A recent paper written by professors from Princeton University, the University of Pennsylvania, and New York University has determined that the vast majority of jobs will be impacted by artificial intelligence.
And yet, many leaders continue to use the clichéd phrase “People are at the center of our organization.” While the sentiment may be well-intentioned, the real meaning can get lost in day-to-day business operations. And now with increased fears about the potential for AI to take workers’ jobs and tasks—in addition to a volatile economic landscape—it’s time to critically evaluate talent management.
All leaders need to build great teams in order to overcome threats and challenges, whether they be cyberattacks, disruptive new digital technologies, or high interest rates. In fact, Protiviti’s annual Top Risks Executive Perspectives survey found that identifying and retaining talent is expected to be the second-highest risk for global C-level and board executives over the next decade.
Our research suggests that talent management strategies of the past will not adequately serve organizations in 2024, a year that will bring a new age of AI advancement. Leaders need to take action to position their organizations to face risks, both known and unknown. Here are three strategies that can help you become a better leader in the age of AI:
Strategy #1: Constantly monitor, evaluate, and address talent weaknesses
The first strategy to become a better leader in the age of AI is to constantly monitor and evaluate talent strengths and weaknesses and then act proactively to fill them.
Hiring has been particularly volatile since the pandemic—defined by periodic upswings in hiring and sudden layoffs—making it critical to keep a close eye on workforce composition. Hiring the right people with the appropriate skills has always been the foundation of a successful talent mindset, but how leaders accomplish this goal is not the same as in years past, similar to how the skills needed five years ago for a successful employee are vastly different than the skills needed today.
HR leaders need to work collaboratively with business leaders to fill talent gaps by evaluating what skills already exist in-house versus what new skills are required to achieve your organization’s business objectives.
But understanding what skills are needed is not enough. More broadly, traditional thinking about skills shortages will not serve your organization in 2024. Simply hiring additional talent can be difficult given the tight global labor market. Instead, hiring must be used in combination with upskilling and leveraging contingent labor to ensure you have the right skills. And as it pertains to technology, leaders must be constantly reevaluating their strategies to ensure they are accounting for the latest needs. This includes the adoption of AI and the development of workers with the skills needed to work alongside AI.
Strategy #2: Embrace the opportunity of AI
I am confident in my belief that AI will not replace all workers. However, I do see a future in which employees who know how to effectively leverage AI will be favored over those who lack this knowledge. This applies to hiring teams as well.
Tools like AI-driven workforce planning and design software can help businesses track to their goals. Similarly, talent intelligence tools can produce detailed, real-time views of all the skills that reside throughout the enterprise.
Leaders should develop initiatives and frameworks to embrace new technologies in the pursuit of fluency and mastery of digital and AI skills. Practices adopted last year are quickly becoming outdated, and to set themselves up for organizational success, leaders must be ready and willing to make AI a core part of their talent strategies.
AI tools can also drive workforces forward by allowing them to gain an understanding of what they will need in the future. For example, HR groups can institute rolling talent forecasts and analyze the financial impacts of talent scenarios. Forecasts can help leaders determine the skills and headcounts needed to execute strategic business objectives, as well as identify future skills they might need. Given the tight labor market, the low supply of high-demand skills and experiences, getting ahead of your talent needs should be viewed as a competitive advantage.
Strategy #3: Make data and analytics the core of hiring decisions
Finally, leaders in the age of AI need to embrace data and analytics. Data has always been key to how organizations evaluate their effectiveness and determine areas of need and pain points. However, new needs require new reporting, and HR teams cannot continue to measure the same competencies as in the past; that will paint an inaccurate picture of how effective the organization is today.
Leaders can—and should—measure and report on open positions, skills at risk, upskilling needs, and more to evaluate where their hiring practices stand. But to take this a step further in 2024, they should also report on whether their employees can efficiently use today’s technology. If organizations do not account for new talent needs in their reporting, the data produced cannot provide valuable insights to hiring teams or help businesses grow.
Revamping talent strategies today will pay off in the long term, as a workforce’s skills play a crucial role in an organization’s ability to effectively mitigate risk as concerns about cyber threats, third-party risks, and more increase. Just as outdated technology won’t help organizations get ahead, talent strategies of the past will cripple companies in the technology-driven future. Companies must reassess and develop tech-enabled talent strategies to ensure they attract and retain the right talent and skills to meet the needs of the next decade and beyond.
Fran Maxwell is the global head of people advisory and organizational change at Protiviti.
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