Amid talent shortages, leaders turn to skills-based strategies to boost productivity in the age of AI.
Workday, Inc., the AI platform for managing people and money released The Global State of Skills, revealing a pressing challenge for businesses in Singapore: 43% of Singapore business leaders are worried about future talent shortages and only 30% are confident their organisation has the skills needed for long-term success.
As Artificial Intelligence (AI) transforms industries, the skills required to thrive in the workforce are evolving fast. However, many organisations lack visibility into the existing capabilities of their people – less than half of Singapore leaders (46%) say they have a clear view of the skills within their workforce today.
This growing uncertainty is exposing the limitations of traditional talent management approaches that focus on job titles, degrees and previous companies worked for. Instead, organisations are now accelerating the shift to skills-based talent strategies, prioritising an individual’s capabilities over traditional credentials. This approach enables more agile, data-driven hiring, development and deployment of talent.
AI Boosts Shift to Skills-Based Talent Management
AI is both a catalyst for and an enabler of this shift. While the rise of AI is transforming jobs, it is also helping Singapore organisations build more agile, skills-driven workforces. 52% of Singapore leaders report that streamlining repetitive tasks is the main benefit of using AI as part of a skills-based hiring strategy.
“We are in the age of AI, where the rules of employee engagement and the skills required to succeed are completely different,” said Fabio Tiviti, Group Vice President, APAC & Japan Field Operations, Workday. “That said, the human element has never been more essential. Organisations in Singapore will need to fully embrace a skills-first mindset to address the talent shortage challenges in today’s workforce. This will allow organisations to truly unlock the full potential of AI and ensure the workforce is well-equipped to tackle the challenges of tomorrow.”
Technology Alone Will Not Help Boost Skills-based Strategies
Despite the momentum behind skills-based strategies, 52% of business leaders in Singapore cite the time needed to reskill employees as the main challenge to transitioning to a skills-based organisation. This is followed by resistance to change in the organisation, as reported by 49% of respondents.
The research shows that technology alone isn’t the solution. Overcoming these challenges requires a shift in mindset – one that includes clear communication of the benefits (according to 58% of respondents) and effective change management (according to 46% of respondents) to drive adoption across organisations.
