Paula Slater, CHRO at IAC Group

Show Notes

Communicating Through Volatility: IAC’s CHRO on AI, Safety, and Frontline Culture

Summary

When production volumes swing and electrification reshapes the auto industry, how do you keep frontline teams informed, confident, and aligned?

Paula Slater, Chief Human Resources Officer at International Automotive Components (IAC Group), a Tier 1 interiors supplier with 12,000 employees across North America and Europe, shares a practical playbook for leading through uncertainty.

She explains why supervisors—not slide decks—are the true carriers of culture, and how IAC is building manager communication muscles with high-touch development, clear behavioral expectations, and accountability that cascades from the C-suite to the plant floor.

Paula details how onsite leadership reinforces a safety-first foundation and recognition habits that stick. She also breaks down AI in manufacturing—back-office vs. in-process applications, why clean data and parameters matter, the ROI in quality and scrap reduction, and the realities of funding and cybersecurity.

The conversation closes on trust, reskilling, and why HR’s human skills—empathy, listening, and emotional intelligence—are the differentiator in the AI era, plus a reminder to put on your own oxygen mask first.

Timestamps

[00:45] – IAC overview: Tier 1 interiors supplier, global footprint, and workforce makeup

[02:25] – Electrification and unstable volumes: why over-communication is essential

[06:30] – Reaching non-desk workers: supervisors as primary communicators and culture carriers

[08:50] – Building manager capability: high-touch supervisor development and cascading accountability

[10:43] – Onsite presence that matters: safety as culture bedrock and recognition on the floor

[12:59] – AI in manufacturing: back-office vs. in-process, data quality, and ROI in quality outcomes

[15:58] – Speed vs. security: funding constraints, university partnerships, and cybersecurity guardrails

[18:12] – Trust, reskilling, and HR’s evolving role: leading with empathy amid constant change

[22:44] – Parting advice: self-care for HR leaders—the oxygen mask principle

Takeaways

- Over-communicate context and repeat messages through supervisors—the most trusted channel for frontline teams.

- Cascade culture via modeled behaviors and clear accountability from executives to plant leaders.

- Build supervisor capability with high-touch development: standard core content, local facilitation, and real feedback loops.

- Make safety the non-negotiable foundation and recognize visible wins during onsite visits.

- Pilot AI where data is strongest; define parameters, measure quality ROI, and balance speed with cybersecurity.

- Lead reskilling with transparency and empathy; strengthen emotional intelligence—and protect your own capacity first.

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Emily Fenech (00:34)
Welcome to HR Voices. I'm Emily Fenech and today I get to chat with Paula Slater, is the Chief Human Resources Officer at IAC Group. Welcome, Paula.

Paula Slater (00:45)
Thank you. Thank you so much for having me, Emily.

Emily Fenech (00:48)
Yes,

so IAC Group stands for International Automotive Components Group and your company supplies automotive interiors for car manufacturers. Can you tell us a little bit more about the company, the people that work at IAC and your role as CHRO?

Paula Slater (01:07)
you

For sure, so we're an automotive supplier, tier one automotive supplier, which means we're basically last stop before it goes into the assembly plants of our customers, which are the major OEMs. Think about Ford, GM, Stellantis, and so on. Just the interiors obviously can be many different parts. We do anything from like the headliners, basically the door panels. So we do parts and we also assembly the different components.

that go into those parts so that we can ship them over to our customers. As a customer, as an automotive supplier, we are in the Detroit area, so our offices are headquartered in Southfield. Today, we are a company that has presence over Europe and North America.

Mostly, let's say, we have presence where we have our customers, right? Where we're close to those OE plants. And we currently have about 12,000 employees. We're about a $2 billion company. And most of our employees are at the plants, at the manufacturing locations. And of course, we have certain amount of employees in corporate offices or engineering centers.

but the majority of the people that we serve from an HR perspective is at the plants, you know, working in multiple shifts.

Emily Fenech (02:25)
Right. So tell me a little bit about that. You know, I get to meet with all sorts of people leaders and we've had a couple of guests on from manufacturing. So I'm curious, when you think about the people working in the plants and the things that they struggle with day to day, what would you say has been their biggest challenge in the past year?

Paula Slater (02:46)
Well, the biggest challenge right now for automotive, it's a lot of the uncertainty that has come with electrification and how, let's say, the volumes have been modified. And so, as I mentioned, we are last stop before the customer, right? So if our customers decide to change the amount of production or the amount of cars that they're going to put out there in the market, then obviously we are the first ones affected by it. So there's right now a lot of volatility. ⁓

let's say a lot of uncertainty in terms of the stability of the volumes that we have to produce, right? So I think the biggest challenge throughout, whether that's because of our own unique industry or whether that's because of even trends, right, with the way that work is being performed, it's actually just that uncertainty and, you know, getting, being able to adapt, to quickly adapt to change. And I

think everyone in manufacturing would agree with me that when you have uncertainty, the biggest thing that you can do for people is communicate. There's not such thing as over communication. People have to understand what's really going on behind so that they're able to cope with it better. When it comes to communication, it's obviously that relationship in between the immediate supervisor

and the employee and a lot of times unfortunately information doesn't flow all the way through or leadership is not there with those skills to properly communicate what the situation or the context is. So I guess in the face of uncertainty for any reason in my experience communication or the preparation for the supervisors to be able to manage that challenge is always one of the biggest things that we have to work on.

Emily Fenech (04:42)
Yes, you also get the leaders who say something once and think that they've communicated it when the reality is that people need to hear it six, seven, eight times before they can actually, you know, recall and process and understand, you know, the context of what you're trying to tell them. It's funny, I spoke with a woman yesterday who leads people at a company that couldn't be more different from IAC. She's in like a

Paula Slater (04:42)
Right.

Right

Exactly.

Emily Fenech (05:08)
a technology product that assists with recruitment. And so she said the same thing, that the biggest challenge was uncertainty and that the way that she's tackling that is with communication. And so I love seeing these connections from industry to industry, ⁓ even when the context is entirely different, the challenges can feel the same. ⁓

Paula Slater (05:12)
huh.

Right, right.

You know, at some point, I think in the workplace, right, it was more about, hey, that's stability. Like I go into a company, I stayed there for a long time. There was a lot of predictability and now there's not, right? In the world that we live on, things change quite fast. So for example, you know, the other challenge that we face is obviously the skills, right? And the way that work has been performed. mean, yes, AI is being introduced. AI is a huge enabler to do

the work in a better way, right? But then people need different skills, right? They need different tools for, you know, to perform their job. again, it's like, how do you, it's a change, right? So it's always change management, right? And how do you provide, let's say, psychological safety and security without being able to provide a certain scenario, right? You just have to pass confidence. And that is by far, I think,

the biggest challenge that we will all face as leaders, not only as HR but as leaders, in the next five to ten years, right? Not even five, I think in the next two years things are changing quite fast.

Emily Fenech (06:41)
Yes.

So when you think about the nature of your workforce being sort of on the front line, not in an office, how do you communicate with them? Like how do you ensure that they feel included in the culture that you're building, that they understand the messages that are coming from your leadership team? What does that look like?

Paula Slater (07:01)
So I have a very particular way of viewing it from the standpoint of, me, we could, from an HR perspective, do all sorts of posters, materials, send out all sorts of presentation toolkits for managers, and that would still not do the job. I mean, that's about maybe a 5 % or a 10 % of what you need, right? In the end, that communication and the strength

the relationship always needs to be in the supervisor versus person, right? So, you know, we hear it all the time, people don't quit companies, they quit managers or they quit their boss, right? And that's same way that you have to pass on culture. So if I think about it from a broader perspective, my role as CHRO is to make sure that our CEO and our executive leadership team are really leaders that are

breathing the behaviors that we are expecting others to pass, right? Because if they do this, right, then the next ⁓ wave down, right, will do theirs. And of course, we pair that with accountability. So not only do they have to do the behaviors, right, but also they have to make their teams accountable for following same behaviors. And so if you take that down the chain, you know, all the way through,

a supervisor at the plant, then that's how you can actually build culture and communication in a sustainable way. Now, we don't fool ourselves because we know that this is not gonna happen. It's not something that happens very quickly, but what we do is then we do pair it with some HR initiatives and some tools, right? So, we do have the expectation and we're launching, for example, a revamped supervisory training

training module. It's more than a training, it's more of a development module where then there's like standardized content but HR is a facilitator of our plans. Leadership and HR are really partnering in terms of how we are ⁓

developing or taking these sessions. And then, you know, from there, they're going to have to do these from their leadership team and every location to their next layer down to the next layer down, right? And at least we do have some, you know, minimum expectations and standardized concept, but it's not 100 % prescriptive, right? And it's definitely something that you have to do high touch because I would say, you know, yeah, there's a certain degree of online learning.

learning

that can happen. But when you talk about the development process, you're to be able to have that exchange, right? So not only do I give you information, but I receive how you're feeling about it and how you're absorbing that information. So it's a process. It's a process that combines both. Again, as I mentioned, like the just making sure that the leadership at the top is doing those behaviors and reflecting those throughout the organization, building accountability while at the same time

We also collaborate with them on minimum standards and a way in which we can take that on a broader scale at the different locations.

Emily Fenech (10:23)
Yeah.

Yes, it's not just communicating out, but the listening, the feedback process, right? ⁓ I saw on LinkedIn that you just conducted some visits to multiple locations. It's sort of that person-to-person connection. Do think that that's important for leadership to sort of be seen on site if you have an organization with a frontline?

Paula Slater (10:31)
Exactly.

For sure, for sure. we always, when we obviously visit the locations, right, there's always a purpose. But, you know, as we go into the plant tour, so for example, we're very big on safety. We've had great improvement in our safety record. I mean, there's no healthy culture without the right level of safety, compliance, ethical behavior. You know, ⁓ those for me are kind of like the basic, you know, rules of respect. And then you go from there building, you know, over that. But,

what we do in those visits, even from our CEO, all of the leaders, right? ⁓ We kind of try to keep certain focus in terms of, yeah, if we're working on something safety related, you know, we go, we ask, we have certain level of conversation with people about it. We, as we're walking the floor, then you make sure that you're following and you're doing those behaviors yourself. If you see something unsafe, if you see, you know, it's even the simple things, right?

you see trash, you see somebody that doesn't have their protection equipment, you take a pause and you make the observation. And also in the flip side, because people work better through recognition, if you see something that's going on really well, then making that recognition and making sure that the person feels acknowledged or those plans that have done strides in regards to that, then we take

the time to recognize it and to make sure that this recognition is also acknowledged at a corporate level.

Emily Fenech (12:22)
Yeah, that's a great, I mean, that's a great point. You can't just come in and visit. They don't regularly see you and you know, you're only just nitpicking on all the mistakes they're making. I don't think that they'd be excited to see you. That's the case. Well, that's wonderful. You did mention AI earlier and I know within a, I'm not as familiar with, you know, what AI is capable of within a manufacturing context. You know, I work in SAS. So,

Paula Slater (12:33)
Yeah, exactly, exactly.

Emily Fenech (12:50)
Maybe could you talk to us a little bit about how AI is changing the game for your employees? Like what impact it's having and how you're experimenting with it.

Paula Slater (12:59)
Yeah, so I mean, let me put it this way. You have the AI. I'm trying to try to break down a little bit of the complexity of it because everything there's so many things that can be considered AI these days. So if I can break it down, I would say you have, let's say the more typical AI that we as individuals are starting to use or starting to get familiar with or those back office

Emily Fenech (13:11)
Right.

Paula Slater (13:23)
let's say operations or the way that AI is complementing some of the processes or the systems that we already use. Then there's the AI that's embedded in the manufacturing process. For the manufacturing process, the biggest challenge is data and the amount of data that you have and making sure that the parameters of that data are set up properly.

When you do have that, then you are able to implement these tools that will obviously look at what you probably already have, let's say on cameras or on some of your quality controls of your product. And they're able to take, let's say the parts that are either not compliant from a quality perspective or that they have a defect or that, for example, if you are using temperatures or special material like glue,

or things that require very specific parameters, right? Then AI is able to look at the data and tell you like, hey, for example, this defect, right, is due to X, Y, or Z, and then it's able to standardize the measures or the conditions under which you operate. So from the standpoint of, ⁓ let's say, business case, it's very strong. The economics of all of these are very strong.

because then you can quickly turn this technology into returns on investment based on let's say the compliant the amount of compliant product that you get out there or the reduction on your quality claims or even some of I mean in automotive right and especially in interiors even if like there's a scratch or there's like a like a little stain you know you're out of the picture so it's like okay what do I have to do now

The problem in manufacturing with AI and with a lot of the innovation and the technologies, like where do you get the money from, right? Because even having, let's say the technological power to host some of the information or the data points that you would need or to do those parameters is not easy. So we are in partnership with university, with a specific university in the US where, you know, we give them data, the user data for the

their

own research and on our side, we benefit from having them look at those parameters and helping us set, let's say, our base properly so then we can work on those projects. And of course, I do think the big challenge with AI for companies these days is how do you pair up all of those available tools and all of those applications to the cybersecurity and restrictions that you have to

protect data of employees, data of your company, IP, competitive data, right? And a lot of times, unfortunately, it's in contradiction. And so there's a very fine line because ⁓ you want to step up the pace, but at the same time, you got to have all of your systems working together, right? And you can't put things at risk. So I think if you talk to any HR leader these days, they will tell you, yeah, it's great. We want to go all for AI. We want to incorporate more of it in our

strategy but then we have all of these limitations from an IT perspective you know and so you're going to work together with that.

Emily Fenech (16:50)
Absolutely. I just met with Deloitte and the future of work, California there, and he shared with me some research that Deloitte had done that even when enterprise companies provide like, you know, approved AI tools to use at work that half of people still use their own personal, their own personal AI tools. I'm thinking more of like a chat GPT, right? And the reason is that they, don't trust the company.

Paula Slater (17:14)
Yes, yes, yes.

Emily Fenech (17:17)
You know, they don't trust the company to, you want me to use this tool so I can train it to do my job, right? They don't want to share their best prompts. They don't want to share their best ideas because of that trust gap. And, you know, I think the more that we talk about, you know, the more of these headlines we see of AI replacing people, the bigger that trust gap will remain, right? So it is, it's big challenge. And I think a lot of the challenges landing on

people leaders to figure out, which is not an easy one, right? How do you build trust with a technology that inherently has so many risks? So very complicated.

Paula Slater (17:54)
Exactly.

It is very complicated and I think human resources is right now...

let's say at a crossroads in terms of what our role is in organizations and with our workforce because you you think about what the transformation means and it also means a lot of risk killing right and so then how are you going to approach it is it going to be on the individual is it going to be in the company then you know trying to figure out okay what skills are the ones that are actually going to be required right because to your point about building trust is like if

I'm going to start going down the path of, these are the new skills that are required, you know, and then six months down, those skills are not needed, really, you know, now we found these other, these other ones. It's like, okay, are you leading me on the right path here, right?

Emily Fenech (18:45)
But you also don't know, to your point, right? To go back to the start of this conversation, we're all existing in this moment of extreme uncertainty. And so, I mean, you might in good faith believe with your whole heart that these are the skills that your workforce needs and then the entire situation could change in six months, right? But you are the one who has now broken trust and lost credibility in that process. I mean, I...

Paula Slater (18:48)
You're right.

Emily Fenech (19:15)
Again, it is complicated.

Paula Slater (19:17)
It

is very complicated because if you also, like if you translate that then to, ⁓ so then what type of qualities or skills from a leadership perspective people need, you you need a lot of emotional intelligence as you're navigating these waters. You need a lot of empathy. You need a lot of...

hey, let me hear you out, hear me out, right, to build that trust. And this is something that, you know, we haven't been taught, most people have not been taught, we're not high on it as a society. In fact, they think technology is making it even worse, right? People can barely have a conversation face to face because it's easier to be, you know, behind your phone or your text. And so if you think about it,

let's say the way that technology is leading in terms of the development of our let's say human skills, it's not favorable to what's needed to actually navigate the change management process. So we as HR leaders need to be constantly stepping back in and bringing that human element to the whole equation.

Emily Fenech (20:26)
Yeah,

that's so well said. And I say all the time that this does feel like HR's moment to shine, but I think you've just articulated why so well. You know, the skills that HR has are so needed in this moment for all the reasons you just described. And so I'm really looking forward to the next couple of years and seeing how the CHRO, the CPO role evolves.

Because I think there's going to be a big need for, again, think trust is going to rise to the number one thing organizations need in order to be productive and profitable. ⁓

Paula Slater (20:57)
I

agree. I agree. I'm like you. I'm excited. I mean, it's a little bit scary, right? Because I mean, if you start thinking about how these things compound, you're like, oh boy, I mean, there's going to be a lot in our shoulders, right? And again, like we are the ones that have like a better feeling or we should be having a better feeling of, hey, this is what this side of the organization needs. This is what these other side needs and this is how we can bring them together. And so that will be a lot in this journey.

But you know as always, mean ideally right as HR leaders we're in a very strong partnership with our leadership teams. Let's say we're not alone and if you build that team the right way right then at least you're not alone in the quest. So I think ⁓ it's gonna be very very interesting and I'm excited for the years ahead.

Emily Fenech (21:53)
Yeah,

I like that's a very encouraging way to end the program is that, you know, it's not all on your shoulders, right? This, I mean, the entire, the entire business can't be made or broken by a single individual, but you know, there is a lot of pressure and there's a lot of change. Do you have any other sort of parting words of wisdom or encouragement for our HR audience as we wrap it up?

Paula Slater (22:14)
Yeah, well, I mean, as always, think with HR, we because we're taking care of everyone, we have a tendency of neglecting ourselves in the process. So I just always an invitation, right? How I keep myself centered is like, you know, let me make sure I'm doing well, you know, on my end, that I know that I'm doing things the right way with my team. And then also like I can take care of others, right? It's like being a mom or, you know,

like the example of the plane you first put on your oxygen mask, then you take care of all others. just a reminder because again, there's going to be a lot in our shoulders and the amount of change, ⁓ it's quite significant. I don't think we've seen something like these, not even with COVID, honestly, where we had to from one way to the other, from one day to the other, because this is here to stay and it will continue to be constant. But I think we just got to make sure we got to be

Emily Fenech (22:49)
Yep.

Paula Slater (23:13)
very, let's say self-aware, we got to know ourselves really well so then we can actually, you know, pass that over to the organizations and to the leaders that we work with.

Emily Fenech (23:23)
Thank you so much, Paula. I really enjoyed our conversation. We covered a lot of ground. Is there a way that our listeners can stay in touch with you? Maybe on LinkedIn or?

Paula Slater (23:31)
Yeah, maybe through my LinkedIn profile, you can find me through Paula Zenizos later. Maybe we can through the post also do it there. Yeah, we can do it there. Yes, exactly. No, thank you so much, Emily.

Emily Fenech (23:39)
We'll post the link. We'll post the link in the description. Great. Great talking with you. Thank you so much, Paula.