In the last year, we saw rapid adoptions of Artificial Intelligence (AI) applications worldwide and increasing concern for the human experience at work. The return to office mandates, decline of entry-level jobs, and ongoing employee well-being challenges shaped our research in the Human Capital Development Lab at the Johns Hopkins Carey Business School.
Well-being at work challenge
Our ongoing global research with our partner, Great Place To Work®, revealed an uncomfortable truth: employee well-being in the United States continued to decline across industries, consistent with findings in other developed countries. (Read our well-being reports from the UK, Singapore, and Australia.)
Our reports reveal a widening gap between the work experiences of executives and other employees. During the pandemic, managers and executives reported the same or lower well-being levels as others. With organizations returning to the office and pre-pandemic practices, the patterns have changed. Well-being levels are now much higher for managers and executives, while the scores for other employees have decreased. This creates a growing gap between how leaders and their teams experience the workplace.
Younger workers may face acute challenges and feel more impact from AI solutions. Those aged 25 or younger and those between 26-35 report significantly lower well-being. Disparities persist across demographics, with female, African American, Hispanic, and younger employees scoring lower in measures than male, white, Asian, and older counterparts.
Balancing human and AI engagement
This year, AI has rapidly engaged in commerce, social interaction, medical advancement, and everyday conveniences. The power of generative AI and ongoing adoption of tools for consumers, workers, and organizations is exciting – yet there is evidence that the AI hype can negatively impact the employee experience.
With the increasing focus on leveraging AI for competitive advantage, some employees commented that bosses no longer care about individuals. As organizations resumed normal work practices, many feel their needs are no longer being addressed—a contrast to the flexibility and individual consideration offered during the pandemic’s early stages. Lower levels of mental health and well-being can erode profits through higher turnover, decreased engagement, reduced customer service, and increased health care costs. Perhaps it is time to rebalance the attention given to machines vs. people. (Read more in this WSJ article)
Looking ahead
As we reflect on the past year, we need for managers to take concrete steps to address well-being at work for all levels and groups. More work must address organizational culture as we adopt AI in our workplaces. As we see a shift in focus between human capital and machines, we hope to see more emphasis on education and skill-building to help minimize the growing socio-economic gaps.
In the upcoming year, the Human Capital Development Lab remains committed to illuminating the complexities of sustainable human capital development across our core research domains: AI and human teaming, employee well-being, work environment and culture, education and skill-building. The challenges this year have strengthened our belief that effective leadership, paired with intentional culture-shaping and genuine attention to individual needs, can create workplaces where everyone, regardless of age, background, or organizational level, can succeed.
