Weekly Business Insights from Top Ten Business Magazines | Week 313 | Leading & Managing Section | 1

Extractive summaries and key takeaways from the articles curated from TOP TEN BUSINESS MAGAZINES to promote informed business decision-making | Since September 2017 | Week 313 | September 8-14, 2023

Reskilling in the Age of AI

By Jorge Tamayo et al., | Harvard Business Review Magazine | September–October 2023 Issue

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Back in 2019 the Organisation for Economic Co-operation and Development made a bold forecast. Within 15 to 20 years, it predicted, new automation technologies were likely to eliminate 14% of the world’s jobs and radically transform another 32%. Those were sobering numbers, involving more than 1 billion people globally—and they didn’t even factor in ChatGPT and the new wave of generative AI that has recently taken the market by storm.  If the OECD estimates are correct, in the coming decades millions of workers may need to be entirely reskilled—a fundamental and profoundly complex societal challenge that will require workers not only to acquire new skills but to use them to change occupations.

Now that the need for a reskilling revolution is apparent, what must companies do to make it happen?  Based on their research the authors have become aware of five paradigm shifts that are emerging in reskilling—shifts that companies will need to understand and embrace if they hope to succeed in adapting dynamically to the rapidly evolving era of automation and AI.

1. Reskilling Is a Strategic Imperative.  Most of the companies have moved beyond a narrow approach to reskilling and now recognize reskilling as a strategic imperative. Effective reskilling initiatives are critical, because they allow companies to build competitive advantage quickly by developing talent that is not readily available in the market and filling skills gaps that are instrumental to achieving their strategic objectives—before and better than their competitors do.
2. Reskilling Is the Responsibility of Every Leader and Manager.  Reskilling investments need a profound commitment from HR leaders, of course, but unless the rest of the organization understands the strategic relevance of those investments, it’s very hard to obtain the relentless and distributed effort that such initiatives require to succeed.
3. Reskilling Is a Change-Management Initiative.  To design and implement ambitious reskilling programs, companies must do a lot more than just train employees: They must create an organizational context conducive to success. To do that they need to ensure the right mindset and behaviors among employees and managers alike. From this perspective, reskilling is akin to a change-management initiative, because it requires a focus on many different tasks simultaneously.
4. Employees Want to Reskill—When It Makes Sense.  Many of the companies mentioned that one of their biggest challenges was simply persuading employees to embark on reskilling programs. That’s understandable: Reskilling requires a lot of effort and can set a major life change in motion, and the outcome isn’t guaranteed.  So how can organizations do that? Several suggestions are: treat employees as partners, design programs from the employee point of view, and dedicate adequate time and attention to the task.
5. Reskilling Takes a Village.  Reskilling takes place in an ecosystem in which a number of actors have roles to play. The organizations can consider industry partnerships, partner with nonprofits to reach diverse talent, and partner with local colleges and training providers.

3 key takeaways from the article

1. Back in 2019 the OECD made a bold forecast. Within 15 to 20 years, it predicted, new automation technologies were likely to eliminate 14% of the world’s jobs and radically transform another 32%. Those were sobering numbers, involving more than 1 billion people globally—and they didn’t even factor in ChatGPT and the new wave of generative AI that has recently taken the market by storm.
2. If the OECD estimates are correct, in the coming decades millions of workers may need to be entirely reskilled—a fundamental and profoundly complex societal challenge that will require workers not only to acquire new skills but to use them to change occupations.
3. Five paradigm shifts that are emerging in reskilling that organizations should consider.  These are: Reskilling Is a Strategic Imperative, Reskilling Is the Responsibility of Every Leader and Manager, Reskilling Is a Change-Management Initiative, Employees Want to Reskill—When It Makes Sense, and Reskilling Takes a Village.

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Topics: Employment, Technology, Reskilling