AI will change the way we incentivise employees
How the future of work could change our approach to reward and retention
As artificial intelligence (AI) continues to advance, it will impact the workforce in many profound ways. From automating repetitive tasks to creating entirely new roles, AI promises to reshape how businesses operate. That means a knock-on effect on how employees are incentivised.
The future of work will require a balanced approach to integrating AI while ensuring that employees remain engaged, valued, and properly incentivised. Let’s take a look at how AI may drive changes in workplace structures, employee rewards, skill development and organisational culture.
The changing role of AI in the workplace
AI’s most immediate impact on the workplace will likely be through the automation of repetitive and monotonous tasks. From data entry to customer service enquiries, machines are already more efficient and accurate than humans at handling a lot of routine work.
While this might seem like a threat to employment, it also presents an opportunity for organisations to rethink how they allocate human resources. Rather than reducing headcounts, businesses can use AI to free up workers from tedious tasks, allowing them to focus on more creative and high-value activities. For example, in customer service, AI can handle the basic requests and queries, while human workers can focus on complex cases that require empathy and problem-solving.
This shift will be particularly important in industries where speed and adaptability are crucial, such as tech and customer-facing roles. Workers will be needed to perform tasks that require critical thinking, creativity, and emotional intelligence – qualities that AI cannot yet fully replicate.
Because of this, it’s important that organisational leaders don’t view AI as a reason to cut jobs. Instead, they need to refocus employees on roles that allow them to contribute more meaningfully to the company’s success. This shift will necessitate changes in how workers are incentivised, particularly in terms of performance bonuses and benefits.
Emerging new roles and specialisations
As AI automates existing tasks, entirely new roles will emerge that require specialist skills. For example, AI-driven customer service platforms may require human managers to oversee and optimise AI performance, to make sure that algorithms provide accurate and empathetic responses. Similarly, industries like healthcare, finance, and manufacturing will need specialists who can both design and oversee AI-driven systems, as well as work alongside AI tools to make data-informed decisions.
In these emerging roles, employees will need to develop both technical and interpersonal skills. The demand for workers who can collaborate with AI systems will rise, as organisations strive to balance the rapid, data-driven capabilities of AI with the personalised service that human workers can provide.
This presents a challenge for employers: how can you incentivise employees to stay ahead of the curve and develop the skills needed to thrive in this new landscape?
Augmenting human capabilities: reskilling and upskilling
As AI takes over more routine tasks, the role of humans in the workplace will increasingly be about augmentation rather than replacement. To harness the potential of AI, employees will need to acquire new skills in AI-related fields such as data analysis, machine learning, and AI ethics. Even in roles that don’t directly interact with AI, workers will need to develop a greater understanding of how AI is shaping their industry and how they can work alongside it. Conveying this message clearly is key to maintaining morale and focus in the workforce, so employees don’t become fearful and disaffected at the prospect of intimidating AI tech taking over.
Reskilling and upskilling will become the norm throughout employees’ careers. They will need to adopt a mindset of lifelong learning, embracing continuous development and adaptability. To incentivise this shift, employers can consider offering training programmes, educational benefits and clear career paths that allow employees to evolve their skills in tandem with AI developments.
Employers who invest in their employees’ growth will likely see higher engagement, loyalty, and productivity. And workers who feel supported in their professional development are more likely to stay with a company long-term, which reduces turnover and recruitment costs and enhance the organisation’s reputation.
Ethics of AI: balancing automation with human value
As AI becomes more integrated into the workplace, how will it affect workers’ value and job security? This is a major worry for most workers. AI can certainly predict demand and optimise processes, but successful and ethical employers should not be use it to turn employees into disposable commodities, nor to replace human judgment entirely. Treating workers fairly and valuing their contributions is essential to maintaining a loyal and motivated workforce.
As organisations embrace AI more and more deeply, they must strive to build a reputation for treating their employees with respect, ensuring fair compensation, and rewarding effort. The gig economy model, where workers are seen as interchangeable and not part of a long-term team, could lead to instability and lower morale. Instead, offering competitive wages, performance bonuses and benefits that recognise individual and team achievements will help retain the best talent.
Fostering a culture of inclusivity and support for soft skills, such as emotional intelligence, teamwork, and communication, will also be crucial. As AI handles more technical tasks, human-centric skills will become increasingly important differentiators for successful businesses. These skills will help nurture strong relationships with customers as well as sustaining a positive and people-focused company culture.
Summary: evolving your approach to reward and incentives in the AI world
AI in the workplace holds vast potential, but it demands a proactive and thoughtful approach to employee incentives. We think the key to success will be in adapting bonus structures, rewards, and performance metrics that reflect the changing nature of work.
- Invest in reskilling and upskilling: Encourage employees to engage in lifelong learning and offer opportunities for growth in AI-related fields
- Balance automation with personalisation: Use AI to enhance human capabilities rather than replace them, and ensure that employees are equipped to handle more complex tasks.
- Prioritise ethics: Treat workers with respect and fairness, offering competitive pay and incentives to retain top talent.
- Value and reward soft skills: Develop reward structures that encourage emotional intelligence, collaboration and innovation, ensuring employees thrive in both their personal and professional lives.