Research shows that millennial business leaders are driving the development of AI-integrated skills-based strategies in response to concerns about future shortages of workers.
In a cross-generational study, The Global State of Skills, released by AI platform Workday. 60 percent of millennials (aged 28-43) expect a skills deficit within the next three to five years. While Gen X leaders aged 44-59 expressed similar concerns to millennials, they are more proactive.
92 percent of millennials leaders consider that skills-based talent is essential to economic growth. This compares to 76 percent for their Gen X counterparts.
There are differences between the generations in some areas. Gen X leaders tend to place more emphasis on operational and technical skills, such as project management and engineering. The millennial generation, on the other hand, places greater emphasis on leadership and communication.
As organisations try to manage the talent challenge and maintain agility in the face of ongoing technological changes, they are moving towards models based on skills. Both age groups recognize the potential of AI in identifying and forecasting future skills requirements.
Social and economic goals can be achieved by implementing skills strategies
The research shows that, beyond business performance and societal challenges, millennial leaders see skills-based approach as a way to address them. Among the millennial respondents, 89% believe that such strategies could help to close productivity gaps and equalise employment opportunities. Another 82 percent stated that it could help diversity and inclusion initiatives, and 74 percent claimed it could reduce unemployment. Gen X leaders also held similar views, but to a lesser degree.
Some millennial leaders have expressed concerns over the execution of AI, despite a general optimism. 34 percent of Gen X executives said that their organizations lacked clarity about how AI could be used to solve talent challenges. The results suggest that, while the appetite for AI remains strong, implementation is still a concern.
Generational leadership and workforce transformation
These findings reveal that many business leaders are convinced their organizations have already begun to move towards a skills-based workforce model. Ninety two percent of millennials and 86 per cent of Gen X said that their organizations were making a successful transition. Millennials and Gen X leaders alike support hiring practices based more on skills profiles than credentials alone.
Prasun Shah said that skills are no longer a conversation, but a strategic asset. Success in AI adoption is dependent on the ability of an organisation to reskill its workforce at scale, align their workforce strategies with their business goals, and design work that combines people and AI.
There are still generational differences when it comes to bringing about internal change. Change management is more important to millennial leaders than to older generations. Gen X leaders tend to be more focused on communicating business benefits and strategic objectives. This research shows that organisations must tailor their change strategies to different leadership demographics in order to maintain momentum and alignment.
Business leaders from all sectors agree that alignment of people, processes, and leadership are essential for a successful skills transformation. Daniel Pell from Workday’s Vice President and Country manager, UKI, stated that the UK workforce does not evolve quickly enough to keep pace with technological changes.
To compete in an AI driven economy, companies must rethink their approach to identifying and developing skills. It is not just a matter of technology, but also of leadership, agility, and long-term competition.
