Are employers doing enough to help employees reach their full potential?
A new study predicts that a workforce transformation is on the horizon as outdated structures no longer provide organizations with growth opportunities.
As new technology, post-pandemic challenges and the economy continue to impact the workforce, are employers doing enough to help workers reach their full potential?
According to a new study by Ceridian, leaders are still struggling to adjust to workforce challenges created by the pandemic as well as the current economic climate.
The study found that employers have high optimism about the future, despite citing significant challenges to their workers’ productivity and performance. The current economic climate has created uncertainty and organizations are dealing with both layoffs and labor shortages. Additionally, the study found that even though leaders are investing in modern strategies, they struggle to reskill and promote employees internally.
Over the next two years, Gartner predicts that productivity will become a top-five CEO business priority. Many businesses are also taking steps to create a more flexible workforce in light of uncertainty and change.
For example, 81% of organizations said they’ve started using AI technology to replace repetitive tasks. Companies are also making changes to their hiring practices. Ceridian found that 79% of organizations use skills-based hiring often, or very often, and 80% said they use contingent workers.
The skills that organizations say are most lacking from their teams and they are looking to upskill and reskill including specialized technical skills, industry-specific skills, creative skills and technology skills.
Despite these changes, employers say they still face a number of challenges to achieving their business goals and priorities over the next year.
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Over 50% of organizations said that their biggest challenges over the next year will include employee engagement and retention as well as labor and skills shortages, according to the study. Other challenges cited included increased compliance and regulatory complexity, rising labor costs, employee burnout and outdated technology.
As employers continue to face challenges and meet new demands of the workforce, Ceridian predicts that a workforce transformation is on the horizon as outdated structures will no longer provide organizations with the growth opportunities they’re looking for.