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How positive EX supports skills-based orgs
Traditional talent management processes are being turned on their heads as talent technology stacks become more complex and driven by AI, and HR and talent leaders seek to streamline their workflows and strengthen decision-making. It appears to be working, too: A recent study by Harvard Business Review found that companies that use AI in their hiring process are 46 percent more likely to make successful hires.
Despite the digital transformation of talent management, the demand for “employee experience and human-centric work design continues,” according to the findings of the recent Gartner® Hype Cycle™ for HR Technology 2023 report, which named SkyHive in three categories: AI-Enabled Skills Management, Labor Market Intelligence, and AI in Talent Acquisition.
The report covers multiple areas of talent technology and for each of the areas, explains what you need to know why it’s important, what’s driving the changes in that area, any obstacles you may encounter, and recommendations.
Here are some of Gartner’s insights:
- By 2025, 60 percent of enterprises will adopt responsible AI frameworks to achieve greater productivity and resilience throughout the organization.
- Skills are the new currency for talent. “They are a foundational element for managing the workforce within any industry,” according to the report. “In times of uncertainty, or when competition is fierce, organizations with better skills data can adapt more quickly and be more dynamic in acquiring and deploying talent.”
- HR leaders must manage an increasingly complex technology portfolio amid a continued need from HR and business leaders for greater agility and flexibility.
- With the increased hype about AI and Generative AI, conversations around productivity and a greater demand for responsible AI continue.
- As talent leaders add more technologies, they can’t forget the importance of a strong employee experience. “Multiple new applications (and vendors) must be budgeted, selected, implemented, and integrated alongside existing solutions.”
What is employee experience?
Employee experience (EX) is the holistic journey that an employee takes during their time at an organization. It includes every interaction, perception, and feeling they have, starting from the recruitment process and continuing through their career development, training and development, daily work life, and eventual departure.
For organizational leaders, understanding and optimizing EX is crucial as it directly impacts engagement, productivity, and retention. Positive EX can also help boost organizational reputation and make it easier to attract top talent. This is arguably more important today than it ever has been as talent managers struggle to fill skills gaps and retain employees.
How does digitalization affect employee experience?
The ongoing digital transformation of organizations across all industries is transforming employee experiences for both better and worse.
At the most basic level, digital tools and AI-powered automation are helping to reduce the number of routine and time-consuming tasks that are conducted by employees. This enables them to focus on more meaningful and enjoyable tasks. This boosts job satisfaction and productivity.
Digitalization and digital transformation are also leading to more learning, development, and training opportunities for employees. Digital learning platforms, for example, provide employees with access to a wide range of courses and training materials, allowing employees to acquire specific skills. Skills and skills intelligence, says KPMG, is the new currency for talent. In times of uncertainty organizations with better skills data can adapt more quickly and be more dynamic in acquiring and deploying talent.
At the same time, digital transformation can detract from employee experiences. The always-on nature of digital tools can lead to employees feeling pressured to be available 24/7, causing stress and burnout. We’ve all read stories about employees who can never switch off due to the overarching feeling that they always need to be available. This isn’t helped by excessive digital communication and notifications, which can overwhelm employees outside of working hours.
Digitalization can also negatively impact the human factor. Increased reliance on digital communication has been shown to lead to a reduction in face-to-face interactions, potentially causing feelings of isolation and disconnect among employees. The most obvious reason for this is the way digital tools now support widespread remote and hybrid working opportunities. While there are many benefits to these arrangements, they can make it harder to maintain a strong and cohesive company culture.
Using artificial intelligence to improve EX
Analysis shows a clear link between strong talent management and better organizational performance. McKinsey found that 99 percent of surveyed companies with effective talent management outperformed their competitors.
This statistic highlights the strong connection between talent management and employee experience. When employees are happy and fulfilled, they stay longer, learn new skills, and help the company achieve its goals.
This has always been true, but digital transformation and AI have recently improved talent management. Now, talent teams can easily use AI to streamline processes and enhance employee experiences at every stage.
Here’s how you can use AI-powered talent management tools to improve your employees' experience.
1. Reskill and upskill to fill gaps
Reskilling is crucial for ensuring employees have the skills needed to support an organization’s long-term goals. This is especially important as digital transformation changes the nature of work, requiring a broader range of skills.
The need for long-term reskilling is growing quickly. According to the World Economic Forum, 23 percent of global jobs will change in the next five years due to industry shifts, and 1.1 billion jobs could be transformed by technology in the next decade. In response, the WEF launched the “Reskilling Revolution” to equip one billion people with better skills and opportunities by 2030.
Reskilling and upskilling not only close skills gaps but also improve the employee experience. They empower employees with new knowledge, boost career growth, and increase job satisfaction. AI-powered skills intelligence supports these initiatives by enabling skills-based workforce planning. It also demonstrates the organization’s commitment to employee skill development and making them feel valued.
2. Enable workforce agility
AI-powered talent management tools facilitate workforce agility by providing real-time insights into workforce capabilities, performance, and availability. This allows organizations to quickly respond to shifting market demands and job architectures, reallocate resources, and redeploy talent as needed.
Furthermore, agile workforce practices supported by AI encourage a culture of flexibility and innovation. Employees who are given the chance to take on new challenges and expand their skill sets are more likely to feel empowered and committed to the organization, thereby encouraging a sense of ownership and pride in their work. This naturally leads to higher job satisfaction and retention.
3. Foster a learning culture
Creating a culture of continuous learning is vital for enhancing the employee experience and becoming a skills-based organization. AI-powered talent management tools play a key role in this transformation. For example, AI can assess employees' current skills and competencies, identify skills gaps, and recommend personalized learning paths based on individual career goals and organizational needs. This ensures that employees continuously develop new skills while aligning their growth with the company's strategic objectives.
AI-driven learning platforms offer on-demand access to various educational resources, including online courses, webinars, virtual simulations, and interactive training modules. By providing flexible and personalized learning opportunities, employees can pursue professional development at their own pace and convenience, leading to greater satisfaction and motivation.
4. Build a skills inventory
Developing a comprehensive skills inventory is essential for enhancing the employee experience and driving engagement. it also lends itself to strategic workforce planning. How?
AI-powered talent management tools can efficiently catalog the skills and competencies of the entire workforce, providing a detailed and up-to-date skills and talent inventory. This helps talent teams identify available skills, pinpoint gaps, and make informed decisions about development and deployment.
Understanding employees’ skills allows organizations to match the right people with the right roles, projects, and teams. This ensures that employees are used effectively and feel their talents are recognized. This alignment improves productivity and performance while significantly enhancing employee engagement. Employees are more likely to feel valued and motivated when their skills are utilized.
5. Implement gradually and expand
To maximize the benefits of AI-powered talent management tools while minimizing disruption, organizations should implement new technologies gradually. Starting with pilot programs or phased rollouts allows human resources teams to assess the impact, gather feedback, and make necessary adjustments before a full-scale implementation.
Gradual adoption ensures that employees have time to adapt to new systems and processes, reducing resistance and anxiety. Once initial implementations prove successful, organizations can expand the use of AI tools to other areas of talent management, continually enhancing the employee experience through thoughtful and measured technological integration.
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