US worker productivity declined at an 0.8% annual rate in the first quarter of 2025, marking the first decline in almost three years, according to the Bureau of Labor Statistics. Meanwhile, unit labor costs increased at a 5.7% rate, and hourly compensation climbed at a 4.8% pace.
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Chief HR officers are preparing for significant workforce changes as agentic AI use is expected to increase by 327% over the next two years, according to a Salesforce report. Many CHROs expect to redeploy 23% of employees to new roles and reskill employees for jobs that require AI literacy and soft skills such as adaptability and collaboration. "Every industry must redesign jobs, reskill and redeploy talent -- and every employee will need to learn new human, agent and business skills to thrive in the digital labor revolution," says Salesforce Chief People Officer Nathalie Scardino.
Working mothers say family-friendly benefits such as flexible work arrangements, caregiver support and financial wellness programs are crucial for their career success, according to a report from Elixr. Here six women share their experiences and the difference that the benefits have made in their work and personal lives.
A Business.com survey reveals 67% of employees have engaged in some form of workplace theft, with 54% admitting to completing personal tasks on company time. Other common forms include taking longer breaks and using company supplies for personal use. Xero advises employers to prevent theft through proper bookkeeping and monitoring employee behavior.
AI companions are becoming more sophisticated and more popular, with over 500 million downloads globally, and emerging evidence on their mental health effects shows both benefits and risks. Some users report alleviation of loneliness, some have formed deep emotional feelings, others have experienced dependence or distress, and some have received risky advice. "Virtual companions do things that I think would be considered abusive in a human-to-human relationship," said law researcher Claire Boine, who specializes in AI.
Welcome to Friday Faves! Every Friday, I spotlight books, podcasts, articles, email newsletters, documentaries or other content pieces that I enjoy. I also share suggestions that I get from you. Got a favorite for your peers? Send it to me. I may include it here for a future column.
Today’s issue is my Friday Fave. It had tons in it that made me think, cheer and raise my eyebrows.
Employers are getting serious about courting high schoolers for skill work, showing up at schools with branded swag, talking about their companies, and offering salaries starting at $50,000 per year. Elijah Rios, a junior at Father Judge High School in Philadelphia, says the experience left him feeling he was in an athlete in the draft. “Sometimes it’s a little overwhelming -- like, this company wants you, that company wants you,” says Rios. “It honestly feels like I’m an athlete getting all this attention from all these pro teams.”
Conflict has value -- if you do it right, write Laurence Stybel and Maryanne Peabody of Stybel Peabody & Associates. They cite the example of President Abraham Lincoln who appointed to his cabinet men who were "highly opinionated, stubborn, and influential leaders.” His move wasn’t political. It was to encourage productive debate and examine a situation from every side.
Discussion about work-life balance seems to be heating up. Wednesday, we saw SKIMS and Good American co-founder Emma Grede say it’s up to employees -- not employers -- to figure out balance in their personal and professional lives. Today’s Benefits & Compensation story features six women talking about the workplace benefits that have allowed them to care for their families and be effective in the workplace. My favorite was Alice Wu, a senior PR specialist at Mind Meld PR and mother of two. She says there’s an unofficial flexibility of schedule at her agency. If she needs to attend a school event or activity for one of her children, she simply lets the CEO know and he’s fine with it. She ensures her work is always done. Simple. Common-sense communication and professionalism. Maybe it’s not such a complicated discussion after all.
AI relationships are a thing, as we see in our Workplace Chatter story. I felt bad for Mike, not his real name, who was heartbroken after losing his AI companion, Anne. He developed real feelings for her. And he’s not alone. Scores of other people are engaging in similar AI relationships, which has mental health experts worried.
They should be. I appreciate the benefits of AI and other technologies, but we have to do a better job of drawing lines and reigning them in. It’s human nature to want to assuage negative emotions -- loneliness, anger, anxiety -- but we can be too quick to grab relief in any form. And it can crush us, if we’re not careful.
What was your favorite story of the week? Let me know! Until Monday, have a great weekend!
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