This article has been written by Monica Kalvani pursuing a Personal Branding Program for Corporate Leaders from Skill Arbitrage.

This article has been edited and published by Shashwat Kaushik.

Introduction

An organisation is defined by the effectiveness of the employees working in it and not by its physical infrastructure. Employee engagement is therefore one of the most important factors that affects a company’s growth and success. Progressive company leaders and senior HR executives today are looking towards technology to enhance their employees’ experiences and boost engagement. Generative AI, an artificial intelligence solution, is one such technology that helps in engaging employees and thereby leading to organisational success. Generative AI thus plays a crucial role in keeping the organisation a step ahead of its competitors.

But what exactly are the dynamics between generative AI and employee engagement? How exactly does it work?

Enhancing communication with chatbots

Chatbots, one of the applications of generative AI, are generally used by companies to communicate with and engage with employees. Being a high visibility application, it is popularly used by employees for instant responses to their queries and concerns. This stream of instant and authentic communication not only provides comfort but also fosters trust within the employees.

While on one hand the chatbots can help the employees in real-time get answers to frequently asked questions and provide them with HR related information, on the other hand, these AI powered chatbots can be deployed to enhance employee engagement “by generating personalised messages, newsletters or announcements.”

Personalized learning and development

AI uses data to analyse employee’s skill-sets, preferences and goals, and based on this, AI driven systems can recommend courses, resources and training to upskill the employee and thereby further his career. This further helps to foster trust and loyalty amongst the employees, as he feels that the company is interested in his individual career growth.

Also, by automating routine tasks, AI allows employees to focus on more important and creative aspects of their KRAs. This shift in focus from routine tasks to higher-value tasks, in turn provides opportunities for skill development, which in turn fosters job satisfaction.

Generative AI can analyse future industry trends and forecast skill gaps that will need to be filled in the future. Senior executives and HR heads can use this information to upskill capable employees within the workforce to help bridge this skill gap and be future ready. This approach to learning and development gives employees within the organisation the chance to enhance their skills by receiving relevant training and thus they stay engaged, leading to job satisfaction. This creates a win-win situation by contributing to both employee growth and organisational growth. 

Optimizing work-life balance

Having a healthy work-life balance reduces stress and ultimately leads to job satisfaction. Generative AI-powered scheduling tools create optimised work schedules by considering the employee’s preferences, personal commitments, and peak productivity hours. This leads to employee’s well-being, engagement, and work commitment.

Another way Generative AI can have a positive impact on employees’ well-being is by analysing indicators such as work-load and stress levels and providing senior executives/management the insights to initiate timely measures for promoting a healthier work-life balance.

Assessing employee well-being can be automated using AI. AI can analyse certain indicators, such as work hours, workload and stress levels, to reveal the level of well-being of the employee.

Generative AI also helps to identify the factors or drivers, be they reward and recognition programmes, flexible work arrangements or career growth opportunities, that have the biggest impact on employee engagement. This information can then be used to motivate the employee on an individual level. The effectiveness of all such initiatives taken by the HR or reporting senior executive to motivate the employee can be measured in real-time. This measurement enables timely adjustments to maximise effectiveness, address any concern or even capitalise on the positive impact of these initiatives.

Fostering an inclusive culture

Generative AI can eliminate all biases in the hiring process by screening job applications, identifying and removing all information that may unconsciously lead to bias. AI thereby helps create a culture of diversity and inclusiveness in the organisation.

Biases in the performance evaluation processes can also be identified by AI algorithms, thus promoting objectivity and fair play This ensures that talent and hard work are recognised and acknowledged, irrespective of the personal characteristics and background of the employee. Reward and recognition programmes are thus enhanced by AI, which recognises and removes biases from performance data, identifying employees who may have been overlooked and ensuring equitable distribution of recognition efforts.

The resultant diverse workforce helps boost employee morale and engagement.

Generative AI can be used to analyse the values and beliefs that influence employee engagement and thus reveal cultural insights entwined within the organisation. This analysis can help in devising an engagement strategy that is in alignment with the organisation’s unique culture and, in turn, creates a sense of shared purpose and belonging amongst the employees.

‘Trust’ is the most important influencer that directly impacts employee engagement. The HR department, along with the senior executives of an organisation, can today make use of the technological advancements made in generative AI to foster and build trust in the employees towards their organisation and enhance employee engagement. For the success of any business, it is imperative to build a ‘Culture of Trust’, for it is trust that drives open communication, enhances motivation, enables effective leadership, and fosters employee well-being and a positive organisational culture. Today, the most powerful tool that can help build trust and enhance employee engagement is generative AI.  

Predictive analytics for employee retention

“Employee engagement analytics is like having a superpowered microscope that allows you to zoom in and examine the intricate details of your workforce’s satisfaction, motivation, and overall engagement levels.”

By analysing various data points generated by senior executives through surveys, feedback, employee performance reviews, and perhaps even social media interactions, AI analytics can predict the level of employee engagement, employee sentiments and the current state of mind of the employees. The analysis throws up red flags in employee sentiments, giving the employee’s reporting senior executive an opportunity to pre-empt any thought in the employee’s mind to resign from his post.

But why is analysis so important for any company? This is because employee engagement has a cascading effect; thus, employee engagement gives rise to employee happiness, which in turn enhances employee productivity, loyalty and a longer stint in the same company.

In fact, in the initial stage of recruitment itself, AI can help in application screening and choose the best fit candidate, thus improving the quality of the employees hired and long-term employment.

The initial days of a new hire are very crucial and it’s important that the new employee feels settled in at the earliest. AI eases out and streamlines the initial routine documentation and other paperwork and initiation processes like induction and training, thereby giving the employee a comfortable experience and making him start on a positive footing.

Recruitment comes at a cost and losing valuable talents causes an even bigger cost to any company. Therefore, predictive analytics is a very valuable application of generative AI. AI can predict which employees are at a higher risk of exiting the company by analysing employee behaviour patterns and historical data. This analysis gives the company the opportunity to take pre-emptive steps to retain the employee in case he is a valuable talent.

Effective ways to implement generative AI-powered employee engagement

Implementing generative AI-powered employee engagement strategies can revolutionise the way companies engage with their workforce. Here are expanded insights and practical steps to effectively implement generative AI in employee engagement:

1. Identify key areas for enhancement:
   • Analyse existing employee engagement surveys and feedback to identify areas where generative AI can make a significant impact.
   • Focus on aspects such as personalised learning and development, enhancing communication and collaboration, and fostering a sense of belonging.
2. Choose the right AI platform:
   • Evaluate various generative AI platforms based on their capabilities, ease of use, and integration with existing HR systems.
   • Consider factors like scalability, security, and compliance to ensure a smooth implementation.
3. Integrate with HR processes:
   • Seamlessly integrate the chosen AI platform with HR processes such as onboarding, performance management, and internal communications.
   • Leverage AI-generated insights to automate tasks, streamline workflows, and make data-driven decisions.
4. Personalise employee experiences:
   • Utilise generative AI to create personalised content and recommendations tailored to each employee’s preferences and career aspirations.
   • Offer relevant training materials, skill development suggestions, and mentorship opportunities based on individual needs.
5. Foster a culture of learning:
   • Implement AI-powered learning platforms that provide employees with access to a wide range of courses, certifications, and personalised learning paths.
   • Encourage employees to engage in continuous learning and skill development to adapt to evolving job requirements.
6. Enhance communication and collaboration:
   • Use AI-generated summaries and insights to facilitate effective communication between employees and managers.
   • Leverage AI-powered chatbots and virtual assistants to provide real-time assistance and support.
7. Promote a sense of belonging:
   • Create AI-driven employee communities and discussion forums where employees can connect, share ideas, and collaborate on projects.
   • Use AI to analyse employee sentiment and address concerns promptly.
8. Measure and evaluate impact:
   • Continuously monitor and evaluate the impact of generative AI on employee engagement.
   • Collect feedback from employees to assess their satisfaction with the AI-powered initiatives.
   • Make adjustments based on the evaluation results to optimise the employee engagement strategy.

By implementing generative AI-powered employee engagement strategies, companies can foster a more engaged, productive, and innovative workforce, ultimately driving organisational success in the digital age.

Benefits for enterprises on implementing generative AI-powered employee engagement

Benefits for enterprises from implementing generative AI-powered employee engagement:

• Increased productivity: Generative AI can help employees be more productive by automating repetitive tasks and providing them with real-time assistance. This can free up time for employees to focus on more creative and strategic work.
• Improved employee experience: Generative AI can help to create a more positive and engaging employee experience by providing personalised recommendations and support. This can lead to increased job satisfaction and reduced turnover.
• Enhanced decision-making: Generative AI can help enterprises make better decisions by providing them with data-driven insights and recommendations. This can lead to improved operational efficiency and increased profits.
• Reduced costs: Generative AI can help enterprises reduce costs by automating tasks and improving operational efficiency. This can lead to significant savings over time.
• Increased innovation: Generative AI can help enterprises innovate by providing them with new ideas and solutions. This can lead to the development of new products and services, and increased market share.
• Improved risk management: Generative AI can help enterprises manage risk by identifying potential problems and providing mitigation strategies. This can help protect enterprises from financial loss and reputational damage.
• Increased compliance: Generative AI can help enterprises comply with regulations by providing them with up-to-date information and guidance. This can help to avoid fines and penalties.
• Improved customer service: Generative AI can help enterprises provide better customer service by providing customers with personalised support and recommendations. This can lead to increased customer satisfaction and loyalty.

• Reduced bias: Generative AI can help to reduce bias in the workplace by providing fair and unbiased recommendations. This can lead to a more inclusive and diverse workforce.
• Increased employee creativity: Generative AI can help stimulate employee creativity by providing them with new ideas and perspectives. This can lead to the development of new products and services, and increased market share.
• Improved employee well-being: Generative AI can help to improve employee well-being by providing them with support and resources. This can lead to a healthier and more productive workforce.

Overall, generative AI has the potential to revolutionise the way that enterprises engage with their employees. By implementing generative AI-powered employee engagement solutions, enterprises can improve productivity, employee experience, decision-making, and innovation.

Conclusion

Senior executives and HR heads will need to strategically work together to implement and incorporate AI into all the above-mentioned engagement initiatives. All business heads of the organisation can streamline their division’s processes such that they can “make data-driven decisions that positively impact employee experiences and overall organisational success.”

It is imperative that HR personnel and business divisional heads are well trained so that they are familiar with the AI tools and processes before they are implemented.

Generative AI has proved to be a powerful tool for organisations aiming to create high-value human capital, which will help leverage their company ahead of their competitors. It is therefore imperative for HR leaders of such companies to understand the full potential and benefits of generative AI and then use the tool in alignment with company goals.

Generative AI is set to reinvent HR roles and modes of operation. It allows senior executives to make data driven informed decisions that drive employee engagement and give impetus to organisational success.

References

• https://www.gnani.ai/resources/blogs/the-impact-of-generative-ai-in-employee-engagement/
• https://www.hono.ai/blog/strategies-and-benefits-of-generative-ai-employee-engagement
• https://www.visier.com/blog/hr-leaders-need-to-know-about-generative-ai/#:~:text=Generative%20AI%20can%20assist%20in,assist%20employees%20in%20real%2Dtime
• https://leena.ai/blog/employee-engagement-generative-ai/