Are the benefits of AI worth it? There are 6 questions you need to ask before you commit

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AI is constantly being introduced to the market, promising to transform your business, save time, and ultimately money. The future is exciting and full of promises, but you need to look beyond the hype.

Consider workforce analytics. Since the outbreak, employee dissatisfaction, and especially disengagement among young workers, has been a major topic. Many business owners don’t realize how expensive employee turnover is. According to McKinsey’s research, a median S&P500 company could lose $228-$355 million in productivity yearly due to employee attrition and disengagement.

AI tool your competitors don’t want you to know about

When companies admit they have an issue, they create interventions to solve the problem with little more that guesswork. AI allows businesses to analyse their workforce problems more cost-effectively than by hiring expensive consulting firms. AI data analytics can predict employee turnover costs, determine the reasons and provide data-driven prevention solutions.

The technology itself does not guarantee that your business will benefit. The same cost-benefit analyses you conduct in other areas of your business should be used to evaluate whether AI is right for your company.

Here are six things to consider before you make a commitment:

  1. How many employees do I have? AI workforce analytics usually only pays off when your business has over 50 employees. It takes time and resources to gather and organize the data. Analytics only becomes complex when there are more employees.
  2. What data do I collect? Your company must already be gathering a large amount of data, and ideally using an employee management system. Data that is useful includes employee schedules, variability and adherence, employee usage, feedback sentiment, skill sets of employees, overtime hours, and overtime pay.
  3. How much cash can I use to fund R&D with my current free cash flow? It doesn’t matter how much data you collect, a pipeline is still needed to organize it. This can be expensive upfront. While simple descriptive AI tools will not require the same investment, they won’t provide as many predictive insights. You should know exactly what the AI tool offers and how much you’ll need to invest to get those insights to pay for themselves in the end.
  4. What data from outside does my AI program crunch? An AI predictive tool that is powerful will integrate your company’s internal data and external data that affect employee satisfaction, right down to the traffic patterns of workers on their commutes. Start by asking questions. Ask questions at the start.
  5. Are my current workforce retention strategies working? Do you know the results of your interventions if you’ve tried to solve a retention issue? Are you blindly flying? Causal analysis can be used by a good firm that specializes in workforce data analytics to help you determine if your money is being wasted on unproductive solutions.
  6. What is my ROI?? Calculate the costs of attrition in your organization, subtracting the expenses of AI data analytics. What is the cost of hiring a consultant? An honest workforce analytics firm will let you know if it is worth your investment.

Artificial Intelligence: What is it? What Are the Benefits of Artificial Intelligence (AI)?

AI tools for workforce analytics have tremendous potential. These tools can help you identify employees who are leaving your organization before they actually do. They don’t even know. Small and medium-sized businesses now have access to insights and information that was previously impossible. It’s important to invest in your business, but you should be careful and make sure that the money spent will benefit it over time.

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