The Critical Question Organizations Should Be Asking About AI Productivity Gains
The other day, I was excited to sit down and watch some of HackingHR’s replay on their AI in HR conference. It was the first time in a couple of months that I could really dive back into HR topics. While I haven’t watched all the content, the messaging in the sessions left me concerned and reflecting on AI in the workplace. My perspective is limited to the USA since I haven’t worked elsewhere (okay, I did a short internship at a Japanese elementary school in 2004, but that’s not really relevant). However, my concerns might resonate with a broader, global context.
The sessions I watched focused on upskilling and reskilling workers, making them more productive, and impacting the employee lifecycle. However, none of the content I’ve seen so far addressed a critical question: Who receives the benefits of increased worker productivity? According to the U.S. Bureau of Labor Statistics, real hourly compensation has not kept pace with labor productivity gains. As labor becomes more productive, those gains have been redistributed to organizations or their leadership rather than to employees. I’m not trying to be political, but in the interest of fairness, if employees are contributing increased productivity, shouldn’t they receive rewards or incentives reflecting their added value to the organization?
I strongly believe that HR and People Operations leaders who are serious about the future of work must have deep, and likely, uncomfortable conversations with their leadership teams about how the benefits of increased productivity from AI should be distributed. I also encourage leaders to avoid viewing productivity gains solely as a way to reduce headcount and create leaner teams. As we look toward the future of work, we should prioritize improving employees’ quality of life. In my ideal scenario, incorporating AI into operations would include one or more of the following approaches:
- Increased wages for employees – With productivity and profits rising (whether from revenue growth or cost reductions), employees should be rewarded for their enhanced productivity. Demonstrate your organization’s commitment to its workforce by sharing these gains. I believe increases in base pay, rather than one-time bonus payments, should be the standard in these circumstances.
- Reduced work hours – If employees are more productive, they may not need to work 40-50 hours a week. A four-day work week or reduced weekly hours could be considered. Importantly, reduced hours should not result in reduced pay. If employees are maintaining or exceeding previous productivity levels, they should not be penalized for their efficiency.
- Increased community building – As AI boosts worker productivity, leaders should model behaviors that enhance human connection and community building to improve employee inclusion, deepen trust, and emphasize the human experience of collaboration. This doesn’t necessarily mean mandating return-to-office policies; as an online gamer, I’ve witnessed incredible community building in MMORPG guilds in entirely virtual settings. Instead, focus on approaches that strengthen personal relationships, whether in-person or online.
How we choose to distribute the gains from AI-assisted productivity will profoundly shape the future of work and society as a whole. We can either maintain the status quo—where productivity gains are not shared with workers and communities—or embrace this opportunity to improve employees’ and communities’ lives. I hope you’ll join me in advocating for the latter as we lay the foundation for the future of work.
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