Can AI improve employee retention?
Artificial intelligence (AI) is increasingly permeating every aspect of business, and employee retention is no exception. AI uses intelligent technology to supplement, improve or, in some cases, replace human processes, so you might wonder how AI can actually improve retention rates. Let’s find out.
AI is a massive industry that is growing exponentially every year. The global AI market was valued at over USD $196 billion in 2023, with a projected annual growth rate of more than 37 per cent until 2030.
This year, 90 per cent of CFOs project higher AI budgets, with 71 per cent planning to increase their AI budget by 10 per cent or more, according to a recent Gartner survey.
Why is there such an uptick in AI interest and spend, and what could that mean for employee retention? It has to do with its connection to learning and development. Let’s discover how AI can bolster your learning and development strategy and discuss a few cautions to help you avoid pitfalls when using AI, as well as give you some insight into the AI platform ChatGPT.
How can AI improve employee retention?
When used strategically, AI can augment your learning and development strategy and increase outcomes using fewer resources. This is critical because studies have shown in the past few years that learning and development is vital to retaining employees.
Companies that invested in employee development saw a 58% increase in retention, and a staggering 94% of people surveyed said they would stay at a company longer if the employer invested in their career, so it makes sense to monitor how AI tools can influence learning and development opportunities. AI applications can also profoundly improve efficiency, scalability, and sustainability of remote learning, enabling more employees to actively participate in development opportunities, which ultimately increases retention rates.
To get the most out of any AI tool or platform, look for ways it can optimize processes, increase efficiency, or scale your learning and development capabilities.
Some additional ways AI can help deliver more effective workforce training include:
- Better insights into the most effective learning experiences
- Clear progress and engagement tracking
- Improved accessibility for all employees
- Personalized learning pathways developed from data insights
- Upgraded learning experiences with gamification and reward elements
- Real-time feedback and 24/7 support
- Clear insights into skills gaps
What are some potential drawbacks of using AI in learning experiences?
AI tools can make some processes more efficient, but there are instances where talented professionals should remain at the helm. It’s up to you to decide which areas of your organization should remain intact.
The biggest obstacle you may face is that eliminating the human element from your learning experiences may be too costly to the quality of your workforce training in the long run. For example, any AI tool is only as good as the data it has to work with, and algorithms already have a reputation for introducing bias into hiring practices. So, when it comes to learning and development, keep in mind that biased data can produce inaccurate outcomes.
It’s also critical to protect your employees’ privacy through confidential and transparent practices. It’s vital for employees to trust their employers’ systems enough to engage genuinely and be forthcoming with information they share.
The bottom line is to be cautious when it comes to implementing AI tools. Instead of simply removing the human element and offloading all learning and development processes onto an impersonal digital AI platform, perhaps look for ways AI tools can help your current HR and learning and development teams accomplish more in new and more efficient ways.
Should learning and development teams use ChatGPT?
ChatGPT is an AI-based language model trained to offer information based on prompts from users. It can create text, answer questions and summarize information. The biggest question is whether the information produced by ChatGPT is unbiased and accurate enough to provide the best quality learning experiences for your organization.
Remember that ChatGPT uses training data fed into it to create human-like responses, so it may not be able to understand context or offer up-to-date information. This has raised ongoing concerns about inaccuracy, plagiarism and bias, so it’s wise to use it in ways that don’t increase your risk of developing sub-par training modules.
If you’re questioning whether to tap into ChatGPT’s generative capabilities to help automate the delivery of learning experiences for your employees, it might be wise to start with some simple (and not business-critical) tactics, such as brainstorming training situations or creating engaging role-play scenarios.
For the best results, pair AI with people
Nothing can replace the effectiveness of human interaction, especially when learning and development practices include effective personal and organizational coaching. Overall, developing coaching skills can help your organization’s productivity and retention rates soar. The best results often come from a combination of people using intelligent systems, such as new AI-driven approaches that make real-time coaching a reality.
Within your own organization, consider where the human element has the most impact on your learning and development experiences and prioritize AI where it makes the most sense. When used correctly, AI and other tools can benefit your learning and development strategy and have a meaningful positive influence on employee engagement and retention.
Learn more about how learning and development is key to retaining top talent. Connect with us to learn how LC Extension can help you navigate these new realities.