“Hi Siri, What will Leadership Rewards Look Like in 2025?”
"In 2025, we will be in a “well-networked” work society that values discovery and agility more than statistic solutions from the box."Shekhar Purohit, MD, First Mumbai
Smart technology that can find a way to investigate vast sets of employer data and put forth "technologically-assisted" recommendations on the basis of statistical probabilities and deep machine learning has the potential to augment current and the future rewards practices.
In the majority of the Indian businesses, the HR department has been viewed as a managerial and enabling department, and not as a strategically driven functional department. In the past few years, many progressive organizations including global Indian conglomerates have been able to develop HR teams that are truly viewed as “strategic business partners”. Yet, there continues to remain a cloud of doubt over the HR process as to whether or not it can quantify its impact on the organization. We believe the use of artificial intelligence (AI) combined with deep machine learning will provide solutions to such problems.
Today, AI is used often in the recruiting process to help shortlist “qualified” profiles for a particular job by applying different search variables to the database. This serves as a virtual recruiting network that leverages a employees’ database of relationships from tools such as Linkedin and other such “networking” platform. This “networked effect” will have a tremendous impact over the organizations in creating efficiencies among various HR departments such as recruiting, training, compensation, performance management, and learning and development.
So, what will be the impact of AI in 2025?
In 2025, we will be in a “well-networked” work society that values discovery and agility more than statistic solutions from the box. This work society will look for immediate measurement of the effectiveness in reward programs and policies from continuous and instant feedback driven by AI and machine learning.
In this networked world, managerial rewards system will be dramatically different from our rewards systems today. In 2025, a completely new rewards model will emerge as we will value “non-monetary rewards” such as “lifestyle” incentives matching up to the monetary programs for eg: base pay and short-term and long-term incentives. This emergence of lifestyle rewards (e.g. work-life balance, enhance global mobility, interactive work experiences, etc) will be driven by a dramatic shift in the workforce due to the “gig economy” in 2018, which in turn will be the primary form of work-place employment.
In 2025, our definition of performance will be enhanced to include not only the results we achieve but how we achieve from a behavioral perspective (e.g. teamwork, tone and actions toward others, etc). Our behavior will be continuously monitored through different AI and Machine learning tactics and hence the intangible aspect of assessing behavior today will become to reality in the near future.
In 2025, we will see the following practices become the norm:
* An executive’s ability to customize his/her compensation system;
* A strong bias towards will emerge towards the “gig” economy culture that drives “lifestyle rewards” such as flexible benefits and working hours, job and role sharing across teams, etc.)
* Real-time communication between managers and employees and within the teams will be norm
Thus in 2025 employees will take control over their own careers and compensation & reward schemes.
Disclaimer: The views expressed in the article above are those of the authors' and do not necessarily represent or reflect the views of this publishing house