Talent Edge Weekly - Best of May Issue # 179

Covers 17 of the most popular resources from the May issues of Talent Edge Weekly. Topics range from AI in the workplace, insights on skills, various talent practices, and more.

Author

Brian Heger
May 31, 2023

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Welcome to Talent Edge Weekly!

In this special "Best of May" edition, I have curated 17 of the most popular articles and reports from the May issues of Talent Edge Weekly.

These resources are divided into three categories:

  1. AI in the Workplace. This section covers Microsoft's report on AI in the workplace, The Conference Board's 35 questions for CHROs regarding generative AI, 10 use cases for AI in HR, and a playlist of resources to guide AI implementation.

  2. Skills. Here, you'll find in-depth reports by the World Economic Forum and LinkedIn Economic Graph discussing the factors that enable skill-based organizations and how jobs and skills will evolve over the next five years.

  3. Talent Trends and Practices. This category covers a range of topics, including talent risks, effective utilization of workforce data, succession planning, new approaches to career development, HR operating models, diversity, equity, and inclusion, organizing work beyond traditional job roles, workforce ecosystems, and a trial study on the feasibility of a 4-day workweek.

Additionally, I have included the 2023 Job Cuts and Layoff Tracker and the Chief HR Officer Hire of the Month.

I hope you enjoy this collection of ideas and practices, and I look forward to sharing more valuable resources with you throughout June!

If you are not subscribed to Talent Edge Weekly and want to receive this FREE newsletter every Sunday, 6 PM EST, enter your email below.

Brian 

Brian Heger is an internal human resources practitioner with a Fortune 150 organization and has responsibilities for Strategic Talent and Workforce Planning. You can connect with Brian on Linkedin, Twitter, and brianheger.com

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THIS MONTH’S EDGE

I. AI IN THE WORKPLACE

Covers Microsoft’s report on AI in the workplace, The Conference Board’s 35 questions CHROs should ask about generative AI, 10 use cases for AI in HR, and a playlist of resources for guiding AI implementation.

AI in the workplace is one of the most prominent and highly discussed topics in organizations today. To shed light on this topic, this newly released 29-page Microsoft Work Trend Report explores the opportunities and challenges associated with AI’s integration into the workplace. Based on a survey of 31,000 global workers, labor trends from the LinkedIn Economic Graph, and trillions of aggregated Microsoft 365 productivity signals, the findings point to three primary insights for business and HR leaders as they look to adopt AI quickly and responsibly. 1) Digital debt is detracting from innovation. The inflow of data, emails, meetings, and notifications has outpaced humans’ ability to process it all. Microsoft reports that 64 percent of employees need more time and energy to complete their work. Every minute spent managing this digital debt is time spent on something other than the creative work that leads to innovation. 2) There’s a new AI-employee alliance. While 49 percent of workers surveyed say they are worried that AI will replace their jobs, 70 percent are more eager for AI to help lessen their workload. 3) Every employee needs AI aptitude. For workers to reap the benefits of AI in boosting their productivity and alleviating their workload, they will need skills that help them integrate AI into their day-to-day work (e.g., Generative AI, how to write great prompts, etc.). Has your organization identified the skills its workforce will need to unlock the potential of AI and worker collaboration? Does it have a plan for developing and hiring for these skills? Other ideas are discussed.

Generative AI—a powerful branch of artificial intelligence that creates new content using trained data—continues to revolutionize the HR function and its impact on workers and the workplace. However, its implementation brings forth several risks that must be recognized and addressed to ensure responsible and ethical usage. This new paper presents 35 questions that Chief HR Officers and their teams can consider while helping to establish guidelines for utilizing generative AI in their organizations. Sample questions related to organizational adoption and policy include: a) Where and under what circumstances will generative AI be utilized within the organization? b) Do we possess the necessary expertise to harness this new technology? How quickly can we acquire the talent required through recruitment, training, or outsourcing? If such expertise is lacking, what changes should be implemented? c) How can we ensure human oversight of AI-generated content and decisions? Will managers have the authority to override suggestions generated by AI/generative AI? If so, who will be responsible for creating, communicating, and enforcing these guidelines? Regarding the implications for the HR function, sample questions include: a) What level of investment is necessary to adapt, upgrade, or replace current HR systems and infrastructure? b) What local, state, or federal laws exist that prohibit the utilization of “automated employment decision tools”? c) What impact do privacy and data exposure have on individual employees? The answers to these and other questions can help HR leaders and their teams critically evaluate the multi-faceted components of AI in the workplace—increasing the likelihood of tapping its potential while mitigating risks.

In a recent Twitter thread, I wrote about AI in HR, highlighting 10 use cases. To make these insights easily accessible, I’ve compiled the tweets into a PDF, which I wanted to share with you. In this PDF, you’ll find a brief statement of each use case, an associated risk, and a practical recommendation for mitigating that risk. Each tweet serves as a springboard for your own exploration, encouraging you to think through these areas and determine your next steps. To make this process easier for you, each use case page has an editable text box you can use to document your ideas. One example is Employee Onboarding. This use case entails automating administrative tasks and providing personalized training materials. However, a potential risk is that the lack of human interaction and support may lead to decreased employee engagement and connection. To address this risk, organizations can blend AI-driven onboarding with human touchpoints to ensure a well-rounded experience. Another example is Employee Engagement. With AI-powered chatbots and virtual assistants, real-time support for employees becomes possible. Yet, a potential risk lies in the lack of empathy and personalization in AI interactions. Incorporating natural language processing and sentiment analysis is one way to enable AI to offer empathetic responses to tackle this challenge. Other use cases relate to performance management, succession planning, and talent acquisition, to name a few. Remember, the purpose of the PDF is not to provide an exhaustive examination of all use cases of AI in HR. Instead, it aims to spark your thinking and ideas on how your organization might explore a few of these use cases.

Using artificial intelligence (AI) technology for various talent and HR practices—such as recruiting, employee engagement, and performance management—has the potential to revolutionize HR and various talent management practices. As HR leaders and their teams explore these technologies and their use cases, I have pulled together this one-page PDF with 5 resources. These resources address different considerations for AI-based tools in HR, such as: 1) promoting the responsible use of AI technologies in HR, 2) understanding how AI works and derives its predictions and inferences—a process known as “explainable AI,” 3) risk-mitigation strategies for overcoming common challenges of implementing AI tools in talent management, and 4) different uses cases for AI in HR. The PDF includes links to the source articles and reports and briefly summarizes the contents. For example, the 36-page paper by the Society of Industrial and Organizational Psychology (SIOP) presents recommendations for validating and using AI-based assessments for employee selection. It provides guidance—backed by scientific research — on how AI-based assessments can be used effectively and legally in employee selection contexts. The 59-page toolkit by The World Economic Forum includes editable checklists and questionnaires to guide the evaluation and implementation of HR-based AI platforms, such as questions to ask vendors when evaluating their AI tools. Each resource can help educate purchasers of these platforms on the various components of AI—increasing the likelihood of selecting the right technologies for their organizations while mitigating risks.

II. SKILLS

Covers in-depth reports by the World Economic Forum and LinkedIn Economic Graph on enablers of skill-based organizations and how jobs and skills will evolve over the next 5 years.

This new 30-page paper presents a framework for implementing a skills-first approach within an organization. A “skills-first” approach focuses on an individual’s skills and competencies rather than their degrees, job histories, or job titles when it comes to attracting, hiring, developing, and redeploying talent. The framework comprises two main areas: 1) Key enablers: These are tools and innovations that facilitate the adoption of skills-first practices more efficiently. Examples include fostering a skills-first culture, implementing related policies and mindsets, and adopting a common skills language. 2) Key actions: These are practical, evidence-informed steps to implement skills-first practices. This section is supported by case studies from Unilever (e.g., creating the foundations for establishing a successful skills-first culture), HSBC (e.g., mapping skills to work tasks using a new skills hub), and Siemens (e.g., linking organizational skills mapping to personalized learning opportunities), among others. One finding shows that it typically takes 24 to 36 months to achieve stakeholder buy-in, make necessary investments, and secure technology partners for a skills-first culture to take hold. However, focusing on the enablers can expedite this process. The insights also suggest that regardless of the skills taxonomy chosen by an organization, there are three essential qualities of a skills taxonomy: 1) dynamism (reflecting the rapidly changing labor market), 2) customizability (tailored to specific industries), and 3) granularity (providing detailed exploration of specific skills and skill adjacencies). Other ideas are discussed.

This newly released report explores how jobs and skills will evolve over the next five years. While there are too many insights to summarize from this massive 296-page report, three insights include: 1) Employers project that 83 million jobs will be lost and that 69 million jobs are projected to be created, constituting a structural labor-market churn of 152 million jobs, or 23% of the 673 million employees in the data set being studied. 2) Employers estimate that 44% of workers’ skills will be disrupted in the next five years. Cognitive skills are reported to be growing in importance most quickly, reflecting the increasing importance of complex problem-solving in the workplace. 3) The skills companies report to be increasing in importance the fastest are not always reflected in corporate upskilling strategies—suggesting that learning and development strategies may not always focus on developing the right skills. These and other insights in the report raise questions for organizations to consider and answer, such as: Do we know which jobs and skills in our organization are more likely to go away? Which jobs and skills are emerging? Do we understand the skills that are workforce possesses? How do the current skills of our workforce compare with the skills we need over the next few years? How will we redeploy workers as work needs change? How will our workforce planning, talent acquisition, learning, contingent workforce, etc. strategies need to change? Other ideas are discussed.

I made a recent post on LinkedIn asking for questions that my network has about skills-based talent practices. I provided some starter questions and answers to get them thinking: 1) Which areas are organizations starting with when introducing skills-based talent practices? (A) Many begin with practices that have the most evident connection to skills, such as skills-based development and hiring. (Deloitte). 2) What is the most common way organizations document and validate workers' skills? (A) Many continue to rely on workers self-reporting their skills and proficiency levels, as compared to more valid ways of confirming skills. (Deloitte). 3) Do firms include a proficiency rating (e.g., beginner, expert) when assessing workers' skills? (A) The majority of survey respondents (78%) with a skills taxonomy have a defined proficiency rating scale for skills (Mercer). A few of the many questions that came back so far include: Brian Hackett asked: What is the business reason for having a skills-based approach? How do you understand the AI black box of skills vendors? Megan Bickle raised the question: How can you connect skills-based strategies to performance management? Naomi Titleman asked: How do you determine pay practices (and pay equity) in skills-based models? Another question by Carolina Noriega is: If there is no skills catalog defined in an organization that is embarking in this journey, what is the starting point? How skills should be selected? As I continue to compile these questions and provide answers, I encourage you to raise your other questions in the LinkedIn post. Meanwhile, I am sharing this 40-page LinkedIn report that addresses various aspects of skills. Page 29 starts a section on recommendations for accelerating the shift to skills-first hiring.

III. TALENT TRENDS AND PRACTICES

This section covers a range of topics, including talent risks, effective utilization of workforce data, succession planning, new approaches to career development, HR operating models, DEI, organizing work beyond traditional job roles, workforce ecosystems, and a trial study on the feasibility of a 4-day workweek.

This latest LinkedIn global talent trends report explores labor-market trends and their implications for candidates, employees, and the workplace. The trends are organized into four areas: 1) Hiring, 2) Internal Mobility, 3) Employee Values, and 4) Employee Growth. One finding is that while hiring has slowed down in many organizations, internal mobility is trending upward across 16 of 19 global industries (via promotions and internal role transfers). People leaders are benefiting the most from internal mobility as they are twice as likely to move internally as individual contributors. Generation X also experiences the highest internal mobility rate, followed by Millennials and Generation Z. Baby Boomers are the least likely to move internally. Despite the overall uptick in internal mobility, many employees prioritize external job opportunities over internal moves. Among the possible reasons employees are less inclined to consider an internal move as a career option are: a) external job openings are often easier to find, b) external jobs often provide bigger pay increases, c) employees can often get discouraged by cumbersome internal-hiring processes, and d) it can be hard for employees to show that they have transferable skills to other internal opportunities. As organizations find ways to overcome these and other barriers to internal mobility, I am resharing this post, where I curated 9 articles on different aspects of internal mobility—from developing an internal talent marketplace to policies and practices that detract from internal mobility.

This new 70-page report provides an in-depth view of how the data an organization collects about its workforce can help generate shared value for individual workers, teams and groups, the organization, and society. For each of the four segments, the report provides multiple use cases of workforce data collected, their purpose, and their impact. For example, page 11 begins a section on the individual with examples such as: Enhance performance feedback. When gathering performance feedback, mine employee work application data to identify the coworkers an employee interacts with most frequently, who can provide the most relevant feedback. Spot hidden high-potentials. Use organization network analysis to spot influencers with natural leadership skills and outsized impact. Create opportunities for growth and movement. Use data on transferable or adjacent skills, interests, and worker activity to suggest which skills employees can develop to be more marketable and employable as organizations evolve. Also, use this data to match them to new opportunities, projects, learning, or roles. Capture informal learning and measure impact of learning. Mine work application data to track informal learning from social discussions, metaverse interactions, videos watched, articles read, use of performance support tools, and calls with mentors. Track behavior change to determine the impact of learning. Several other examples are provided that can help HR leaders and their teams think through various use cases of workforce data.

HR leaders continue to build their organizations’ capability in detecting and acting on various talent and workforce-related risks. As leaders take a more expansive view of the different risks that can pose threats to their organizations, they can use this template to think through 10 talent-workforce risks. For each of the 10 risks in column 1 (e.g., Misalignment of talent with business strategy: talent strategy does not fully align with the company’s strategic objectives and business strategy; Talent shortage: difficulty in finding and attracting skilled workers with the necessary qualifications and experience), put a checkmark in column 2 if you believe this is a critical risk for your organization. Clicking the box will automatically insert a check mark. Use column 3 to insert notes for high-risk areas. While this template does not include all talent and workforce risks, it will help you think through many of them that may require attention for your organization. I have also included a blank template if you want to add other talent and workforce risks beyond the 10 already listed. It is important to note that this post is not about "filling out templates." It's about integrating these considerations into your organization's talent management so you can convert risks into opportunities. The template is a tool to help. As bonus references, I am resharing two resources to help you think through various types of talent and workforce risks: 1) Deloitte’s article, Elevating the Focus on Human Risk—which is part of the 2023 Deloitte Human Capital Report and 2) MercerMarsh Benefits report, People Risk: Resetting Priorities to Manage Risks for Workforce and Business Resilience.

Succession planning has long been a top priority for many organizations. Still, we are often reminded how executives can fall short of performance expectations within 12-18 months of taking on a new role. One report by DDI, Leadership Transitions Report 2021, shows that nearly half of externally hired executives fail in their roles; the numbers are only slightly better (35%) for internally promoted executives. And while developing and retaining the best successors has always been hard to do, it has become increasingly challenging for organizations to implement in rapidly changing environments faced with disruption. This new Gartner article provides ideas for building robust leadership pipelines amid disruption and continuous change. One case study involves Bridgestone, which uses two strategies for implementing adaptable approaches to succession planning. 1) Before discussing who should fill a critical role, Bridgestone’s HR and business leaders analyze the role and consider making changes based on current and future business needs. They ask questions such as, “If the person in this critical role leaves, would we keep this role?” and, “Knowing our strategy and future goals, do we need this role as it looks today?” If a change is needed, Bridgestone’s leaders eliminate the role, split it up based on potential successors’ current capabilities, or redesign it based on strategic goals. 2) Bridgestone also creates pools of potential successors for roles duplicated across multiple business units (e.g., multiple business units may have a vice president of finance.) These cross-business talent pools increase the number of available successors for a given role, which makes it easier to fill critical roles if someone leaves suddenly. As a bonus, I am resharing this one-page template I created that has 10 succession metrics. This reference can be used as a starting point for determining the vital few metrics an organization will use to measure its succession effectiveness.

Career development is a critical component of an organization’s employee value proposition. This fact is one reason HR leaders and their teams continue to reimagine ways to help workers develop their careers. But as noted in this new Gartner article, only 39% of surveyed respondents said they are interested in internal opportunities despite their organizations’ efforts to provide them. While this sentiment has various reasons (see Figure 1: Why Employees Are Interested in External Roles), many employees feel they must search externally to gain new experiences. This article shares tactics for creating new sources of experiences and development in an organization. One example is Texas Dow Employees Credit Union (TDECU), which uses “career experiments,” in which employees try different career options without the formality of applying for a new role. TDECU does this by breaking roles/jobs into tasks that employees from different business areas can perform. TDECU prioritizes high-level tasks that overlap between roles, meaning employees in high-supply roles will already be proficient or can quickly upskill. Once these tasks are identified, TDECU uses temporary mobility to shift the overlapping tasks from an established employee, who is already working in a high-demand role, to a “transferred” employee, who will temporarily own some of that role’s responsibilities. This tactic also provides a trial period for the transferred employee to work in other parts of the business, which enables development. As a bonus, here is a one-page template I created that can help you think through which roles might be broken down into tasks and serve as the basis for this form of career development.

Organizations increasingly rely on external contributors—such as those performing gig, contract, or freelance work—to help meet their talent needs. However, firms often struggle to integrate external contributors into their workforce—resulting in fragmented and uncoordinated work efforts across internal employees and external contributors. This new article offers a framework to help leaders adopt a more integrated approach to managing their workforce of internal and external contributors as a workforce ecosystem. It provides a four-component framework for enabling this ecosystem through (1) management practices, (2) technology enablers, (3) integration architectures, and (4) leadership approaches. For example, regarding technology enablers, organizations can identify and implement appropriate technological tools and platforms that facilitate seamless collaboration, communication, and coordination among internal and external contributors. For integration architectures, firms can establish systems and processes that enable smoother integration of internal and external contributors, such as developing clear communication channels, shared knowledge repositories, and standardized workflows that ensure seamless collaboration and information sharing. Other ideas are discussed, including ways to foster greater collaboration between procurement, IT, marketing, business units, and HR in enabling this ecosystem approach. To supplement this article, I am resharing the Workforce Ecosystems and AI report by The Brookings Institution, which explores the intersection of workforce ecosystems and AI.

As HR leaders continue to reevaluate and evolve their HR operating models to deliver new forms of value, this one-page playlist includes five articles and resources to consider. The link in the first column will take you directly to the full resource. The second column summarizes the article’s focus. For example, Dave Ulrich and his colleagues in the RBL Group share various factors that can influence HR operating model decisions, such as the stakeholders the HR organization serves and the 10 factors that enable HR to deliver value to stakeholders. Marc Effron of The Talent Strategy Group provides five questions that help inform the answers to HR operating model decisions. Sample questions include: What do we do, and why do we do it? What are our guiding principles to operationalize HR? How will we know if we’re successfully executing the HR Operating Model? Josh Bersin addresses how the HR function needs to be organized as an integrated operating system that focuses on “problems to be solved” rather than a set of “services” or “offerings” or “programs.” This HR operating system needs to be enabled by “full stack” HR professionals who are deep in one domain but also have wide expertise in the other domains of HR. And Gartner offers ideas on shifting operational HR activities to a Shared Services organization, while McKinsey provides insights on five HR operating models and how they align with eight different innovation shifts an organization may experience. These resources can help HR leaders identify opportunities for strengthening their HR operating model and unlocking value for organizational stakeholders.

Employee well-being is a top priority for many organizations. At the same time, firms seek to increase productivity and attract and retain talent. As organizations consider various tactics to achieve these goals, one strategy a segment of firms is considering is a 4-day workweek. The 4-day work week is an alternative work schedule in which employees work a standard full-time workload (typically 40 hours) over four days instead of the traditional five days while maintaining their usual salary and benefits. And according to a recent study by a team of social scientists from the University of Cambridge, working with academics from Boston College, findings suggest potential benefits to a 4-day work week. Research involving 61 UK organizations over 6 months starting in June 2022 found that a 20 percent reduction in working time with no loss of pay led to significant drops in workforce stress and sick days, an increase in worker retention, and a much better work-life balance for most employees—all while ‘key business metrics’ were met. While the findings suggest potential benefits of a 4-day work week, it’s important to note that implementation may not be suitable for all industries, organizations, and company cultures. Factors such as customer demands, operational requirements, and job roles need to be considered before adopting this work model. Nonetheless, this research provides one empirical study from which organizations can draw when evaluating this alternative work arrangement.

As many organizations face talent and budget constraints, they are finding opportunities to deliver effective talent solutions in more adaptive, iterative, and creative ways. One approach organizations continue to experiment with is organizing work beyond jobs—where tasks are decoupled from jobs and used as the basis for resourcing talent needs. This approach of deconstructing jobs into tasks has been covered heavily by John Boudreau and Ravin Jesuthasan in their book Work Without Jobs: How to Reboot Your Organization’s Work Operating System. This new Gartner article provides insights into how work can be organized by tasks and then resourced through talent solutions that go beyond build/buy tactics. As shown in Figure 1, resourcing solutions organizations engage in when taking a "task" approach fall on a spectrum, ranging from less disruptive (a good strategy is to group a set of tasks into a new role) to more disruptive (list all internal work in task form for employees to choose work). The article provides examples from a few companies on how they are using tasks to determine resourcing solutions, including automation and AI. White Castle, for example, has been experimenting with using robots to flip burgers in its restaurants. The intention is to alleviate some of the pressure on employees and allow them more time to focus on customers. By automating this routine, monotonous task, White Castle can create a less stressful, more engaging experience for its frontline workforce. As a bonus, I am resharing this additional article by Gartner that provides four steps to break down roles into a group of tasks and then analyze those tasks to determine the best workforce strategies.

As many organizations continue to prioritize diversity, equity, and inclusion, this one-page playlist includes five articles and resources to consider. The link in the first column will take you directly to the complete resource. The second column summarizes the article's focus. For example, the Josh Bersin Company's 52-page report analyzes over 80 DEI practices and how they correlate with various outcomes. Another 61-page report by The World Economic Forum identifies five success factors common across DEI efforts and shares examples of how companies implement these practices across their organization. A Harvard Business Review article by Lee Jourdan explores DEI progress through the lens of meritocracy—where decisions about promotions, salaries, and other rewards are based on objective criteria. It uses seven key metrics—spanning the entire employee life cycle—to be most helpful in assessing progress towards a true meritocracy. The Boston Consulting Group provides ideas on how firms can significantly improve feelings of inclusion for People with Disabilities (PwD), while McKinsey explores ideas for Chief Diversity Officers and how they can be effective in their role. Which ideas will you pursue for the remainder of this year as part of your organization’s DEI strategy?

JOB CUTS AND LAYOFFS TRACKER

Here you can see the latest updates from a segment of organizations that have announced job cuts and layoffs since the start of 2023. Recruiters, search firms, and hiring managers can use this resource to identify opportunities for recruiting talent from organizations affected by layoffs.

A few firms that announced job cuts in May include Cognizant, Hudson’s Bay, and Oracle. Click the table below to see all organizations.

CHIEF HR OFFICER HIRE OF MAY

As part of CHROs on the Go — a digital platform subscription that provides the easiest, fastest, and most convenient way to stay informed about hires, promotions, and resignations in the Chief Human Resources Officer role— 97 new CHRO announcements have been posted on the platform in May.

The CHRO Hire of May is:

  • ​Movado Group, Inc. (PARAMUS, NEW JERSEY) [NYSE: MOV]—the designer and distributor of watches and jewelry— announced the appointment of Michelle Kennedy to SVP, Human Resources. Most recently, Ms. Kennedy served as Williams-Sonoma’s SVP of HR with a focus on Talent Organizational Development, Internal communications and retail operations and was with the company for 12 years. READ MORE

Do you want to join others getting the EDGE each week in knowing which CHROs are being hired, promoted, and resigning? If so:

Currently, there are +2300 CHROs announcements on CHROs on the Go, with an average of 20-25 new announcements added each week!

If you are already a member of CHROs on the Go, you can log in to access all announcements and site functionality.

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