As CxO, the 2 things your HR needs to do different→
Executive Brief
As CxO, the 2 things your HR needs to do different
Capability investment is driven by market dynamics, not internal historical cost structures.
The technical talent market has bifurcated into two populations with distinct productivity curves
A bifurcated market is one in which a single role name now indexes two non-overlapping output distributions. AI-native practitioners and traditional practitioners are no longer comparable units of labor.
Compensation frameworks designed for a homogenous talent pool misprice the bifurcated one
A pay band is a forecast of the value distribution beneath a role. When the distribution splits, a band built on the prior shape underpays the new top and overpays the new median.
An AI-native individual contributor can outproduce a manager, and the comp policy must permit it
A compensation policy is a rule about what an organization is willing to pay for. A policy that caps IC pay at the management band declares, by construction, that no IC is allowed to be worth more than a manager.
AI competency is a role requirement, beginning with the function that writes role requirements
A skill becomes a requirement when it is named in the job description and tested at the door. HR is the function that writes those doors. An organization that exempts HR from AI competency has declared, in advance, that AI is optional.
Lead the talent shift, or explain it
Organizations must decide whether to lead this talent market shift or explain its consequences to their stakeholders.