By Erick Allen – Sr. Principal, Thought Leadership at Cornerstone
Workplaces are at an inflection point and organizations who don’t proactively shift their approach to talent are at risk of being left behind. Nearly 40% of current skills are expected to become obsolete or significantly transformed within the next five years as a result of AI, technological and other economic changes. Workforce expectations have also dramatically shifted in recent years which has left many organizations struggling to keep up.
Where in the past, business leaders have relied on historical data and reactive measures for workforce planning, in today’s increasingly complex work environment, those approaches have proved inadequate and antiquated. Maintaining a competitive edge in today’s economy requires a proactive understanding, and utilization, of how AI-driven labor market intelligence can be leveraged to predict and prepare for the future of workplace skills.
The Real-Life Crystal Ball
Reactive workforce planning is a bit like having a Magic 8 Ball, you might get the answer right, but chances are it’s just a good guess. AI-driven labor market intelligence gives business leaders a crystal ball that doesn’t just guess at what the skills of the future could be – it shows how they are built, developed and expanded to achieve the goals of your organization.
The labor market is ripe with data that can fuel AI-systems. By creating models that include data that is pulled from job postings, industry trends, technological advancements, and other economic indicators like the JOLTS Reports, GDP, etc., AI-driven labor market intelligence can proactively identify skills gaps and forecast future demand. Employers can now anticipate in-demand skills before the new talent needs arise, helping to move workforce planning from a reactive practice to a proactive, strategic business driver.
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Identifying what skills are needed for future business growth is only half the battle. It’s crucial that organizations invest in upskilling and reskilling programs to train their current workforce to develop the skills needed not just today, but in the future as well.
For example, if an organization’s labor market intelligence discovers that there will be a rise in demand for data analysis roles, organizations can update their learning and development programs to prioritize offering advanced machine learning courses to their current employees. This ensures that workforce skillsets keep pace with shifting market needs.
Beyond looking at skill development at the macro company level, AI-driven insights can also inform and uplevel development for individual employees. With intelligent labor data, managers can help individuals on their team combine their unique skillset and individual career aspirations with guidance of where the market is heading to help focus their learning & development and help supercharge their growth. When organizations prioritize aligning their organizational goals with tailored employee development, they create a workforce that is engaged, focused and skilled.
Fostering Workforce Agility
Success in today’s market is determined by how well an organization can adapt to change. With the speed of technology development, shifting market preferences and an unstable economic environment, business that invest in the tools that foster agility and resilience, like labor market intelligence, can more efficiently weather the tides of change.
A great example of this is the rise of generative AI over the last five years. The technology is still considered to be in its infancy but has already had an enormous impact on content creation and marketing roles. Marketers who don’t adopt the technology to scale their workload and productivity risk being left behind. While this might be an assumption that marketers have just based on previous technological developments, AI-driven labor market intelligence can prove it. The systems can identify and flag the increased demand for professionals who are effectively leveraging these new tools, which should then prompt business leaders to prioritize training their marketing teams on how to best leverage generative AI in their own workflows.
Technology, however, isn’t the only thing shifting the demand for skills; regulatory changes can also impact how businesses approach their goals. A great example of this is the rise in environmental compliance. Labor market intelligence can track these broader industry and regulatory trends and help businesses future-proof their workforce by investing in talent that has the skill set needed to navigate new regulatory standards.
Adapting to AI Innovation for Continued Success
AI-driven labor market intelligence is an invaluable solution, providing organizations with the ability to anticipate future skill demands, proactively close skill gaps, personalize employee development and create a more agile workforce that can keep up with rapid change and innovation. As many existing skills face the possibility of major transformation or complete obsolescence, it is essential that organizations can adapt to the increasingly AI-driven world.
Embracing this technological evolution will help transform the persistent challenge of skills disruption into an exciting opportunity for growth, innovation and a future-ready workforce.
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