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HowAIIsShapingtheFutureof
WorkforceManagement
MARKETTRENDSREPORT
Introduction
Closingthetalentgapis
apriority
forpublicsectorleaders.It’saperennial
strugglethat’sbecomehardersincethepandemicthrewtheworkforceand
workplaceintoatailspin.Now,workersexpectjobstocomewithstate-of-
the-arttechnicaltoolsforcompletingtasks,andlearninganddevelopment
opportunitiesare
must-haves
.
Thosedemandsaren’tallthatdifferentfromITmodernizationeffortsacross
stateandlocalagencies.Tobemoreeffectiveandefficientatmeetingtheir
missions,departmentsareworkingtochangewiththetimes,embracing
cloudandemergingtechnologylikeartificialintelligence(AI).Theyneed
tech-savvyworkerstoimplementandoperatethem.
Butaworkforceshortagestemmingfromthe
GreatResignation
of2021-22
persists.Jobopeningsatthestateandlocalgovernmentlevelsnumbered
959,000inMay2023,comparedwith928,000openingsayearearlier,
accordingtotheBureauofLaborStatistics
.Atthesametime,agencies
hiredforonlyaboutathirdofopeningsatbothtimes.Sincethepandemic
startedin2020,
morethanhalfofstateandlocalworkers
havesaidtheyare
consideringleavingtheirjobs.
AIisprovinganimportantallyintherallyfortalent.Sure,it’sdominated
headlineswithdoomsdayscenariosaboutbiasesandotherconcerns,but
usedcorrectly,AIcanbeaboontogovernmentworkforcechallenges.That’s
whysomeagenciesareincorporatingitintoworkforcemanagementtools.
GovLoopcollaboratedonthisreportwithWorkday,aproviderofhuman
capitalmanagementsoftwaresolutionsthathasdonejustthat,toexplore
howAIcanhelpaddresssomeofthepublicsector’smostcommonand
pressingworkforcechallenges.
changeinEmployment,bysector
11.1%
0.6%
2.4%
-2.2%
Local
-4.3%
state
2.1%
private,Non-farm
2008-2020
2020-2022
AIistheability
formachinesto
performtasks
traditionally
seenas
requiringhumanintelligence.
DatafromJuly2008-February2020andFebruary2020-December2022
Source:
MissionSquareResearchInstitute
Inthepastyear,35%ofstateandlocalemployees
reportacceleratingtheirretirementdate,accordingtotheMissionSquareResearchInstitute’s
StateandLocal
Workforce2023SurveyFindings
,publishedinJune2023.
ByTheNumbers
Stateandlocalgovernmentemployment
levelsarestilllowerthantheywerebeforethepandemic,withstategovernmentsmissing
200,000jobs–adeclineof3.8%,relativeto
February2020—andlocalgovernmentsdownby305,000jobsor2.1%,accordingto
Forbes
.
AIvs.ML
MLisamodelwhich
reliesondataand
self-modifying
methodstoidentifypatternsandmakepredictionsor
generatecontent.
whyEmployeesAreLeaving
ToP3Reasons
ToP3Reasons
ToP3Reasons
EmployeesAreconsidering
consideringRetiringand/or
causingIncreaseInpeople
changingJobs
LeavingtheworkforceEntirely
LeavingTheirJobsvoluntarily
52%
42%
58%
wantahighersalaryor
Feelburnedoutfromstress
Addedstressdueto
abetterbenefitspackage
ofjobduringpandemic
thepandemic
47%
37%
52%
Feelburnedoutfromstress
wanttimetodothings
concernaboutsafetydue
ofjobduringpandemic
thatbringjoy
tocovlD-19
36%
26%
47%
Needbetterwork-lifebalance
Tensionhavefacedworkingwith
thepublic(orstudents,parents)
peoplearerethinkingwhattheywanttodo
8in10
saytheincreaseinnumberofpeopleleaving
voluntarilyhasputastrainontheirworkload
Source:
MissionSquareResearchInstitute
HOWAIISSHAPINGTHEFUTUREOFWORKFORCEMANAGEMENT3
TheWorkforceIsChanging.AgenciesMust,Too.
TheChallenge:WorkersWantOptions
Stateandlocalagenciesarecontendingwithseveralchallengeswhenitcomestotheirworkforces.
Achangingworkforcemindset:Whereasworkersusedtotakeagovernmentjobandstayinitfordecades–
movingfrom,say,humanresourcesspecialistItoIIto
III–thenextgenerationofworkersismuchmorelikely
towantvariedexperiences.Thatmeanshiringmanagersmustbuildsuccessionandriskmanagementplanstodealwiththismoretransitionalpopulation.
Antiquatedrecruitmenttechnologies:Platformsthataren’tuser-friendlytotoday’stech-savvyworkforce
won’thelpagenciesconnectwiththebesttalent.Infact,outdatedrecruitmenttoolsgivetheimpressionthattheagencyisbehindthetimes.Plus,itcantakemorethanamonthforstatesandlocalitiestorespondtoapplicants,accordingto
SecuringStates:ModernizingtoAttractand
RetainCyberTalent
,areportthatNASCIOpublishedinMarch2023.Bythen,manywould-beworkershavetakenjobselsewhere.
Surgingdemandforupskilling:Workersarelookingforopportunitiestogetdiverseexperiencesthrough
upskilling,trainingandinternshipprograms,makingitpossibleforemployeestoleveragethoseskillsacrossdivisionsandagencies.Thatcangoalongwaytowardretaininggovernmentworkerswithoutneedingthemtostayinthesamejob.
“Notonlyisgovernmentinnatelymission-oriented,butitprovidessuchaphenomenalwork/lifebalanceinalotofwaysthatthisnextgenerationisveryinterestedin,”saidMichelleOltmans,aFederalSolutionsStrategistatWorkday.“Ifwecangetoverthetechnologyhumpandprovidesometechnologiestostreamlineexperiences,Ithinkit’sareallynicematch.”
TheSolution:ABoostinIntelligence
AIisagame-changerwhenitcomestothreemainworkforceareas:
Recruitment:AIcanhelpjobapplicantsensurethatthetermsthey’reusingtodescribetheirexperienceandskillsmatchwhatanagencywants.Considerhowmuchmore
accurateandcompleteapplicationswouldbeifagenciesofferedtechnologythatcanautomaticallyreviewresumesandsuggestskillstoadd.Anexampleisthe
MilitarySkills
Translator,
whichcanhelpjob-seekersarticulatewhat
theirmilitaryexperiencemeansforcivilianemployment.
“That’sgoingtohelpnotonlymeasacandidate,
potentiallymatchingatahigherlevelwithaparticularjobopening,butitalsohelpsmeandthepotentialemployerspeakthesamelanguage,”Oltmanssaid.
Retention:AIhelpsagenciesandemployeesalikesee
whereopportunitieslieforinternalmobilityandchartingcareertrajectorieswithingovernment.Forinstance,
workerscouldaskanagencychatbothowtheycangainaparticularskillandgetresultsaboutavailabletrainingcoursesorpeopleintheorganizationwhocouldserveasamentor.
AvariationofthisusecaseisusingAItofillemploymentgaps,Oltmanssaid.Hiringmanagerscouldqueryamodeltodeterminewhethersomeoneinternallyhastheskill
setstheyneedforaparticularjob.
Automation:AgenciescanuseAIandMLtoautomate
manyoftherotetasksthatmakeajobtedious.For
instance,MLcancheckformsthatneedtobeforwardedforapprovalstobesurethey’recompleteandaccurate,takingthattaskoffsomeone’sto-dolistsotheycan
contributeinamorevalue-addedway.
“Whenwe’rethinkingaboutresourceshortages,which
weknowthatgovernmenthasacrosstheboard,we
reallywanttousethesetechnologiestoautomateandstreamlinethingsasmuchaswecansothatwecantakeadvantageoftheresourcesthatthoseagenciesalreadyhaveinplace,”Oltmanssaid.
HOW
AI
ISSHAPINGTHEFUTUREOFWORKFORCEMANAGEMENT4
BestPractices:
4WaystoUseAItoMaximizeYourWorkforce
1.Mitigateriskwithaccountability.
Withanynewtechnologycomespotentialrisks.SomeelementsofAI,suchasnew
generativetechnologies(e.g.,OpenAI’sChatGPT,GoogleBardorAmazonBedrock),causetrepidationaboutbiasedorinaccurateresults,whichcanslowagencies’adoption.ToavoiddelaysinreapingAI’sbenefits,mitigatethoseriskswithaccountability.AllowemployeestointeractwithagenerativeAImodelonlywithrole-basedaccess,forinstance.
2.Thoroughlytest.
Anotherrisk-mitigation–nottomentionqualityassurance–mechanismistesting.Themostimportantfactorforpreventingriskisdesign,butthatdesignmustbetestedsoyoucan
seehowtheAIperformsinvariousscenarios–andhowyouneedtosetupremediations
forwhensomethinggoeswrong.Afterall,nomatterhowmuchtestingyoudo,things
happen.ButiftheAIisdesignedandtestedwell,youcanbeconfidentthatyou’redeployingsomethingsafe.
3.Bethoughtful.
CarefullyconsiderwhereAIcapabilitiesbestfitintoyourprocesses.MLworkswellin
transaction-orientedenvironments.Andwhenyouthinkabouthumancapital,thereare
twoareasmainareasthatapply:timeandattendanceandpayroll.MLcanbeespecially
usefulindetectinganomaliesin,say,overtimeandalertingmanagerstothem.Butwhile
youdowantAItofindthoseanomalies,youdonotwantittoautomaticallyremediatethemandupdatethegeneralledgerwithouthumanreview.Similarly,bemindfuloftrainingsothatemployeesknowhowtouseAItechnologiestotheirmaximumadvantage.
4.Takeahuman-centricapproach.
AbigconcernforworkersisthatAIwill“steal”theirjobs.ButAIworksbestasan
enhancement,notareplacement.Forinstance,youwanttouseAItoimproveskills
matchingduringrecruitment,butyoudon’twantittomakehiringdecisionsbecausethoserequirehumaninterventionandsoftskillsthatmachinesdon’thave.“Whetheryou’re
thehiringmanagerorthecandidate,youhaveultimatecontrol,”saidShaneLuke,VicePresidentofProductEngineeringandheadofAIandMLatWorkday.“Weliketousetheterm‘augmentedintelligence’insteadofartificialintelligence.TheAIisaugmentingwhatthepersondoes,butitisnotsomethingthatwewanttoputincompletecontrol.”
“Wecan’tdeliverwhatweneedtodoforourcitizensifwedon’thaveworkforcetodoit.”
-StephanieDedmon,chiefinformationofficer(CIO)forTennesseeandpresidentoftheNationalAssociationofStateCIOs,speakingat
NASCIO’smidyearconference
HOWAIISSHAPINGTHEFUTUREOFWORKFORCEMANAGEMENT5
Conclusion
TheU.S.workforceischanging.BetweenhighretirementeligibilityandfalloutfromtheGreatResignation,a
shortageofworkerscontinuestoplaguethepublicsector.Andthenextgenerationofworkershaveverydifferent
expectationsfromwhatmanyagenciesareusedto.
Theywantmodernjobapplicationexperiences,
automationtohandlerotetasksandplentyofopportunityandflexibilityformovingaroundwithintheagencytheystartwithandothers.Inotherwords,thegovernment
workforceneedswhatDeloitteInsightscalls“‘
trisector
athletes
’—individualswhocanbridgethevastlydifferentculturesofthepublic,privateandnonprofitsectorsandapplytheircross-sectorskillsandexperiencestothemostpressingchallengesoftoday.”
Technologyisbothacauseandsolutiontotheproblem,whichisabitchickenvs.egg:Agenciesneedmodern
technologytoattractmodernworkers,butalsotoimplementandmaintainthattechnology.
Sowheretostart?WithAI.AIandMLcanhelphiring
managersstreamlineandexpeditereviewsofapplicationsbyensuringthatskillsmatchbeforearesumeeverlandsintheirinboxes.Then,oncepeoplearehired,AIcan
helpkeepthememployedbyshowingthemhowto
achievetheiridealcareertrajectorythroughtrainingandmentorship.Italsohelpsincreaseemployees’enjoymentoftheirjobsbecauseAIcanautomatethetedious,
repetitiveworkthatoftendrivesworkerstolookforopportunitieselsewhere.
Therightplatformcanalleviateconcernsaboutdata
inaccuraciesandbiasbyanalyzinghowskillsareusedinhumanlanguage,understandingtheirrelationshiptooneanotherandmappingthattoaskills-centricworkforceatscale.
HOWWORKDAYHELPS
WorkdaybuildsAIandMLintoitshumanresources
managementplatform,sothatitcanrapidly
deliverandsustainnewML-infusedcapabilities
intoapplications.What’smore,Workdayusesa
tenantedmodeltostructureitsvastamountofdata,
allowingcustomerstoaccesscustommodelsthat
adheretoprivacyandsecurityrulesandregulations.
Additionally,customerscanincorporatethird-party
datausingWorkdayPrismAnalytics,aself-service
analyticssolutionforhumanresourcesteams.
KeycapabilitiesofWorkday’sAIinclude:
•Skillsontology,suggestions,matchingandreporting
•Intelligentprocessautomation
•Anomalydetection
•AI-a
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