The AI genie is out of the bottle and it’s unlikely that work will ever be quite the same. Indeed’s AI at Work Report found that all jobs on Indeed have skills that can be performed or augmented by AI. The good news for workers is that only 19.8% of the jobs listed on Indeed are “highly” exposed to GenAI, according to the report. Jobs that are less exposed to AI mean less chance of a person losing their job to technology.
Simultaneously, organizations are looking closely at the bottom line in relation to turnover. The 2023 U.S. Organizational Wellbeing Report from Gallagher discovered increased turnover in 2022 has made employee retention a goal for many employers. Gallagher’s report looked at how organizations are adjusting compensation and benefits to improve retention.
The Organizational Wellbeing Report findings verified retention as an ongoing issue facing U.S. companies. 51% of those surveyed experienced a turnover rate of at least 15%. This number is up from 2021. As a result, employee retention will also be a top goal for HR in these organizations.
“The workforce makeup and employee needs are evolving at a rapid rate,” said William F. Ziebell, CEO, Gallagher’s Benefits & HR Consulting Division. “An organization’s ability to retain employees ultimately impacts its bottom line because hiring and training a new employee usually costs much more than retaining someone who is already on the payroll.”
Walking a Line
Because AI continues to raise so many questions both among employees and employers, its unknowns have left many feelings both fearful and excited at the possibilities. One possibility that could positively affect retention is to figure out ways the role could be done with the aid of AI. For example, could AI assist in planning, leaving the worker more time and freedom to complete a task? Another example is using AI as an idea generator, again freeing up more time for execution and perhaps less time spent vetting ideas.
Crunching the Numbers
The ability of workers to show their abilities in a role is also becoming more important as employers contemplate rising medical costs that will likely impact employer-sponsored healthcare. 53% plan to increase cost sharing as a result. Employees could also see higher plan premiums with renewals on the rise.
With so many elements being a moving target, it’s important for both employees and employers to look for elements of alignment and retention, including ways AI could augment and streamline the way work gets done.
Trends to Watch
- Retention vs. revenue
- Headcount rising
- Increasing medical and pharmacy costs
- DEI from the top down
- HR technology – upgrade or implement new?
