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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,”O(jiān)ltmanssaid.

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,”O(jiān)ltmanssaid.

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‘a(chǎn)ugmentedintelligence’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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