What is the Voice of the Employee (VoE), and why is it important? According to the Academy to Innovate HR, “Voice of the Employee (VoE) is a systematic process designed to uncover and assess employee concerns or problems that impact the total employer-employee relationship.” Effective approaches to VoE ensure employees have safe, healthy feedback outlets and leadership can make informed, supported, and transparent decisions that promote a trustworthy environment for employees— and better business outcomes.

Deloitte’s 2024 research found that 86% of workers and 74% of leaders say “an increasing focus on trust and transparency in the relationship between workers and the organization is very or critically important,” and Deloitte asserts this focus will have the greatest impact on an organization’s success in the next three years. Most organizations use VoE to identify employee issues or challenges and to surface areas for improvement in company culture, operations, or strategy. Mutually beneficial within any organization, VoE allows business leaders to understand their employees and clients better while allowing employees to positively impact the decision-making process and the organization as a whole. VoE is emerging as a more comprehensive way to gather better information on employee perceptions, consolidate feedback and deliver valid insights with actionable guidance, based on a much wider set of employee experience inputs. GARTNER 4 STATE OF ENGAGEMENT IN 2024 of staff don’t feel heard on critical issues Surveys abound, yet disengagement prevails spent on tools & consultants Tools and consultants drain budgets, with little to no change of wasted time spent on reporting Swimming in data, with insights taking months to reach land Source: Gartner Business Value Feasibility High Medium Low Medium High Internal Talent Marketplace Voice of the Employee/Sentiment Analysis Learning Personalization HR Virtual Assistant Recruitment Virtual Assistant Recruitment Marketing Employee Flight Risk Analysis Candidate Matching/Ranking Learning Evaluation Generation Candidate Assessments Payroll Optimization Skills Management Job Description Generation Labor Market Intelligence Bias Detection Learning Content Generation Adaptive Learning Virtual Coach (Leaders) Interview Summary Performance Feedback AI’s impact on the engagement landscape Accessing VoE has historically been a lengthy process of standard surveys, comment boxes, meetings, all-hands meetings, focus groups, consultants, manual data analysis, and reports—but AI technologies are quickly transforming how businesses listen to their employees and act on their feedback. Many organizations haven’t caught up with this critical use case for AI technologies. Instead, they still use cumbersome, inefficient, and expensive engagement to capture VoE. How HR is using AI—and how they shouldn’t use it In “Artificial intelligence and a new era of human resources,” IBM outlines some typical applications for AI technology in HR departments: • Employee records management • Recruitment and hiring processes • Payroll processing • Performance management and assessments • Benefits administration • Onboarding new employees • HR support or service desks While each area is prime for streamlining tasks, you’ll notice VoE isn’t on that list—even though Gartner asserts that using AI to elevate VoE will bring the most value to your organization while making the highest impact (figure 1). FIGURE 1: AI USE-CASE PRISM FOR HUMAN CAPITAL MANAGEMENT Figure 1: Gartner positions VoE as the AI Use Case that provides the highest level of Business Value and Feasibility in HR applications. “Employees who do not feel heard at work are 6x more likely than those who feel heard to say that they are already looking for a new job.” GEN Z AT WORK GUIDE 75% $1M+ MONTHS 5 AI’S OPERATIONAL BENEFITS FOR HR While employees may think of AI as a shortcut, the technology provides significant operational benefits. Here are a few ways AI technologies can transform how CHROs approach their jobs. Speed and efficiency Above all, AI can complete tasks more quickly than human beings. Onboarding, meeting agendas, communications, data analysis, and reporting can all be completed in a few seconds, freeing up time to focus on the parts of the job employees love. Cost and time savings Along with speed and efficiency come cost and time savings. Organizations can save hours of employee time by leveraging AI for more routine administrative tasks and can use AI data analysis for more effective budget allocation. AI-powered engagement initiatives can gather feedback from large groups without the cost of in-person all-hands meetings and focus groups. Ability to analyze larger data sets AI can analyze data sets that would otherwise overwhelm humans, allowing organizations to consider a broader range of data for important decisions. The right AI technologies can also perform custom analysis in a few seconds and leverage the company’s data to suggest talking points, pinpoint actions, and provide feedback summaries. Better engagement For decades, organizations have relied on basic surveys, focus groups, and all-hands meetings for engagement, sometimes requiring weeks or months of analysis before taking action. AI engagement platforms speed up the time from ask to action, gathering large qualitative and quantitative data sets and leveraging lightning-speed analysis. They also provide participants with more innovative and engaging ways to give feedback. HR leaders need to remember that not all AI applications are equal. Deloitte’s research discovered that when companies used tools to track and monitor employee performance, it hurt retention. They found that “workforce turnover is almost twice as high at companies that use monitoring software as surveillance than at organizations that do not.” By contrast, using AI engagement tools that improve the ability to access and act on VoE can have a positive impact on retention. The Harvard Business Review asserts, “When employees can voice their concerns freely, organizations see increased retention and stronger performance.” They report that at several financial services firms, business units whose leadership listened to employee suggestions boasted better financial and operational results than others. At “one national restaurant chain, managers were able to persuade senior leaders to make improvements that reduced employee turnover by 32% and saved at least $1.6 million a year.” At ThoughtExchange, we hear success stories like this daily as our customers leverage employee insights to build better cultures and make better decisions. We believe new AI technologies have the potential to change the way your employees work—and VoE should play a central role in how they are adopted and implemented for the best outcomes. 6 What employees expect from engagement efforts Increasingly, employees expect to be heard in their workplaces. Research from Explorance found that 63% of employees want to share feedback and opinions with management. However, a Gallup survey found that only 8% of employees strongly agree that their organization acts on their feedback. The cost of neglecting VoE is clear. Put simply, organizations that don’t invest in effective listening will see their bottom line suffer. The cost of poor listening and employees not feeling recognized, heard, or understood can lead to decreased productivity, job dissatisfaction, low commitment, burnout, or even seeking out work with another organization they believe will value them (Pery et al., 2020). PSYCHOLOGY TODAY By tapping into all of their team members’ authentic voices to uncover insights and provide solutions, leaders can help their employees feel heard and valued, creating better alignment with their current workplace and better outcomes for the business. SPOTLIGHT ON GEN Z AT WORK Gen Z thrives in a workplace where they can make their voices heard: 96% of respondents said it’s important they feel valued, included, and empowered at work. 54% of those who feel valued, included, and empowered at work feel this way because they feel heard by leadership. Those who do not feel heard at work were 6x more likely than those who feel heard to say that they are already looking for a new job. What companies can do: Encourage leadership to listen 48% of those who do not feel valued, included, and empowered at work say this could be remediated if they felt more heard by leadership. Provide avenues for anonymity 59% of those who do not feel heard are hesitant to share their ideas or feedback due to a lack of anonymity. Engage Gen Z in decision-making 42% of U.S. respondents said they feel valued, included, and empowered at work because their company gives them a voice in company initiatives and/or major strategic decisions. Our Gen Z at Work guide outlines the changing workforce expectations for our newest generation of workers. We surveyed Gen Z employees to find out what employers need to know to recruit and retain them. Get the Guide 6X 7 Why responsible AI technology is key With the promise of streamlined workflows and better listening, it’s tempting to jump on the variety of AI technologies available to HR professionals. However, assessing AI vendors for their responsibility, ethics, and safety is paramount—as is developing a set of policies for using AI at your organization. Organizations need to develop governance around AI use, not only to ensure it adheres to the company mission and goals but also to protect the organization. IBM asserts that responsible AI should be a priority for any organization using AI tools, primarily for these three reasons: Microsoft’s principles of responsible AI provide a framework to govern its usage: accountability, inclusiveness, reliability and safety, fairness, transparency, and privacy and security. Accountability Understanding who is responsible for the decisions made by AI systems and ensuring that there’s someone accountable for the outcomes. Inclusiveness Ensuring AI use serves diverse populations and doesn’t perpetuate existing inequalities, and being mindful of potential biases in data. Reliability and safety Understanding AI makes predictions based on probabilities and has varying levels of accuracy. Fairness Being meticulous about the data we feed AI models and constantly checking for biases. Transparency Being open regarding the use and capabilities of AI systems. Privacy and security Being cautious about the data we feed AI, ensuring the platforms are secure and respectful of the privacy of those whose data we’re handling. To manage risk and reputation To adhere to ethical principles To protect and scale against government regulations 8 How AI elevates VoE for better business outcomes While employee engagement is a vital part of HR’s job, impacting retention, recruitment, company culture, and performance, it can be costly and cumbersome, especially with distributed workforces. Many organizations still rely on basic quantitative surveys or hire consultants to conduct more in-depth, qualitative research to inform their practices and policies. However, AI’s innovation of engagement has transformed how HR professionals can listen, understand, and empower their employees. Engagement platforms that leverage AI innovation can streamline and shorten the process while providing better insight into employee perspectives by providing more personalized, conversational engagement methods, instantly analyzing and summarizing data, and pinpointing action steps. SELECTING RESPONSIBLE AI VENDORS Understanding how an AI vendor approaches responsible, ethical AI is critical to making the right decision on whether to purchase or not. When looking for AI engagement technologies, consider the following questions: Ensuring security: Due to the valuable data they hold, organizations can be vulnerable to cyber-attacks, including hacking and ransomware. Such attacks can lead to unauthorized access, data loss, and significant operational disruptions. Ensuring any AI vendor you choose has robust cybersecurity measures is crucial to preventing data breaches that could expose sensitive student and staff information for misuse and exploitation. “At ThoughtExchange, we truly value trust, and understand the significance of privacy and data security. When people engage with our platform, they’re trusting not just our product, but our integrity, too. So, as we keep pushing the boundaries with AI, we are redefining our security and privacy program to include responsible AI and calling it trust. It’s not just about protecting data; it’s about honoring the trust our users place in us. And that’s something we take very seriously.” CHRIS MUSSELL, VP & Chief Trust Officer, ThoughtExchange • Do they have a responsible AI policy? • Do they have an AI governance policy? • Do they have policies to mitigate bias in AI? • Do they have an AI accountability policy? • Do they have goals and ethics around how their AI is used? • Do they comply with best-in-class data security regulations and certifications? • Do they encrypt and back up data? • Do they have comprehensive cybersecurity measures in place? • Do they guarantee they won’t sell your participants’ data? 9 VoE is essential to many organizational initiatives and is an exemplary use case for AI technologies. Here’s how the latest in AI is changing employee engagement: THE BENEFITS OF AI-ENHANCED ENGAGEMENT FOR VOE Deeper Engagement Integrated Analysis Instant Actions For more voices heard more easily, and access to qualitative data at the speed of quantitative data. • Conversational AI surveys to boost participation • The ability to mitigate bias and promote equity of voice • Qualitative depth, in addition to quantitative rigor For less time and money spent on data analysis, and more nuanced insights. • Data analysis in real-time, no matter the quantity of data • Instant data summary and the ability to incorporate context into the analysis • Generative AI that can answer custom analysis prompts For faster and more effective turn-around on feedback initiatives. • Recommended actions based on participant alignment and cohorts • Fast, custom reporting for board and employees • Tailored communications based on engagement data for each cohort 21% 15% 63% How can we as a district strengthen our ability to create better experiences for the entire school community in the areas of safety, security, and well-being? 48 Hello, I'm your Advisor here to help! Identify Topics of Concern Employee Experience Employee Onboarding “[AI-powered] conversational employee surveys…have a 50% higher response rate than static forms.” VENTUREBEAT 10 USING AN AI-POWERED PLATFORM FOR DEEPER ENGAGEMENT AI engagement platforms can expedite and streamline the consultation process, ensuring districts keep up with the pace of technology. Platforms like ThoughtExchange leverage AI to offer districts the following: Multiple quantitative and qualitative engagement methods Anti-bias technology and multi-language participation for equitable engagement Instant in-depth analysis of large data sets Ability to pinpoint ideas with high alignment Ability to identify common ground in polarized groups Fast custom reporting to share results easily Top-notch data security and responsible AI governance The right engagement platform, built with security and privacy at its core, builds trust with your educational partners. Demonstrating how AI can elevate their voices—rather than replace them—will encourage people to embrace new AI software in your district. “I have a global remit, with many disparate people working in sales offices across all continents. I need to stay close to those individuals and understand their needs in their roles. I recommend ThoughtExchange to everybody, inside and outside of my company. It’s a great tool and really changes how people interact with their employees, especially disparate populations.” MELANIE HAYNES, General Manager of Client & Commercial Services, International SOS 11 Ready to bring your VoE into the age of AI? Let us help you. GET IN TOUCH VoE in the age of AI Many employees may be wary of AI’s potential to make their skills obsolete and skeptical of their organization’s motivation to adopt AI technology. A responsible HR leader will ensure their employees also recognize AI’s ability to elevate their voices and make their ideas and insights easier to act on than ever before. Leveraging AI engagement platforms to tap into VoE more effectively and efficiently will provide leaders with better, faster insights to act on and build employee trust and confidence. At ThoughtExchange, we believe engaging your people and acting on their feedback shouldn’t be a lengthy, drawn-out process. So, we built better ways to engage and faster ways to analyze data and take action. Our AI-enhanced engagement platform addresses the historical challenges with VoE: Slow, shallow feedback processes Cumbersome data analysis Cost of consultants and months of work Employees feeling unheard and disengaged Not meeting engagement expectations of younger generations Higher attrition rates, lower recruitment Using ThoughtExchange, leaders of major companies all over North America have significantly improved their VoE initiatives, leading to healthier cultures, streamlined processes, and higher retention rates—and profits. VoE’s importance in the AI era can’t be overstated. Listening to, empowering, and understanding your employees enhances trust and transparency, improves business outcomes, helps companies adapt faster, and makes operations more efficient.