AI's Job Impact Raises Concerns, Emotional Intelligence Emerges as Crucial Leadership Skill
Companies worldwide are embracing AI to cut costs, but this trend is raising concerns about job security and work environment. Meanwhile, emotional intelligence (EI) is emerging as a crucial skill for leaders, particularly during crises.
AI is often cited as a reason for layoffs, as seen in cases like Klarna and DBD, putting pressure on employees and causing job insecurity. However, not all impacts of AI are negative. AI agents in HR software can automate tasks like creating tickets and starting learning units, boosting employee efficiency.
On the other hand, the lack of emotional intelligence among leaders can negatively affect the work environment. Professor Gerhard Blickle argues that the term 'emotional intelligence' is more about personality traits than actual intelligence. The Institute of the German Economy's annual employee survey supports this, showing that economic concerns negatively impact job climate ratings.
Companies like BL have improved business metrics like engagement and employee retention through EI programs for leaders. EI helps leaders perceive and respond appropriately to emotions during change processes, fostering acceptance and better communication. However, some managers feel overwhelmed by the demands of emotional intelligence, especially during frequent changes.
In a significant move, Workday is acquiring Swedish startup Sana for over a billion US dollars to integrate its AI-driven learning and HR development platform.
While AI offers cost savings and efficiency, it also raises concerns about job security. Emotional intelligence, though challenging for some leaders, is crucial for maintaining a positive work environment, especially during crises. As AI continues to advance, understanding and developing emotional intelligence will likely become even more important.
