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Scott Landers and Hannah Yardley

HR Leaders Never Bought the AI Replacement Story

A few months back, at peak “AI is coming for every job,” Scott Landers asked a room full of HR leaders how many expected to keep at least 80% of their headcount five years from now.

By his count, about 95% of the hands went up.

The headlines said one thing. The room said another. Budgets sided with the headlines, and plenty of companies put employee engagement strategies on ice to fund AI.

That bet is starting to cost them.

Scott is CEO of Achievers and has built his career joining companies at the $50 million to $100 million stage, including Monotype and Harver, and growing them. He’s about two years into his third turn as CEO. Hannah Yardley, Achievers’ Chief People and Culture Officer since 2021, has advised leaders on navigating CEO transitions and lived one herself, helping a new CEO see his blind spots.

Their case: companies treated people investment as something AI would make unnecessary, and the people stayed anyway. That bet is starting to cost them.

Employee Engagement Strategies After the AI Budget Freeze
  • 38 min
Employee Engagement Strategies After the AI Budget Freeze
Work Tech Weekly
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AI Was Sold to Workers as a Replacement Plan

Scott’s kids are in their mid-twenties, and he’s paid attention to what they’ve heard. AI companies raised hundreds of billions promising superintelligence that could replace people everywhere, with universal basic income to soften the landing. Then came the layoffs. “They see companies making up for past sins, firing people under the umbrella of AI to score points publicly,” Scott says. The people who stayed got 20% more work to do.

“There’s no real transparency, there’s not a lot of clarity, and so there’s zero trust in the system,” he says.

He’s seen this movie before. His first job was auditing at Coopers & Lybrand on 18-column ledger paper, and there are more accountants today than 30 years ago. Treat AI as a force multiplier, he argues, and it can land in the same place.

The trust gap already shows up in employee engagement research from the Achievers Workforce Institute. Only 19% of people feel connected to their manager. Only 34% find their work meaningful or see how it connects to their goals.

That’s a disengaged workforce, in numbers.

New Habits Stick When Someone Notices Them

At Achievers, everyone owns AI. “We don’t have a Chief AI Officer, and I’m okay with that, because when it comes to transformational change, we all need to own part of this,” Hannah says.

She also doesn’t trust a once-a-year development conversation to carry that change. “It’s that employees need signals. They need signals that they’re focusing on the right priorities,” she says.

This is where plenty of AI rollouts quietly die. Leadership announces the new way of working, people try it, and the effort disappears into silence. Nobody repeats a behavior nobody saw.

Scott learned how fast the opposite works. At his first company meeting, he laid out what Achievers was missing and went back to his office unsure how it had landed. Within two minutes, a line engineer he’d never met recognized him for his transparency.

The company ran the same play on its culture. Be Bold was the core value that drew the least employee recognition, because people weren’t comfortable owning decisions at the ground level. Leadership pushed decision-making closer to the customer and ran campaigns around the value. Be Bold became the fastest-growing value in recognition and engagement surveys, and Scott says revenue growth doubled that year. As employee engagement strategies go, that one has receipts.

HR Budgets Are Swinging Back Toward People

Back in that room, Scott ran the math out loud. Fifty thousand employees today means at least 40,000 five years from now, and the people who know how to use these new tools will be harder to win. That makes employee retention a strategy question, not an HR line item. “If you don’t keep your employees top of mind, right, and engage them, reward them, retain them, grow them, et cetera, you are gonna be in a world of hurt five years from now,” he says.

He’s watched buyers come around. At Gartner’s conference in October 2024, people stopped by the Achievers booth to ask who the company was. A year later, he says, they arrived admitting they were behind on recognition. That’s a long way for a buyer to travel in twelve months.

Scott reads it as pent-up demand that built while companies “overspent unbudgeted monies on AI,” and he expects something close to normal by 2027. I’d treat the date as a forecast. The direction is harder to argue with, because AI spending is about to face the same test as everything else. “As that normalizes, they only spend where there’s ROI,” Scott says.

Those raised hands were an honest answer. The people in that room never planned on running their companies without a workforce. The money just went somewhere else for a while, which made pulling back on people investment a timing call, not a verdict.

Scott boils it down to two sentences: “People created AI. People are gonna harness AI.”

The room was right. The companies that kept investing in their people through the AI rush will start the next budget cycle with a workforce that never checked out. Everyone else took the headlines’ bet, and now they have to win their people back first.

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