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Amid a historic shutdown, the technology that keeps the government running, has, largely, kept running. Official websites are online. Internal software is mostly working. And security experts continue to monitor potential cyberthreats. But as the 35-day closure stretches on, the situation could grow more dire, several current and former government officials told Fast Company, threatening the systems and teams that help support tax filing, healthcare systems, airports, and a lot more. Without new funding from Congress, government IT offices can, in the short term, keep a number of essential workers in the office and draw on other funding sources, like, for example, earnings from selling services to other federal agencies to stay online. Tech teams often rely on contractors to run their platforms, and those contracts are sometimes paid out in advance, providing an extra source of support. (Those resources vary, depending on the agency.) But such stopgaps will last only so long, experts warned. And as the shutdown drags on, desperately needed upgrades to federal tech systems will fall behind, making them a lot harder to run. Tech workers will start looking for jobs in the private sector instead. Keep in mind that the U.S. government already has a hard time managing its tech. Federal agencies are running behind on upgrading websites, improving software, and providing experiences to online users that are not frustratingly horrible. The government is also chronically short on technology workers, including tens of thousands of cybersecurity professionals. Many of the people who leave the private sector to work on government technology take a pay cut, often under the assumption that, at the very least, theyll have better job security in the public sector. Now the shutdown is slowing down government tech projects and making the prospect of taking a federal job even less appealing. Thats a major threat to the stated goals of the Trump administration and the Department of Government Efficiency, which include attracting technology talent, improving government software, and increasing the U.S. governments use of AI. Consistent operations are crucial for maintaining a stable and effective workforce across all industries, not just the federal government, Jenny Mattingley from the Partnership for Public Service told Fast Company. When employees face financial uncertainty from delayed paychecks during government shutdownswhich is layered on top of substantial workforce cuts this yearit undermines workplace morale and impedes their ability to perform effectively. She added, These factors collectively foster conditions that make it difficult to attract and keep skilled technology professionals, which hinders technological advancement and modernization efforts in government. How shutdowns impact government tech offices Like elsewhere in government during a shutdown, federal IT offices have to select a handful of workers who are considered essential to keep software running, one current government official told Fast Company. These include people who focus on keeping applications operational and secure. But this approach has flaws, since its relatively easy for a federal agency to lose some critical employees to furlough status while maintaining contractors who are assigned only to less essential tasks. Agencies will sometimes keep a list of employee furlough codes and funding sources, which outline whether theyre exempt from a shutdown or supported by another funding source, another government tech official explained. There might also be a separate list of people who are then recalled from furlough to work without pay, though theyre immediately exempt. The administration seems to be exempting more people from the shutdown than usual in order to blunt the impact of the government closure, the official told Fast Company. Agencies do try to anticipate government shutdowns and plans, a former Treasury official said. Federal agencies dont receive all their funding from congressional appropriations, and sometimes have other funds they can use to keep IT offices open. But as the shutdown drags on, agencies have to prepare for more drastic action. About 25 days into the last government shutdown, the Treasury IT office had begun considering turning off technology platforms used across its employee base, the official said. Projects designed to modernize aging systems, or introduce new technology, are also impacted. A former chief information officer of a federal agency told Fast Company that during the last two government shutdowns, employees focused on core operations, infrastructure, and other support were exempted from the shutdown. But anyone working on new technology development was furloughed. The current shutdown is compounding delays on critical modernization efforts and creating serious impacts that will only grow, the source said. Similarly, a tech official at the State Department said that while they expect the agency to be okaygiven the agencys dependence on contractorsa shutdown can be brutal when there are problems with an ancient government app. There are also latent cybersecurity concerns. Theoretically, the government retains the ability to pull employees for an all hands on deck situation, one official said. But there can still be risks. For instance, during this shutdown, this officials team learned of a vulnerability that had to be patched immediately. While the team implemented the fix, it couldnt communicate with furloughed IT staff who could explain how the update might impact other agency systems. On the one hand, workers are not checking their emails or, more generally, performing government activities, which means theyre less likely to fall victim to phishing attempts, sources told Fast Company. On the other, the shutdown could make the federal government a bigger target. Not paying people could also be a counterintelligence risk, since it becomes easier to offer employees money for information, warned David Nesting, a former White House modernization expert. Shutdown could draw tech workers away Government technology workers, including those who focus on IT, cybersecurity, and artificial intelligence, have typically been paid less than what they would otherwise make in the private sector. The highest-level positions denoted on the General Schedule, the main pay guidance for federal workers, have a base of around $162,000; top tech salaries can be several mutiples of that. Federal agencies have also put a strong emphasis on requiring employees to come back to the office. Still, government roles have always had one big advantage: job security. But shutdowns damage the governments reputation as a stable workplace. Just like in the private sector, the most experienced and capable experts are the ones who can find work elsewhere first, Nesting said. There is absolutely a risk that cybersecurity workers will decide, out of necessity, or just getting fed up with the way theyre being treated, that now is the right time for them to consider a career move, Nesting said. This creates a huge challenge for agencies trying to retain cybersecurity talent and persuade potential new hires that this wont happen to them, too, in a year. Kshemendra Paul, a former government tech oficial and public administration expert, speaking in his personal capacity, told Fast Company that the past few administrations have seen a deterioration of the federal budget process, which requires both houses of Congress and the president coming together to agree to fund government activity, making shutdowns more likely. Each shutdown further damages employee confidence. Shutdowns are damaging morale. It increases cynicism, it increases skepticism of change. It makes change initiatives that are aimed at improving cybersecurity, improving information sharing, improving citizen experience, better managing government resources, reducing fraud and waste . . . so much harder, Paul said. They’re already hard to begin with in the government, but then it’s like you are working in a pool of molasses.
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E-Commerce
More than 78% of companies are using AI at work. Much of its use has centered on hiring and recruiting. But AIs influence is quickly seeping into other parts of doing business. For HR teams that are strapped for resources and with burgeoning demands on their time, AI is significantly reducing the burden of administrative work: More than 90% are already using AI to screen résumés, using the tech to communicate with or evaluate applicants. But now employers are experimenting with plenty of other use cases for AI tools. Fast Company reached out to a number of tech companies to find out how they are deploying AI beyond hiring and recruiting. As one human resources leader put it, many of them have started to view AI as a copilot for HR operations. In this Premium story, readers will learn: How AI is becoming the new HR portal Why AI can enhance the much-dreaded performance review process Practical, on-the-ground, achievable methods to integrate AI into your company’s workflow in a way workers actually want Internal HR chatbots At professional services firm Genpact, an AI assistant known as HRpedia serves as the first port of call for all HR-related questions. Nearly 40,000 employees have used itmore than half of whom have done so more than once. HRpedia offers advice specific to each person, based on their role and where they are located, and helps field inquiries about a range of employee concerns. It makes employees lives easier by running transactions like checking for leave balances, verifying employment details, or raising a help desk ticket seamlessly, as well as providing coaching for real-life situations, says Piyush Mehta, the companys chief human resources officer (CHRO). Genpact has also devised a tool that compiles metrics on attrition, demographics, and compensation, enabling managers to quickly pull relevant data as needed. Other companies have developed similar chatbots that provide quick responses to commonand recurringquestions about paid time off and other benefits. Open enrollment is a large stressor for many employees, says Heidi Barnett, who oversees talent acquisition at Isolved, a workforce software management firm. Our research found that 72% of employees say its overwhelming, and over half would consider leaving after a poor experience. Now that the company has introduced an AI-powered recommendation engine, Isolved employees can get personalized guidance based on their health needs and financial status. At data solutions company Safe Software, workers now have access to a custom benefits GPT, which has been trained on internal documents that outline benefits and company policies. Not only has this tool minimized the time our team used to spend answering questions, but it [has] enabled our staff to develop a greater understanding of our benefits, says CHRO Bonnie Alexander. Data suggests that more people do want to use generative AI, like LLM chatbots, at work. According to McKinsey data from earlier this year, more than 40% of U.S. workers want greater access to generative AI tools. Performance management and employee engagement The performance management process can be a source of frustration for employees and managers alike. While HR leaders insist human judgment is critical to those discussions, they also believe AI can address some of the pitfalls of traditional reviews, which are often time-consuming and subjectiveand may fail to capture the full picture of an employees performance. Isolved, for example, is trying to bolster performance reviews with additional data that the company claims can help mitigate bias. Weve integrated AI into our performance management process, where it supplements traditional feedback with data-driven insights, Barnett says. That could mean incorporating the results of employee engagement surveys or metrics that capture how individual teams are making progress on company-wide goals. When data storage company Pure Storage conducts performance reviews, employees and managers can use the companys internal AI tools to get a detailed view of all their work, rather than simply focusing on their most recent achievements. That takes the form of a written summary of their work over the course of the calendar year, along with supporting documentation collected by the AI-powered platform Glean. Pure Storage is also investing in an AI coaching service to help managers pinpoint goals and areas of improvement for their direct reports. As employees feel increasingly detached from their work, many companies want to show they are invested in their well-being, which includes acting on feedback they receive through surveys and other mediums. A number of companies say AI has helped them effectively synthesize responses to employee engagement surveys. AI is becoming a critical tool to both consolidate thousands of different comments, while highlighting trends in ways that could not be done before, says Sonja Wilkerson, chief people officer at climate tech company Bloom Energy. For AI analytics platform AI Squared, using artificial intelligence in this way has enabled the AI integration company to detect patterns and figure out how to act on employee feedbackfor example, determining whether certain pain points or culture issues are more prevalent within a particular team. Career development and upskilling AI has already upended the education sector, for better and for worse. In the workplace, companies are leveraging it to expand learning and development opportunities for their employees. The learning platform at Genpact, known as Genome, analyzes an employees portfolio of work and recommends skills like Python or supply chain demand planning, and, in turn, uses that information to surface learning and certification programs that might be a fit. Genome suggested, for example, that a young analyst at Genpact take a learning module for Databricks, the popular data analytics platform that allows companies to keep their proprietary data secure while developing customized AI agents. She took it, and within weeks, she was applying it on a client project, Mehta says. Thats the kind of career acceleration AI can and is enabling. Genpact has also launched AI agents that draw on the expertise of its leaders to help employees navigate challenges that might arise in the course of their workenabling them to, say, practice client conversations before an important meeting. At Pure Storage, Glean has enabled the company to build new learning and development offerings for its employees by drawing on institutional knowledge. In less than two months, it used Gleans technology to analyze the marketing of its product launches and create learning modules that cater to employees across the organization, from the sales department to the finance team. The future of AI at work Generative AI has empowered companies to automate routine tasks that require limited human intervention. But looking ahead, many of them are thinking about how they can get more creative with AI, or find new use cases across performance management and employee engagement. Cybersecurity company Arctic Wolf is looking into how AI might be utilized for employee sentiment analysis. Tekion, a cloud-native auto retail platform, intends to use AI to surface new opportunities for its employees and support their career development. And Genpact wants to give managers more data on how their teams are performing, and how that tracks with employee engagement. Mehta contends, AI will become part of everyday workflowsnot something you log into once in a while.
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E-Commerce
Costco is famously adored by its fans, and its leadership wants the discount big-box chain to remain beloved. Costco co-founder and former CEO James Sinegal so fervently believes in keeping customers happy that hes driven to profanity to express the strength of his feelings. You cant say People are our most important product, and hang signs all over the place that say People are our most important product, and then treat them like shit. Your customers or your suppliers are going to see that you dont really mean it, he recently told an interviewer. Which is why a recent policy change by the retailer is so fascinating. Starting this month, Costco began enforcing a new benefit for executive tier members, who pay $130 annually rather than the $65 for Gold or Businesses membership. Those who pay extra now get an extra hour to shop in relative peace in the morning (except for Saturdays, when they only get an extra half hour), separate from the hoi polloi at the chains often crowded stores. It might sound like a small change, but it illustrates not only a key choice business leaders committed to customer happiness, like Sinegal, have to make but also something fascinating about the direction the U.S. economy seems to be heading as a whole. The plus sides of tiered pricing From a straight revenue maximization perspective, the new rules make sense. Executive tier members make up 47 percent of Costco shoppers but drive 73 percent of its revenue. Add to that fierce competition from the likes of Sams Club and BJs, and locking in more customers with a premium membership is a clear economic win. Costcos early-access benefit for Executive Members represents more than a customer perkits a smart application of behavioral economics. By leveraging exclusivity and loss aversion, Costco creates perceived value that can justify the $65 premium between membership tiers, explains Fortune. Industry analysts suggest the move could accelerate Executive Membership conversions. And obviously, the new perks delight many premium members. It is such a relaxing shopping environment and not survival of the fittest, enthused one Reddit user. I could make a return without waiting in the giant line and then went and spent $200 elsewhere. Win, win! wrote another. Not everyone is happy with Costcos new policy But for every pleased premium member, there is another shopper unwilling and unable to pay double to shop at Costco. They are not so pleased. I immediately canceled my membership for a 100 percent refund. The company breached the terms in which I took out the membership. I burned up a gallon of gas to get there at what was the normal time, had trouble walking and no consideration. I was told to wait 1/2 hour. Ill stick with BJs and continue to be treated with respect, grumbled one on Facebook. Some Costco workers also complained about the move to open earlier to cater to premium members. We struggle to get open [at] 9:45. I can imagine its going to be fun every morning in merchandising, reads one representative Reddit comment. As Sinegal himself observed, people notice when you dont treat them with respect. For some employees and customers, a move to tiered membership clearly treats some people with more respect than others. Goodbye middle class, hello premium pricing Only time will tell whether Costco loses more customers like the irate Facebook poster above than it gains from new premium memberships. But other business leaders considering offering premium services that make the experience of their product relatively worse for other customers should be mindful of these tradeoffs. Its a decision that more and more leaders seem to be weighing. As management consultant Daniel Currell noted in a fascinating essay in The New York Times on the rise of pricey upgrades at Disney theme parks, companies are increasingly looking for ways to cater toand extract more profit fromtheir most upmarket customers. More and better data and AI assistance enable companies to target and reach these customers. But the real driving force behind the rising popularity of premium pricing is a fundamental shift in the American economy. That middle class has so eroded in size and in purchasing powerand the wealth of our top earners has so explodedthat Americas most important market today is its affluent, he writes. What Costcos new policy says about the economy Currell observes that while a lot of core economic data, like unemployment and household income levels, have looked good on paper over the last few years, consumers have reported feeling incredibly negative. Its a puzzle, he says, that may be partially explained by tiered pricing like Costcos new policy. People notice when you treat them like shit. And watching others with more resources literally skip to the front of the queue certainly makes many people feel like shit. It might be good short-term business strategy to say the hell with it, let them stew, and pocket the proceeds. The question of what this bitter dynamic will do to a businessand a nationlonger term remains to be seen. Jessica Stillman This article originally appeared on Fast Companys sister publication, Inc. Inc. is the voice of the American entrepreneur. We inspire, inform, and document the most fascinating people in business: the risk-takers, the innovators, and the ultra-driven go-getters that represent the most dynamic force in the American economy.
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E-Commerce
Over the years, I have conditioned myself to only be able to focus in 25-minute increments, a timer counting down in my peripheral. The five-minute break following? Its like a reward. It is now accepted wisdom that taking regular breaks during the workday makes one more productive. How long those breaks should be, however, depends on which productivity method you are subscribed to. Recently, a University of Cambridge mental health researcher has suggested that longer breaks could, in fact, be more effective at tackling those afternoon slumps. “The most productive people work for about 52 minutes at a time and then take 17-minute breaks,” Olivia Remes shared on Instagram. The “52/17 rule” has been around for a while, promising to increase productivity and work-life balance, but Cambridges social post has renewed discussion about it. “This is much better than working for long stretches, adds Remes, who has a PhD degree in public health and primary care from Cambridge. The brain is a muscle that, like every other, can be overstretched. Incessantly being bombarded with emails and Slack messages, juggling calendars and jumping at the Microsoft Teams ringtone, hopping on and off and back on Zoom, and fielding work texts . . . all can cause information and cognitive overload. As many dont have the option to work less, a number of productivity hacks have emerged insteadfrom the MTR framework and time blocking to my beloved Pomodoro method. But, even armed with all these hacks and tools, or leaning on AI to take off some of the mental load, it can still feel like an uphill battle to focus even for a few hours a day. Thats why its not only important when we take these breaks, but how we take them. Remes says the researchers found that while practicing the 52/17 method, the most productive people, during their breaks, completely disconnected from technology.” No sneaking in a few emails or scrolling on X or TikTok. “Instead, they completely disconnected and gave themselves a chance to relax and to rest,” she adds. So its not just the 17 minutesits how you use them. (Or dont use them.) Of course, unplugging is easier said than done. Particularly in a work environment that may not offer the flexibility to pause outside of designated break times, or might question why you’re doing a crossword puzzle during the middle of the workday. Even if you cant set a timer for the entire 17 minutes, stepping away from your desk each hour to get coffee, do a lap around the office, or simply stare out the window and think about what youll have for dinner might just make a difference.
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E-Commerce
Being a manager is never easy. And if you have never supervised others, the feat can be even more daunting. Managers are often spinning several plates: leading by example, setting and exceeding goals for your team, keeping workflow moving, providing support, and keeping employees motivated, engaged, and productive . . . all while adhering to your companys objectives. If you haven’t done it before, it can be overwhelming. It’s almost like having to activate an entirely new part of your brain. Luckily, experts say creating boss brain is within anyones reach, regardless of leadership experience . . . or lack thereof. Listen and react to the feedback of your team To develop a leadership mentality, it doesn’t necessarily start by trying to muster up more confidence. Rather, it can start by simply listening to your new direct reports. Show them that you care. Ask your team specific questions about their well-being, and identify ways to alleviate some of the challenges they are facing. According to the 2025-2026 Aflac WorkForces Report, fewer than half [48%] of employees believe their employer cares about them, down from 54% in 2024, and nearly 1 in 5 employees [18%] believe their company doesn’t care about their mental health at all, says Matthew Owenby, chief strategy officer and head of human resources at Aflac in Columbus, Georgia. Part of developing boss brain means also developing your empathy muscle. Zero in on direct reports individual strengths Another component of a managers role is to meet goals. But when youre first becoming a boss, it helps to get more granular and specific with your direct reports. Discover ways to best leverage peoples individual strengths. And then, share their accomplishments, pointing out to the rest of the organization how their contributions strengthen the team and the overall organization. Done effectively, this can foster a sense of camaraderie, shared accountability and, ultimately, belongingwhich is vital to a healthy and productive workplace, Owenby adds. The same workplace survey revealed that when employees have a strong sense of purpose, they are more likely to report job satisfaction, be more engaged, have strong relationships with colleagues and superiors, and be less likely to experience workplace stress and burnoutall of which contribute to employee retention, he notes. Recall what it was like not to be a boss As a newly minted boss, you understand the feelings and challenges of being an employee. Managers who were recently individual contributors have a unique perspective because they can empathize with the employees they are responsible for overseeing, Owenby says. To develop the manager mindset, he says its important to zero in on what a managers role is: to ensure the team is engaged and that members have what they need to do their best work. After all, you were in their very position not too long ago. Use that insight to your advantageits one that folks whove been in leadership for years or decades may be less in touch with. A leadership mentality is about showing up with purpose, inspiring others, and staying curious about whats happening outside your bubble, says Katrina Cole, principal program manager and chief of staff in Total Rewards and Technology Human Resources at AT&T. The transition from team member to boss can be tricky. Cole, whos based in Plano, Texas, says staying true to yourself is a step in the right direction. It is definitely a shift, and my advice is to keep the friendships, but be clear about your new role. Set expectations and create boundaries, but continue to lead with empathy. Take it step by step Sometimes the only way to build leadership skills is to just . . . do it. Build confidence with small daily wins that help your team succeed. Dont be afraid to ask questions, notes Owenby, as youre not expected to know everything. Confidence comes from doing. Every time you coach someone, make a tough call, or drive a result, you are reinforcing your ability to lead, Cole adds. She says that leadership is a journey, not a destination. If youre just starting out, remember that your mindset matters more than your résumé. Lead with purpose, act with urgency, and never stop learning. Amy Morin, a psychotherapist in Marathon, Florida, and author of 13 Things Mentally Strong People Don’t Do, agrees. Confidence is gained by taking action, she emphasizes. Take small steps toward acting like a confident leader. Every time you do, you begin to shift the way you see yourself. You also shift the way other people see you. Understand the psychological shift Cole says boss brain is a fun phrase, but its more than just flipping a switch. Its about changing how you see your role. Youre not just responsible for your own work anymore. Youre responsible for helping others succeed and understanding the value of their contributions.” From her experience, Cole says leaders who create space for honest conversations and clear expectations tend to outperform those who rely on authority. We teach managers to lead from wherever they are, be transparent, and stay adaptable, especially in our fast-moving, market-based culture.”It’s important to ensure people feel heard and validated, Morin says. Asking questions regularly and checking in invites them to discuss issues.
Category:
E-Commerce
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