According to the KPMG report, CEOs see “talent risk” as the top threat. Losing key employees and finding specialized talent greatly affect future business performance. AI-driven talent management software provides managers with predictive analytics. As a result, they are able to see problems before they affect the business.
Without AI, companies will find it challenging to retain talent, but those embracing AI now gain a substantial competitive edge. For instance, IBM’s AI accurately forecasts 95% of potential job quitters, saving the company nearly $300 million in retention costs, as stated by IBM CEO Ginni Rometty.
Using AI for internal mobility as a business advantage
For many organizations, losing skilled employees is the second most costly expense. Studies indicate that replacing a valuable employee can cost up to 150% of their annual salary and benefits package, as reported by Forbes.
In recent years, well-known and successful companies such as Unilever, Hilton, and IBM have been using Artificial Intelligence to enhance internal talent mobility. Thanks to that, companies not only cut expenses for searching for new employees but also open and leverage the hidden expertise within their organizations. Top-performing employees are keen on trying new things, learning new skills, and collaborating with different leaders.
Today, people tend to focus more on skills than on traditional career paths. That’s why internal mobility has become more and more popular among proactive companies. Therefore, companies require systems that can regularly assess employees’ skills (skills assessment), match them with suitable positions (skills matching), and help individuals develop new skills for the future (reskilling & upskilling).
AI-Powered Skills Assessment
According to the research, 96% of employees want regular feedback, and 72% believe their performance would improve with corrective feedback.
Skills assessment and performance feedback are common in organizations. It enables each employee to see their growth points. However, 69% of companies still use annual or bi-annual performance reviews, which may not fully capture an employee’s potential. Meanwhile, 94% of employees prefer managers to address mistakes and improvement opportunities in real time.
A good manager needs to know what skills their team members have. With AI tools, managers can see the skillsets in the company, including how skilled each person is. Managers could also provide feedback when needed and match the right person to the right job.
Imagine having a pool of talent. As the next step, you need to determine which employee has the highest level of skills required by the position. A dashboard like this would be really useful, wouldn’t it? With AI, a manager can get a list of candidates ranked based on their strengths in the skills the company needs.
AI-Powered Skills Matching
According to Jobvite’s Recruiter Nation Survey, 67% of recruiters struggle to find skilled and high-quality candidates to meet their business needs.
Every job requires specific skills. With skills assessment, AI can predict who has the potential needed. That reduces turnover. Instead of leaving for new challenges, employees find them internally because their company recognizes their potential value. It’s about who is able to do the job, not just who has done it before.
AI-powered tools match employees with internal career opportunities based on their skills and help managers quickly transition talent by identifying suitable matches through AI-driven skills matching.
For instance, when looking for a Business Systems Analyst, a manager can easily see how many candidates match the job requirements based on their skills, how well the skills match, and any skill gaps an applicant may have – all within a single interface.
Employees can apply for open positions if their skills match the job requirements. Personal profiles enable employees to match their skills not only to internal job openings but also to cross-functional projects and gigs. The AI algorithm identifies potential successors for any role. Employees can see the positions they’re a good fit for. After understanding why, they get the confidence to apply for those jobs.
Alternatively, with the help of AI, candidates can upload their resume and instantly find relevant jobs based on their skills, experience, and interests. They can apply with just one click.
Improving Skills with AI
According to McKinsey Global, 9 out of 10 executives currently observe or anticipate skill gaps in their workforce within the next five years, yet less than 50% knew how to address the issue.
Employees frequently leave their jobs because they struggle to see opportunities for growth within their organization, finding it easier to advance by switching employers. AI-powered platforms now enable employees to upskill and reskill within their company. Now, employees can easily identify suitable roles within the organization and understand the clear path to reach them.
Reskilling & upskilling rely on AI to inform talent executives. They assess workforce skills against the strategy, identifying gaps for emerging areas. Companies respond by recruiting appropriate employees.
Software developers, prioritizing employee reskilling and upskilling, employ AI algorithms to craft tailored training programs.
Employees have profiles that act as gateways to their career advancement. Within the employee’s profile, you can observe the reskilling process. For instance, consider an employee transitioning from a Senior Data Scientist to a Senior Machine Learning Engineer. The required skills for this shift are outlined in the timeline. Once all the necessary skills for the new position are mastered, the employee will be recommended as a strong match for any currently available positions.
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You can set up automatic actions based on skill levels. For instance, if a learner scores above 85% in competency, the rule unlocks the next training module. Conversely, if a learner remains at a 30% competency level for over 7 days, the rule sends them an alert with suggestions on how to enhance their skills in that particular area.
In summary, AI boosts internal career mobility, giving leaders an edge over those using outdated L&D methods. It helps the organization grow and adapt better.
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