Deloitte Human Capital Report [shutterstock: 340482578, turgaygundogdu]
[shutterstock: 340482578, turgaygundogdu]
Human Resources Press Release

Deloitte: Almost No Increase In Corporate Investments In Continual Reinvention Of Workforce

With COVID-19 creating urgency around workforce reinvention, it’s clear that while organizations have doubled down on investments in technology over the past decade, many have significantly underinvested in how humans could adapt to and embrace new ways of working, Deloitte study finds.

Only 17 percent of respondents in the Deloitte study are making significant investments in reskilling to support their AI strategy, with only 12 percent using AI primarily to replace workers. Only 45 percent of respondents are prepared or very prepared to take advantage of the alternative workforce to access key capabilities despite gig workers being likely to comprise 43 percent of the U.S. workforce this year, according to the Bureau of Labor Statistics.

In its 10th annual 2020 Global Human Capital Trends report, “The social enterprise at work: Paradox as a path forward,” Deloitte examines ways to create that level of sustainability by finding the intersection between humans and technology and defining the core attributes that need to be embedded in the organization to create and sustain that integration. Having surveyed approximately 55,000 business leaders over 10 years, this is the largest longitudinal study of its kind.

The convergence of humans and technology

With the rapid integration of artificial intelligence (AI), workers are facing new realities of how they can work together with technology to bring out the best in one another. This year’s Deloitte report found that only 12 percent of respondents said their organizations are primarily using AI to replace workers, while 60 percent said their organization was using AI to assist, rather than to replace, workers. Furthermore, 66 percent of respondents believed that the number of jobs would either stay the same or increase as a result of AI’s use in the next three years.

Building off last year’s chapter on “superjobs,” the concept of “superteams” combines people and machines, leveraging their complementary capabilities to help solve problems, gain insights, and create value—addressing a renewed sense of potential and creating new possibilities for the future.

Beyond reskilling and investing in resilience

With the “half-life” of technical skills decreasing, the use of forward-looking workforce metrics is critical for boards and investors to gain insights into the reskilling of workers. Yet organizations are least likely to collect workforce metrics in several critical areas, including the “status of reskilling,” with only 14 percent of respondents collecting analytics in this area.

Organizations recognize that reskilling is important, with 53 percent of respondents saying between half and all of their workforce will need to change their skills and capabilities in the next three years. Yet, only 16 percent of business leaders expect to make a significant investment increase in the continual reinvention of the workforce over the next three years.

With technical skills becoming outdated so quickly, organizations should be investing in longer lasting capabilities like creativity, collaboration, critical thinking and emotional intelligence that can keep their workforce relevant.

Although organizations are trying a variety of strategies to future proof their workforce, 68 percent of respondents report their organizations are currently making only moderate investments in reskilling or no investment at all.

32 percent of respondents identified lack of investment as the greatest barrier to workforce development in their organization, with only 17 percent of respondents expressing confidence “to a great extent” that their organizations can anticipate the skills their organizations will need in three years.

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