Scale By Avec says strategic hiring is the key in the age of AI

Against a backdrop of geopolitical instability and business volatility, AI and automation have radically changed the nature of work and how organisations recruit, train and retain staff. With so much in flux, it is difficult to know when to hire full time staff, bring in contractors or let people go.

Looking for reliable metrics and advice is challenging because old assumptions are no longer valid. Even advice that seemed relevant a few months ago is irrelevant.

Thomas Mackenzie, the Director of Client Services at workforce management company Scale By Avec, says he doesn't know anyone who has this 100% right.

"We've largely minimised staff reductions by focussing on productivity and moving our existing people up the value chain. That means investing in training and development and giving people access to cutting-edge tools."

He says that while AI is automating or accelerating many routine tasks in engineering, it's shifting the role of a senior engineer towards architecture, integration and problem framing. Engineers are spending less time on execution tasks and more time on design.

That's leading to a heightened need for human skills such as problem solving, creativity, collaboration and adaptability. Thomas says recruitment processes need to adapt. While technical skills remain important, the emphasis on human skills means there's a convergence of capabilities that need to come together. That means the best candidate might not be the engineer with the strongest engineering skills but the person with the best blend of technical and human skills.

Many organisations see AI and automation as a tool for reducing headcount. But that can lead to unintended consequences. Entry-level positions, where people have not yet developed technical experience or human skills, are disappearing. The routine tasks that were used to develop technical skills are being handed off to AI and automation tools which, in turn, means new entrants don't have the opportunities to interact in a business environment to develop their human skills. This doesn't just impact young people but those from diverse backgrounds.

"This is not a new problem," explains Thomas. "This is why we've focussed on creating programs to bring younger and more diverse people into the workforce. We've made almost 650 placements across APAC, through our Talent Rise program, with young people, indigenous people in Australia and New Zealand, gender diverse folks and other groups. That's either through supported internships or free placement into our client businesses."

Thomas says the problem of creating entry level positions that give experience and contribute to the business needs a holistic approach. The education system needs to be part of it and professional organisations need to do their part.

"I think we need more awareness to create opportunities for young people. Otherwise, we're not going to have any talent to draw on. Training those skills early at school level is the start and then organisations need to give people opportunities."

Achieving this will require organisational change. In Scale By Avec's case, that meant creating a multi-disciplinary technology change committee that considered every aspect of the introduction of new technology. The company encourages people to try new technology safely as well as allocating training budgets.

One of the impacts of the AI and automation revolution that Thomas has noticed is the 'boomerang effect'. People are being displaced from their jobs as companies embrace AI and automation. But, soon after, they discover that they need the expertise and knowledge of those people. In one example, Klarna reduced headcount because of efficiencies from AI and automation but quickly rehired many of those people.

That comes with costs. Redundancies often require significant payouts and then rehiring comes at a cost.

"We need to remember that AI does increase productivity, but it also increases the complexity of the systems and delivery. If you look at Amazon, a big part of their workforce is the use of robots to do a lot of the picking in warehouses. But you need people to manage and maintain the robots. It's a different skill that people will need to learn," Thomas says.

As well as supporting customers with their workforce management, Thomas says Scale By Avec has used AI an automation to increase productivity without impacting headcount. Some routine tasks, such as completing tenders, that often require re-use of the same information, and scheduling are increasingly automated. This allows customer service and sales teams to spend more time on higher value activities such as building relationships with prospects and clients. This brings more value to the organisation.

Looking ahead, the only thing that is inevitable is continued change. But that doesn't mean organisations can't be prepared.

Thomas says, "Soft skills will continue to be incredibly important – you must keep those sharp. You can't rest on your laurels and think that technical capability will carry you through anymore. Investing in ongoing training and development, by organisations and individuals, of both technical and human skills will ensure people are ready for whatever comes next."

The story of AI and automation does not need to be about job elimination. It can be a story of transformation. The most resilient organisations will treat technology as a catalyst for human development and not a shortcut to leaner headcounts. By investing in continuous training in both technical and human skills and creating pathways for fresh talent, companies can cultivate a workforce that is ready to tackle the complexities of tomorrow's problems.