New research outlines how people managers will operate in the future
With generative artificial intelligence (genAI/AI) described in new research as “the most significant opportunity to reshape HR in decades,” what impact will this technological revolution have on people management as a function?
The research, by TI People, says almost half of employees (47%) in large organisations cited insufficient training as a primary barrier to adopt AI and only 30% believed structures were in place that allowed for the adoption of new technology, highlighting the need for more rigorous training to facilitate change.
“Removing barriers are essential to AI being adopted quickly and to its full potential. These data points help us understand where to focus – and should be triggering ideas on how HR and its operating model can help remove these barriers,” the report finds.
“As work evolves, so do workforce expectations. Research reveals that 39% of workers report feeling ‘more replaceable and less valued than before the pandemic,’ highlighting anxiety accompanying technological disruption. Despite these concerns, employees are not resisting technological advancement but seeking reassurance that their contributions will remain valued with opportunities to grow alongside new technologies,” the report said.
HRD spoke with Volker Jacobs, CEO of TI People, who noted that HR is in an exciting place – as utilising AI in a functional way can transform how they work.
“This is why we did the research – we wanted to look at exactly how HR as a function was going to change – we look so much on how we can react to these changes in technology, but how people managers are going to have to adapt has been overlooked.”
“The work of people is missing – and perspective on AI change in relation to HR is starting with a pain point. So, what pain can AI resolve? Whatever it is - it can be retention, for example - you start with it and then AI can tell you what they can do about that pain,” Jacobs added.
One of the biggest issues HR faces, Jacobs told HRD, is a battle on two fronts – with business leaders demanding solutions and pressure from the ‘bottom’ of the organisation in how AI automation is going to be implemented.
“There's so much change happening that leaders really need HR and business partnerships to deal with very complex requirements. It has to do with a big skill shift in the entire organization, not only in HR, but it also has to do with redundancy plans and efficiency gains,” Jacobs noted.
Another key impact AI will have on HR, Jacobs outlined is enabling more with less – something he said has been promised for decades.
The research – titled AI-Powered HR: How to Evolve the HR Operating Model for the AI Era - highlights an “overall efficiency potential of 29% across HR functions, with operational roles showing the highest automation potential at 50%”.
It was also noted that this does not mean jobs will be lost – but rather, they will be transformed, with several different HR roles emerging from this new era, such as AI Ethicist and Service Experience Designer.
“There is so much running room for HR to develop capabilities against this request to solve complex problems. The question, now, is whether companies are willing to invest in bulking out these strategic capabilities – that’s the difference between success and failure.”
An additional change for HR is how – and when – they recruit staff. Jacobs’ research outlines the forecasted need to provide 60% of re-skilling within an organisation with 40% of re-hiring to meet the needs of a changing workforce.
He emphasised that there isn’t a one-size-fits-all model, though, and the rate of change is highly dependent on the needs of the business, with the timeline to fully deploying AI blurry. “It could be two years for one company, five for another, and seven for another,” Jacobs noted.
“This change is something we have to prepare for, sure, and HR need to be ready and able to adapt where needed. Future-proofing recruitment strategies is one way of building plans against a reality of not having the relevant skills necessary. Re-skilling workers is one way that can be done and also helps with adopting and accepting AI more generally.”
Underpinning a lot of the impacts Jacobs outlined in his research is the acceptance that “HR will change dramatically, and that change has to be managed well.”
Those that win in that can drive this change faster than others and speed matters. Understanding where the change happens and managing that change rigorously is very cost effective and is the game to play,” he concluded.
