The role of AI in the context of the skills shortage
At the heart of HR challenges today are demographic shifts and the dynamic work demands of Generation Z, which are exacerbating the shortage of skilled workers in many industries.
At the same time, digitalization and AI are revolutionizing the world of work, posing unprecedented challenges for traditional professions. A two-pronged strategy is required in order to position yourself as a future-proof employer.
Unemployment rates in the DACH region are still on a long-term downward trend, with a brief interruption due to the COVID measures.
Since 2015, they have fallen from 7.1% to 6.1% in Germany, from 9.1% to 6.4% in Austria and from 3.2% to 2.4% in Switzerland.
The rampant shortage of skilled workers, particularly in STEM professions, healthcare and skilled trades, is turning into a general labor shortage in some sectors and regions.
The “Great Resignation” intensifies the battle for talent
The gaps that will arise in the future with the retirement wave of the boomer generation (“labor market gap”) cannot be closed by young talent and qualified immigration.
The younger Generation Z workforce and the up-and-coming Generation Alpha also have significantly different expectations in terms of leadership, development, collaboration, work equipment and work-life balance.
These influences will significantly intensify the battle for talent for years to come.
According to the German Federal Employment Agency, vacancies remain unfilled for an average of 143 days with a fluctuation rate of around 33%.
The consequences: Loss of production, loss of knowledge, high recruitment costs, wage erosion.
More than ever, an integrated HR strategy with a focus on attracting and retaining qualified and motivated young talent is becoming an imperative success factor to ensure the feasibility of strategic initiatives, innovations and projects and ultimately even the sustainable viability of a company.
Up or out: to survive in the market of the future, we must learn to use digitalization and AI to our advantage
The disruptive effects of automation, digitalization and artificial intelligence (AI) on the labour market will, in contrast to the above scenario, lead to a considerable number of employees being made redundant whose qualifications are not aligned with the future requirements of their work.
Back in 2013, a study by Oxford University predicted that almost half of the occupations in the USA and Europe were at high risk of disappearing due to automation.
So far, this has primarily affected repetitive activities such as cashiers, data typists and warehouse workers.
The rapid development of generative AI is now also affecting higher-skilled professions such as accountants, interpreters, lawyers and programmers.
A study by Goldman Sachs (2023) estimates that 2/3 of today’s professions are affected by automation through AI and that up to 1/4 of working hours can be replaced by generative AI.
So far, professions in the skilled trades and in personal service, support and advice – in short, where the “human factor” makes the decisive difference – have been relatively “safe” from AI.
“Our greatest strength in the digital era is our humanity.
It’s about using technology to connect us, not divide us.”
Translated to HR, this means:
A large proportion of your current employees’ skills will become obsolete in the next few years, as most activities will change fundamentally.
The focus is shifting massively from execution to control and ensuring good interpersonal contact.
If you don’t want to be “digitized away”, you need to acquire new skills quickly and keep them up to date.
Employers must invest in further training and make their offerings more flexible and modern.
The opportunity of digitalization and AI lies in a massive increase in productivity.
This is a decisive advantage in the competition between locations, especially in a high-wage environment.
The constant intensification of the working day due to 24/7 availability, acceleration and intensification of intellectual challenges must be taken into account.
Here, too, companies are called upon to support their employees in a suitable way in order to maintain their performance and motivation in the long term.
Conclusio
Today more than ever, companies are dependent on first-class HR.
A dual strategy is required.
A unique employer positioning, innovative HR marketing and successful generation management must ensure that qualified junior staff can continue to be recruited and integrated in a tight market.
At the same time, areas for action must be identified quickly and measures taken to retain talent within the company and to equip existing employees, who have made the company successful in the past, for the challenges of the future.
