Ceridian’s 2020 Future of Work Report revealed that skills are the new currency in the current constrained job market.
Organizations are currently conducting an assessment of their investments in workplace technology, with a particular emphasis on automation and artificial intelligence. Conversely, they are endeavoring to provide their employees with the “skills of the future,” which include experience design and computing.
Ceridian’s research indicates that a labor shortage is imminent, contrary to the predictions of futurists and tech evangelists that AI and automation will eliminate thousands of jobs in the years ahead.
Alternative modes of employment
The HR tech specialist polled nearly half of business executives (46%) who anticipate an increase in headcount in 2020. This transition will result in a greater reliance on alternative forms of work.
Ceridian stated that the majority of organizations anticipate that the skills disparity will widen (63%), and the talent shortage will persist (59%), in the next two years.
According to reports, businesses are preparing for this deficiency by increasing their reliance on the “human cloud” or the marketplace of readily available talent, which includes remote workers, freelance workers, contractors, and individuals employed in flexible work arrangements.
Leaders anticipate either a “extreme increase” or a “very large increase” in the following:
- Remote/virtual employees (53%)
- Support for freelancers who work on assignments (51%).
- Talent that has been contracted out (50%).
- 50% of the workforce is comprised of contract laborers
Lisa Sterling, Ceridian’s chief people and culture officer, asserts that the manner in which businesses define work is no longer constant.
“The modern workforce is undergoing a transformation as a result of the rapid adoption and innovation of technology, such as AI and machine learning.” Sterling also noted that alternative work arrangements, such as freelance, crowdsourced opportunities, and contract work, are becoming more prevalent within organizations.
The fundamental element of transformation is technology.
According to the research, businesses will face two of the most significant challenges in the years ahead: the ongoing scarcity of “future-ready” workers and the rapid tempo of digital advancements.
Tech continues to be the foundation of talent development, particularly in the context of digital-first learning and development programs, despite the disparity.
According to Ceridian analysts, HR and business leaders may be overlooking critical opportunities to resolve skill and knowledge gaps by investing in modern learning and forming strategic educational partnerships.
Sterling stated that the future of labor is indeed present. Organizations should, therefore, leverage human-machine integration and collaboration as part of their talent development strategy.
“It is not too late to implement the appropriate strategies in order to thrive in this new ‘normal,'” she stated.
“However, if you delay, underestimate the impact on your business, or believe that it will not affect you, I would not envy you when it is time to address the board and explain why your people strategies are not functioning as intended.”