How People Leaders Can Reimagine Employee Care in an AI World
Technology is reshaping the workplace faster than ever before. Learn why and how companies are taking the opportunity to also redefine employee care.
In an era of artificial intelligence (AI)-driven technology, there's a growing disconnect in how organizations support and engage their most valuable assets: their employees.
While powerful algorithms optimize workflows and drive efficiency, they can inadvertently create an emotional and psychological gap in the workplace. As these systems streamline operations, employees are increasingly searching for genuine connection, support and care — the fundamentally human elements that technology can't replicate.
"Employee care" is a relatively new term to describe the holistic approach organizations take to support their workforce's well-being, both professionally and personally.
Redefining employee experience
Modern workers don't just want a job — they want an employer that cares about their overall well-being. For employers, this means reimagining employee care across three critical areas:
1. Financial wellness
The Mercer Workforce 2.0 Study: Unlocking Human Potential in a Machine-augmented World, reports that people crave the peace of mind that comes with job security and financial well-being.
That's why organizations are moving beyond traditional "total compensation" models to comprehensive financial support, including:
- Personalized financial planning resources
- Student loan assistance programs
- Retirement planning support
Employer-sponsored retirement savings benefits have become increasingly important to workers. The 2024 ADP TotalSource® Employee Benefits Survey shows that 401(k) priority has doubled over time, from 30% of employees to 62% ranking a retirement plan among their top three priorities.
2. Mental and physical health
According to a MetLife Study, The PEO Advantage: The Growing Role for PEOs in Maximizing Employee Care, good physical, social, financial and mental health play a critical role in employee satisfaction and security.
But small business employees are 15% less likely to be holistically healthy than employees at larger organizations. And just 59% of small business employees feel cared for by their employer.
Employee healthcare expectations are evolving, and employers can meet their needs by offering resources such as more robust health benefits that incorporate wellness programs, telehealth services, stress management programs and more.
3. Professional and personal growth
Career development is no longer a linear path but a dynamic, personalized journey that includes skill development pathways and mentorship opportunities to guide employees along the way. Yet the MetLife study reveals that only six in 10 small business employees feel supported by their management.
Employers that offer these training and career development resources can help foster an environment where employees feel heard and supported.
The role of a full-service HR partner in employee care
The same Met Life study found that 78% of small business employees now feel their employer has a responsibility for their health and well-being, up from 74% in 2023.
Clearly, the stakes are high — companies must prioritize initiatives like employee care to continue on the path to growth. But even the best intentions can fall short without dedicated time and resources.
That's where a PEO (professional employer organization) can assist. PEOs can play a vital role in shaping the employee care experience, and more and more worksites have partnered with PEOs in recent years for help bolstering holistic well-being, job satisfaction and loyalty.
The results speak for themselves. For companies backed by a PEO, workers are 1.3x more likely to feel engaged and 1.4x more likely to report higher job satisfaction.
Why? By absorbing day-to-day HR administrative duties, PEOs like ADP TotalSource® free up internal HR resources to think, plan and act more strategically about their workforce.
"The benefit we've gotten from transitioning to ADP has been huge from a time savings perspective," says Tom Aldrich, executive VP and CHRO at Investar Bank. "Now we get to spend more time with employees and participate in organizational development."
Better employee care, better business outcomes
While AI revolutionizes how we work, human connection remains the cornerstone of successful organizations where employers can focus on creating meaningful connections, fostering innovation and building cultures of care.
