.png)
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% 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% 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 user experience. “Multiple new applications (and vendors) must be budgeted, selected, implemented, and integrated alongside existing solutions.”
As HR and talent teams adopt more technologies, however, they can’t forget the importance of a strong employee (user) experience.
What is meant by 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, 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 grow their skill sets. 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 need to be available at all times. 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 AI-powered talent management to improve EX
Analysis has shown that there’s a relationship between robust talent management and an organization’s overall performance. According to McKinsey, of those surveyed, 99% who said that their company’s talent management was effective also said that they outperformed their competitors.
That’s a difficult statistic to ignore and supports the argument that there’s an intrinsic link between effective talent management and the overall employee experience. Why? Because happy, fulfilled employees stick around in the long term and contribute greatly to achieving organizational goals.
This has always been true but, in recent years, digital transformation and the proliferation of AI have changed talent management for the better. It has never been easier for talent teams to leverage AI to unlock efficiencies at all stages of the talent lifecycle and drive positive employee experiences throughout the end-to-end talent management pipeline.
Here’s how you can leverage AI-powered talent management tools and solutions to improve the experiences of your employees.
1. Reskill and upskill to fill gaps
Reskilling is an essential strategy for ensuring that employees are equipped with the skills needed to contribute to an organization’s long-term goals. It has become particularly important against a backdrop of digital transformation which is completely changing the nature of work and requiring more employees to have a wider range of skills than ever before.
The need for organizations to plan for long-term reskilling is growing fast. According to the WEF, 23% of global jobs will change due to industry transformation in the next five years, and 1.1 billion jobs could be “radically transformed” by technology within the next decade. In response, they’ve launched the so-called ‘Reskilling Revolution’ initiative that aims to empower one billion people with better education, skills, and economic opportunities by 2030.
Reskilling and upskilling not only help to fill skills gaps and prepare the organization to withstand long-term challenges, but they also improve the employee experience by empowering employees with new skills and knowledge, enhancing their career growth, and increasing job satisfaction. Reskilling and upskilling initiatives powered by AI-powered skills intelligence demonstrate the organization's commitment to employee development, making employees feel valued and invested in.
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, 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 AI-powered talent management tools can play a key role in this transformation. AI can assess the current skills and competencies of employees, identify gaps, and recommend personalized learning paths tailored to individual career aspirations and organizational needs. This not only ensures that employees are constantly developing new skills but also aligns their growth with the company's strategic goals.
AI-driven learning platforms can provide on-demand access to a variety of educational resources, from online courses and webinars to virtual simulations and interactive training modules. By offering flexible and personalized learning opportunities, employees can engage in 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. AI-powered talent management tools can efficiently catalog the skills and competencies of the entire workforce, providing a detailed and up-to-date skills inventory. This allows talent teams to identify skills available within the organization, pinpoint gaps, and make informed decisions about development and deployment.
Having a clear understanding of employees’ skills enables organizations to match the right people to the right roles, projects, and teams, ensuring that employees are utilized effectively and feel their talents are being recognized and leveraged. This alignment not only improves productivity and performance but also significantly enhances employee engagement, as employees are more likely to feel valued and motivated when their skills are being used.
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 HR 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.
Book a product demo today to discover how AI-powered skills intelligence solutions like SkyHive can help you improve your employee experience and safeguard your operations against modern challenges such as skills gaps and hiring struggles.
.png)
