As we stand at the crossroads of a pivotal juncture in the unfolding industrial revolution, one of the biggest concerns that has emerged is the impact of Generative AI and automation on job opportunities and skill requirements, especially in the HR domain.
 

Will Generative AI diminish job opportunities, or will it have the potential to create jobs with new skill requirements?

HR leaders worldwide are more optimistic about the second option. While Generative AI will continue with its workplace transformation, there will be a rise in demand for workers with crucial skills, such as cognitive and problem-solving. The capacity to think creatively, analyze problems in depth, and specialize will become desirable and essential for professionals and organizations hoping to stay ahead of the competition in this period of rapid change.

This article examines how Generative AI will transform the HR landscape and how harnessing human skills is more critical than ever.

The Importance of Creativity and Analytical Skills

A recent report from Talent LMS suggests that the top three skills that will prove crucial for success in the AI-driven era are digital, interpersonal and cognitive skills. The survey, conducted online among 309 HR managers from different industries across the U.S., found that 65% of HR managers felt that the top in-demand cognitive skills are problem-solving, creativity, originality, imagination and the ability to learn.

The demand for cognitive abilities is, undeniably, on the rise, with problem-solving skills emerging as one of the most coveted attributes. In many cases, companies place a higher premium on problem-solving capabilities than on technical proficiencies. Businesses are actively seeking individuals, who possess such talents and are willing to invest in nurturing their technical expertise over time.

Why Analytical Thinking Will Never Go Out of Demand

According to the World Economic Forum’s 2023 Future of Jobs Report, qualities like creative and analytical thinking, resiliency, flexibility, and agility will gain increased recognition by 2027. The report gathered insights from 803 companies employing 11.3 million workers and highlighted that AI will find it difficult to replicate human skills, such as ideation, collaboration, leadership, and entrepreneurship.

The report further stated that in the coming five years, 44% of workers’ skill sets will undergo disruption. Among these, cognitive skills will be of the highest significance, reflecting the increasing importance of complex problem-solving skills in the workplace.

How Will AI Facilitate Talent Acquisition?

There is no doubt that Generative AI will revolutionize the landscape of talent acquisition. In the coming years, HR professionals will use Generative AI tools to streamline routine tasks, such as candidate matching, sourcing and screening, interview coordination and onboarding. It will even help foster relationship-building between recruiters and potential candidates.

These technological tools will liberate HR professionals to allocate more time to forge more profound, personalized connections with prospective talent. By employing the appropriate tools, recruiters can significantly enhance their effectiveness, efficiency, and productivity, consequently fostering value creation and the pursuit of purposeful work.

Another advantage of Generative AI will be its ability to process and analyze large data sets, generating valuable insights on employee performance and engagement. This data will come in handy while creating performance-based HR strategies.

The Importance of Specialization

The workplace digitization and transformation will emphasize hiring professionals with specialized skills. HR professionals must also evolve in their roles and acquire new skill sets.

Talent LMS report further suggested that AI impacts employee well-being, with more than half of those surveyed agreeing that the pressure to acquire new skills adds to their stress. Additionally, 58% expressed concerns that AI is causing job insecurity among older employees.

An excellent way to tackle this issue involves implementing upskilling and reskilling programs and allocating resources toward Generative AI and AI training tools. HR departments must invest in comprehensive training programs designed to empower HR professionals with the required expertise, such as mastering data analysis, becoming proficient in Generative AI-driven tools, and understanding the ethical implications of Generative AI implementation within HR practices.

This will be a small investment for organizations looking for excellence and success while staying at the forefront of industry advancements.

Combining AI with Psychometric Assessments will Transform Hiring

For decades, many large employers have been using psychometric tests to assess the aptitude and personality of prospective candidates, especially their strengths, weaknesses and ability to lead large teams. However, these tests are lengthy and prone to errors. Integrating AI with psychometric analysis introduces a layer of objectivity to the assessment process, mitigating biases and yielding more precise and dependable outcomes.

AI-backed psychometric assessments can make the hiring process more efficient, accurate and impartial. These assessments will enable recruiters to screen a large pool of applicants quickly and effectively, eliminate human bias, identify patterns from past hiring decisions to make data-driven predictions about a candidate’s future performance and accurately match candidates’ skills with job requirements. However, we need to be conscious of the algorithmic biases that may creep in and understand that these tests can’t fit all especially where we are looking to assess a candidate’s emotional intelligence.

Way Forward

As the work landscape, particularly the HR landscape, continues to grow, Generative AI will restructure jobs and create demands for specializations and mastery of special skills. This will require unified efforts for upskilling and reskilling from all stakeholders, including employers and employees.

The skills that can’t be replicated by Generative AI, such as focusing on approaching challenges with a different mindset and analytical and cognitive skills, will emerge as true winners. These qualities will set the foundation for success in a world increasingly influenced by Generative AI and automation. The future belongs to those who can adapt, innovate, and thrive in an ever-changing landscape. Fortunately, we are already seeing organizations making efforts to reskill and upskill their workforce.

Author Bio

Lynette D’Silva is the Head of HR Regions at Amdocs People. Lynette comes with over 24 years of experience in talent management and organizational development across IT and telecommunications. She has played key leadership roles in HR and led cross-functional teams on strategic projects. Lynette has championed leading roles in the areas of compensation management, organization development, employee relations, internal communications, HR consulting, talent acquisition and mergers & acquisitions.

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