Albert Galarza is the Global Vice President of Human Resources at TELUS International.
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In an era marked by historically low unemployment rates, many HR executives are finding it challenging to address the widening skills gap within their organizations. Particularly, as more complex, sophisticated AI use cases emerge, the need for varied credentials, education, experience and cultural knowledge is quickly becoming a top priority.
According to Springboard Business’ State of the Workforce Skills Gap report, 70% of corporate leaders surveyed reported a critical skills gap that’s negatively impacting business performance. As HR leaders grapple with finding qualified candidates, some are turning their attention to the "hidden workforce." This is a segment of the population that isn't fully represented or accounted for in traditional labor force statistics, such as retirees, caregivers, neurodivergent individuals, people with long-term health issues and those without traditional degrees or qualifications. This group of approximately 27 million people is an undervalued source of talent that has the potential to reshape the hiring landscape in the foreseeable future.
Adapt Your Talent Processes
Despite many members of the hidden workforce being unemployed or underemployed, these potential candidates are oftentimes overlooked by traditional hiring processes. This creates an artificial talent shortage, exacerbates the skills gap and creates unintended barriers for people with unique skills and perspectives who, in many cases, are eager to reenter the workforce.
By adopting a more holistic approach to talent acquisition, as well as better understanding the hidden workforce’s unique motivations for working, HR leaders can more effectively target and appeal to these individuals.
Consider Impact Sourcing
Impact sourcing is one example of a new hiring approach. It's a socially conscious business practice where companies work alongside nonprofits and charities to coordinate employment opportunities for marginalized individuals. Notably, in 2022, research firm Everest Group released a Commitment to Action in support of its goal to increase the impact sourcing market from 350,000 full-time employees to half a million workers by 2025. Multiple companies—including my own firm, TELUS International—have pledged their participation in this effort to reach members of the hidden workforce.
For companies, the benefits of impact sourcing include a workforce that displays a strong commitment to their roles that's driven by the opportunity for meaningful employment. In fact, according to a 2023 Sydney Business Insights survey of 26 American companies, turnover rates were 73% lower for refugee employees, who displayed higher-than-average productivity compared with fellow workers at the same level.
Leverage GenAI For Talent Engagement
Beyond updating your approach to recruiting, effectively engaging with the hidden workforce is key. Once hired, organizations should leverage technologies like generative AI (GenAI) to meaningfully connect and upskill these individuals. Here are a few strategies.
Enhance Inclusivity
GenAI-driven communication platforms can provide chatbots equipped with natural language processing capabilities to understand different languages, as well as features specifically designed for individuals with special needs, such as those with visual impairments. For example, chatbots equipped with voice recognition capabilities or screen reader technology can relay text-based information with audio. They can also be programmed to adapt to different speech patterns and accents, as well as candidate preferences, to create a more inclusive environment for all.
Develop Customized Learning And Development Programs
With the help of GenAI, HR leaders can generate personalized training modules according to individual learning styles, preferences and skill levels. This enables brands to better support their team’s diverse needs. For instance, neurodivergent individuals may process information differently than their neurotypical colleagues and therefore have unique learning styles. GenAI platforms can analyze their preferences, processing speeds and sensory sensitivities to develop training programs that cater specifically to their needs. This could include interactive simulations, visual aids or alternative formats that enhance the learning experience.
AI-Enabled Skills And Job Mapping
GenAI can analyze individual employees' skills and experiences to help match them with projects and roles that best align with their capabilities. For example, if an employee without a traditional degree possesses exceptional project management skills, an algorithm could identify opportunities for them in roles that require these skills. This personalized approach ensures employees are placed in positions where their skills are valued, which contributes to job satisfaction and longer tenure.
As with all GenAI implementations, it’s critical that companies follow best-practice guidelines for its responsible use. This includes creating a governance framework that prioritizes data privacy and mitigates biases.
Spark Innovation With Diversity
Embracing the hidden workforce may be the answer to both closing the skills gap and creating a more dynamic, innovative and resilient workplace. As brands continue to navigate the evolving talent landscape, HR leaders must recognize this segment as a strategic asset. These individuals possess a wealth of experience, skills and knowledge that has the potential to broaden an organization's outlook by introducing them to new ideas, opportunities and possibilities.
The numerous benefits that diverse workforces provide organizations have been well documented, including better financial results, greater access to talent and improved problem-solving. Beyond that, diverse teams bring valuable insight, experiences and cultural relevance that enables organizations to better understand and connect with the consumers they serve, elevating the overall customer experience.
To sustain organizational success, HR leaders must develop alternative hiring practices and incorporate technologies like GenAI to effectively engage and support the hidden workforce. Fostering inclusivity and strategically aligning with individuals' skills will actively foster a workforce that’s built on diversity, innovation and adaptability. In doing so, companies will cultivate a future that's sustainable for all.
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