Workforce Predictions: Are You Ahead or Behind?
The workforce is changing rapidly, and companies must adapt to keep up with the various shifts in order to recruit employees and avoid high turnover.By 2030, companies will no longer rely on employee résumés. These documents can become outdated quickly, and many of a worker’s abilities are “invisible” to managers, said Katie Hall, CEO, Claira, in a talk titled “Workforce Predictions: Are You Ahead or Behind?” at From Day One’s 2023 Houston conference. She pointed out that 44% of the U.S. population and 50% of the global population do not have a degree, and that “brick and mortar higher ed is also on the way out, potentially gone for good.” Employees who do not have undergraduate degrees might not have résumés, either.Focusing on an employee’s skills is therefore more valuable than focusing on their credentials. This shift in emphasis enables employers to find workers who can use software such as Python, speak Spanish, and more.Hall also predicts that, within the next seven years, human resource managers will no longer rely on job descriptions to announce various roles. Accessing an online global dataset of people and their skills will be the priority. A hiring manager could easily find someone in Nigeria “who can start working for you within the hour and being paid within the hour,” she said.How the workplace will evolve and look by 2030 remains a constant source of uncertainty for managers and employees. “I don’t think that much about the industrial system that we’re currently using will be in place,” said Hall. “I’ve gotten into a lot of debates about the future of work. But these are the trends that we’re seeing.”Throughout the world, companies need to know the competencies and skill sets that employees have. Hiring managers should have that information in a format that is digitally accessible.Katie Hall, the CEO of Claira led the thought leadership spotlight (photo by Cassandra Sajna for From Day One)If managers were able to access a competency database of “everything your people can do and update it in almost real time, you would be able to plug someone in on a manufacturing line when someone else is sick,” Hall said. “Or maybe there’s someone who knows Python who could help in the engineering department, but you didn't know that. Or maybe they’re a great communicator; they have good empathy because they were a waitress, waiter, or flight attendant.”Lacking a database of core competencies prevents companies from being able to hire internally or move current employees to different roles. “So, we say out with the old system,” Hall asserted.Machine learning can be an effective tool for employers, who can use it to register both the competencies they are seeking and the types of skills that current employees possess. Managers could then use this data to determine what types of skills they’ll need from employees in the next six months or longer, to plan for future hiring rounds, and to consider current employees for new roles. “If you put those two things together and package it as software-as-a-service (SaaS), which is what we tried to do, this system will start to work for you,” Hall said. The software can also help boost retention rates, helping companies save money.“When hiring is hard, you have to maximize the talent bench that you have right now,” she explained. “What you don’t know about people costs businesses a lot of money and a lot of wasted time.”Editor's note: From Day One thanks our partner, Claira, for sponsoring this thought leadership spotlight.Ellen Chang is a freelance journalist who is based in Houston and writes articles for U.S. News & World Report, TheStreet, Kiplinger’s and Bankrate. Her byline has appeared in national business publications, including USA Today, CBS News, Yahoo Finance and MSN Money.