Saturday, October 26, 2024

Opinion: The role of boards in balancing innovation and opportunity with employee job insecurity

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AI, analytics and automation are all an integral part of our everyday lives, influencing how we shop, communicate, learn and how we work.

The compelling debate around AI and automation’s potential to replace human jobs in the workplace is growing, fuelling diverse views and concerns.

With some jobs already being replaced with AI and technology advancing rapidly, understanding the risks and opportunities is more critical for Boards and executive teams than ever.

On one hand, automation presents opportunities for increased efficiency and new occupations. On the other, it stirs fears of job displacement and the loss of the human touch.

What this means for directors is that accepting and integrating AI, automation, data insights and analytics are no longer optional extras; they’re all essential.

However, what they need to be balanced with, is the need for robust change communication and consultation with human workers worried about job security and stability.  

It is incumbent upon us, in collaboration with the CEO and senior team, to implement these advancements effectively, without causing fear and uncertainty.

It’s our role to guide companies to utilise a strategic approach that emphasises transparency, education, inclusion, and a focus on continuous development for all stakeholders: the business, its workers, customers and industry.

How directors can understand the human element

It’s important to recognise that employees are not just resources but the backbone of any company.

Their skills, creativity and dedication drive success and many of these skills are those that can’t be replaced with AI or automation.

We need to acknowledge that this human element is the first step towards a smooth transition of integrating AI and automation tools without isolating employees.

Strategic, multilayered communication strategy is key here.

One that recognises any gaps in employee engagement and openness towards these tools, that measures success and remedies any tactics that don’t achieve their objective, and one that is spearheaded by the executive team to ensure leadership buy-in and messaging flows from the top of the company through to all workers.

Employees need to understand that their contributions are valued and that the company is committed to their growth and well-being.

Transparent communication

From a tactical perspective, an AI change communication strategy can include town hall meetings, department briefings, or a dedicated online portal where employees can access information about the new technologies their employer is implementing their purpose, the opportunity they present for both the company and its people and how the company intends to integrate this technology.

Education is crucial here because fear often stems from the unknown. Companies can roll out comprehensive training programs that demystify these technologies and show employees how to work these tools.

It’s appropriate to offer workshops, online courses and occasionally one-on-one mentoring sessions that can also help employees understand how the business intends to ensure they’re able to work in conjunction with the new tools.

This approach enhances an employee’s skill set and empowers them to see the potential for AI and automation to handle mundane tasks, allowing them to focus on more strategic and creative work.

We need to create a mindset of ‘AI-and’ to emphasise the benefits for workers and position AI as a tool that will enhance an employee’s ability to perform well in their role, rather than an either-or scenario that sees the employee replaced wholly by AI and leaves them feeling insecure.

Embed a ‘future of work’ narrative.

The C-suite needs to set the organisation’s tone around AI.

Create and communicate a strong narrative that covers what the future of work means for your company and people.

Make it a measured and inspiring narrative. When people feel reassured and excited about what lies ahead, they’re far more likely to embrace change, see the potential for AI. 

Employee involvement and inclusion is critical

Establishing cross-functional teams that include representatives from various departments and levels of the organisation is a tactic that involves employees and can significantly mitigate job insecurity.

The purpose of these teams can be two-way, the executive can ask them where AI and automation will be most beneficial for their own role as well as the performance of the business, determining how these technologies can be integrated without disrupting workflows.

This drives ownership as well as understanding and support for these new alternative technology options.

These employees then become advocates for the new technologies, sharing their positive experiences and insights with their peers and communicating their benefits.

This grassroots approach helps build trust and reduces resistance to change.

Investing in Continuous Learning

Continuous learning should be a cornerstone of the business strategy, especially when it comes to AI and automation.

Partnering with leading educational institutions and online learning platforms to offer courses in AI, data analytics, and other emerging technologies is useful for all employees.

It’s the role of management to encourage employees to take advantage of these opportunities, with the promise that the company will support their growth through tuition reimbursement and flexible work schedules where relevant.

This educational aspect also flows into the ‘AI-and’ mindset that is critical within company cultures, education shows employees how AI and systems can enhance their daily work and performance within their role, rather than them remaining fearful of what AI will take away from them.

The psychological well-being of workers affected by AI implementation must be a priority for businesses, boards and policymakers.

AI and fostering a culture of innovation

Encourage employees to experiment with AI and automation tools by providing sandboxes where they can test ideas without fear of failure. This is a valuable tool that erodes employees fear of these technologies.

Further, establishing innovation labs where teams can collaborate on projects that leverage these technologies to solve real business problems, innovation awards to celebrate employees who embrace this tech to improve their or their team’s performance and employee ambassadors who share their experiences with AI across internal company platforms can reinforce the message that AI and automation are not threats, but opportunities for personal and professional growth.

Conclusion

The transition to AI and automation is an ongoing process, so directors and their executive teams need to commit to regularly monitoring the impact of AI, automation, and analytics on their workforce.

Employee surveys, feedback sessions, performance metrics, and listening on the ground will assess the effectiveness of the integration and the overall sentiment within the company.

By prioritising transparent communication, inclusive involvement, continuous learning, and a culture of innovation, companies can alleviate their employees’ job insecurity and empower them to thrive in a technologically advanced workplace.

This strategic approach not only ensures a smooth transition but also sets the foundation for a future where technology and human potential are seamlessly integrated.

The journey ahead may be challenging, but with a clear vision and a commitment to people, every company can embrace the future with confidence.

Cheryl Hayman is an non-executive director, Ai Media Technologies Ltd, Silk Logistics Holdings, Beston Global Food Ltd, Guide Dogs NSW/ACT.

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