Tech diversity rollbacks may intensify talent scarcity in the industry - about 45% of recruitment heads express concerns that diminishing diversity efforts could harm their company's attraction and retention rates.
Shortening the Talent Gap: Navigating the AI Skills Crisis
Enterprises are scrambling to find talent with AI skills, but with some companies ignoring diversity, equity, and inclusion (DEI) hiring practices, the situation could become more problematic.
According to General Assembly's State of Tech Talent report, two-thirds of recruitment leaders admit that hiring AI-skilled candidates is proving challenging compared to other tech roles. This means many corporations are shelling out bigger bucks just to secure talent, with 68% stating they typically need to offer higher salaries to AI candidates, compared to last year's 64%.
Simultaneously, companies are finding it increasingly difficult today than three years ago to locate qualified candidates with both the soft and technical skills desired. In fact, the research discovered that three-quarters of tech hiring leaders are worried they're hiring AI workers too quickly and without taking the necessary time to cultivate a sustainable, diverse pool of talent.
"Constructing an AI economy that uplifts everyone — employees and companies alike — is essential," researchers stated. "Doing so necessitates upskilling and reskilling employees for the AI-driven future of work and developing sustainable entry-level pathways into tech careers."
One promising development is that six-in-ten organizations have acknowledged the increased focus on AI skills has highlighted the need for diversity initiatives. Building teams with diverse backgrounds has been proven advantageous when implementing AI strategies. However, concerningly, around 4% of HR professionals surveyed revealed their company had scaled back or abandoned their DEI focus in tech hiring over the past year. Unsurprisingly, hiring leaders are concerned this decision might lead to long-term issues. Almost half believe it could increase hiring costs or lead to higher employee turnover.
According to research, a significant portion of Millennial and Gen Z employees are more likely to remain with a company that boasts a diversified workforce. Furthermore, almost half (45%) of respondents cautioned candidates will view their company as less desirable if it neglects DEI. This aligns with research from Glassdoor, which found potential employees are more inclined to accept a job offer from employers adhering to their values regarding DEI.
In recent months, the discussion over DEI in tech has risen to the forefront, with major tech titans such as Google, Meta, and Amazon scaling back or discontinuing their diversity policies. These moves have invited substantial criticism from industry stakeholders and raised concerns among minority groups throughout the sector.
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Spotlight on DEI in the AI Era
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Elsewhere, the study uncovered skills-related issues among several enterprises. In fact, most VPs and directors reported never having received any training on AI-related topics. Only four-in-ten executives stated they felt very or extremely confident in utilizing AI tools without jeopardizing company data, with more than a quarter expressing apprehension. Furthermore, around two-in-five acknowledged their inadequate comprehension to make decisions regarding vendors using AI.
Daniele Grassi, CEO of General Assembly, underlined the urgency of upskilling executives to prepare for the 'AI era.' "Leaders, technical and non-technical alike, must grasp the legal, privacy, and ethical implications of AI use," Grassi said. "They need to know how to assess AI vendors, protect company data, and direct their teams on utilizing AI in their work. Companies without established AI usage policies and executive upskilling on AI risk adverse consequences such as data breaches and competitive disadvantage."
- Navigating the AI Skills Crisis requires not only finding the right talent but also focusing on diversity, equity, and inclusion (DEI) in hiring practices, as a lack of DEI could exacerbate the situation.
- The future of work, driven by AI, necessitates upskilling and reskilling employees to ensure a sustainable, diverse pool of talent is nurtured and developed.
- In the AI-driven era, cybersecurity becomes crucial for businesses as leaders, both technical and non-technical, need to understand the legal, privacy, and ethical implications of AI use, and protect company data from breaches.
- Companies that prioritize diversity in their workforce are more likely to attract and retain Millennial and Gen Z employees, and are perceived as more desirable by job candidates, according to research.
