NEWS
Leading employers are shifting to skills-first hiring as AI reshapes workforce at breakneck speed
New research from Top Employers Institute shows that businesses prioritising skills over qualifications are outperforming in retaining high-performing talent – critical to staying competitive in an AI-accelerated economy.
The report, titled Building a Skills-First Workforce, draws on Top Employers Institute data from 2,300 organisations across 26 industries and 125 countries. It reveals how AI and automation are pushing companies to deprioritise traditional ways of hiring and managing employees.
According to Top Employers Institute, a skills-first approach, where employers focus on what potential and current employees can do in practice, rather than on paper, has proven benefits. Highly profitable Top Employers are 4 – 5 % more likely to have adopted a skills-first approach.
Skills-first employers are also 7 % less likely to lose high performing employees and are witnessing higher internal promotion rates and improved access to diverse talent pools. With turnover costing between 30 – 200 % of an employee’ s salary, skills-first strategies are becoming a critical bottom-line safeguard.
Companies are increasingly using integrated skills data to rapidly redeploy talent to priority projects, avoiding costly external hiring and retaining high performers by communicating future needs and through meaningful internal opportunities. Adoption of AI-driven talent marketplaces, which match employees to internal roles and projects, is highest in technology progressive sectors like IT( 59 % adoption), signalling a shift to dynamic, skills-based workforce mobility. It is at its lowest in sectors such as retail( 22 %) and consumer goods and services( 30 %).
Chief Minister announces new oversight body to seize opportunities of AI
Anew National Office for AI Development and Regulation, which will help the Isle of Man both seize the economic opportunities of Artificial Intelligence and respond to the challenges it presents, has been announced by the Chief Minister, Alfred Cannan MHK.
In a world that is rapidly changing, the Chief Minister said the island would need to look at skills and training as well as the growing demand for governments to regulate AI, which need to be considered responsibly, and which could offer opportunities for the island’ s economy.
Making the announcement during his welcome address at the fourth Isle of Man Government Conference, the Chief Minister set out the case for change, saying that the capabilities of Artificial Intelligence will significantly challenge the status quo and that those who are unprepared will struggle to remain competitive. Cannan also highlighted the potential risks to the economy that come from such rapid changes in technology, saying these also needed consideration.
The new National Office for AI Development and Regulation will also play a role in bringing forward government’ s plans to digitise public services.
Cannan said the island must move quickly:“ The public and private sectors must work in lockstep to realise and recognise the benefits and opportunities presented by rapid advancements in technology.
“ Establishing a National Office for AI Development and Regulation will enable both government and business to work together in co-ordinating and driving forward the island’ s response to the AI revolution.”
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