Stay Competitive with Generative AI. Give Your CHRO the Tools to Win the Game

The business landscape is littered with cautionary tales of missed opportunities and the consequences of failing to adapt. From the demise of Blockbuster in the face of Netflix's disruptive model to the downfall of Kodak and Polaroid in the age of digital photography, history is filled with examples of companies that failed to recognize and respond to market shifts. In today's rapidly changing world, the imperative for organizations to adapt and embrace Generative AI has never been greater. Nowhere is this more evident than in the field of Human Resources, where the ability to attract, develop, and retain talent is crucial for success. Previously, HR functions operated somewhat independently, but the emergence of systemic HR calls for a shift towards a different approach. Generative AI facilitates this integration by consolidating HR data from multiple systems, providing comprehensive insights for informed decision-making.

The Urgency of Preparation

It is often said that those who fail to learn from history are doomed to repeat it. In the realm of business, this means recognizing and understanding the profound changes that are reshaping industries across the board. The rise of automation, the gig economy, and the increasing demand for digital skills are just a few examples of these shifts.

Leaders must be prepared to navigate this changing landscape by equipping their talent with the necessary skills and strategies to thrive. Failing to do so risks irrelevance and obsolescence in an increasingly competitive labor market. If your workforce isn’t trained to keep learning and improving, you run the risk that they will reject leveraging AI tools while your competitors embrace it and manage to cut costs and increase productivity while you remain stuck with old practices. The need to reskill, upskill, and intelligently redeploy talent internally adds another layer of complexity.

According to a report by the World Economic Forum, automation is expected to displace 85 million jobs by 2025. In the face of these disruptions, upskilling and reskilling become essential to ensure that employees can transition into new roles that complement automation technologies, rather than being displaced by them. The danger you run when employees see generative AI as a threat is that they won’t seek out opportunities to leverage the technology. There are countless examples of leaders today who frantically hold on to their headcount as they see it as the only way to remain relevant and important.

Not to mention, the increased demand for digital skills, along with the rapid obsolescence of traditional skills, has created a significant skills mismatch. A survey by McKinsey & Company found that 87% of executives are experiencing skills gaps in their workforce or expect them to emerge within the next few years. Reskilling and upskilling can help bridge these gaps and align the workforce with the needs of the digital age.

Furthermore, the data within HR is dispersed across a multitude of systems, each storing voluminous information critical for managing its respective function. As HR teams undertake the task of building new programs and solutions, they are faced with the challenge of an overwhelmed workforce grappling with increasing demands and administrative burdens.

"The modern business landscape demands that HR leaders anticipate and adapt to change. Gen AI provides an unprecedented opportunity to position organizations at the vanguard of innovation, revolutionize talent management, and secure a decisive competitive edge.”

This confluence of challenges necessitates a transformative solution – Generative AI. By leveraging AI, HR teams can address the competitive labor market, workforce stress, and drive intelligent internal mobility.

Leveraging Gen AI for Competitive Edge

The intersection of human capital and artificial intelligence heralds a new era of talent management characterized by precision, personalization, and predictive insights. Gen AI equips organizations with the capacity to decode the DNA of individual potential, and align talent trajectories with strategic imperatives.

The advantage lies with those organizations that embrace change and actively involve their employees in the process. AI algorithms can ensure that employees are aware of emerging trends, motivated to innovate, and equipped with the necessary skills to drive organizational success.

AI-Driven HR Analytics

Fragmentation of data across multiple systems poses a significant challenge for HR professionals. In large organizations, it is not uncommon to have over 80 employee-facing systems, each storing critical data specific to its function. To drive impactful change and make informed business decisions, HR leaders need access to integrated data that provides a holistic view of their talent pool. Research by McKinsey & Company estimates that AI-powered analytics can help businesses improve their decision-making processes by as much as 40%.

These algorithms can identify skill gaps, predict future talent needs, and evaluate the effectiveness of various HR programs and initiatives. With integrated data and AI-driven insights, HR leaders can make strategic decisions with foresight, ensuring that human capital remains a dynamic engine of innovation and growth.

Talent Intelligence for Recruitment Efficacy

Generative AI has empowered organizations to leverage Talent Intelligence for critical HR functions. A survey conducted by Deloitte found that 63% of HR leaders believe AI-based technologies, such as Talent Intelligence, will become a critical component of their organization's HR strategy in the next two to three years.

Advanced systems equipped with automated learning models can identify hundreds of characteristics, including specific skills, enabling intelligent candidate sourcing, promotion decision-making, and talent marketplace facilitation. These off-the-shelf solutions, combined with comprehensive data analysis, have the potential to disrupt the core Human Capital Management (HCM) industry, empowering HR teams with invaluable insights to optimize talent management practices.

Enhanced Internal Mobility Initiatives

AI technologies have the capability to revolutionize internal mobility initiatives within organizations. A LinkedIn Workplace Learning Survey discovered that 94% of employees would stay longer with an organization if it invested in their career development. By leveraging data analysis of employee skills, aspirations, and organizational requirements, Generative AI can effectively match employees with internal opportunities that align with their strengths and career goals.

Improved Skills Mapping and Reskilling Initiatives

According to a survey by PwC, 74% of CEOs expressed concerns about the availability of key skills in their workforce, highlighting the importance of effective skills mapping and reskilling initiatives. AI technology in HR has revolutionized the way organizations map and analyze the skills and capabilities of their workforce. AI algorithms have the ability to analyze vast datasets, allowing organizations to accurately identify skills gaps and gain valuable insights for targeted reskilling and upskilling initiatives. This enables HR teams to ensure that employees possess the necessary skills to thrive in the digital age, ultimately aiding the organization in remaining competitive.

Streamlined Career Pathing

Generative AI-powered Talent Intelligence platforms have transformed the way organizations approach employee development and growth opportunities. AI algorithms generate personalized career pathways, giving employees a wide range of growth options beyond traditional linear trajectories. These AI-powered systems analyze employees' skills, experiences, and aspirations against vast datasets to provide data-driven insights on various career possibilities. Additionally, they offer recommendations on required skills, certifications, and networking opportunities, democratizing career progression and promoting a culture of continuous learning and growth.

The Consequences of Inaction

A recent anecdote underscores the urgency and importance of embracing innovation. Just like the companies mentioned earlier, Toys "R" Us serves as a prime example of the consequences that can arise from failing to adapt to changing market dynamics. Despite being a dominant player in the toy retail industry for decades, Toys "R" Us failed to recognize and respond to the growing influence of e-commerce. As online retailers like Amazon gained momentum, Toys "R" Us struggled to compete in the digital space.

Toys "R" Us was apprehensive about disrupting the status quo and potentially alienating its loyal customer base. However, this fear of the unknown and aversion to embracing new technologies ultimately led to the company's downfall.

The consequences of inaction can be severe. Companies that resist change, fail to innovate, and neglect to adapt to evolving trends risk losing their competitive edge and facing significant disruption.

Embracing Innovation

So, to all the forward-thinking leaders of tomorrow, I implore you to embrace the game-changing potential of advanced AI technology.

While it may be tempting to resort to mass layoffs as a way to cut costs and adapt to the change of AI, this approach ignores the potential of nurturing and developing a skilled workforce. The key is to find a balance between progress and safeguarding the livelihoods of employees. One solution that combines innovation and employee growth is GoFIGR's Talent Navigator.

GoFIGR's empowers organizations to future-proof and align individual aspirations with corporate objectives. Through our internal talent marketplace platform, HR leaders gain invaluable insights to foster skill development, nurture talent, and forge connections that propel both individual growth and organizational advancement.

GoFIGR's Talent Navigator is an HR analytics tool that aligns individual aspirations with corporate objectives. By leveraging Gen AI, it provides insights into employees' skills, interests, and career aspirations, allowing organizations to identify high-potential individuals and create development plans tailored to their needs.

Looking to optimize internal mobility and boost employee retention, productivity, and satisfaction within your organization? GoFIGR’s AI-driven matching connects your employees' skills, interests, and aspirations with internal opportunities.

With our innovative platform, you can save costs and reduce hiring risks by leveraging internal talent. Learn more here ???https://gofigr.ai/internal-mobility

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