ENHANCE EMPLOYEE SATISFACTION WITH AI AND SKILLS INTELLIGENCE 2servicenow.com Putting AI to work for people: Shaping future- ready workforces with AI and skills Today’s enterprise talent leaders are under immense pressure to do the seemingly impossible: improve employee satisfaction and drive business growth initiatives with fewer resources than ever. According to a recent study: “Common challenges for HR leaders: 89% of HR leaders believe career paths at their organizations are unclear for many employees, and 66% of HR leaders agree career paths within their organizations are not compelling for many employees, according to Gartner®.“1 The price of dissatisfied workers is high. Also per Gartner®, “On top of that, based on the average cost of replacing one employee and average attrition rates, an organization with 10,000 employees could spend $16 million per year to replace employees who quit due to burnout.”2 Most traditional talent and learning management systems in the market today offer little insight into what career paths employees should take to reach their goals, leading to frustration and increased attrition. What’s needed is a modern AI-powered solution that transforms traditional talent management functionality as well as provides development guidance for employees to manage their own career journeys. Contents Enhance employee satisfaction with AI and skills intelligence The state of talent development in enterprises • 45% of C-suite leaders indicated "Increasing employee satisfaction" in response to "Top C-level priorities for the next 18 months"3 • 55% of HR leaders believe that half or more of their workforce is not equipped to drive future growth.3 • Top reasons employees leave: Low pay • Incompatible culture • Inflexible work schedules Lack of job satisfaction3 1 Gartner, Top 5 Priorities for HR Leaders in 2024, 2023 2 Gartner, HR Leaders Monthly: Focus on the Workforce: HR in an Uncertain Economy, 2023 GARTNER® is a registered trademark and service mark of Gartner, Inc. and/or its affiliates in the U.S. and internationally and is used herein with permission. All rights reserved. 3 ServiceNow, Employee Experience Trends 2024: HR leadership for a new business era, 2024 3servicenow.com Improve employee satisfaction and productivity Companies often try to boost their talent development capabilities by investing in new solutions. According to Okta, its average customer used 93 different apps to keep workers productive.6 Attempting to navigate these disparate applications to glean career insights is often a losing battle. A single career hub from ServiceNow® Talent Development connects disparate talent and learning systems and guides employees with AI to self-drive their own career development from one place. They can build their skills profile, track career development, access learning resources, and explore new job opportunities. 98% of employers with a skills-based approach to development are more likely to retain high performers.7 A new approach to career development is critical for driving retention and business growth: 3. Provide a self- service career hub Offer a single employee portal that delivers self- guided career development journeys for employees with the AI and skills intelligence. 2. Develop highly skilled people Help managers and employees create growth plans, discover learning content, and find mentors to drive their career development journeys. 1. Make smarter talent decisions Gain insight into the skills of your workforce to identify talent gaps and inform strategic business decisions. In this guide, you will discover three steps to help you drive employee satisfaction and fuel business growth: 76% of employees are more likely to stay with a company that offers continuous training.8 63% of workers who leave their jobs say the reason was no opportunities for advancement.9 6 Okta, Businesses at Work 2024, March 2024 7 Deloitte Insights, Navigating the end of jobs, 2023 8 SHRM, 2022 Workplace Learning & Development Trends, 2022 9 Pew Research Center, Majority of workers who quit a job in 2021 cite low pay, no opportunities for advancement, feeling disrespected, March 9, 2022 Enhance employee satisfaction with AI and skills intelligence 4servicenow.com STEP 1 Make smarter talent decisions AI-driven skills intelligence is built directly into the ServiceNow platform, incorporated throughout the entire career development experience, and seamlessly surfaced to employees, managers, and leaders. Because ServiceNow captures all relevant employee skills data as part of the career development experience, managers and leaders can use it to make better and more informed talent decisions in the future. The ability to make smarter talent decisions can have a profound effect on your company’s long-term health: • Increased employee satisfaction: Employees who have visibility into and influence over their career path will stay with your company longer and contribute at a higher level. • Higher productivity: Experienced, engaged employees work smarter and faster, leading to increased output, fewer errors, and a better overall work product. • Expanded growth potential: Companies that effectively track and nurture employees’ career advancement create a strong foundation for business growth. They also maintain a ready pool of high performers to tackle complex and transformative projects—helping the business grow and thrive. MANAGER’S TALENT DEVELOPMENT EXPERIENCE Andrea will soon be meeting with her direct report Zack to talk about his aspiration to move within their organization from his financial analyst role to portfolio manager. With ServiceNow Talent Development, Andrea has all the tools and resources she needs in one place. “In the manager area of the career growth app, I can find the tools and resources that I need to be a good manager—all in one location. It’s a dedicated space with lots of helpful insights about my team, actionable tasks, analytics, and even coaching guidance during conversations with employees.” “As I get ready for my growth conversation with Zack, the app provides me with an agenda that will help us have a successful discussion. What’s even better is that I can see the aspiration Zack has added to his growth plan. With so many useful resources at my fingertips, I’m all set for a productive conversation.” → Read more of Andrea’s story Enhance employee satisfaction with AI and skills intelligence 5servicenow.com STEP 2 Develop highly skilled people The key to successful and happy employees is empowering them to take proactive steps toward their career aspirations. ServiceNow Talent Development helps employees to turn aspirations into actionable growth plans using AI and skills intelligence. What makes Talent Development truly unique is the integration of contextual data from HR and Talent systems, proactive development prompts, and AI- driven skills intelligence. This technology removes the guesswork from development activities and ffosters informed career conversations with managers and collaboration on growth plan activities such as learning, and mentoring. The power of meaningful mentor relationships can help you develop highly skilled individuals and teams. With ServiceNow Talent Development, employees can build connections that drive professional development and gain knowledge from mentors. The result is a more engaged, satisfied, and highly-skilled workforce. EMPLOYEE’S TALENT DEVELOPMENT EXPERIENCE Zack likes his current job as financial analyst, but he’s ready for more. He’s working with his manager to understand what steps he needs to take to land his dream job of portfolio manager. ServiceNow Talent Development helps Zack take the necessary steps for his dream to become a reality. “I check my phone and see an alert from Teams. It’s a proactive reminder for me to review my skills list in the employee portal. The skills review process is personalized just for me—no extra work required.” “I go to my company’s career growth app in the employee portal. I love this AI-based self-service tool: It’s a handy place for me to access a wide range of personal development resources, all in one location.” This technology removes the guesswork from development activities and fosters informed career conversations with managers and collaboration on growth plan activities such as learning, and mentoring. → Read more of Zack’s story Enhance employee satisfaction with AI and skills intelligence 6servicenow.com TALENT DEVELOPMENT IN ACTION Healthcare company uses ServiceNow Talent Development to boost retention and ensure consistent patient care An in-home healthcare organization selected the single-platform ServiceNow Talent Development solution to unify the employee experience and bring data together from its multiple disparate talent and learning systems. The company was able to streamline the career development experience for caregivers and clinicians in a single career portal, so they can better focus on patient care and are more likely to remain with the company. STEP 3 Provide a self-service career hub Delivering a single career hub to employees and managers is the first step in empowering self-guided career development. A career hub offers a direct pathway to increased employee satisfaction, improved worker retention, and business growth. A successful self-service career roadmap might look something like this: • An employee has an aspiration such as becoming a sales representative, team leader, or director. Using the career hub, the employee is quickly and easily presented with information about existing skills and the abilities needed to grow into the desired role. • An employee has meaningful conversations with the manager to talk about aspirations. The employee and manager are assisted by AI-based recommendations–such as related discussion topics or additional resources—to help foster more informative career conversations. • Both the manager and the employee collaborate on creating a personalized growth plan they can track.