Good morning!
AI is accelerating at a pace that many companies and managers find hard to keep up with.
What once was a niche part of tech has now become ubiquitous in the daily lives of workers, from helping with emails and talent recruitment, to becoming part of internal training. Companies are vying for workers with strong AI skills—but a majority of top AI talent say they’re already planning to leave their jobs.
About 51% of gen AI creators and heavy users say they are planning to quit within the next three to six months, according to a March report from McKinsey, a management and consulting firm. That’s compared to 34% of workers overall who say they plan leave within that same time period.
Aaron De Smet, senior partner at McKinsey and contributor to the report, says AI workers are more likely to walk away from their current jobs because they’re in such high demand. “They’re in a position to ask for what they want, and what they want is more,” De Smet tells Fortune. “And so employers are not meeting all of their needs, and they’re in a position where they feel like they can go get all their needs met.”
But this isn’t a problem bosses can just throw money at—AI creators and heavy users aren’t simply looking to score a bigger paycheck, according to the report. Top AI talent who plan to stay at their current jobs ranked workplace flexibility as their top engagement factor, followed by meaningful work, health and well-being support, and career mobility, according to the report. About 72% of the AI workers who play to stay where they are say they feel engaged at work—almost 10% higher than the average of workers overall.
De Smet says managers can think about flexibility in several different forms—from offering remote options, to letting workers choose their hours and preferred communication methods. “A lot of the best talent who are most productive are saying ‘I don’t mind being held accountable. I don’t mind working hard. I would like more flexibility and autonomy to decide what works best for me,’” he says.
For employers seeking to recruit and retain these AI superstars, there are also other specific workplace factors they should consider. About 50% of AI creators and heavy users rank reliable and supportive coworkers as the number one factor in choosing their current job, followed by 45% who want caring and inspirational leaders, 39% who want meaningful work, and 37% who want an inclusive community, according to the report. They ranked their compensation package as the seventh most important factor in being attracted to their current job, with only 17% of respondents ranking it as a core motivator.
“Employers think, ‘Oh, they just want more money.’ Well, money is super important, but it’s sort of like table stakes [in] that most people who are leaving are not leaving for more money,” says De Smet. “People want more than that.”
Emma Burleigh
emma.burleigh@fortune.com
Around the Table
A round-up of the most important HR headlines.
The U.S. federal government has thousands of unique employees, including dogs, dolphins, and sea lions. Washington Post
Prompt engineers, AI talent without tech skills, are currently in high demand—but many worry this position will eventually be phased out. Business Insider
“Quit-Tok,” the trend of people sharing videos of their layoffs on TikTok, is the modern-day campaign for workplace transparency. Financial Times
Watercooler
Everything you need to know from Fortune.
Gig economy. Food delivery app Deliveroo is spending about $230,000 on childcare benefits for a thousand of its U.K. workers after years of lobbying to avoid sick leave and PTO mandates. —Ryan Hogg
Discrimination settlement. A Black former Tesla employee was awarded $3.2 million in a racial discrimination case against the company. He says he was called racial slurs and faced other abuses at work. —AP
Neglecting superstars. When companies ignore their top performers, these high achievers can spiral into burnout and negatively impact productivity. —Trey Williams
Stereotyping success. Gen Z bosses and entrepreneurs say they put up with a lot of flack about their generation, as some people see youth as a red flag. —Eleanor Pringle
This is the web version of CHRO Daily, a newsletter focusing on helping HR executives navigate the needs of the workplace. Sign up to get it delivered free to your inbox.