Rendani Baumgartner, managing director at RB Advisory Partners, says the biggest mistake companies can make with AI is adopting it simply because everyone else is. Before deciding what work to automate, she believes leaders need to first understand the problem they are trying to solve.
Rendani unpacks how HR leaders can identify the right work to automate, augment or keep human, while using workforce planning to ensure today’s productivity gains do not become tomorrow’s skills gaps.
Q: How should companies decide which work to automate, which work to augment and which work should remain firmly human?
The temptation is to copy and paste what industry leaders are doing. But the ability to integrate company strategy, budget forecast, operational priorities, customer expectations will result in a much more accurate understanding of the most productive human-machine ratio.
The use of strategic workforce planning software becomes indispensable for this scenario modelling for organisations of more than 500 employees to avoid a situation where companies lay off employees, but realise later that they need to rehire the same staff complement that was laid off- a recent experience at an American automotive company.
Q: When companies introduce AI, what should CHROs be looking at beyond the obvious question of how many jobs it might replace?
For organisations to be successful, they need to ask the hard question: What systemic problem is AI trying to solve so that it is not being introduced solely because every other organisation is doing it. Answering this question leads to formulating 'test cases' that define the processes, systems and roles suitable for realiSing AI's ROI.
Q: What are you seeing in terms of how AI is changing the shape of company workforces?
First observation is that sectors like fintech and automotive have been first movers, adapting their production lines to be machine-led, while other sectors are taking a wait-and-see approach. Preferring to watch where competitors are adopting, learning, succeeding, and failing before taking the big leap.
Second, companies that are taking the leap are ringfencing entry level jobs that are repetitive, clerical and admin heavy as potential test cases for AI adoption. Roles that require judgement, decision making and positioning the organisation for future success seem to be retained until full AI adoption.
Q: If one employee can now do the work that previously required three, what should a responsible company do with that productivity gain?
South Africa's labour laws have long been described as labour biased. This means there is pressure for employers to reskill and upskill where jobs have been reduced. This presents an opportunity for companies to redesign organisations in a way that reallocates employees to technical roles or research and development roles that will propel the organisation to be more competitive and profitable in the future.
Q: How can CHROs start planning for a workforce where AI changes the number and types of roles an organisation needs?
Begin to clean your talent data as this is the basis for assessing and making decisions regarding current skills supply and future skills demand. This means job descriptions need to be updated and regraded. Second, confirm with Exco the company’S 2030 and beyond strategy to confirm future skills requirements and demands. Third, begin having HR exec team conversations of what the future HR operating model that will deliver future skills demand will require. Investment in strategic workforce planning will be critical in HR leading Exco in redesigning the organisation. This may mean for the interim, hiring SWP consulting services to build the internal bench strength within the HR team for future sustainability.
