Talent in the digital age: navigating the future of work

You don’t have to look far to see how profoundly digital innovation is impacting our daily lives. Generative AI is streamlining written communication, chatbots give us the information we’re looking for, and tools like DALL-E turn us all into amateur artists. 

In addition to impacting us personally, the rise of AI will transform the way we work. From the skills we need to the roles we perform, every element of our working world is getting a shakeup—and it’s up to leaders to ensure their people are equipped to keep pace. 

Since research estimates that 40% of global jobs will be impacted by AI, every executive must encourage their organization to upskill and reskill their talent for the digital age. 

The impact of digital transformation on talent management

Digital transformation revolutionizes how talent is managed, as the recent proliferation of AI exemplifies. A few of the noted shifts that leaders can expect include:

#1. Changing job roles and responsibilities 

AI is changing jobs and responsibilities as we know them. According to the World Economic Forum, 40% of all working hours could be impacted by large language models such as ChatGPT. In particular, clerical or secretarial roles are likely to decline quickly since AI is able to tackle many overlapping responsibilities. Simultaneously, leaders should brace for the rise of new roles that will require distinctive skill sets. The same research predicts a 40% jump in the number of AI and machine learning specialists by 2027 and a 31% increase in demand for information security analysts. 

#2. The growing importance of digital skills 

As roles change, so will the skills needed to excel in them. AI skills are likely to become more valuable, with more than three-quarters of LinkedIn’s 2024 Work Trend Index respondents noting that these capabilities will become necessary for staying competitive in the job market. They also view AI as a way to get promoted faster and broaden their job opportunities. 

#3. The rise of remote and hybrid working 

Employees must also become adept at collaborating with colleagues in different time zones and across various mediums now that remote and hybrid work is the norm. Rather than expecting all meetings to be conducted face-to-face, employees must harness an in-depth understanding of digital collaboration tools like Zoom and Microsoft Teams to fuel seamless knowledge exchanges from anywhere in the world. 

Since workforces are more dispersed than ever before, knowledge of these systems is critical. Without this expertise, workers will struggle to connect with colleagues and peers and in turn exacerbate organizational silos.

Why talent strategies must evolve for the digital era

Work and jobs have changed a lot over the last century. When the Industrial Age began, employees were largely replaceable and treated mostly like cogs in a machine. During this time, the supply and demand of talent was fairly predictable and employers had a good idea of the skills their workforces needed because these capabilities remained largely unchanged. 

That’s no longer the case in the new world of work. Today, skills and talent are scarce and the capabilities workforces need are constantly evolving. Leaders must vie to retain and develop in-demand skills so that their businesses can pivot ahead of the curve. Most of the capabilities that businesses need are digital skills, which will become crucial for capitalizing on the next wave of AI innovations.

The most common talent management challenges in the digital age

Some of the hurdles that leaders should have on their radars when managing talent in the digital age include:

#1. Identifying skill gaps 

Now that the half-life for technical skills has dropped to just 2.5 years, upskilling and reskilling must become a continuous process. The rise of AI demands an extra layer of focus on skill development, particularly for the capabilities needed to use these systems successfully. 

Understanding how AI will specifically impact your industry is key to identifying the skills to target for your training and development programs. With the help of skills intelligence systems like Gloat Skills Foundation, HR teams can identify where capabilities are falling short and pinpoint which skills their workforce will need in the years to come.

#2. Retaining talent with in-demand skills 

The competition for talent with in-demand skills is fierce. Rather than footing the bill to replace talent, employers should go the extra mile to retain employees, particularly those with skills that their organizations rely on. 

While all members of the workforce view access to growth opportunities as important, these learning pathways are particularly crucial for retaining and engaging the youngest members of your organization. 74% of Gen Z and Millennial employees are looking to leave their jobs due to a lack of opportunities for skills mobility and career advancement. 

#3. Adapting to rapid changes

The pace with which our working world is evolving isn’t going to slow down anytime soon. Gone are the days when business needs were stable and predictable; today, leaders must grow accustomed to rapid pivots and sprints to meet shifting consumer demands and emerging challenges. To unlock the level of agility this era of work requires, executives need insight into the skills their people have as well as any capabilities that are becoming particularly important.

3 talent management opportunities 

While there are plenty of challenges associated with talent management in the digital age, there are also a handful of exciting opportunities such as:

#1. The rise of talent marketplaces

Talent marketplaces are emerging as critical tools that will enable organizations to rapidly reallocate and redeploy their workforces as priorities shift and new challenges arise. These AI-powered platforms generate suggestions for open projects, roles, mentorships, and full-time positions based on the skills leaders are looking for and the areas of expertise employees are hoping to hone. 

#2. Using AI for skills intelligence 

AI-powered skills intelligence systems equip leaders with a 360-degree view of their workforce’s capabilities, as well as identifying how these skills can be reallocated across their organization and which skills are on the rise and on the decline. Skills intelligence will be crucial in the age of AI so that leaders can pinpoint knowledge gaps before they emerge and develop learning pathways to proactively bridge them.

#3. Developing targeted training programs

To keep employees one step ahead of the changes AI is setting into motion, employers must develop targeted learning pathways so their workforces can build in-demand skills. From mentoring to projects and gigs, leaders should strive to create hands-on learning opportunities so employees have plenty of on-the-job experience to draw from. Executives can then ensure their entire workforce has the opportunity to participate in these projects and gigs by posting them on their talent marketplace so that everyone can apply. 

If you’re looking for more expert insights that will foreshadow the talent management changes coming your way next, check out our guide featuring future of work predictions from Arianna Huffington, Al Gore, and Josh Bersin.