What HR Leaders Need to Know About AI, Employee Experience, and Burnout

As AI becomes more integrated into every area of our working lives, it is important that HR leaders understand how this technology will not just impact productivity, but also influence the overall employee experience. I recently had a podcast chat with Gabriela (Gabby) Burlacu , senior manager at the Upwork Research Institute, about their research in to how AI is reshaping work, and the resulting implications for productivity, job satisfaction, burnout, and skill development.

The Productivity Paradox: Why AI Alone Isn’t Enough

One of the key points we discussed was why, despite the increasing use of AI, organisations have not seen the expected leaps in productivity. This could be because AI has been layered onto existing work models without rethinking workflows, organisational structures, or roles, creating a "productivity paradox" - essentially where AI increases the speed of certain tasks but doesn't translate into overall gains because companies are still operating with outdated processes.

For HR leaders, this highlights the need to think beyond simply adopting AI tools and shifting focus towards how work is organised. Introducing AI requires a holistic shift in how teams collaborate, how workflows are designed, and how outcomes are measured. Simply adding AI to existing frameworks risks overwhelming employees, leading to burnout rather than increased efficiency.

AI and Job Satisfaction: Balancing Automation with Meaningful Work

Another concern raised is the potential for AI to reduce job satisfaction. Many of the tasks that AI can now automate are those that employees find fulfilling. Whether it’s drafting a report, organising data, or managing small projects, these tasks often give workers a sense of accomplishment. Removing these elements could unintentionally strip away the aspects of work that keep employees engaged and motivated.

HR leaders should consider how to balance automation with opportunities for meaningful work. While AI can take over more repetitive tasks, it’s crucial to ensure that employees still feel a sense of purpose and contribution. Finding ways to engage employees in more strategic, creative, or interpersonal tasks can mitigate the potential downsides of automation.

The Double-Edged Sword of AI: Boosting Some Employees While Undermining Others

AI also has a unique impact on employee performance. Gabby Burlacu talks about how AI tends to boost the productivity of lower-performing employees, helping them match the output of higher performers. While this can be seen as a positive outcome for overall team performance, it can raise concerns for high performers who may feel their contributions are being diluted.

For organisations that have historically relied on developing high performers to drive success, this could lead to disengagement. HR leaders should begin to rethink how performance is measured and rewarded in an AI-enabled workplace. A high performer in an AI-driven environment may look very different from a high performer in the past. Performance metrics need to evolve to reflect creativity, strategic thinking, and leadership skills rather than just raw output.

AI and Skill Development: Are We Sacrificing Learning for Efficiency?

One of the more concerning impacts of AI could be on skill development. Many tasks that AI can now perform, such as basic data analysis or drafting reports, are traditionally entry-level tasks that help employees build fundamental skills. If these tasks are automated, early-career workers may miss out on critical learning experiences that help them build skills in how to prioritise, communicate, and problem-solve.

HR leaders need to address this skills gap by rethinking how learning and development (L&D) is structured. Rather than focusing solely on efficiency, organisations should ensure that employees are gaining the hands-on experiences they need to grow. This could involve creating new opportunities for skill development, maybe shifting focus toward more complex problem-solving tasks.

Leveraging Freelancers and Non-Traditional Talent

As AI reshapes the workforce, another trend we see gaining traction is the use of freelancers and non-traditional talent to fill skill gaps. Freelancers often come equipped with up-to-date AI skills, providing organisations with the agility to implement AI without waiting for internal training programs to catch up. For HR leaders, this presents an opportunity to think creatively about workforce composition, leveraging a mix of full-time employees and freelancers to meet evolving business needs - an approach I often refer to as Total talent Thinking.

Co-Creating Metrics to Avoid Burnout

Finally, one of the most actionable insights from our conversation is the importance of including employees in discussions around productivity metrics. Gabby Burlacu points out that employees who have a say in how their performance is measured tend to feel less overwhelmed and more engaged. In an AI-driven workplace, where productivity expectations may shift rapidly, co-creating metrics with employees ensures that they understand what is expected and feel part of the process.

For HR leaders, this co-creation process is key to managing burnout. Instead of top-down mandates that employees may find unrealistic or unclear, HR can work with teams to develop productivity measures that reflect the realities of using AI. Using a more inclusive approach could help reduce stress and ensure that employees feel supported during the transition to AI-enhanced work environments.

Rethinking Work in the Age of AI

AI is undoubtedly a powerful tool, but its success depends on how effectively organisations can adapt their structures, workflows, and cultures to integrate it. For HR leaders, the key challenges lie in balancing the efficiency gains with the need to offer meaningful work, skill development, and employee wellbeing.?

By rethinking performance metrics, fostering skill development, and engaging employees in co-creating the future of work, organisations can harness AI’s potential without sacrificing employee experience or burning out their workforce.

You can listen to the full conversation at https://www.hrhappyhour.net/episodes/will-ai-help-to-reduce-employee-burnout-or-to-increase-it/