to analyze vast amounts of customer data, providing sales representatives and customer service agents with insights that improve customer interactions and outcomes. This can enable the employee to work faster and generate better results.

3 Best Practices When Implementing AI in the Workplace

1: Reassure employees

If you want to improve employee experience with AI, part of the solution is making it clear that AI isn’t going to replace workers. In fact, at least given where AI stands today, IBM says that most executives (87%) actually believe that employees are “more likely to be augmented than replaced by AI.”

In other words, AI tools will help existing employees to be more effective and productive rather than replacing them outright. So, communicate openly with employees about the use of AI, especially around the ways in which AI will help them.

2: Involve employees from the start

According to Workday’s survey, only 16% of organizational leaders believe that they need employee buy-in for AI success. However, imposing AI on employees without getting their input and preparing them could backfire by reducing employee enthusiasm for AI and instead increasing their fears about it.

Plus, bypassing employee involvement risks missing helpful insights that on-the-ground workers could provide about where AI could be the most impactful. “It’s important to engage employees in this process,” argues IBM. “For example, give teams a forum to recommend tasks that could be automated to make their jobs easier and more fulfilling, leveraging digital channels for a continuous and open feedback loop.”

3: Implement ethical AI practices

Develop clear guidelines for the ethical use of AI, emphasizing fairness, transparency, and accountability. This is definitively something employees want. According to EY’s survey, 77% of workers would view an organization more positively if it created an AI responsibility/ethics task force, and 80% would do so if the organization offered AI responsibility and ethics training to workers. Ethical guidelines should address issues like algorithmic bias in AI tools and any privacy implications.

Ultimately, AI is clearly reshaping the dynamics of the workplace. Its integration into HR practices offer new opportunities to grow a positive employee experience strategy. Considering AI's impact, its integration demands careful consideration. By embracing a principled and strategic approach to AI adoption, emphasizing transparency, fairness, and human-centric values, HR professionals can leverage AI's potential to grow a more engaging, supportive, and fulfilling workplace environment for employees.

Ready to optimize your HR operations and boost business productivity? Consider partnering with CoAdvantage, a nationwide Professional Employer Organization (PEO). With our comprehensive and cost-effective HR solutions, including but not limited to: HR administration, HR technology, workers' compensation management, and tailored health insurance packages. From payroll to compliance and risk management, we've got you covered. 

Let us handle the complexities of HR management so you can focus in growing your business. Fill out the form below to discover how CoAdvantage can support your company's success!