Generative AI will bring more humanity into the workplace

In an era defined by The Great Resignation, work models changing by the minute, and the promise of artificial intelligence (AI) to enhance—and potentially replace—tasks, it has become clear that we are amid a paradigm shift in our approach to work. HFS has described this attack on workplace stability as The Great Freakout!

In this evolving landscape, enterprise leaders must find new ways to empower their workforce while driving new ways of working. Failure to do so may result in a disengaged workforce, reduced competitiveness, and a risk of being left behind.

Amid this unrest, AI, specifically generative AI (GenAI), has swept into the workplace as a powerful agent of change with the potential to fundamentally re-engineer all aspects of work while simultaneously bringing more humanity into the work—that’s right, more, not less.

GenAI must be viewed as a catalyst for value creation, not merely a cost and productivity tool

While much of the conversation has centered around GenAI’s ability to increase productivity by automating tasks, it has the potential to go beyond this. GenAI could reshape the entire employee experience (EX), supporting the various aspects of work that make it engaging, meaningful, and fulfilling to employees—all the aspects that make it more human.

At HFS, we strongly believe enterprise leaders need to focus on the human value GenAI can bring to both people and enterprises through the lens of EX, not just productivity. This strategic emphasis is driven by our anticipation of new capabilities it is poised to unlock in the next 18-24 months.

Recognizing GenAI’s impact on EX for enterprise leaders could lead to heightened employee engagement, motivation, and collaboration, which can translate to enhanced customer experiences and business success.

To succeed, leaders must understand employee experience across four dimensions

At HFS, we define EX as the cumulative impact of an employee’s interactions over the employee journey, from recruitment to exit. We look at this journey through the four dimensions in Exhibit 1:

• the physical environment in which they work
• the digital environment supporting their tasks
• role advancement, which captures their role and progression in the organization
• well-being, to promote psychological safety and a sense of belonging

Exhibit 1: The four dimensions of employee experience apply across the employee journey, shaping employee perception, motivation, and satisfaction

Source: HFS Research, 2023

Each dimension has a role in shaping employees’ perceptions, motivation, and satisfaction within the organization and their day-to-day tasks. In our HFS OneOffice™ paradigm, the employee experience is critical to driving customer experience, ultimately leading to tangible business outcomes such as revenue, brand growth, and loyalty.

GenAI can inject more humanity into the four dimensions of EX

With GenAI as a key capability, enterprise leaders can inject more humanity into each of the dimensions by tailoring experiences to individual needs and fostering a sense of belonging. Organizations can ultimately create a more human-centric workplace that promotes engagement and fulfillment by leveraging GenAI.

We will now explore how they can impact each dimension of EX; please note that some examples may require employee data and explicit permission.

Re-imagine the physical environment for enhanced EX

The first dimension is the physical environment, encompassing the tangible elements of the workspace, whether at home or in an office setting. This can include the office layout, equipment used, the temperature, to the lighting of a workspace. Current practices of considering the physical elements of EX take a one-size-fits-all approach, neglecting individual needs and preferences. Some of the most transformational applications of GenAI in this context are designing and optimizing environments to accommodate individual needs (see Exhibit 2).

Exhibit 2: GenAI can take the lead in crafting a physical environment that promotes collaboration and productivity as well as ensuring physical well-being

Source: HFS Research, 2023

Tailor technology preferences in the digital environment

The digital environment dimension in EX focuses on the tools, technologies, and systems employees need to support their tasks. At present, this dimension is often managed with a focus on providing the basic software and hardware required. GenAI is set to transform this dimension by providing personalized, intuitive, and supportive solutions catered to individuals’ needs and preferences. It can analyze behaviors and habits and suggest or configure software (see Exhibit 3).

Exhibit 3: GenAI can lead to personalized, role-based tools, fostering collaboration and communication within a secure digital environment

Source: HFS Research, 2023

Empower employees by accelerating role advancement

The role advancement dimension captures day-to-day tasks and opportunities for progression within the organization. Employees need to feel that their contributions are valued and that there is room for growth and development. At present, this dimension is managed through traditional HR processes, performance reviews, and standardized development programs that may not fully leverage an employee’s potential. With GenAI, employees can advance their roles by augmenting existing work, allowing them to focus on more innovative, specialized, and creative work, and personalizing growth opportunities (see Exhibit 4).

Exhibit 4: GenAI can streamline role advancement, fostering innovation and personalization

Source: HFS Research, 2023

Prioritize well-being for a thriving workplace

The well-being dimension focuses on promoting psychological safety and a sense of belonging among employees. Organizations typically view this dimension as a nice-to-have and offer generic programs or health benefits to manage a diverse set of employee needs. With GenAI, organizations can enable personalized support systems to cater to individual needs and preferences, fostering an inclusive and empowering environment
(see Exhibit 5).

Exhibit 5: GenAI can impact well-being by promoting diversity, inclusion and mental health while improving work-life balance

Source: HFS Research, 2023

The Bottom Line: By evaluating the impact of GenAI across the four dimensions of EX, organizations can drive a workplace transformation beyond efficiency gains, cultivating an empowered workforce and infusing more of the human touch into the workplace.

Enterprise leaders must orchestrate a holistic transformation of the work environment that considers the human elements of work. In doing so, we believe they should explore the impact of GenAI on the employee experience through four dimensions of EX. The result is a more efficient workforce and ecosystem where employees are inspired to reach their full potential and drive the organization’s success.

We will explore these impacts in depth in our upcoming HFS Horizons Report: Employee Experience for the Generative Enterprise, 2023, analyzing the capabilities of the top firms providing services related to these dimensions and more—stay tuned…