We asked 200+ HR and business leaders about the most pressing challenges on the talent horizon.
Their responses showed how prepared they are for the changes that will impact HR and business in the next five years.
We’re putting these forces in historical context while also providing actionable advice for HR teams trying to assess their risk, prepare their teams, and better understand the ramifications of inaction.
Dealing with talent shortages?
The notion of a widespread talent shortage might seem counterintuitive, given the prevailing concerns about AI coming for human jobs.
How can there be talent shortages in industries where technology is threatening our very livelihoods (or so we’ve been told)?
Companies are training staff, but not necessarily in new skills
The reality is that talent shortages are nagging many industries, from tech to construction and manufacturing, and not because the workforce is simply shrinking.
Labor participation rates have stayed relatively flat over the past half-decade, yet some prognostications estimate that by 2030, the global talent shortage could equate to around $85 trillion in lost revenue.
As an HR leader, it’s imperative that you understand the factors driving a shortage in your field, its potential long-term effects, and your level of short-term vulnerability.
Preparation can take many forms
More than half of the respondents are on top of peer mentoring.
But they’re coming up short in addressing skills gaps and AI understanding among their people.
A common misconception around AI is that its emergence will replace humans entirely.
In many cases, there will be a greater need for people with strong social and emotional skills, sharpened through training that focuses on the behavioral traits that best complement generative AI.
90+ percent say candidate experience is an essential part of the employer brand.
Survey respondents resoundingly agreed:
A healthy brand is a sign of future profitability.
Quantifying the health of a brand is more art than science, but perception matters a lot.
That includes the perceived attitude toward candidates, those with a future at your company, and those who don’t advance past screening.
Some developments are well beyond HR’s control
The candidate experience, however, is something proactive organizations can turn into a competitive advantage.
Gain that advantage through a thoughtful hiring process, alignment around cultural and behavioral fit, and a cohesive experience that starts when someone arrives on your site, continuing all the way through their job application and onboarding.
In fact, the way you disqualify people, how quickly you let them know (if you let them know at all), say more about your brand than any benefits you give your new hires or existing employees.
Companies are (over)reliant on new tech to fill talent gaps
The idea that new technology can replace traditional jobs has some truth, but it’s usually oversimplified.
Each industry will experience them differently, and HR teams must, therefore, move to plug talent gaps tactically.
That means not simply assuming the void will be filled with new tools.
What is your best weapon against any talent shortage (temporary or prolonged)?
The short answer: Retention.
Your existing talent, especially the top performers, represents your easiest way to unlocking the benefits of any new technology.
Focus on training people in the skills needed to work alongside such enhancements while leaning into their behavioral strengths.
HR Prep Steps
Revise your recruitment and training metrics to prioritize the skills that matter most moving forward.
Put yourself in the shoes of a candidate and reassess every step of the user experience, from search to onboarding.
Check out our latest White Paper from Predictive Index, a global leader in assessment tools and talent optimization leader.
“The HR Field Guide to the Future” – assess your team’s readiness and the possible risks related to the factors shaping your business decisions.
