AI can prevent walkout of disengaged GenZ workers

The decline of remote work and inadequate tracking of employee engagement are leading to significant staff turnover, warns Andrew Cook, founder of AI-driven employee engagement platform, HeadsUp. He believes businesses have an opportunity to leverage AI over traditional engagement tools to solicit more accurate and up-to-date employee information and prevent exorbitant bill shock to replace lost staff.

According to Cook, AI is playing an increasingly important role in employee/employer relationships and sentiment among staff within a business.

AI is used to analyse real-time employee feedback and behaviour patterns, identifying emerging issues before they escalate. It delivers predictive insights and personalised recommendations to help leaders take targeted, proactive actions that boost engagement, reduce turnover and improve team performance.

Cook says the cost to replace departing employees can be up to eight times their annual salary, accounting for recruitment, training and onboarding costs. He notes this statistic is consistent across global markets, including SA.

Beyond financial implications, Cook points to decreased productivity and revenue losses due to the erosion of institutional knowledge and the time required to bring new hires up to speed.

The HeadsUp executive critiques the hybrid work model, observing a decline in productivity and a lack of career development opportunities, particularly for younger employees who miss out on mentorship and in-person interactions.

He suggests that while a full return to office may not be feasible for all companies, the actions of major US tech firms and local financial institutions indicate that hybrid and remote work models are not meeting organisational needs. “Employees are becoming more expensive, companies’ margins are being squeezed and productivity and culture are both more important now than ever,” Cook asserts.

Traditional engagement tools, such as the Employee Net Promoter Score, are criticised by Cook for providing limited actionable insights. “It doesn’t tell you what’s causing disengagement or where to intervene,” he explains. The failure to detect disengagement early can lead to silent quitting, where employees do the bare minimum, impacting overall productivity even without overt resignations.

Cook emphasises the importance of proactive leadership in identifying disengagement. He warns that relying on outdated engagement surveys can be ineffective, likening it to “trying to drive forward while only looking in the rear-view mirror”.

He advocates for listening to employees and timely interventions to address engagement issues.

Cook also highlights the critical role of company culture in engagement. He notes that employees under 28 are particularly affected by a lack of social connections at work, which can lead to higher turnover rates. “If someone doesn’t have what they consider to be a good friend at work, the likelihood of them resigning within the next three to six months is much higher even than if they’re feeling burnt out,” he states.

Distinguishing between satisfaction and engagement, Cook asserts that engaged employees are proactive, invested and drive innovation and growth. He concludes: “Focusing on engagement leads to better performance, lower turnover and stronger business outcomes than satisfaction alone.”

For businesses aiming to combat disengagement, Cook advises prioritising real-time employee feedback and taking decisive action to foster a more engaged and productive workforce.