AI Is Taking Our Jobs - and Giving Us Careers In Return!

In today's rapidly evolving workplace landscape, traditional job-based structures are becoming increasingly ineffective in capturing the true value and potential of employees' skills. Skill-driven #ecosystems offer a transformative approach that aligns work assignments with individuals' unique capabilities, fostering employee-centricity, flexibility, and agility. In this article, we will explore the journey of shifting from job-centricity to skill-centricity, where culture replaces structure as the main operating model.

To anyone who has been paying attention to #HR trends, it comes as no surprise that the correlation between jobs and the actual work being done has decreased significantly. In Deloitte 's groundbreaking research, 71% of employees find themselves performing tasks beyond their designated job descriptions, while a mere 24% of employees sharing similar job descriptions engage in similar work. This implies that assigning tasks based solely on job titles is an ineffective approach; instead, a thorough understanding of each individual's skills is necessary to optimize workflow. Thankfully, advancements in AI have made this possible.

According to Deloitte , 60% of senior executives express a preference for designing work in a manner that allows employees the flexibility to deploy their skills and capabilities, and 72% of employees firmly believe that recognizing them as individuals with unique skills will enhance their work experience and, consequently, boost their productivity. With so many people advocating breaking down work into end-to-end responsibility-based work packages, and so few upholding the belief in traditional job-based work as the correct methodology. The question arises: what can workplaces do to change their patterns and make the most of their talents?

The answer, of course, is transforming to skill-based organizations. 

Skill-based organizations are 107% more likely to place talent effectively, ensuring that the right people are in the right positions. Additionally, they excel at retaining high performers, with a 98% greater likelihood. These organizations also cultivate a reputation as a great place to grow and develop, boasting a 98% higher probability. Moreover, they prioritize a positive workforce experience, making them 79% more likely to achieve this goal. Anticipating and effectively responding to change is another strength, with a 57% greater likelihood. Innovation is a core focus, as they are 52% more likely to introduce groundbreaking ideas. To maximize efficiency, skill-based organizations improve processes by 49% more often. Lastly, they foster an inclusive environment, with a 47% higher chance of providing equal opportunities to all.

Implementing skill-based processes can be challenging and complex.

In contrast to static job #architectures, we can streamline the process and make it easier to implement by categorizing each sector into actionable steps. This approach embraces continuous learning from the dynamic market, allowing for adaptations to skills and job titles based on emerging trends. Once the initial setup is completed, the system operates in a semi-automatic maintenance mode which ensures the talent pool meets the minimum #taxonomy requirements and proficiency standards. Here are the steps I recommend implementing using the below framework:

1.    Establish Dynamic Job Architecture

Begin by establishing a flexible job architecture that revolves around a simplified yet comprehensive set of skills. While job titles are becoming less relevant, all surrounding company processes will take some time to adjust to working without them.

You should also make sure you don't over-configure your skill and job architecture since it is so dynamic that it will be outdated before you've finished configuring it. At that point, you should use AI guidance due to its comprehensive view of the market.

Utilizing a skill taxonomy and #ontology, the dynamic job architecture reflects the relevant skill sets within the organization. This enables intelligent AI solutions to identify skills that closely align with the desired taxonomy. For instance, when a company undergoes a complex IT transformation, program management becomes a crucial requirement. In such cases, if an AI system detects project management skills, it can recognize them as closely related with a small skill distance to program management. It can then assign a program management task to a project manager with the required skills.

2.    Enforce Ethical and Legal Policies

Using AI to assess skills and make decisions based on them, while collecting an employee's digital footprint can bring benefits to both individuals and businesses. However, it's crucial to handle this responsibility with care. We must prevent data abuse, promote transparency, and seek consensus with employees. Establishing clear ethical and legal policies is a must.

3.    Plan Your Future Workforce

Assigning the right skills to the right tasks reduces wasted intellectual resources and boosts productivity. By continuous skills planning based on business predictions, you can achieve this goal. This includes predicting the specific skills and types required, determining who can fulfill those needs, and deciding how the organization should be structured to deliver the work. For example, if you are a product company adopting a new AI technology talent skill set or entering a new market, make sure you have the talent pool to deliver the service.

This also involves mapping the skill demand vs. supply, mapping business demand vs. current skill inventory, and identifying any potential skill gaps or risks.

4.     Analyze how best to Attract and Preserve Talent

There are three ways to fill a position: acquiring new talent, upskilling current talent, and #reskilling talents within the organization. In talent sourcing, AI-based assessments can be used to target skill gaps and select individuals based on verified skills, capabilities, and untapped potential. Mitigation plans can then be implemented, such as developing skills internally (build), hiring externally (buy), temporarily borrowing skills (borrow), or reassigning existing resources (bounce).

In addition to talent sourcing, seamlessly managing candidate relationships is crucial in proactively attracting talent that aligns with future skill requirements. This includes brand awareness, application, and targeted campaign management.

To further enhance existing employees' skills and ensure they stay relevant, targeted upskilling and reskilling development experiences can be implemented. These experiences are based on data-driven skills assessment and gap analysis, allowing personalized growth plans. Additionally, career exploration helps employees discover opportunities that match their skills. This includes discovering various roles, projects, mentors, and tasks that align with their capabilities and interests. AI marketplaces can facilitate this process by analyzing market trends, identifying emerging opportunities, and even suggesting alternative career paths based on their analysis.

To be a healthy organization, you’ll need to continuously identify potential leaders through data-driven, transparent, and inclusive processes. You’ll also have to leverage AI technology to assess talent depth within the organization for each position. In addition, it’s important to provide opportunities for employees to connect their career aspirations with succession planning efforts. Keep your performance management data-driven, flexible, continuous, and development-oriented.

5. Recognize Your Talents’ Worth

Constantly adjust skills-based pay and rewards to align with the evolving skill and work needs. Optimize the company's investment in human capital by creating a total reward strategy that recognizes talents who develop their skills in the direction the company’s going in.

6. Adopt Skill-Driven HR Technology

Skill-focused HR technology is becoming more and more common. The upcoming release of successfactor GmbH will bring in strong skill infrastructure and marketplace features. It is also worth mentioning that SAP will be joining Workday which announced their skill cloud several years ago.

When looking at different HR services that prioritize skills, the more developed ones can be found in learning and development, upskilling, and reskilling catalogs such as Udemy , LinkedIn , Skillsoft , Coursera , and Degreed . Another area with well-established solutions is Talent Attraction and Acquisition, where AI is deeply integrated. Key players in this field include Phenom , Eightfold , and Beamery .

The most rapidly expanding area now is AI-based talent marketplace and career development, where AI offers employees career opportunities and experiences based on their skills and aspirations. While Gloat is the pioneer in this area, LinkedIn is also stepping into the #E2E talent marketplace, from #acquisition to #mobility and #upskilling.

Strategic workforce planning is an area where skill-based solutions are increasing. Currently, the focus is primarily on analyzing people's skills, but there is a shift towards planning and organizing work around projects and skills.

The diagram below shows the main vendors we encountered on this journey:

#AI skill-driven organizations are more than just automating processes; it is a large-scale transformation that creates high engagement and boosts productivity. Instead of following rigid roles and career paths, the company becomes more flexible and agile in assessing employees' skills effectively, assigning them the right tasks, and helping them follow their career aspirations.

It’s also important that you do not neglect the importance of culture by democratizing opportunities and creating greater equity. This way, your company will become more human-centric, with a diverse culture that gives purpose and unleashes its full potential.

This transformation goes even beyond technology implementation. It requires the involvement of the right stakeholders. As the organization steps into new territory and provides employees and management with new experiences, it is essential to continually assess progress and keep an open mind. With the right strategies, technology, and mindset, organizations can embark on a transformative journey that empowers their workforce and ensures long-term success in an ever-changing business environment.