It is easy to use, accessible to everyone, and instantly produces any type of content a user wants to create. That is the premise of generative AI, the technology behind ChatGPT, which launched in November 2022, grew to 1 million users in five days and netted more than one billion users by March, 2023.
The rapid rise of generative AI has delivered impressive results, but many observers fear that the automation it brings will replace workers. While the technology automates many tasks and reduces the need for some types of work, it will also create the need for new skills or expand the scope of many existing roles. For employers and workers, the story of generative AI is about the changing demand for skills, and those demands are evolving quickly.
are expected to change in the Analytical and critical thinking will become vital as machines take on more of the time-consuming research and content creation associated with many knowledge worker roles.
This figure comes from a Conference Board survey, which also found that 51% of CHROs expect to increase hiring over the next six months. In the near term, AI is not reducing the overall need for workers.
may be automated Research by Goldman Sachs examined 900 occupations and found that roughly two-thirds will experience some level of automation (between 25-75% of tasks), but relatively few will be fully replaced by AI.
How will AI-based technologies such as ChatGPT influence work and the workforce, and what should employers do? The answer involves a practical approach to embracing technologies and new skills.
Adapt role definitions to changing job and skills requirements.
The types of roles and skills required of many workers will change as AI tools evolve. Employers can stay ahead by frequently reviewing job requirements to de-emphasize automated skills, expand areas of responsibility where automation allows it, and account for new competencies that will contribute to the success of a role.
Build continuous change into the TA process.
AI will influence TA just as it reshapes other roles within companies. As the pace of innovation accelerates, organizations should increase the frequency of reviewing and assessing every part of TA and contingent workforce engagement. By streamlining activities and automating tasks, recruiting organizations should track related improvements in speed and quality of hire. Detailed data from every part of the recruiting process can fuel measurable improvement over time.
Do layoffs in an industry translate to a larger supply of available talent? The answer is complicated, as the skills of recently unemployed workers in one vertical often remain in demand across other sectors. A recent Conference Board report looks at the drivers behind recession-driven job losses, and the findings point to several areas where demand for talent will remain consistent.
The report assesses the risk of recession-driven job losses in 18 industries based on six contributing factors: labor shortages, sensitivity to monetary policy, job function and education, worker age and experience, pandemic recovery, and changes in labor demand. The following are notable report findings and TA implications based on our experience with clients across select industries:
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Healthcare: Low recession-driven job loss riskThe report observes, “severe labor shortages in the industry will likely make employers more reluctant to lay off workers as rehiring is difficult and expensive." Currently, healthcare represents one of the most sophisticated markets for TA leaders. In this space, clear visibility into the workforce supply and deep networks across contingent and permanent hire candidates are essential for hiring. |
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Financial Services: “medium” risk to jobsAccording to the report, “The workforce has a higher share of highly educated workers as well as professionals and a lower share of younger workers.” The education factor cited in the report directly translates to worker skills, and many of those skills are transferrable, remaining in demand across all sectors and putting pressure on TA functions as they compete for that limited worker supply. |
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Information Services: High job losses, but one caveat influences labor supplyThe report predicts a high risk of job losses in “information services.” Once again, “job function and education” (i.e., highly skilled workers) is cited as a mitigating factor. The supply of talent with relevant skills in the sector will likely experience continued high demand from other industries. Today, every company should assume that candidates with targeted technology skills continue to have multiple employment options. |
Despite recession concerns, the US economy grew by 253,000 jobs in April, with low unemployment at 3.4% and a 4.4% year-over-year increase in average wages. Organizations can benefit by taking active approaches to address the continued pressure on the labor supply, including the following:
Open your doors to workers outside your industry.
Forward-thinking employers are redefining job requirements to focus on critical skills, not industry experience, as primary requirements. As your organization navigates a continued shortage of skilled workers, drawing on talent from other sectors can prove critical to securing hard-to-find skills.
Emphasize upskilling as a complement to your TA strategy.
Companies can expand their supply of viable candidates by securing workers with core capabilities and then training them to the specifics of the job at hand. Offering a path of continuous learning will also attract talent as more workers seek learning opportunities to stay ahead of job risks due to automation or changing skills demands.
Bring specialized resources to secure high-value skills.
Organizations will need to actively expand recruiting efforts, including marketing and pipeline development, to attract talent with transferrable skills. The right TA partner can provide experience, talent networks, and specialized expertise to tap into a talent supply outside familiar industry connections.
Over the last several years, priorities around diversity, equity and inclusion (DEI) gained a much-needed boost among business leaders. DEI roles increased in the US by 55% in 2020, during the months following the protests after the death of George Floyd.
Today, the picture is changing again as studies trace a reduction in diverse hires across select organizations in 2023. The decline is cause for concern, but behind the headlines, diversity remains critical to employers as organizations continue to fight bias, prioritize diversity and measure results and improvement in the hiring process.
Dedicated DEI roles experience high attrition.
DEI-related positions experienced an attrition rate of 33% at the end of 2022, compared to 21% in non-DEI roles.
Chief diversity officer roles experience their own inequalities.
The common inequalities experienced by diverse workers also appear in the Chief Diversity Officer role, with women earning $.92 for every dollar men earn. Likewise 76.1% are white, followed by 7.8% Hispanic or Latino.
Despite the headlines, DEI remains integral to TA.
Diversity is a genuine concern at the executive level, but DEI remains a core priority in TA. A full 66% percent of Sevenstep clients maintain diversity goals in their hiring and utilize detailed reporting to track progress and drive improvement.
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Data: Track DEI in detail throughout the candidate journeyFocus on capturing data about diversity through every step of the TA process. This effort requires a detailed view of the data, such as the intelligence provided through our Sevayo® Insights platform, to pinpoint and address places where bias influences how diverse candidates advance in the process. |
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Processes: Get intentional about attracting and securing diverse talentImproving DEI requires dedicated candidate attraction and sourcing, best practices in screening and interviewing, and the use of technology to track progress. An experienced talent solutions provider can provide the specialized approach and resources needed to support DEI goals. |
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Culture: Adopt and demonstrate a deep commitment to DEI principlesWhen an organization develops a genuinely inclusive culture, diverse talent becomes easier to attract. Your employer brand must bring your culture to life through the words and experiences of the workers themselves. An objective TA solutions partner can help identify the best paths to demonstrating DEI commitment to prospective candidates. |
Healthcare employees and contractors have been in a state of unrest across the EMEA region over the last year, a symptom of stress stemming from a shortfall in available workers following the COVID-19 pandemic. France, Germany and Ireland all experienced large-scale strikes, and the UK has seen its healthcare system impacted by labor shortages.
The region's geographic and political boundaries and regulatory issues brought on by Brexit in the UK add to the challenges of securing talent in an industry under pressure around the world. A look at the numbers behind the shortage reveals that those challenges are here to stay.
44% of medical doctors are over 55 years old
According to a World Health Organizations study in EMEA, an aging workforce will make it difficult to offset retirements in the industry. This imbalance will force governments and education systems to adopt new approaches to make the healthcare field attractive to newcomers.
The UK is experiencing a 154,000 healthcare worker shortfall today
The National Health System (NHS) is experiencing a deficit of 154,000 healthcare workers across the UK, with a projected shortage to grow to 571,000 based on current trends. The shortage is immediate and significant, causing organizations to rethink their approaches to securing and retaining critical talent.
Healthcare organizations are competing for hard-to-find skills
Organizations in healthcare find themselves competing for many hard-to-find skills, including clinical fields as well as technology and business operations. In one survey, 33% of healthcare leaders cited the lack of critical skills as a leading disruption to the business, with 47% citing training costs as a factor.
The employer brand has long been a central ingredient in TA strategies for permanent employees. More recently, a growing number of organizations are recognizing the power of their brand in attracting contingent workers.
According to the latest IT Contingent Workforce Guide by Motion Recruitment, "70% of technology employers are struggling to fill roles," and "only 35% of software workers believe their managers care about their careers." Recent statistics indicate a strong need for employers to improve the experience of their contractors.
are competing for candidates in flexible work models.
identify as independent workers in a 2022 McKinsey survey.
planned to expand their budget for freelancers in 2023, according to a survey by HR Brew.
The influence of the employer brand in securing flexible workers is not new. Still, talent scarcity issues now compel companies to take on a concerted effort to ensure a solid brand presence.
Get intentional about candidate experience and contingent worker satisfaction.
A positive reputation as a place to work strongly influences how well an organization secures contractors. That reputation is shaped by the candidate’s experience with the contingent workforce supplier, their satisfaction with the employer and the work itself. Tracking and improving that overall experience requires a focus on providing support for the worker, transparent processes, and an inclusive culture that integrates well with other contractors and employees.
Consider direct sourcing to leverage your brand in attracting hard-to-find contractors.
Direct sourcing refers to the practice of an MSP provider “directly” recruiting candidates for select roles to augment the workers coming through the supplier network. One advantage of this approach is that the MSP’s recruiting organization
can advertise and source candidates for a role under the banner of the client’s brand. The right MSP partner will have the recruiting experience and resources to draw on your strengths to attract flexible workers.
