Everyday news of job cuts and restructuring has made it seem as if the tech industry will eventually entirely employ AI (Artificial Intelligence) tools and technologies. Post-pandemic layoffs have been record high, and the trend is not turning soon. In the first quarter of 2024, 57,000 layoffs were made in the tech sector, and an additional 43,000 were made in the second quarter.
It seems that there are not enough vacancies, and the supply of qualified tech professionals has exceeded the demand. Ironically, tech companies are struggling to fill vacancies requiring high-level skills. Despite the job cuts, there is a serious shortage of skilled professionals. In 2023, 54% of tech companies reported facing a skills shortage.
These trends are indicative of a much deeper issue within the tech sector. AI is quickly replacing jobs that require low-level skills, yet the development and advancement of AI are creating demand for high-level skills. This means that tech professionals must upgrade their skills to match the current industry needs. Instead of viewing AI as a threat, it allows professionals to improve their existing qualifications.
Talent Management in the Tech Industry
It is necessary to examine what talent management is in general and what it means in the context of the tech industry so we can explore the potential of AI in the field. Talent management is not the same as hiring the right person for the right job. It is a science that involves the selection, recruitment, onboarding, training, and motivation of employees.Learn how Senegal Software can improve your talent management processes This implies that talent management is a long-term process that attempts to align the employees’ goals and objectives with those of the business.
Talent management is a dynamic process that is designed to respond to changing market trends and allow the business to remain competitive. What makes the tech sector unique is the speed with which changes occur. Talent management in the tech industry has to be fast and flexible to keep up.
In this regard, AI provides a great opportunity for assisting with talent management. AI can revolutionize the way people are recruited, retained, and trained. It is one of the ways in which incorporating AI can result in a net positive for all stakeholders. AI is already being used extensively in various fields, including talent management.
Applications of AI in Talent Management
Here are some ways in which AI is transforming talent management in the tech industry:
- Automatic Identification of Vacancies
AI can be trained and programmed to identify potential vacancies in advance to save time and effort when recruiting new talent. Identifying a skills gap is not straightforward since it involves predicting well in advance a situation that hasn’t occurred.
Designing algorithms to predict future skills needs is indispensable for tech companies seeking to remain competitive. Businesses operating in such a dynamic industry must use such techniques to remain relevant and profitable.
- Resume Screening
Going through hundreds, if not thousands, of resumes is a time-consuming process. With the right algorithm, AI can short-list the most suitable candidates in a matter of seconds. Employers can customize candidate requirements so AI can select according to their particular requirements. Certain keywords can be added or removed.
AI can even be taught to make more diverse and inclusive choices. It removes human error and any kind of bias that may arise due to individual preferences that have nothing to do with a candidate’s qualifications.
- AI Chabot for Employee Assistance
Talent management doesn’t just stop with recruitment. Employee onboarding and continuous assistance are essential for a smooth transition into the role. It works like a customer service representative but for employees. It is a convenient way for employees to seek help without the stigma of judgment or fear of repercussions. The chatbot can always include an option for human assistance if the employee desires.
- Data Analysis and Evaluation of Employee Sentiment
To study employee motivation levels and satisfaction with the company, AI can collect large amounts of data and determine how well-adjusted each employee is. While humans can do the same, it is tedious and repetitive. It is better to outsource such low-skill jobs to AI.
AI can present the results in a visual format, using graphs and charts, with the addition of a documentary analysis. These can help gauge how employees are doing and judge the overall corporate sentiment prevailing at any moment in time.
- Identification of Training Needs
Employees need training and skills upgradation regularly, especially in the tech sector. AI can examine each employee in the company and identify possible training needs. Training requirements will be recommended based on a variety of factors, such as the existing qualifications of the employee, their designation in the company, their career trajectory, and the skills of workers in similar positions in competing firms.
While employees may be qualified when they are first hired, their skills may become obsolete or redundant if consistent improvements are not made. AI software can not only suggest training but also schedule them. this takes a lot of load off employees and their managers as skill upgradation is taking place automatically.
- Employee Performance Overview
Performance review is integral because it is not just an assessment of each employee in the company but also an evaluation of the effectiveness of strategic talent management. The contribution of every employee needs to be measured and compared to their colleagues as well as the employees themselves over time. This cross-sectional and time series analysis of performance can provide a complete picture of how well an employee is doing and whether they have improved or not.
Performance review is the basis on which bonuses, contract renewals, and other benefits are decided. Furthermore, a negative appraisal could signal a need for a reprimand. Much like sentiment review, performance review involves statistical analysis which AI can complete much more efficiently than humans.
Using AI to Shape the Future
Currently, the sentiment around AI is not a positive one. The potential benefits of AI are apparent to everyone, however, several concerns need addressing. The issue surrounding the limit of AI capabilities is genuine because recent developments have presented shocking results. It is becoming harder and harder to differentiate between humans and AI as the latter is evolving rapidly.
Another concern has to do with AI replacing humans in the workforce. This is a valid concern, yet with less dire consequences than the previous issue. While AI can and will replace humans in many ways most of these will be tedious, low-skilled jobs.
The need of the hour is to embrace AI and use it the way it was intended to be as a tool for the further development of the human race. People can always be taught new skills as the possibility of learning is ever present. So, instead of viewing AI as competition, we must incorporate it seamlessly into our lives. At the same time, people need to identify and develop skills that AI technologies are not capable of doing and specialize in those.