Applying Artificial Intelligence for Talent Management
Oct 23, 2019
The present skills gap in the US is jeopardizing the country’s long-term growth. Disruption has exploded the job demand; skill levels are constantly shooting up and the workforce doesn’t have sufficient workers to fill in. 75% of HR professionals say they are finding it extremely hard to locate the right talent. In Dec 2018, 7million jobs were available for 6.3 million job seekers. With every passing day, the concern swells for business and talent leaders. While the country is almost bordering on full employment, its growth is muzzled in a time when it could have scooted in its fullest fury.
Panorama on the global stage is equally grim. Organizations are grappling to find the right talent for their stagnating vacancies. Over 40% of employers are facing difficulty in filling vacancies. Developed economies are short of 95 million skilled workers while developing economies need 45 million skilled workers.
Addressing The Bigger Challenge – Managing Talent
The past decade has been a decade of technological upheaval. Though employers have been spearheading their training and hiring initiatives, results of those efforts are insignificant in the wide talent demand ocean. The baton of hope is handed over to talent managers and, now employers are anticipating quick and lasting solutions with open wide eyes.
Ed Gordon, author of “Winning the Global Talent Showdown” says “It’s not a skills problem; it’s a talent issue.” He also adds “You can have all the latest technology you want... but if you don’t have the talent behind it, your business is not sustainable.” Gordon predicts around 14 million to 25 million vacancies will sprout up by 2020. Challenges for talent managers are not just restricted to identifying the right talent, but they are also being pressured from multiple ends by growing skill requirements, productivity cries, ageing workforce, gender pay gaps and, declining wage levels for skilled jobs. The most widespread skill gap that is evident and can be seen in STEM (science, technology, education, and math) industries. A staggering 82 percent of Fortune 500 employees say they don’t trust their employers to recruit superior talent.
Putting Artificial Intelligence to Test:
Disruption is not in vain and it is not another passing trend. Those who have painfully forged their way ahead vouch for the copious benefits of these technologies. Here’s how leading companies are using it for their talent advantage:
- University of Minnesota professors in their analysis of 17 studies found hiring algorithms 25% more effective than their human counterparts.
- Richfield management, a waste management company, uses an algorithm to identify employees likely to misuse workers’ compensation. The claims have slumped by 68%.
- Xerox replaced its screening process with an Evolve test and slashed its attrition by 20%.
- HR software systems from Oracle, Workday and SuccessFactors from SAP collect information from LinkedIn to get warnings about any top talent planning to leave.
- McKinsey uses algorithms to identify top variables driving attrition.
Laying A Future Proof Talent Plan:
Talent managers have to be nimble. If they aren’t on their game at once, their top talent is more than likely to be cherry-picked by their competitors. Aside from losing on the work front, this also means divulging strategies, work and culture to outside, sometimes unwanted, agencies. Align your talent strategy to the desired technology. Lay your best plan and follow it through:
And most importantly get certified and remain abreast of the latest developments in the industry.