The 'AI CEO' Hype: What's Behind the Talk and Why It Matters
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This Week in HR, where every week we take a look at the latest trends in the world of work, what you need to know about them and what they mean for you as an HR professional.
This week it's about the "AI CEO".
What you should know
When you think of a CEO, do you have a specific image in mind of what they might look like? An HR publication used AI to analyze the biographical data of FTSE 100 CEOs to find out what the "average CEO" looks like.
The results showed a 55-year-old white man who studied economics at Cambridge University. He works in the financial services sector and has an annual salary of £4,196,000 - around 127 times the average UK salary. Oh, and his name is Andrew and he looks like this:
It's a grim reminder of the lack of diversity at the executive level. In fact, there are more CEOs named Andrew or Simon in the FTSE 100 than there are women.
What others say about it
Adrian McDonagh, co-founder of Hireful, says it's a widespread problem: "I train thousands of hiring managers every year and the main issue we hear is the lack of attractiveness of diversity."
He explains: "With CEOs, it can be difficult to assess overall performance. Targets can be focused on short-term goals that do not necessarily maximize long-term shareholder value. In this case, it is 'easier' to maintain the status quo and consider a poor performer to be a poor performer Retaining CEO rather than recruiting from a more diverse pool of candidates.
What this means for you
“Unfortunately, the higher you go in management, the narrower the pool of diverse talent becomes,” explains Adrian. This is why you must strive to hire diverse talent at every leadership level in your company.
Diversity is not only important on a human level, but also has a very positive impact on your company. Companies with a diverse workforce are 35% more likely to achieve greater financial returns than their non-diverse counterparts.
To successfully promote this, you need to ensure that your company's hiring, career development and compensation are as equitable as possible. There are many approaches here:
- Use Boolean search to find a more diverse pool of applicants.
- Create diversity mentorship programs and networking opportunities
- Conduct diversity training for all employees, especially managers.
- When hiring executives (especially at the executive level), reach out to organizations like The 30% Club and Diversifying Group to leverage their networks.
In conclusion, as we delve into the challenges of the 'AI CEO' stereotype, IceHrm stands at the forefront of advocating for diversity and inclusivity in executive leadership. Recognizing the importance of a diverse talent pool, IceHrm empowers HR professionals to break the mold, fostering equitable hiring practices and shaping workplaces that thrive on inclusiveness.
