Total rewards reinvented: Harnessing the potential of GenAI

Gordon Frost

Global Rewards Solution Leader
Sean MacHale

Partner, Europe and UK Rewards Leader, Mercer

The New Shape of Work interview series addresses the challenges and uncertainty in the current business environment with a focus on how to transition to a more agile workforce for the future.

While organizations have been exploring how AI can support their productivity and growth across many functions, one area that has been taking a more cautious approach is the Total Rewards function. With a variety of confidential data about employees managed by this team, there is an understandable hesitance to jump in too quickly. But there is also a risk of not being at the table to help shape how AI will be used in the HR function.

In this episode, Gord Frost and Sean MacHale share how early adopters are beginning to bring AI into the Total Rewards function. They share areas with lower risk where teams may be able to dip their toes into GenAI. They encourage teams to start taking actions now to ensure total rewards data is clean and organized so they are ready to implement and benefit from AI.

Interesting moments:

Clean data is the foundation

Organizations need to have the right data organized very well. Otherwise AI implementations are not going to work. That's really the baseline need for successful AI - bad data in equals bad AI.
Bridge the AI knowledge gap

There may be a gap of AI and technology expertise on Total Rewards teams. But others in the organization are well versed in AI and know how to use data. Bring them in to help.
Lower risk opportunities

There are lower risk areas that Total Rewards teams can start with. GenAI can help to write, review or streamline comp and benefits policies. It can support creating consistent job descriptions and job architectures.
AI and employee experience

The goal of a more tailored employee experience is more personalization. A more optimal spend of company dollars is a real possibility, but you need to start getting the foundations in place right now.

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