Aon AppliedAI
Aon AppliedAI
Applied AI
in Talent
A
Table of Contents
Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
More Human Than Human. . . . . . . . . . . . . . . . 7
I Am Not a Robot. . . . . . . . . . . . . . . . . . . . . . . . . . . 13
I’m Sorry, Dave.
I’m Afraid I Can’t Do That. . . . . . . . . . . . . . . . . . 19
Getting Started. . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Plan Your Future Workforce. . . . . . . . . . . . . 29
B 1
Table of Contents
Overview. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
More Human Than Human. . . . . . . . . . . . . . . . 7
I Am Not a Robot. . . . . . . . . . . . . . . . . . . . . . . . . . . 13
I’m Sorry, Dave.
I’m Afraid I Can’t Do That. . . . . . . . . . . . . . . . . . 19
Getting Started. . . . . . . . . . . . . . . . . . . . . . . . . . . . 25
Plan Your Future Workforce. . . . . . . . . . . . . 29
B 1
Overview
The key drivers of digital transformation
— profitability, customer satisfaction and
disrupting and
sectors. In fact, some predict that this
churn will lead to half of the S&P 500
1
being replaced within the next decade.
about workforce are searching frantically for the talent they need to drive
innovation at the pace their customers have come to
management.
expect.
2 3
Overview
The key drivers of digital transformation
— profitability, customer satisfaction and
disrupting and
sectors. In fact, some predict that this
churn will lead to half of the S&P 500
1
being replaced within the next decade.
about workforce are searching frantically for the talent they need to drive
innovation at the pace their customers have come to
management.
expect.
2 3
For HR leaders, that means changing the types of skills and
competencies companies need, changing the way existing
Jobs
employees do their jobs, and altering the recruiting
landscape. It also means developing diverse rewards
philosophies to strategically compensate the talent
needed to adapt to and thrive amid all this change.
People These shifts might cause panic for many people, but
at Aon we view this differently. We’re seeing the
beginnings of a fundamental shift in the way humans
create value at work, and it’s one in which the people
still matter more than the technology. Though AI
may be behind much of the digital disruption we’re
Performance experiencing, the solution doesn’t lie in technology alone.
4 5
For HR leaders, that means changing the types of skills and
competencies companies need, changing the way existing
Jobs
employees do their jobs, and altering the recruiting
landscape. It also means developing diverse rewards
philosophies to strategically compensate the talent
needed to adapt to and thrive amid all this change.
People These shifts might cause panic for many people, but
at Aon we view this differently. We’re seeing the
beginnings of a fundamental shift in the way humans
create value at work, and it’s one in which the people
still matter more than the technology. Though AI
may be behind much of the digital disruption we’re
Performance experiencing, the solution doesn’t lie in technology alone.
4 5
Jobs
More Human Than
Human
Facing Our Fears
Just as the industrial revolutions of the past transformed
industries but didn’t eliminate the need for humans, the
Fourth Industrial Revolution will change the landscape of
work in ways that we can’t fully know or anticipate.
6 7
Jobs
More Human Than
Human
Facing Our Fears
Just as the industrial revolutions of the past transformed
industries but didn’t eliminate the need for humans, the
Fourth Industrial Revolution will change the landscape of
work in ways that we can’t fully know or anticipate.
6 7
We fear robots and computers replacing us. But the reality
is much more likely that AI will allow us to do our jobs
better and free us up to engage in more strategic, people-
focused work. And our work world will shift to focus on
creating opportunities for more people to engage in
meaningful, purposeful work that benefits society.
2022
Envisioning Augmentation and Automation
When we often think of AI, we often imagine fully
automated societies where robots and computers replace
humans. But the future of AI is not just automating work
— it’s augmenting it. AI offers us the ability to not just
do old things faster but to do new things that couldn’t
have been done in the past. AI working in conjunction
with a human is much more powerful than either one
functioning separately.
For many workers, this may mean that their job titles
don’t change substantially, but they will have augmented
8 9
We fear robots and computers replacing us. But the reality
is much more likely that AI will allow us to do our jobs
better and free us up to engage in more strategic, people-
focused work. And our work world will shift to focus on
creating opportunities for more people to engage in
meaningful, purposeful work that benefits society.
2022
Envisioning Augmentation and Automation
When we often think of AI, we often imagine fully
automated societies where robots and computers replace
humans. But the future of AI is not just automating work
— it’s augmenting it. AI offers us the ability to not just
do old things faster but to do new things that couldn’t
have been done in the past. AI working in conjunction
with a human is much more powerful than either one
functioning separately.
For many workers, this may mean that their job titles
don’t change substantially, but they will have augmented
8 9
capabilities and tools that will enhance their role and
allow them greater capabilities in their job.
is much more
needs is an increasingly difficult task. Companies can use
AI and predictive analytics to model different scenarios
when it comes to workforce needs and then design jobs
powerful than
to meet those projections. Algorithms are much better
at combining complex data and making predictions than
people are. Machine learning and the self-correcting
either one
nature of AI mean that these capabilities will only
improve in the future.
functioning
We’re talking more than basic headcount planning.
Instead, think strategically and look at pivotal roles in
the organization — now and for the future. Consider the
separately. roles from the supply side and the demand side, predict
the coming workforce needs and supply shortfalls, and
have strategic plans that enable you to fill the most
critical skill gaps in the organization proactively instead
of reacting to the changes.
10 11
capabilities and tools that will enhance their role and
allow them greater capabilities in their job.
is much more
needs is an increasingly difficult task. Companies can use
AI and predictive analytics to model different scenarios
when it comes to workforce needs and then design jobs
powerful than
to meet those projections. Algorithms are much better
at combining complex data and making predictions than
people are. Machine learning and the self-correcting
either one
nature of AI mean that these capabilities will only
improve in the future.
functioning
We’re talking more than basic headcount planning.
Instead, think strategically and look at pivotal roles in
the organization — now and for the future. Consider the
separately. roles from the supply side and the demand side, predict
the coming workforce needs and supply shortfalls, and
have strategic plans that enable you to fill the most
critical skill gaps in the organization proactively instead
of reacting to the changes.
10 11
People
I Am Not A Robot
12 13
People
I Am Not A Robot
12 13
might lead people to react unfavorably toward AI and In addition, education can help curb candidate anxiety
the organizations that use it for selection purposes. But about the use of AI in talent assessment. Organizations
hiring managers can address these concerns by taking that instruct applicants on how the AI works, explain
care to maintain a sense of human connection and allow how and why they’re using AI, and describe the benefits
for human connection to keep the hiring process from of this approach, such as a better role and organizational
feeling too impersonal. In fact, applicants’ reactions fit, can benefit from using AI in their recruitment efforts
appear to be based primarily on concerns about while at the same time avoid alienating potential talent.
impersonal treatment rather than about the fairness
of the selection process. That’s why it’s important for The need for education is particularly critical in the
companies using AI in the talent assessment process to face of increasing calls for transparency regarding how
ensure that candidates are interacting with people, not organizations use their applicants’ data. Organizations
just machines. are already required by law to obtain consent from job
applicants in the European Union if they wish to apply
Building Trust Through a ‘Glass Box’ Approach automated decision-making strategies. Aon’s research
When it comes to using AI in talent assessment, suggests that providing such explanations can lead
ethical considerations must be paramount. AI in talent people to react favorably during selection processes by
assessment can’t be a “black box.” Companies must be making them feel more informed and respected by the
transparent with applicants about their use of AI in the organization.2
hiring process. A “glass-box” AI in which all stakeholders
understand what’s being measured and how those
measurements are used reduces legal and regulatory
risks, and lessens applicants’ anxieties about the talent
assessment process. It also allows for quick identification
5 years
and correction if something has gone awry, for example
if unfair bias was introduced into the system. AI should
The half-life of
never be approached as a set-it-and-forget-it tool; it learned skills
needs to be continually scrutinized and maintained for
greater accuracy.
at work.
14 15
might lead people to react unfavorably toward AI and In addition, education can help curb candidate anxiety
the organizations that use it for selection purposes. But about the use of AI in talent assessment. Organizations
hiring managers can address these concerns by taking that instruct applicants on how the AI works, explain
care to maintain a sense of human connection and allow how and why they’re using AI, and describe the benefits
for human connection to keep the hiring process from of this approach, such as a better role and organizational
feeling too impersonal. In fact, applicants’ reactions fit, can benefit from using AI in their recruitment efforts
appear to be based primarily on concerns about while at the same time avoid alienating potential talent.
impersonal treatment rather than about the fairness
of the selection process. That’s why it’s important for The need for education is particularly critical in the
companies using AI in the talent assessment process to face of increasing calls for transparency regarding how
ensure that candidates are interacting with people, not organizations use their applicants’ data. Organizations
just machines. are already required by law to obtain consent from job
applicants in the European Union if they wish to apply
Building Trust Through a ‘Glass Box’ Approach automated decision-making strategies. Aon’s research
When it comes to using AI in talent assessment, suggests that providing such explanations can lead
ethical considerations must be paramount. AI in talent people to react favorably during selection processes by
assessment can’t be a “black box.” Companies must be making them feel more informed and respected by the
transparent with applicants about their use of AI in the organization.2
hiring process. A “glass-box” AI in which all stakeholders
understand what’s being measured and how those
measurements are used reduces legal and regulatory
risks, and lessens applicants’ anxieties about the talent
assessment process. It also allows for quick identification
5 years
and correction if something has gone awry, for example
if unfair bias was introduced into the system. AI should
The half-life of
never be approached as a set-it-and-forget-it tool; it learned skills
needs to be continually scrutinized and maintained for
greater accuracy.
at work.
14 15
Identifying and Developing Talent Through
AI-Driven Assessment
Assessments that use AI and predictive analytics can help
you identify high-potential team members rapidly and
develop their leadership skills.
41%
say ensuring a fair and unbiased process
is their biggest concern regarding AI in
assessment and selection.3
16 17
Identifying and Developing Talent Through
AI-Driven Assessment
Assessments that use AI and predictive analytics can help
you identify high-potential team members rapidly and
develop their leadership skills.
41%
say ensuring a fair and unbiased process
is their biggest concern regarding AI in
assessment and selection.3
16 17
Performance
I’m Sorry, Dave. I’m
Afraid I Can’t Do That
Designing Compensation and Rewards Plans
That Inspire Engagement
The companies that succeed in this new economy will
be those that develop sophisticated performance-
based compensation models that strategically reward
the workers who contribute the most toward the
organization’s growth.
18 19
Performance
I’m Sorry, Dave. I’m
Afraid I Can’t Do That
Designing Compensation and Rewards Plans
That Inspire Engagement
The companies that succeed in this new economy will
be those that develop sophisticated performance-
based compensation models that strategically reward
the workers who contribute the most toward the
organization’s growth.
18 19
Leveraging the Gig Economy and Other
‘Nontraditional’ Models
Rapid technological advancement means new roles will
emerge and will be super-specialized, so employers
will need to target talent with specific knowledge and
offers workers
The gig economy offers workers more choice when it
comes to work — and more freedom. Far more people
now are freelancing because of choice rather than
more choice
because they can’t find a permanent position (61 percent
in 2018 versus 53 percent in 2014).4 And tech innovations
are driving down the commission fees that freelancers
20 21
Leveraging the Gig Economy and Other
‘Nontraditional’ Models
Rapid technological advancement means new roles will
emerge and will be super-specialized, so employers
will need to target talent with specific knowledge and
offers workers
The gig economy offers workers more choice when it
comes to work — and more freedom. Far more people
now are freelancing because of choice rather than
more choice
because they can’t find a permanent position (61 percent
in 2018 versus 53 percent in 2014).4 And tech innovations
are driving down the commission fees that freelancers
20 21
Companies in North America and the Asia-Pacific region
said it was their second biggest challenge. Rewarding
and retaining digitally ready talent is essential for
employers to stay competitive in the future.
22 23
Companies in North America and the Asia-Pacific region
said it was their second biggest challenge. Rewarding
and retaining digitally ready talent is essential for
employers to stay competitive in the future.
22 23
Getting Started
The companies that thrive during the Fourth Industrial
Revolution will be those that leverage predictive
analytics to create the jobs of the future, maximize the
potential of both the people who want to work with
them and the people who already do and implement
a rewards and recognition program that provides the
compensation they need to attract and retain key talent.
24 25
Getting Started
The companies that thrive during the Fourth Industrial
Revolution will be those that leverage predictive
analytics to create the jobs of the future, maximize the
potential of both the people who want to work with
them and the people who already do and implement
a rewards and recognition program that provides the
compensation they need to attract and retain key talent.
24 25
`` Redesign your talent assessment processes. `` Use AI and predictive analytics to future-proof
Action steps: your workforce. Action steps:
ýý Evaluate how AI can help you more quickly identify ýý Start by identifying the key competencies and skills
top talent and redesign your talent processes to your workforce will need to compete in the future.
maximize the capabilities of AI.
ýý Ensure your people have key “soft skills” that allow
ýý Adopt a glass-box approach to AI in assessment. them upskill and reskill as needed.
ýý Develop processes that are equitable, fair and ýý Use people analytics to evaluate your workers for
defensible—communicate consistently with internal competencies that indicate digital-readiness and
stakeholders and potential talent to build trust and create a talent development strategy to maximize
understanding about the process. their potential.
`` Design compensation and rewards plans that `` Leverage the gig economy and other
inspire engagement. Action steps: “nontraditional” models. Action steps:
ýý Identify your innovators and assess what skill sets ýý Examine how you can tap into new and emerging
and behaviors those employees exhibit. Confirm that sources of talent to help you meet your talent needs.
your rewards program is incentivizing the behaviors
ýý Explore options for gig workers and develop
you are looking to drive.
processes such as smart contracts that help you
ýý Design your compensation and rewards program to manage them efficiently.
be dynamic and adaptive, and focused on creating
ýý Create an employer brand that resonates with gig
employee engagement.
workers and that speaks to their career aspirations
ýý Utilize AI and employee feedback to gain a holistic and their desire for collaboration and learning. Find
understanding of employee needs, desires and ways to translate your organization’s ethos into
challenges and design compensation and rewards individual, intrinsic motivators for gig workers.
that address those factors.
26 27
`` Redesign your talent assessment processes. `` Use AI and predictive analytics to future-proof
Action steps: your workforce. Action steps:
ýý Evaluate how AI can help you more quickly identify ýý Start by identifying the key competencies and skills
top talent and redesign your talent processes to your workforce will need to compete in the future.
maximize the capabilities of AI.
ýý Ensure your people have key “soft skills” that allow
ýý Adopt a glass-box approach to AI in assessment. them upskill and reskill as needed.
ýý Develop processes that are equitable, fair and ýý Use people analytics to evaluate your workers for
defensible—communicate consistently with internal competencies that indicate digital-readiness and
stakeholders and potential talent to build trust and create a talent development strategy to maximize
understanding about the process. their potential.
`` Design compensation and rewards plans that `` Leverage the gig economy and other
inspire engagement. Action steps: “nontraditional” models. Action steps:
ýý Identify your innovators and assess what skill sets ýý Examine how you can tap into new and emerging
and behaviors those employees exhibit. Confirm that sources of talent to help you meet your talent needs.
your rewards program is incentivizing the behaviors
ýý Explore options for gig workers and develop
you are looking to drive.
processes such as smart contracts that help you
ýý Design your compensation and rewards program to manage them efficiently.
be dynamic and adaptive, and focused on creating
ýý Create an employer brand that resonates with gig
employee engagement.
workers and that speaks to their career aspirations
ýý Utilize AI and employee feedback to gain a holistic and their desire for collaboration and learning. Find
understanding of employee needs, desires and ways to translate your organization’s ethos into
challenges and design compensation and rewards individual, intrinsic motivators for gig workers.
that address those factors.
26 27
Notes
Plan Your Future
Hard skills Workforce
matter, but you
also need people
that have those
soft skills that
provide the
human touch.
28 29
Notes
Plan Your Future
Hard skills Workforce
matter, but you
also need people
that have those
soft skills that
provide the
human touch.
28 29
30 31
30 31
1 https://www.innosight.com/insight/creative-destruction
2 ‘Rage Against the Machine’ report, Aon research, accepted
submission at SIOP 2019
3 2018 Aon poll, based on 375 responses in Europe and the USA
4 https://www.upwork.com/i/freelancing-in-america/2018
5 https://www.aon.com/2017-global-risk-management-survey
About Aon
Aon plc (NYSE:AON) is a leading global
professional services firm providing a
broad range of risk, retirement and health
solutions. Our 50,000 colleagues in 120
countries empower results for clients by
using proprietary data and analytics to
deliver insights that reduce volatility and
improve performance.
32 33
1 https://www.innosight.com/insight/creative-destruction
2 ‘Rage Against the Machine’ report, Aon research, accepted
submission at SIOP 2019
3 2018 Aon poll, based on 375 responses in Europe and the USA
4 https://www.upwork.com/i/freelancing-in-america/2018
5 https://www.aon.com/2017-global-risk-management-survey
About Aon
Aon plc (NYSE:AON) is a leading global
professional services firm providing a
broad range of risk, retirement and health
solutions. Our 50,000 colleagues in 120
countries empower results for clients by
using proprietary data and analytics to
deliver insights that reduce volatility and
improve performance.
32 33
We’re seeing the
beginnings of a
fundamental shift
in the way humans
create value at
work, and it’s one in
which the people still
matter more than
the technology.”
34