WeAreHuman | Issue 013

WeAreHuman is a newsletter dedicated to fostering a more sustainable world of work.

THIS WEEK'S CONTENT

Check out the brief descriptions and links below for a quick overview of the topics covered. Scroll down for a full analysis and actionable insights in the complete newsletter.

  • šŸ§© DIVERSITY, EQUITY & INCLUSION šŸ§© | Harvard Business Review | 4 Ways Employees Respond to DEI Initiatives | This article explores how employees respond to diversity, equity, and inclusion (DEI) initiatives, revealing four distinct profiles and providing strategies for managers to tailor their approaches accordingly.

  • šŸŽ“ EMPLOYABILITY & LEARNING CULTURE šŸŽ“ | Boston Consulting Group | Five Must-Haves for Effective AI Upskilling | This article outlines five essential actions organisations must take to ensure successful AI upskilling based on BCG's research and workshops with thousands of executives.

  • šŸ’¼ WORKFORCE OF THE FUTURE šŸ’¼ | PwC | PwC's 2024 Workforce Radar Report | PwC's 2024 Workforce Radar Report highlights five key signals that business leaders should focus on to transform their workforce and navigate ongoing change over the next three years.

DIVERSITY, EQUITY & INCLUSION

Harvard Business Review | 4 Ways Employees Respond to DEI Initiatives | This article explores how employees respond to diversity, equity, and inclusion (DEI) initiatives. It reveals four distinct profiles and provides strategies for managers to tailor their approaches accordingly.

šŸ“Š DID YOU KNOW?

Did you know recent research has identified four distinct response profiles to DEI initiatives, from excited supporters to discontented opponents?

šŸ‘€ DID YOU SEE?

Figure: 4 Ways Employees Respond to DEI Initiatives

āœØ OVERVIEW

This research, published in the Journal of Applied Psychology, challenges the traditional binary view of employees as either supporters or resistors of DEI initiatives. Based on three studies involving over 1,600 US employees, the researchers identified four distinct response profiles: excited supporters, calm compliers, torn shapers, and discontented opponents. The study used multiple surveys sent to each participant over several weeks, capturing detailed insights into diversity initiatives and employee responses using established survey measures. A statistical method (latent profile analysis) was applied to identify meaningful patterns in participants' responses, simultaneously considering their thoughts, feelings, and behaviours.

šŸ§© CONTEXT

Organisations are investing substantial effort and money in DEI initiatives to address inequities, foster inclusive environments, and increase representation of historically marginalised groups. However, these efforts often must catch up to their intended outcomes or even lead to unintended negative consequences. The effectiveness of DEI initiatives largely depends on how employees respond to them. Traditionally, these responses have been oversimplified into two categories: supporters and resistors. This research aims to provide a more nuanced understanding of employee reactions to DEI efforts, acknowledging that individuals may hold complex, sometimes ambivalent attitudes towards these initiatives.

šŸ” WHY IT MATTERS

Understanding the varied responses to DEI initiatives is crucial for several reasons:

ā†³ Improved initiative effectivenessā€”By recognising how employees respond to DEI efforts, organisations can tailor their approaches to maximise engagement and impact across all employee groups.
ā†³ Reduced resistance and backlashā€”Acknowledging and addressing the concerns of torn shapers and discontented opponents can help mitigate potential resistance and create a more inclusive implementation process.
ā†³ Enhanced organisational cultureā€”A more nuanced approach to DEI can foster a culture of open dialogue and continuous improvement, leading to a genuinely inclusive workplace environment.

šŸ’” KEY INSIGHTS

The research identified four employee response profiles to DEI initiatives: excited supporters, calm compliers, torn shapers, and discontented opponents.

1ļøāƒ£ Excited supportersā€”This group had highly favourable cognitive, emotional, and behavioural responses. They look forward to new DEI initiatives and actively engage with DEI recruitment practices. They volunteer to lead DEI workshops, eagerly participate in cultural awareness events, and actively mentor colleagues from underrepresented backgrounds.

2ļøāƒ£ Calm compliersā€”These employees had moderately favourable cognitive, emotional, and behavioural responses. They're generally supportive of DEI initiatives but less active than excited supporters. They might take a new anti-bias training offered by their company without enthusiasm or comply with attending diversity meetings without taking a leading role.

3ļøāƒ£ Torn shapersā€”This group had favourable and unfavourable emotional and behavioural responses. They might support the rationale behind DEI but have issues with their company's initiatives or execution. For example, they might feel frustrated with how DEI training sessions are conducted or attend DEI events while questioning the company's motives.

4ļøāƒ£ Discontented opponentsā€”The final group have highly unfavourable cognitive, emotional, and behavioural responses. They fundamentally oppose the idea of DEI initiatives and may use both covert and open protests or criticism. They might circulate emails criticising diversity training sessions, refuse to participate in related activities, or openly challenge the value of DEI efforts during meetings.

šŸš€ ACTIONS FOR LEADERS

ā†³ Segment and tailor approachesā€”Identify the different response profiles within your organisation and customise DEI strategies accordingly.
ā†³ Leverage excited supportersā€”Invite these enthusiastic individuals to participate in steering committees or lead projects. This can empower them to utilise their positive energy to influence others through contagion effects.
ā†³ Engage calm compliersā€”Keep them well-informed and engaged through regular updates and educational opportunities. Host informational sessions that outline the benefits and goals of DEI initiatives to help calm compliers feel more connected and possibly encourage them to take a more active role.
ā†³ Address torn shapersā€”Create forums for open dialogue where employees with mixed feelings can express concerns and contribute to shaping DEI initiatives. Facilitate roundtable discussions where torn shapers can discuss their views openly, helping alleviate any hesitations and possibly transforming them into active supporters.
ā†³ Approach discontented opponents carefullyā€”Find common ground and establish clear accountability structures to integrate resistant employees into DEI processes. Engage with discontented opponents through perspective-taking and align DEI efforts with organisational values to address sources of resistance.

šŸ”— CONCLUSION

This research provides valuable insights into how employees respond to DEI initiatives. By moving beyond the simplistic supporter-resistor dichotomy, organisations can develop more effective strategies for implementing DEI efforts. The four identified response profiles offer a framework for managers to tailor their approaches, potentially leading to more prosperous and inclusive workplace environments. While the study focused on DEI initiatives, the findings may have broader implications for managing organisational change and employee engagement in various contexts.

šŸŽÆ KEY TAKEAWAY

Recognising and leveraging the nuanced responses to DEI initiatives, rather than applying a one-size-fits-all approach, is vital to creating more effective and inclusive workplace environments.

EMPLOYABILITY & LEARNING CULTURE

Boston Consulting Group | Five Must-Haves for Effective AI Upskilling | This article outlines five essential actions organisations must take to ensure successful AI upskilling based on BCG's research and workshops with thousands of executives.

šŸ“Š DID YOU KNOW?

Did you know that while 80% of organisational leaders regularly use AI tools, only 6% of companies surveyed had begun meaningfully upskilling their workforce in AI?

 šŸ‘€ DID YOU SEE?

Figure: Companies Need Upskilling to Address an AI Knowledge Gap

āœØ OVERVIEW

Boston Consulting Group (BCG) conducted extensive research, including studies of early AI adopters, workshops with over 3,000 executives, and interviews with more than 50 industry leaders, to determine the most effective approach to AI upskilling. The study reveals five crucial actions organisations should take: assessing needs, measuring outcomes, preparing people for change, incentivising learning, and leveraging C-suite leadership. Additionally, the research emphasises the importance of using AI in the upskilling process.

šŸ§© CONTEXT

As AI rapidly transforms the business landscape, companies face a significant challenge in upskilling their workforce. Despite 89% of respondents acknowledging the need for improved AI skills, many organisations need help implementing effective upskilling programs. This gap in AI capabilities risks companies' competitiveness and ability to leverage AI's potential for innovation and efficiency gains.

šŸ” WHY IT MATTERS

Effective AI upskilling is crucial for several reasons:
ā†³ Competitive advantageā€”Companies that invest in AI gain superior innovation capabilities and readiness for unexpected challenges, outperforming peers across multiple metrics.
ā†³ Significant financial impactā€”For an organisation with $20 billion in revenue, using GenAI can lead to estimated additional profits of $500 million to $1 billion, with nearly a third of those gains coming in the first 18 months.
ā†³ Productivity and quality improvementsā€”Research shows that adopting AI leads to 40% higher quality and 25% faster output.

šŸ’” KEY INSIGHTS

ā†³ Assess needs and measure outcomesā€”Organisations should evaluate the specific upskilling requirements for different workforce groups and use methods like the Kirkpatrick model to measure the return on learning investment. The Kirkpatrick model assesses training effectiveness across four levels: reaction, learning, behaviour, and results.
ā†³ Prepare people for changeā€”Raising awareness about AI initiatives and addressing employee concerns is crucial for successful implementation. This includes running enterprise-wide communications campaigns and creating safe spaces for experimenting with AI tools.
ā†³ Build-in incentivesā€”Discovering what motivates employees and offering intrinsic and extrinsic incentives can help shift attitudes towards AI adoption. This may include digital badges, recognition, or gamification of learning experiences.
ā†³ Put the C-suite at the forefrontā€”Top executives must champion AI upskilling efforts to drive adoption and realise anticipated impact and value. The CEO and leadership team should model desired behaviours and actively participate in AI initiatives.
ā†³ Use AI to upskill in AIā€”Leveraging AI-based learning tools can make upskilling more impactful, scalable, customisable, and cost-effective. More than 100 AI-based learning tools were launched in 2023 and the first half of 2024 alone.

šŸš€ ACTIONS FOR LEADERS

ā†³ Tailor upskilling approachesā€”Customize AI upskilling programs to match specific business objectives and high-priority use cases.
ā†³ Create AI centres of excellenceā€”Establish internal hubs to promote knowledge sharing, mentorships, and collaborative projects across business functions.
ā†³ Integrate upskilling into strategyā€”Incorporate AI learning programs into broader organisational strategies and create clear career pathways for employees who acquire new AI skills.
ā†³ Foster a network effectā€”Embed AI in daily tasks at all levels to create a network effect, enhancing organisational knowledge and efficiency.
ā†³ Treat upskilling as a long-term effortā€”Recognize that achieving AI proficiency at scale may take several years and create upskilling working groups to sustain momentum.

šŸ”— CONCLUSION

AI upskilling is a critical, organisation-wide movement that will transform work and company operations. By implementing the five key actions identified in BCG's research, organisations can position themselves at the forefront of AI adoption and innovation. Those prioritising AI upskilling avoid falling behind in an increasingly AI-driven business landscape.

šŸŽÆ KEY TAKEAWAY

Organisations must prioritise comprehensive upskilling initiatives that assess needs, measure outcomes, prepare employees, incentivise learning, and leverage C-suite leadership to unlock AI's full potential. They must also use AI itself to enhance the learning process.

WORKFORCE OF THE FUTURE

šŸ’¼ WORKFORCE OF THE FUTURE šŸ’¼ | PwC | PwC's 2024 Workforce Radar Report | PwC's 2024 Workforce Radar Report highlights five key signals that business leaders should focus on to transform their workforce and navigate ongoing change over the next three years.

šŸ“Š DID YOU KNOW?

Did you know that 45% of CEOs believe their organisations won't be viable in 10 years if they stay on their current path?

šŸ‘€ DID YOU SEE?

Figure: The Five Workforce Radar Signal

āœØ OVERVIEW

PwC's 2024 Workforce Radar Report provides insights into how businesses can transform their workforce to meet future challenges. The report identifies five critical signals that leaders should focus on over the next three years based on extensive research, including surveys of 18,000 employees, 2,600 business leaders, and 1,300 HR leaders. These signals encompass talent attraction and development, work location strategies, technology integration, workforce cost optimisation, and leadership development. The report emphasises the need for intentional action to drive enterprise-wide transformation across these areas.

šŸ§© CONTEXT

Businesses face unprecedented challenges due to global megatrends such as AI, climate change, political polarisation, and demographic shifts. These interconnected factors make it increasingly difficult for organisations to adapt and thrive. The report highlights that 45% of CEOs believe their organisations won't be viable in 10 years if they continue on their current path. This context underscores the urgent need for workforce transformation to navigate the complex and rapidly changing business landscape.

šŸ” WHY IT MATTERS

Addressing workforce transformation is crucial for several reasons:

ā†³ Business Viabilityā€”With 45% of CEOs concerned about their organisation's long-term viability, transforming the workforce is essential for future success and survival.
ā†³ Adapting to AIā€”AI is becoming an integral part of business operations, requiring new strategies for talent acquisition, development, and collaboration between humans and AI systems.
ā†³ Navigating Megatrendsā€”The interconnected nature of global megatrends demands a workforce that can adapt and thrive in an increasingly complex environment.
ā†³ Competitive Advantageā€”Organisations that proactively transform their workforce will be better positioned to lead change and gain a competitive edge in the marketplace.

šŸ’” KEY INSIGHTS

ā†³ Talent Magnet-Talent Factory Balanceā€”Organisations must balance attracting external talent and developing internal capabilities. The report reveals significant gender and generational gaps in perceptions of organisations as talent magnets or factories, with only 54% of women viewing their organisation as a talent magnet compared to 73% of men.
ā†³ Location Strategyā€”Businesses must devise intentional location strategies that balance employee needs with business requirements while maximising cost efficiencies. Only 67% of employees agree that their schedule is flexible enough to meet their personal needs.
ā†³ Intelligent Enterpriseā€”Organisations need to develop foundational human capital technologies while preparing for the profound workforce shifts brought by AI integration.
ā†³ Workforce Balance Sheetā€”Optimising the workforce balance sheet and understanding cost-saving levers can reveal opportunities to reinvest in the employee experience.
ā†³ Leadership and Trustā€”Developing key leaders to be innovative visionaries who inspire trust and use technological insights is crucial for achieving business objectives.

šŸš€ ACTIONS FOR LEADERS

ā†³ Implement a Comprehensive Talent Strategyā€”Develop a balanced approach to talent acquisition and development, addressing gender and generational gaps in perceptions of talent opportunities. Consider using preference analytics to tailor benefits packages and create a more equitable work environment.
ā†³ Design Flexible Work Arrangementsā€”Create intentional location strategies that accommodate diverse employee needs while meeting business objectives and optimising costs. Extend flexibility options to all employees, including those in non-office roles, to improve overall job satisfaction and retention.
ā†³ Invest in AI and Human Capital Technologiesā€”Prepare for AI-driven workforce shifts by developing foundational technologies and upskilling employees to work effectively with AI systems. Create a skills ontology to map current and future skill needs, enabling more targeted development programmes.
ā†³ Optimise Workforce Costsā€”Analyse the workforce balance sheet to identify cost-saving opportunities and reinvest in improving the employee experience. Consider implementing a total rewards approach that balances compensation with other benefits valued by employees.
ā†³ Develop Trust-Inspiring Leadersā€”Focus on leadership development programmes that emphasise innovation, trust-building, and the effective use of technological insights. Ensure leaders are equipped to manage diverse, multi-generational teams in both physical and virtual environments.

šŸ”— CONCLUSION

PwC's 2024 Workforce Radar Report underscores the critical importance of workforce transformation in navigating the complex challenges facing businesses today. By focusing on the five crucial signals identified in the reportā€”talent strategy, location, intelligent enterprise, workforce balance sheet, and leadershipā€”organisations can position themselves to thrive in an increasingly dynamic and uncertain future. The report emphasises that success will depend on intentional action, balancing employees' needs with business objectives and leveraging technology to drive innovation and efficiency.

šŸŽÆ KEY TAKEAWAY

To ensure long-term viability and success, businesses must act now to transform their workforce. This transformation must balance talent attraction and development, embrace AI integration, and foster leadership that inspires trust and drives innovation in an ever-changing business landscape. It requires a holistic approach that addresses the diverse needs of all employees while aligning with strategic business objectives.

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