Can AI + Building Global Teams Turn Talent Shortages Into a Thing of the Past?

By: Laura Maffucci, Head of HR, G-P

By Laura Maffucci Last updated Dec 12, 2024

Companies worldwide are facing skilled labor shortages. Employers are desperately searching for experts across industries, as the scarcity of skilled talent threatens slow business growth. AI holds great potential to help overcome talent shortages and close skills gaps, enabling access to a global talent pool and ensuring compliant international talent acquisition and management.

The need for more skilled workers is a significant obstacle, especially for companies aiming to grow. The “World at Work” report from G-P surveyed 2,000 executives and 4,000 employees from six countries to reveal insights on global employment.

Four out of five executives say finding skilled talent in their existing markets is difficult. Recognizing the need to go beyond their geographic borders, nearly all executives (97%) agree that establishing a market presence in multiple countries is essential for remaining competitive in today’s business landscape – and the majority (72%) are ready to look to other countries to meet their talent needs.

The Skilled Labor Shortage is Global

Some reports have predicted that in just five years from now – in 2030 – a global talent shortage of more than 80 million jobs will result in nearly $10 trillion in revenue losses.

In the U.S., the shortage of skilled talent spans across many industries. It has resulted in challenges like understaffed production lines in manufacturing, missed revenue growth objectives and quality issues in technology and retooling education and certification requirements in professional services like accounting.

Many countries face similar challenges with talent shortages in IT and other industries. Demographic change and the retirement of the Baby Boomers are expected to exacerbate the situation in the future.

Against this backdrop, solutions are being intensively discussed. Two approaches are increasingly emerging as viable: the targeted hiring of international talent and the strategic use of AI in HR and global employment.

Automating HR Processes

AI can simplify the work for HR practitioners, from making the hiring process more efficient to helping build and manage teams around the world quickly and compliantly. G-P’s “AI at Work – Unlocking Global Opportunities” report found that two in five executives see a key application for AI in improving talent management, especially internationally.

Building a global workforce typically requires manual processes and engaging with multiple external consultants to ensure compliance and manage these processes. G-P’s first-of-its-kind AI-based global HR compliance advisor, G-P Gia, enables companies to efficiently and compliantly navigate the complexities of global employment to reduce the time and cost of compliance. Gia empowers HR professionals to access critical expertise quickly, create employment documents more easily and streamline workﬂows for improved efficiency and agility. AI tools, like Gia, aren’t replacing HR professionals, but allowing them to be more efficient, effective and strategic.

Accessing Global Talent Pools

Executives worldwide think AI will help predict business challenges in prospective new markets (49%) and catch and respond to legal or compliance risks (46%). AI tools can also help facilitate asynchronous work across countries and time zones. According to the “AI at Work” report, 96% of decision-makers believe that companies using AI in this context will soon outpace those that do not.

A global workforce strategy can open up new opportunities for employers to tackle the skills shortage. But navigating global employment can be complex. AI-powered HR technology solutions, like Employer of Record (EOR), can enable businesses to hire from global talent pools and help them fill vacancies more quickly and compliantly.

EOR providers help companies find, hire and manage talent anywhere in the world, allowing businesses to operate in multiple markets without setting up local subsidiaries. This saves businesses both time and money.

G-P’s global employment solutions provide technology to manage the full employment lifecycle, along with guidance and real-time expertise to answer questions about labor laws, vacation policies and payroll processing. This helps companies ensure compliance and manage cross-border employment relationships smoothly at any time or stage of their global hiring journey.

Adopting the right technology can also help attract and retain talent. Younger employees, in particular, prefer employers who engage with technologies such as AI and incorporate them into work processes to automate repetitive tasks (54%), review and summarize information (44%), provide stronger and more in-depth analysis (42%) and generate written and creative content (40%). They also value international career development opportunities: while 85% of millennials and 84% of Gen Z would like to work for a global company, only 62% of older Baby Boomers would.

Unlocking New Growth Opportunities

When it comes to the potential of AI in the global workforce, we are only scratching the surface.

According to the “AI at Work” report, eight out of ten decision-makers (84%) plan to invest in this technology within the next twelve months. However, despite the enthusiasm, it’s essential to recognize that AI can only provide lasting added value in combination with the right processes and skilled talent.

By integrating technology and human expertise into their workforce planning, companies can overcome the talent shortage—and unlock new growth opportunities for themselves and their teams.

[To share your insights with us, please write to psen@itechseries.com ]