The message is clear: companies relying on front-line workers should embrace these tools to elevate their workforce to new heights.
With rapid technological advancements, AI is transforming Human Capital Management (HCM) functions at an unprecedented pace. Our clients regularly seek our guidance in navigating these exciting developments. AI’s ability to automate repetitive tasks, analyse vast amounts of data, and enhance decision-making is revolutionising the HR landscape, enabling organisations to streamline operations and optimise their workforce.
As we explore the areas where AI can significantly benefit HCM and front-line workers, we must consider the broader technology ecosystem that supports these changes. At BDO, we specialise in helping businesses implement cutting-edge HCM platforms like Dayforce, designed to bring AI-driven efficiency to your HR processes. As a trusted Dayforce implementation partner, we understand how to leverage this technology to drive meaningful outcomes for your business.
Let’s dive into some of the areas with the biggest benefits from AI on HCM and front-line workers (FLW):
Enhanced communication fosters collaboration and strengthens teamwork, creating a more cohesive and efficient work environment. This is especially crucial for global clients whose FLWs cross multiple country boundaries. Modern HCM platforms, like Dayforce, eliminate language barriers, ensuring seamless cross-linguistic communication and driving inclusivity and understanding among front-line workers. This promotes open and inclusive communication across the board, regardless of language.
AI-powered tools are driving significant efficiencies in the recruitment process by automating tasks such as candidate screening, sourcing, and initial interviews. Algorithms can analyse CVs and identify the best candidates based on predefined criteria, saving considerable time and effort. Chatbots and virtual assistants powered by AI interact with candidates and answer their queries, enhancing the candidate experience. While these benefits primarily support head office HR staff, they also create a positive first impression for front-line workers during recruitment—a critical phase in joining any business. Dayforce's robust recruitment tools are designed to streamline this process, making it easier for your HR teams and providing a seamless experience for new hires.
Often overlooked by organisations with front-line workers, employee engagement is a critical factor in boosting productivity and reducing turnover. AI-driven technologies enhance engagement by providing personalised experiences and timely interventions. Virtual HR assistants, such as chatbots, answer employee queries, provide information, and offer on-demand training resources. Sentiment analysis tools can also assess front-line workers' feedback, helping identify issues and act where needed. It's imperative that front-line workers—and indeed any worker outside of head offices—have a voice and know that their concerns are being heard.
Performance management processes can sometimes lack objectivity and fairness for front-line workers. AI-powered systems, however, use data to provide greater accuracy and an unbiased view. Analysing performance data against skills helps companies identify long-term patterns and individual feedback, enabling leaders to make more informed decisions regarding promotions, skills gaps, and performance improvement plans. With the right technology and focus on performance, these insights can ensure that more front-line workers are positioned for senior roles, retaining talent rather than losing it.
A significant challenge for front-line workers is finding time for development, coupled with access to the right content. AI-supported learning can personalise training content based on individual needs and preferences. Algorithms track employee progress, make recommendations, and provide instant feedback. When combined with AI-powered virtual reality (VR) and augmented reality (AR) technologies, organisations can create immersive and interactive training experiences that enhance employee engagement and knowledge retention. Access to learning has never been easier, and with creative content now readily available, we anticipate a significant shift in the development of front-line workers, focusing on the new skills required in the modern workplace.
Workforce planning is another area where AI can make a significant impact. Companies with large FLWs have long sought to use technology to drive efficiency. AI complements these efforts by improving accuracy and adding layers of fairness and flexibility, aiding employee work-life balance and driving retention. AI-powered predictive analytics are transforming how organisations plan their workforce, both in the moment and for the future.
The workforce planning process starts with forecasting future talent needs—both the skills and volume of employees required to support growth or seasonal trends. Algorithms can identify skills gaps, predict attrition rates, and make recommendations based on the analysis of historical data, demographic trends, and external factors. This data-driven approach allows HR professionals to make proactive decisions and align the workforce with the organisation’s long-term goals.
Workforce management and advanced scheduling have been using data and machine learning for several years now. However, this is moving up a gear in its accuracy through AI predictive analytics, which forecast future workforce demand, ensuring staffing levels align with business needs. At the same time, dynamic scheduling tools adjust schedules in real time.
HCM Transformation is Happening
Change is inevitable, and the positive side of this change is that AI tools and HCM platforms are streamlining processes, supporting data-driven decision-making, and improving the overall employee experience. Organisations equipped with the latest HCM platforms will transform how they recruit, onboard, engage, train, communicate, and manage their front-line workforce. The future of work is here now, but uptake is slow in some industries. These companies risk falling behind as AI continues to evolve, improve, and become fundamental in shaping the future world of work, delivering success for those who embrace it.
Focus on the Business Value
While the promise of what AI and automation can bring is encouraging, it can also feel overwhelming, leaving businesses unsure of where to start. It's important to remember that AI is no different from other technologies many companies already use. To help companies focus, they need a clear strategy around what they want to accomplish and in what priority order, ensuring their data needs are met. This approach will help produce a roadmap for the future, allowing your front-line workforce to consistently strive to be the best version of themselves—growing and developing alongside technology to offer a unique proposition for your business versus competitors.
Responsible AI
It is important to address employees’ concerns and questions when implementing AI solutions in the workplace. Listen to feedback and understand generational differences across the front line in your AI adoption process.
Training
Comprehensive training on getting the most out of AI tools will help employees gain confidence and knowledge, speeding up integration. Utilising early adopters within organisations to champion the technology while sharing best practices will embed employee utilisation, in turn enhancing AI's capabilities.
Communication
Honesty and transparency are vital. Discuss anxieties around job security and data security openly to build trust. Provide regular updates and opportunities for feedback to address any questions or uncertainties that may arise among employees.
To wrap up, Artificial Intelligence may sound and feel daunting, conjuring a range of emotions, but the reality is far more exciting. While change is always tricky to navigate, it is also rewarding. The workplace is evolving rapidly, and while this can be unsettling, much of it is positive and enriching. We need to be comfortable talking about these changes while also listening to people's concerns. As professionals in supporting and advising many clients across various industries, we’re optimistic about a new era for front-line workers. An era where they have the time to be creative, deliver exceptional service, and achieve amazing things in the workplace with the burden of mundane tasks lifted.
At BDO, we are proud of our record in delivering real transformational change for our clients. Through our advisory and HCM platform implementation services, including our expertise in Dayforce implementation, we collaborate with our clients to deliver best practices with a focus on tangible outcomes.
Resources:
- Microsoft Work Trend Index Survey 2024
- McKinsey Report on Automation (McKinsey & Company)