Ok, so let's address the image first! We asked GenAI to create an image to use for headcount reduction vs productivity gains, the original prompt asked for a boss firing someone, whilst being very pleased with their new AI bot. Version 1 had people clapping and cheering over the dismissal, so we tweaked the prompt and, well, it went a bit too far. So, our gift to the world is this image... enjoy!
Now to the actual article based off the discussion with Jack Fisher. (and yes GenAI was used in the creation)
Navigating Headcount and Productivity in the Age of AI
There is a real expectation of Gen AI that it will bring gains (and done right that is a given) but we need to look at the issue of balancing headcount reduction with productivity gains. Is there a right or wrong?
The AI Promise: Efficiency or Expansion?
Let's set the stage by highlighting the promise of AI: liberating humans from the drudgery of repetitive tasks to unlock creative and analytical potential. The savings can be quantified in time or monetary terms, equating to the productivity of additional full-time employees.
Ideally, AI should be treated with great caution if being seen as a tool for workforce downsizing, it is better for most organisations to view it as a catalyst for expansion without the need to proportionally increase headcount. This perspective aligns with the natural ambition of businesses to evolve and thrive rather than stagnate.
Cultural Shift: Rethinking Roles and Growth
What are the cultural implications of AI integration? Jack suggests a re-evaluation of roles, particularly in administrative functions where AI can assume entire job descriptions. Instead of layoffs, a strategic redistribution of talent within the organization is more beneficial.
By emphasizing the importance of aligning employee activities with overarching business goals, it important that businesses ensure their teams are not just 'busy' but are actually productive in ways that foster growth, and that align to the organizational OKRs. This is where tools like Viva Goals can really help.
The Human Factor: Beyond the Bottom Line
The human aspect of AI adoption also needs to be considered. If AI really does lead to major headcount, which it will in places, think about how that message will be received by the people working for you. How might you feel if AI threatened your role?
Tools like Viva Insights, Viva Pulse and Viva Glint, that can reveal the risk of employee burnout or negative sentiment will come into play here. The time-saving benefits can also translate into better work-life balance, not just increased output.
Conclusion: It’s All About Culture
The decision to reduce headcount or enhance productivity through AI is fundamentally a cultural one. Businesses must choose whether to view AI as a cost-cutting measure or an opportunity to supercharge their workforce, effectively getting “150% productivity out of every individual".
AI must be embraced, not just for efficiency, but for the growth and well-being of both the business and its people.
So hopefully this image never becomes a reality? Feel free to use and abuse the full delights below.
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