Global Study Reveals Business Leaders Expect Advances in AI to Require New Skills

Rhea-AI Summary

A recent study by the World Employment Confederation reveals that 81% of business leaders believe AI advancements will require new skills, but 78% are concerned about training employees fast enough. ManpowerGroup, part of WEC, emphasizes the need for upskilling to adapt to AI transformations. Key findings include the growing need for flexible workforces, strategies like skills-based hiring, and the importance of contingent workers in spreading technology knowledge.

Insights

Human Resources Strategist

The emphasis on the necessity for new skills to keep pace with AI advancements is a direct reflection of the evolving labor market. As businesses integrate AI into their operations, the demand for a workforce proficient in digital literacy, including understanding AI and related technologies, becomes paramount. This shift suggests a potential increase in investments towards employee upskilling and reskilling programs, which could lead to partnerships with educational institutions and specialized training providers. Moreover, the trend towards a more flexible workforce indicates a possible rise in gig economy platforms and contingent work arrangements. This could affect traditional employment models and necessitate a reevaluation of labor laws and benefits structures to accommodate the growing contingent workforce.

Workforce Development Analyst

The report highlights a significant concern among business leaders about the pace of technological change outstripping the speed of workforce training. This challenge presents both a risk and an opportunity for companies. The risk lies in the potential for a widening skills gap, which could hamper productivity and innovation. Conversely, the opportunity exists for businesses that proactively develop strategies to harness the power of AI while simultaneously cultivating the human traits that AI cannot replicate. Companies that can balance the technical with the human will likely emerge as leaders in the digital era. Additionally, the shift towards agility and flexible workforces may necessitate new approaches to talent management, including predictive analytics to better forecast future skill requirements.

Technology Adoption Consultant

The findings underscore the urgency for organizations to adapt to rapid technological advancements. The statistics indicating the difficulty in planning for future talent requirements suggest that traditional methods of workforce planning may be obsolete in the face of AI's impact. The increasing attractiveness of employing contingent workers with knowledge of new technology reflects a strategic move to quickly onboard the necessary skills. However, this approach may also lead to a more transient knowledge base within organizations, raising questions about long-term intellectual capital retention and company culture coherence. As businesses adopt various strategies to build workforce flexibility, they must also consider the implications for employee engagement, loyalty and the potential for knowledge silos.

MILWAUKEE, April 4, 2024 /PRNewswire/ -- More than eight out of ten (81%) business leaders believe advances in artificial intelligence (AI) will require new skills and new ways of getting work done, according to new research from the World Employment Confederation (WEC), of which ManpowerGroup is a member. Yet, despite this awareness, 78% are concerned that they cannot train employees fast enough to keep pace with technology developments in the next three years.

"It is clear that advances in AI have the potential to transform the workplace at an unprecedented pace." -Jonas Prising

The findings are part of "The Work We Want," a global initiative commissioned by WEC. The first installment of this new international research, "Agile Talent in the Age of AI," details how generative AI will radically reshape workforces, requiring new soft and technical skills to realize the potential technology offers.

"It is clear that advances in AI have the potential to transform the workplace at an unprecedented pace, yet the growing technical and soft skills gap is a critical hurdle businesses must overcome," said Jonas Prising, Chairman & CEO of ManpowerGroup. "While Gen AI will revolutionize many aspects of work, there are elements of jobs that are, and will remain, quintessentially human: collaboration, communication, creative problem solving, and empathy towards others. Organizations must cultivate these uniquely human traits and invest in upskilling and their workforce to succeed in this new digital era."

Key Findings:

• 80% say it has never been so hard to plan for future talent requirements.
• 92% of senior executives say they'll need a more flexible workforce in the next two years.
• Organizations will turn to a wide range of strategies to build flexibility, including setting up sectoral talent pools (91%), taking a skills-based approach to hiring (89%), using online talent platforms (89%), increase usage of contingent workers (88%), offering more internal flexibility, e.g. through inter-department secondments/job rotations (88%), and hiring talent from abroad (88%).
• Employing contingent workers is becoming an increasingly attractive way to access hard-to-find digital skills and higher-caliber candidates with 79% of senior executives saying that employing workers with knowledge of new technology is an effective way to spread understanding to permanent employees.

"The 'Work We Want' is a conversation starter for governments, employers, and workers to address our new work reality and find solutions – collectively – to deliver better labour markets outcomes for all," Denis Pennel, Managing Director of WEC, said. "AI has made agility non-negotiable, and the HR services industry is crucial in helping to fill the labour and skills gaps brought on by digitalization."

Behind "The Work We Want" Initiative

• The project is led by the World Employment Confederation, the global voice of the HR services industry.
• The World Employment Confederation commissioned FT Longitude to conduct a survey in November and December 2023 of 715 senior executives from around the world, including 680 from Forbes Global 2000 companies and 35 public sector organizations.

To learn more about how your organization can bridge the skills gap and thrive in the age of AI, visit https://insights.wecglobal.org/the-work-we-want/home/agile-talent-in-the-age-of-ai to download the full report.

ABOUT MANPOWERGROUP
ManpowerGroup® (NYSE: MAN), the leading global workforce solutions company, helps organizations transform in a fast-changing world of work by sourcing, assessing, developing, and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organizations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills. Our expert family of brands – Manpower, Experis, and Talent Solutions – creates substantially more value for candidates and clients across more than 70 countries and territories and has done so for more than 75 years. We are recognized consistently for our diversity – as a best place to work for Women, Inclusion, Equality, and Disability, and in 2024 ManpowerGroup was named one of the World's Most Ethical Companies for the 15th time – all confirming our position as the brand of choice for in-demand talent.

For more information, visit www.manpowergroup.com, or follow us on LinkedIn, X (formerly Twitter), Facebook, and Instagram.

ABOUT THE WORLD EMPLOYMENT CONFEDERATION
The World Employment Confederation serves as the voice of the HR services industry at the global level, representing both national federations and workforce solutions companies worldwide. Our diverse membership encompasses a broad spectrum of HR services, including agency work, direct recruitment, career management, Recruitment Process Outsourcing (RPO), and Managed Service Provider (MSP) solutions.

Our mission revolves around securing recognition for the pivotal role played by the HR services industry in fostering well-functioning labour markets and advocating on behalf of our members to enable appropriate regulation. By fostering an environment conducive to sustainable growth of the HR services sector, our ultimate goal is to deliver better labour market outcomes for all.

By bridging the supply and demand gaps in labour markets, creating pathways to employment, enabling agile organisations, balancing flexibility with protection and deploying digital solutions responsibly, the HR services industry plays a central role in addressing labour market challenges and delivering people-centric solutions.

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SOURCE ManpowerGroup

FAQ

What percentage of business leaders believe AI advancements will require new skills?

81% of business leaders believe AI advancements will require new skills.

What is the main concern of business leaders regarding AI advancements?

78% of business leaders are concerned about not being able to train employees fast enough to keep pace with technology developments.

Who commissioned the global initiative 'The Work We Want'?

The World Employment Confederation commissioned the global initiative 'The Work We Want'.

What strategies will organizations use to build flexibility in the workforce?

Organizations will use strategies like setting up sectoral talent pools, skills-based hiring, online talent platforms, contingent workers, internal flexibility, and hiring talent from abroad to build flexibility in the workforce.

Why are contingent workers becoming increasingly attractive?

Contingent workers are becoming attractive for accessing hard-to-find digital skills and spreading understanding of new technology to permanent employees.